Broker Check

How the IRA Enhancer® Fits Into the IRA Landscape

| February 04, 2015
Share |

Did you receive any bonds or other securities when you were born from a family member or friend? You can cash those in toward opening an IRA (Individual Retirement Account). How about all those trips to coffee shops on your way to work? Skip the caffeine stop, and deposit those few dollars into a mug at work to place into your savings. Then, you can have a little extra for a year end contribution into your retirement fund. We have lots of ideas on how you can increase your savings.

We believe that you can never start saving for retirement too early. There are many retirement options for individuals, but you have fairly simple options when opening up an individual IRA. You've heard the word Roth before, and traditional IRA, but what about the IRA Enhancer®? We hope to introduce you to how the IRA Enhancer® at Weston Banks Wealth Partners fits into the overall IRA conversation.

(Video link? not active now)

Here is a quick overview on the different types of IRAs for individuals:

  • Traditional IRA: You are eligible for this IRA if you have earned income and are under age 70 1/2. Contributions can be up to $5,500 per person aggregated for all traditional or Roth IRAs, unless you reach age 50 by the end of the calendar year; reaching that age permits an extra $1,000 "catch-up" contribution. When you withdraw the money, deductible distributions are taxed at the income tax rate for the year that the withdrawal is made. Also, there is a Required Minimum Distribution (RMD) that must begin by December 31 of the year that the IRA owner turns age 70 1/2. The Traditional IRA has several other complex rules to keep in mind, but these mentioned above are the main considerations to keep in mind. 
  • Roth IRA: You are eligible for this IRA if you have earned income, regardless of your age. Contribution limits are noted above. When you desire to withdraw money, you can either have qualified or non-qualified distributions.  If you've had your account for 5 years and reached age 59 1/2 or older, incurred a disability or death, or purchased a home for the first time, then your distributions are qualified and exempt from taxes and penalties. If you do not meet those two considerations, then you have non-qualified distributions which are subject to various ordering rules. In comparison to the Traditional IRA, Roth IRAs do not have RMDs. 

So, where does the IRA Enhancer® come into play? 

When you invest money in an IRA, it is subject to the ups and downs of the market just like any other investment. There are so many options out there of what to do with the funds once you've contributed them into an IRA. That's when the unique approach of the IRA Enhancer® portfolio starts to stand out among the rest of the options. Risk is a part of investing in the market, but the way these tactical managers work is by seeking downside protection when the risk is rising. How do we do that? We minimize the risk by taking your IRA out of the volatile market where equity risk is rising. 

Steps to take:

  1. Talk to us about your retirement financial situation and related questions
  2. Move your IRAs over for us to manage
  3. Consolidate accounts into either Traditional or Roth IRAs
  4. Choose to invest your money in the IRA Enhancer® portfolio
  5. Rest knowing that your money has the potential to grow in a tax-smart place, managed by professionals who spend their days reading and responding to market signals.

We've put together a brochure to help explain the benefits of the IRA Enhancer®.

Click Here to Download

Share |