IRA Rates of Return

When you invest your money in an IRA you need to treat it like any other investment. Priority number one is ensuring you get the best returns possible on the money you put in. This is especially important in the case of an IRA given that the funds are meant to be a prime source of income when you reach your retirement years. In order to make the best decisions necessary you need to be equipped with the right information regarding IRAs and their rates of return.

IRA Rates

Strictly speaking with standard IRAs there are no concrete rates. What your IRA will yield largely depends on the types of investments you make. If you make larger investments in high risk stocks there are opportunities to gross large profits, albeit with the higher risk of losing a fair portion of those investments. Conversely, by locking up your money in less risky endeavours such as mutual funds you are more likely to see steady growth. IRAs can distribute their funds in multiple ways. We have already taken a look at private stocks or bonds and mutual funds. An IRA can also invest in a fixed annuity which is the interest guaranteed to be paid out by the company handling the funds. Similarly, IRAs can invest in treasury securities and government bonds which will receive a rate from the interest paid by those government bonds.

These options hold true for both Traditional and Roth IRAs. To get the best IRA rates or the best Roth IRA rates decide how you would like to distribute your money as you can seek out traditional markets (stock market, mutual funds, fixed annuities, etc.) or you can try less traditional markets which are equally viable and can also yield high returns (real estate).

Read more