There are many investment retirement accounts out there and most of them are quite good. In 2010 there was a great panic when the stock market took a nose dive and many investors lost a large percentage of their money. Keep this in mind when you invest. You are still taking a risk. Oddly enough, though, not taking a risk, not investing, is the surest way to financial insecurity.

There are many types of retirement investing accounts out there. The most popular are IRAs which are Individual Retirement Accounts. They provide workers with tax incentives that will enable them to invest. IRS Publication 590 describes these IRA’s in full detail. The language can be a bit difficult but it is always good to look directly at the source. If you want to find out more about the different IRAs, visit this gold ira website.

There are several types of IRAs including:

Traditional IRAs were introduced in 1986. For the most part they are tax-deductible but once you start drawing from it in your retirement it is considered income. Therefore, at that time, it is taxed. However, your contributions are tax deductible. These are good investments to make when you are at your peak earning power. You can deduct the contributions now and save on your taxes. Later, after your retirement, your income will be lower. Your tax rate will be much lower when you draw on this investment in the future.

Roth IRAs were introduced in 1997. With this investment all transactions are considered tax free. When you choose a Roth IRA you are not paying any taxes but nor are you going to get a tax break from your investment.

SEP IRAs allow your employer to pay directly into your IRA without having to pay into a pension fund. This is mainly for small businesses and those who are self-employed.

A SIMPLE IRA is used for larger companies. Companies will usually pay an employee matching funds into an IRA account on behalf of the employee. If this sounds like a 401(k) you are correct. The only difference is that the contribution limits are lower. In a SIMPLE IRA less money goes to administration fees.

A Self-Directed IRA gives the contributor autonomy. The account holder will make investments on his or her behalf. This is a risky proposition. Unless you have a lot of time and resources on hand, this is probably not your best option.

Remember, see a professional before making any decisions.