A benefit of using a Traditional IRA is the potential for yearly tax deductions, if you qualify, while saving for your retirement. While the tax deduction benefits of a Traditional IRA are widely known, Investopedia
writer Tim Parker reveals other important facts about Traditional IRAs in his article “5 Secrets You Didn’t Know about Traditional IRAs
The first item the article focuses on is a slight, but important distinction about how people reference using a Traditional IRA. Often, people will say “I’m investing in a Traditional IRA” when a traditional IRA really isn’t an investment. The Traditional IRA is an investment vehicle with tax advantages which allows people to invest in assets that they select.
Parker’s article reveals another Traditional IRA fact that was not completely understood in the past – you can invest in real estate. There are rules investors must follow, but investing in real property with a Traditional IRA has been allowed since their inception in 1974.
It is important to understand all retirement planning options to best prepare for your financial future and this is why it important to review articles that provide insight on investment vehicles such as the Traditional IRA are important to read.
Check out the rest of the Traditional IRA facts here
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