{"id":86,"date":"2017-04-03T15:17:54","date_gmt":"2017-04-03T15:17:54","guid":{"rendered":"https:\/\/www.truenorthwealth.com\/the-dos-and-donts-of-ira-investing\/"},"modified":"2021-12-14T21:58:36","modified_gmt":"2021-12-14T21:58:36","slug":"the-dos-and-donts-of-ira-investing","status":"publish","type":"post","link":"https:\/\/www.truenorthwealth.com\/the-dos-and-donts-of-ira-investing\/","title":{"rendered":"The Do\u2019s and Don\u2019ts of IRA Investing"},"content":{"rendered":"

An Individual Retirement Account, more commonly known as an IRA, is a standard savings account approved by the IRS that grants significant tax advantages for users. While retirement is the most common way people use IRAs, it\u2019s not the only way IRAs can be used. In fact, a common misconception around IRAs is that the account itself is an investment. In reality an IRA serves as the holding place for investments like stocks, bonds, mutual funds, and other assets. In today\u2019s post, we explore the other ways IRAs<\/span> can be used like for the down payment of a house, to cover college education costs, for medical expenses, as a tax-free gift to beneficiaries, as disability income, or even to purchase investment properties. <\/span><\/p>\n

Traditional IRA vs Roth IRA <\/strong><\/h2>\n

To begin our discussion on IRAs, it\u2019s first important to distinguish the differences between a traditional IRA and a Roth IRA. Both are used as a way to grow retirement savings. Where they differ is in terms of taxation; specifically in whether taxation is done prior to adding funds to the account or if it\u2019s done upon withdrawing funds.<\/span><\/p>\n