Guidant Financial Group Blog

According to the Investment Company Institute, only 14 percent of Americans eligible to make IRA contributions did so in 2006. This means that more than 85 percent of Americans are not actively investing in their retirement future.

According to an article in today’s New York Times (see A Stalwart of Retirement Planning: The I.R.A.), two reasons many Americans aren’t saving is the confusion surrounding what kind of account to open and what contribution rules apply once they have an account established.

The Times article does a great job of outlining some of the different kinds of retirement accounts and the contribution limits of each, but the author seems to think that an IRA (traditional or Roth) is the best way to go.

One thing that many prospective Guidant clients don’t realize is that just about any kind of retirement account can be self-directed. We have had clients self-direct traditional and Roth IRAs, SEPs, Simples and Keoghs.

A traditional or Roth may be the best for you; however, take the time to really examine all your options. Because just about every retirement account can be self-directed, you have the luxury of determining what kind of retirement account is the best fit for you.

Just be sure that the contribution restrictions aren’t so confusing that they deter you from making them!