Conventionally the defined benefit pension plans were the most used kind of retirement accounts that were used by most employees who were saving for their pension. However, with time the individual retirement account was introduced and replaced the defined benefit pension plans. This is after the workers wanted to have full control of their retirement investment. With a good financial advisor like David Kanani you are able to use your retirement account as a tool for your retirement planning. Using the individual retirement account for saving your retirement benefits will suit you in many ways as discussed in this article.
You don’t need permission to access the account
One of the significant advantages of an individual retirement account is that you will not be restricted to use your account any time you want. You have full control and access to the amount of money that is in the article. You will access the account and the money in it without having to seek permission from anybody or the account managers. In addition, you will be able to access your funds at any time when you have needs.
The funds are transferable
Traditionally retirement savings were not transferable from one’s account to somebody’s account. However, with an individual retirement account, you will be able to transfer funds freely without any worries. This means you don’t need to carry cash to give it your kin but you can just make a transfer and you are good to go.
You control how savings are invested
When you have your saving in an individual retirement account, you have control over your account. This means you are in charge of all the tasks you want to do for your account. In addition, when you have an individual retirement account, you will be able to decide on how your savings will be invested. You will have the option of choosing among mutual funds, stocks, and bonds or certificates. Choose an investment plan that will suit you.
Easy to maintain and set up
Usually, when you have an investment account, you have to maintain and set up, and this will need a lot of funds and time to do it. Usually, with an individual retirement account, you don’t need much hassle, you will experience less set up or maintenance. In addition to an individual retirement account, your funds will be tax-free. This means you will not worry about your savings getting taxed.