Question about IRA's

I'm looking to get Into an IRA & I wanted to know if any of you have them. What kind of IRA do you have. I also checked a few places that offer IRA but they are not insured by the FDIC. Are all IRA not covered by the FDIC or are there some that are covered by the FDIC? I just want to make sure that my IRA are Insured. I looked Into Ingdirects IRA but they are not covered by the FDIC. Thanks for your replys In advance.

Legends

 

IRA is an Iranian terrorist organisation that hates Britain, if you didn't know

 

I have a Roth IRA. That means the money I put in is already taxed. But, when I pull it out it will be all tax free.

A normal IRA is tax-deductible, but when you pull out the $ you pay taxes on it.

I'm almost positive that IRAs are FDIC insured, if the brokerage you buy it from is. Mine's at Etrade.

 

I don't have an IRA, but I want to get a normal IRA by the end of the year. If you get an IRA with a large company, it should be FDIC insured.

The one thing I know about IRAs is that you can use them as a tax shelter, and you can use the money as a vehicle to invest in tax lien certificates.

 

If you don't want to do a lot of hands-on managing of your IRA, here's a recommendation from the finance professors at my son's university — invest in Index Funds. For example, invest your IRA in a mutual fund that buys stocks to mirror exactly the stocks in the S&P 500 index.

That way, over the long haul, your IRA will grow almost exactly in line with the S&P 500, or whatever other "index fund" you choose to invest in. Over the course of time, if history holds true, you will increase 10-11% per year in the S&P. Using the traditional "rule of 72" for figuring compounded interest, that means your invested money will double about every seven years.

Of course, there is no guarantee. But time is your best friend in investing. Get your IRA money in each year. Try to max it out. Your investments may go up or down in any given year. But time (decades, not years) will almost certainly earn you a nice increase in your investments.

As the person above said, if you can afford to invest in a Roth IRA, you will not get the tax break now. But all the money you take out at the other end, in retirement, will be tax-free.

In sum, especially for younger investors, I highly recommend a Roth IRA invested in Index Funds.