0 How to Set Up an IRA That Matches Your Personality

Are you a risk-taker? Are you heavily influenced by what your friends are doing? How about your outlook on the future- how stable is your income? Believe it or not, these things matter when it comes to investing for your retirement. Ask any financial planner or investment consultant: setting up an investment portfolio is not just about crunching numbers and analyzing stocks. It requires a bit of analysis of the investor, as well! A common way to save for retirement is to open up an Individual Retirement Account (IRA). An IRA is just a mutual fund that's set up specifically for you to draw income from after you retire.

Why Open an IRA?

There can be some tax advantages of opening up an IRA, but one of the main advantages is that you have the freedom to choose whatever stocks and bonds you'd like to invest in. That's different from an employer-sponsored retirement account, where you just put the money in and they choose how to invest it.

How Do I Know What to Invest In?

Well the freedom to choose your own mix of stocks and bonds is nice but what if that's all a bit over your head? What's the difference between a mix of 20% stocks and 80% bonds and a mix of 50/50% stocks and bonds? Well the good news is: you can use a financial investor to help you out. If you can't afford one, here's how to set up an IRA that meets your needs and matches your personality.