Each investor has different concerns, priorities, and financial goals. Still, the following guidelines are helpful for every investor to keep in mind.
DO:
Take advantage of the flexibility
of
IRAs to invest in individual stocks and funds you
don't usually have access to in a
salary
reduction plan,
where your investment
choices are often limited.
Make investments that
have the potential to grow over the long term.
Contribute as much as
you can in a lump sum early in the calendar year,
or at least make regular deposits.
DON'T:
Don't let your money sit
in an investment that's not performing to expectations
or not meeting
benchmarks
for that kind of investment.
Don't shelter tax-free
investments, such as municipal bonds, in a traditional
IRA, since your earnings will be taxed anyway.
Don't wait until the deadline
(April 15 of the following year) to make your contribution,
since you could lose out on potential earnings.
