The Three Big Takeaways
- Every investor should have an IRA (individual retirement account)
- Retirement accounts are the single most important part of your long-term financial health (the reason: tax savings)
- Titan IRAs are simple, transparent, and the best way to invest with Titan, and our IRA Concierge is here to do all the heavy lifting for you
What are IRAs?
IRA stands for “Individual Retirement Account.”
Simply put, IRAs are a special type of investment account that offer attractive tax breaks in order to help people build their savings for retirement.
Why are IRAs so important?
Two words: tax savings.
While they do have more restrictions around withdrawals and can sometimes result in penalties if you withdraw early (i.e., before retirement), IRAs allow you to reduce the amount of taxes you owe on your investments, which means more money in your pocket at retirement.
Tax-advantage investing could help you increase your retirement account's value by more than 15% by the time you retire.
If that sounds like chump change, consider this - for someone who starts soon after college and makes the $6,000 maximum contribution every year through retirement, that extra 15% could mean over $300,000 in additional value. That could be a second home, a child's college education, and then some.
Results are illustrative. Chart assumes $6,000 annual contribution, 10% compound annual growth rate (CAGR), 25% income tax rate, and 15% capital gains tax rate.
Which type of IRA should I set up?
There are two main types of IRAs:
- Traditional IRAs offer you tax breaks upfront when you fund your IRA account, but they don’t provide any tax benefits when it comes time to withdraw your savings.
- Roth IRAs work the other way around. They don’t offer any tax breaks upfront, but they do allow you to withdraw funds tax-free at retirement.
If you don't know which to choose, no worries - we cover that decision in detail in this article. In short, while there are many granular differences between Traditional and Roth IRAs, Roth IRAs are increasingly recommended by personal finance and tax experts for individuals who don't have a preference between the two.
This is mostly due to the greater flexibility Roth IRAs offer for individuals around contributions and withdrawals.
For a detailed more comparison of Traditional vs. Roth IRAs, please head here.
How does Titan’s IRA differ from others?
Great question. We designed Titan for Retirement from the ground up to be the best IRA product on the market, bar none.
Unlike other platforms, Titan doesn’t invest your IRA funds in a basket of average companies. We think your retirement savings deserve better.
Titan’s flagship investment strategy invests your money in what we like to call “long-term compounders” - businesses whose characteristics make them ideal for a long-term portfolio (like a retirement fund).
These companies tend to be high-quality ones, with high returns on capital and long secular growth runways. They tend to outperform others over the long-term because, in the long run, stock market performance tends to track businesses’ underlying quality.
IRAs are similarly built for tax-advantaged long-term compounding. They offer very attractive tax benefits for those who are willing to stash away funds today for a bigger nest egg at retirement.
In short: we believe IRAs are the perfect vehicle from which to capitalize on Titan’s flagship investment strategy. Titan IRAs combine tax savings with the power of long-term compounding - a match made in heaven for any long-term investor.
How do I get started?
Getting started is absurdly simple, thanks to our IRA Concierge.
Simply download (or update) our app, then create a new retirement account. If you're an existing client, this option will be available on the Account tab under "Open a New Account."
That's all there is to it! Our IRA Concierge will handle everything from there.
If you're interested in transferring over an existing IRA, 401(k), or 403(b), you'll be able to do so via this method as well.
Again, no paperwork, no frustration. Just sit back, relax, and watch the magic of tax-advantaged compounding take hold.