This morning I found a good article provided by Morningstar that offers 12 tips to managing a successful IRA. In the past we have discussed IRA terms to know, how to improve your IRA, and even 20 personal finance tips for 2009. This should make a good addition.
What seems to be the common theme is just playing your cards smart. If something is working (like an investment strategy), try something different. And with IRAs specifically maximizing contributions to feel the full effects of compounded returns is a must.
We’ve shortened the article which focuses on “Dos and Donts” to simply list the tips as they are:
- Use Morningstar’s IRA Calculator.
- Evaluate whether a conversion from a traditional IRA to a Roth makes sense.
- Consider tax-managed funds.
- Bear in mind your overall asset-allocation plan.
- Pay attention to asset allocation.
- Be a contrarian.
- Forget about your spouse.
- Assume that you need a lot of cash on hand to invest in an IRA.
- Shelter investments with tax benefits such as variable annuities or municipal bonds inside an IRA.
- Let assets languish in a lackluster 401(k).
- Put off investing in an IRA because you may need the money for a shorter-term goal.
- Assume that you don’t need to contribute to an IRA if you already contribute to a 401(k).
IRA Dos and Don’ts
Christine Benz, Morningstar
Yahoo Finance, February 18th, 2009