Opening An IRA: Your Path to a Secure Retirement Starts Here

Many Americans feel they don’t have a solid plan for retirement. The ones that do still worry about being able to live comfortably once they’ve gotten there. Maybe you share that concern. Or maybe you do feel on track, but want to give yourself more of a cushion when you get to that chapter. Even if you’re already set up with an employer-sponsored plan like a 401(k), having your own Individual Retirement Account (IRA) can offer you a wider range of investment choices and is a strategic supplement to an existing retirement plan.

Where to start? You’ve landed here, so you’ve already taken the first step. After this, opening an IRA is pretty straightforward process.

Steps to open an IRA Account:

1. Decide between a Traditional IRA or Roth IRA.

The biggest difference between the two? When you pax taxes. A Traditional IRA helps you save on taxes today, while a Roth IRA saves you from paying taxes later in retirement. With a Traditional IRA, contributions are made with pre-tax dollars, which can lower your taxable income for the year. But, when you retire and start withdrawing money, your contributions and earnings will be taxed as regular income. With a Roth IRA, contributions are made with after-tax dollars, meaning you don’t get an immediate tax break. But when you retire, your contributions and earnings are completely tax-free.

There are other factors beyond taxes that determine if a Traditional or Roth IRA is the right fit for you, and we can look at your entire financial picture to help decide what makes the most sense for you.

*Subject to some minimal conditions. Consult a tax advisor.

2. Get your documents together.

To open an IRA account, you’ll need to provide your government-issued ID (driver’s license or passport), social security number, bank account and routing numbers, employment information, and basic information of your beneficiary (name, date of birth, and social security number).

3. Open and fund your account.

Request information from us online or visit us in person to open your account. Once you’ve decided what you want your initial deposit amount to be, you can choose how you want to fund your IRA. You can opt for a direct contribution, an electronic transfer from your bank, or rolling over an existing retirement account.

4. Choose your investments.

Depending on your savings goals and timeline, the investments that make up your IRA will vary. Examples of investment types are Certificates of Deposits (CDs), Money Market Funds, Stocks, Bonds, and Annuities. The investments you choose at account opening don’t have to stay the same forever; you can always reassess and adjust your investment strategy as needed.

Take it one step further: Contact a financial advisor.

We want you to be confident that the financial choices you’re making are the right ones for you and your future. Speaking to a financial advisor means you don’t have to navigate these important decisions all on your own. Reach out to our partners at Texas First Wealth Management* who will sit down with you and analyze your finances today to help you plan for where you want them to be at the time of retirement. Get guidance and informed suggestions on the investment types that align with your goals, your assessed risk tolerance, and your timeline.

The steps you take today influence your financial future. Whether you’re just starting out with retirement planning or are looking to maximize established retirement savings, opening an IRA account is more than just a financial decision; it’s a commitment to your future self. You’re investing in your peace of mind, financial security, and the freedom to enjoy your retirement years the way you want to.

Quick tips to make the most of your IRA:

• Start as soon as possible: The sooner you start, the more time your money has to grow.
• Maximize your contributions: Try to contribute up to the annual limit ($7,000 in 2025, or $8,000 if you’re 50 or older).
• Set up regular contributions: Maximize your IRA’s potential by setting up automatic monthly contributions.
• Review regularly: Annually review your investment strategy and beneficiary designations with a financial advisor.

* Investment products offered through Osaic Institutions, Inc., a registered broker/dealer. Member FINRA/SIPC. Texas First Wealth Management is a trade name of Texas First Bank. Osaic Institutions and Texas First Bank are not affiliated. Investment and insurance products are not a deposit, not FDIC insured, not insured by any Federal Government Agency, not guaranteed by the bank, not a condition of any banking service or activity, and may lose value.