Showing posts with label Finance. Show all posts
Showing posts with label Finance. Show all posts

Finland as a model of a successful economy

The country's economy is characterized by the following data: nominal GDP for 2017 is $ 237 billion, which is 46 thousand dollars per capita.

GDP structure: agriculture - 3%, industry - 27%, services - 70%.

The country is highly industrialized with a high proportion of high-tech industries. The structure of the industry is very complex, despite the small number of the working population (less than 3 million people).

The mining industry, based on minerals — iron ore, non-ferrous metal ores — copper, lead, zinc, chromium, nickel, cadmium, mercury, selenium, cobalt, gold, silver, and non-metallic minerals — limestone, apatites, talc, building materials.

The leading industries are ferrous and nonferrous metallurgy, mechanical engineering (shipbuilding specializing in tankers and icebreakers of various capacities, electronic equipment, machinery for mining, ferrous and nonferrous metallurgy, forestry, food and light industry, printing, pulp and paper, woodworking and other industries).

A prominent place in the structure of the economy is chemical, textile, clothing, footwear, food industry.

Mechanical engineering manufactures machine tools, agricultural machinery, electric motors, electrical products, cable products, trucks, marine engines, elevators, escalators, tractors for the forest industry and other products.

Finland is a country that, for the first time in the world, began industrial development and mass production of mobile phones by Nokia, which was a real revolution in communication between people.

Agriculture diversified, highly mechanized.

Arable land is 2 million hectares. Crop specializes in growing crops. The grain harvest amounts to 5-6 million tons. The farms are small, an average of 19 hectares, but in recent years there has been an enlarged farm due to the introduction of more productive machinery for tillage and harvest. The country began year-round production of tomatoes.

Many farms began to grow commercially blueberries, raspberries, strawberries, mushrooms, but given the laboriousness of their collection, farmers are forced to attract labor from other underdeveloped countries (Ukraine, Thailand, and others).

An important place in crop production is potato and animal feed production. In recent years, began to grow fibrous hemp, hops and even grapes for wine production.

Despite the important role of agriculture in the economy of the country, nevertheless, forestry occupies the main place in agriculture, as a source of raw materials for the development of the woodworking and pulp and paper industries, whose products are sold on the world market.

The fishing industry also received development, since in the past five years the demand for fish products abroad has risen sharply.

Livestock, as a branch of the economy, specializes in the production of dairy products, beef, and mutton meat. Pig production is not sufficiently developed, therefore, to meet the needs of the domestic market, pork is purchased for import.

Poultry farming is developing for the production of eggs and meat, but the poultry farms are not widely spread.

On a limited scale in Lapland, they are engaged in reindeer herding and hunting for animals.

Transport is developed at a high level and includes all its types, which allows you to quickly get to anywhere in the country.

Foreign trade in 2016: exports amounted to $ 61.5 billion - various types of paper, petroleum products, rolled stainless steel, automobiles, lumber, food and light industry products, electrical engineering and other products that were bought by such major countries as Germany, Sweden, and the USA, The Netherlands and China.

Imports - $ 57.4 billion - crude oil, petroleum products, automobiles, computers, chemical, light, pharmaceutical, and other industries. The main suppliers are Germany, Sweden, Russia, China, the Netherlands.

The country's population is 5.5 million people. The level of urbanization exceeds 84%.

Life expectancy: men - 79 years, women - 83 years.

In many indices of personal development and economy, the country is among the top twenty countries out of 197 independent states of the world. There is something to learn from the Finns, not only in terms of housekeeping but also to the mind.

Factors of stability of the US economy

In recent years, changes in the world economy have occurred due to the emergence of countries whose growth rate of the gross domestic product is far ahead of global indicators, which makes its own adjustments in the balance of influence in the world on relations between countries and competition for markets. In particular, China and India with a total population of over 2.6 billion people, (the third part of all people living on the planet), increasingly affect world trade and in the future, their role will only strengthen.

This forecast is justified by the growth rate of the economy, which in China since 2016, although not as high as before (8-12% per year for the period 1995-2008), but still significantly outpaces the global rate. For the next 2-3 years, an annual growth of about 7% is projected, with the world average level of + 3%. The high rates of development of the Chinese economy will increase GDP from $ 12.7 trillion in 2017 to $ 15.5 trillion in 2020 and slightly reduce the gap from the United States, while confidently retaining the second place in the world. The Indian economy is also developing at a fast pace - more than 7.5% per year and its GDP in 2017 was $ 2.6 trillion, $ 2.85 trillion is planned for 2018, and by 2020 the gross released product can reach $ 3, 3 trillion.

However, the United States will still remain the first country in the world to produce products with total GDP. At least in the foreseeable future (until 2030). This figure for the United States now, in 2018, exceeds $ 20 trillion and is unlikely to decrease in the near term. The phenomenon of the development of the US economy is worthy of every study and, to the extent possible, the use of the countries of the former USSR.

No doubt, the USA is a rich country. More specifically, the scale of its economic and financial activities can be represented visually. On the given map, each US state is signed by the name of the country, whose annual GDP roughly corresponds to the annual GDP of this state:

The GDP of the "golden state" of California in 2015 was equal to 2.448 trillion USD. If we imagine a situation in which California would be an independent country, it would occupy the 8th place in the world GDP ranking. And if all the states of the North American federation are presented in the world table of ranks as separate countries, then three of them - California, Texas and New York - would be included in the top 15 most developed economies of the world.

By the way, in our place of Brazil in our example with a map, which has 1.796 trillion USD (2016) and a population of 200 million people, Russia could well have been - 1.283 trillion USD (2016), if she could double her indicators.

The US economy has been developing dynamically based on a reasonable economic model, which is based on the following growth factors:
  • the scientific picture of the world process of economic life (the government used the recommendations of economists, many of whom were Nobel laureates and made an invaluable contribution to the prosperity of the country);
  • improvement of labor operations, use of the development of scientific potential and experimental design based on the use of the achievements of world science, with a US population of 320 million people, the number of scientists and engineers employed in the field of science, more than 4 million people. Yes, there are more scientists in the USA than those employed in agriculture;
  • rational use of rich natural resources - minerals, forests, water, land resources, flora and fauna, the organization of reserves, parks, etc .;
  • putting into practice the achievements of scientific and technological progress - the latest technology and production technologies, work organization, robotization of labor-intensive production processes, expanding the range of new products based on high technologies, new management methods;
  • the constant renewal of the production potential of firms using the most advanced machines and equipment;
  • development of economic thinking of personnel and use of economic categories, such as cost, profit, expenses, income, productive forces and production relations, forms of organization of production, exchange, distribution, consumption, capital, investment, and others;
  • minimal regulation of the economy by the state apparatus and stability of the rules for organizing and operating a business; mobile and vigorous labor, attracting immigrants, industrial training of workers and managers to new methods of performing labor operations;
  • control over productivity and remuneration, depending on the functions and qualifications of the staff;
  • rational structure of the economy (industry - 21%, agriculture - 1%, services - 78%). The industrial complex includes almost all industries represented in the world engineering production. Agriculture provides all the needs of the country and exports a significant part (the production of grain annually amounts to 440 million tons, of which 60 million tons are exported);
  • formation of a large domestic market, sound foreign economic policy, balanced export and import in terms of cost and range;
  • creation of developed infrastructure and logistics, transport network and communications that meet the best international standards;
  • the creation of a cult of entrepreneurship (entrepreneurs can be considered only those who, risking capital, develop new types of products or activities that have no analogs);
  • use of innovations in operating business (American business accounts for 50% of innovations introduced by all countries of the world);
  • creation of a high production culture and a special lifestyle that is open to everything new and progressive in all spheres of human activity.
A unique combination of these factors can hardly be copied and used in the economies of the post-Soviet countries, although some of them are advisable to implement, if not in all enterprises, then at least in medium and large ones. No need to reinvent the wheel, it is better to use the proven experience of other countries with a certain adjustment to it, taking into account new management models and binding to the specific conditions of our business.

It is important to choose a strategic goal and consistently go to achieve it. Without understanding the objectives of business development and the search for adequate management models, it is impossible to succeed either domestically or internationally, so studying the US experience can give a certain impetus for the birth of business ideas and accelerate the growth rate of our economy.

We Simplify the Home Loan Process for You

A home is one of three basic necessities that a man has. Everyone lives in some kind of a home but aspires for the next level. The growth in real estate and the introduction of new features make people want to buy a home that meets the latest trends. But property is expensive and for most people owning a place of their own seems like a distant dream. Thankfully, home loan providers like Shri Raam Finance, help prospective buyers by financing their dream house.
The first step in buying a house is identification of property. Depending on the builder, the same kind of house will be available at different prices. Once you have identified the property, bring the basic papers to us and we will guide you towards further paperwork. We have tied up with all prominent builders in Delhi-NCR,which makes the process easier for the buyer.

The loan that you can get depends upon your capacity to pay back and your current income. You would be asked to provide bank statements, salary slips, evidence of other property etc. Once we are fully satisfied with your financial standing, the loan is sanctioned to you. It is best to take a loan from a local source. This means, if the property is in NCR, take the home Loan in Delhi NCR.
At Shri Raam Finance, we believe in doing what’s in the best benefit of our customers. Thus, our loan officers introduce you to easy repayment options. We suggest you with a repayment plan that’s best suited for your loan type, making sure you’re always at an advantage.
We offer a host of home loan plans in Delhi-NCR, making it easier for you to finance your dream home. For details on our home financing models, please refer to the table below.

How The SEC Supervises Industry Professionals

Another important part of the SEC's role is supervision of the securities markets and the conduct of securities professionals. The SEC serves as a watchdog to protect against fraud in the sale of securities, illegal sale practices, market manipulation, and other violations of investors' trust by broker-dealers, investment advisers, and other securities professionals.

In general, individuals who buy and sell securities professionally must register with the appropriate SRO, meet certain qualification requirements, and comply with rules of conduct adopted by that SRO.

The broker-dealer firms for which they work must, in turn, register with the SEC and comply with the agency's rules relating to such matters as financial condition and supervision of individual account executives.

In addition, broker-dealer firms must also comply with the rules of any exchange of which they are a member and, usually, with the rules of the NASD. The SEC can deny registration to securities firms and, in some cases, may impose sanctions against a firm and/or individuals in a firm for violation of federal securities laws (such as, manipulation of the market price of a stock, misappropriation of customer funds or securities, or other violations).

The SEC polices the securities industry by conducting inspections and working in conjunction with the securities exchanges, the NASD, and state securities commissions.

What Companies Must Disclose

Before any company offers its securities for sale to the general public (with certain exceptions), it must file with the SEC a registration statement and provide a "prospectus" to investors.

In its registration statement, the company must provide all material information on the nature of its business, the company's management, the type of security being offered and its relation to other securities the company may have on the market, and the company's financial statements as audited by independent public accountants.

A copy of a prospectus containing information about the company and the securities offered must be provided to investors upon or before their purchase. In addition, most companies must continue to update, in filings made with the SEC, this disclosure information quarterly and annually to ensure an informed trading market.

The SEC reviews registration statements and periodic reports for completeness, but the SEC does not review every detail and verification of each statement of fact would be impossible.

However, the securities laws do authorize the SEC to seek injunctive and other relief for registration statements containing materially false and misleading statements. Persons who willfully violate the securities laws may also be subject to criminal action brought by the Department of Justice leading to imprisonment or criminal fines.

The laws also provide that investors may be able to sue to recover losses in the purchase of a registered security if materially false or misleading statements were made in the prospectus or through oral solicitation. Investors must seek such recovery through the appropriate courts, since the SEC has no power to collect or award damages or to represent individuals.

The Function Of The SEC


The SEC, an independent agency of the U.S. Government, was established by Congress in 1934 to administer the federal securities laws. It is headed by five Commissioners, appointed by the President, who direct a staff of lawyers, accountants, financial analysts, and other professionals.

The staff operates from its headquarters in Washington, D.C. and from five regional offices and six district offices in major financial centers throughout the country.

The SEC's principal objectives are to ensure that the securities markets operate in a fair and orderly manner, that securities industry professionals deal fairly with their customers, and that corporations make public all material information about themselves so that investors can make informed investment decisions.

The SEC accomplishes these goals by: Mandating that companies disclose material business and financial information; Overseeing the operations of the SROs; Adopting rules with which those involved in the purchase and sale of securities must comply; and Filing lawsuits or taking other enforcement action

in cases where the law has been violated. Despite the many protections provided by federal and state securities laws and SRO rules, it is important for investors to remember that they have the ultimate responsibility for their own protection.

In particular, the SEC cannot guarantee the worth of any security. Investors must make their own judgments about the merits of an investment.

Brokers

If you buy or sell securities on an exchange or over the counter, you will probably use a broker, and your direct contact will be with a registered representative.

The registered representative, often called an account executive or financial consultant, must be registered with the National Association of Security Dealers (NASD), a self-regulatory organization whose operations are overseen by the Securities and Exchange Commission (SEC), and with the states in which the broker is conducting business.

The registered representative is the link between the investor and the traders and dealers who actually buy and sell securities on the floor of the exchange or elsewhere.

Over The Counter

Many securities are not traded on an exchange but are traded over the counter (OTC) through a large network of securities brokers and dealers.

In the National Association of Securities Dealers' Automated Quotation System (NASDAQ), which is run by the National Association of Securities Dealers (NASD), trading in OTC stocks is done via on-line computer listings of bid, which asks prices and completes transactions.

Like the exchanges, NASDAQ has listing standards that must be met for securities to be traded in that market. Similar to an exchange it provides a "meeting place" for buyers and sellers.

The typical investor generally will not know whether their security is bought or sold through and exchange or over the counter. The investor engages a broker who arranges the transaction in the appropriate market at the desired price.

Exchanges


Securities are bought and sold in a number of different markets. The best known are the New York Stock Exchange and the American Stock Exchange, both located in New York City.

In addition, six regional exchanges are located in cities throughout the country. A corporation’s securities may be traded on an exchange only after the issuing company has applied to the exchange and met any listing standards relating, for example, to the company's assets, number of shares publicly held, and number of stockholders.

Organized markets for other instruments, including standardized options, impose similar restrictions. The exchanges facilitate a liquid market for securities where buyers and sellers are brought together.

Listing on an exchange, however, does not constitute approval of the securities or provide any assurance as to risk and return.

Harleysville National Bank Expands Branch Locations

As of March 29, 2018, Harleysville National Bank and Trust Company (HNB) customers are able to bank at 41 locations, in 10 counties, throughout Eastern PA. This expansion is a result of Harleysville National Corporation (the parent company of HNB) combining the charters of its three subsidiary banks: HNB, Security National Bank (SNB), and Citizens National Bank (CNB). All three banks will now be known as Harleysville National Bank.

The addition of SNB branches, which were headquartered in Pottstown, and CNB branches, headquartered in Lansford, gives customers from all three subsidiaries the ability to bank throughout Eastern Pennsylvania. Many more customers can now bank where they live, work, and travel.

By summer of 2018 HNB will expand yet again, to 45 branches. Harleysville National Corporation is in the process of acquiring Millennium Bank, headquartered in Malvern, Pennsylvania, and its wholly-owned subsidiary, Cumberland Advisors, Inc. When this acquisition is complete, four additional branches will be added, in Malvern (2), Blue Bell, and Wyomissing.

Visit our Hours and Locations page to see the many new branch locations available to our customers, as well as the hours and directions for each branch!

Reduce Risk of Identity Theft with Web Banking!

You've heard it before - use online banking to make your life easier. 24 hours a day, 7 days a week, you can check your account balances and activity, transfer funds, place a stop payment and more--all from the comfort of your home or work. It sounds great, but you've just never tried it.

But did you know that using Web Banking can help reduce your risk of identity theft? Since Web Banking gives you the opportunity to access your accounts 24 hours, 7 days a week, you can monitor your account for any suspicious activity. Customers who are checking balances and account activity online frequently are able to not only identify suspicious activity faster but also take action faster - increasing the chance that fraudulous activity is stopped and the perpetrator caught.

You can further reduce the risk of becoming a victim of fraud by using Web Statement Delivery. Web Statement Delivery stops the delivery of your monthly banking statement through postal mail. Instead, you will receive an email once a month letting you know that your statement is available for viewing online through Web Banking. This helps to protect you by keeping your personal and acccount information out of mailboxes and trash cans where criminals can steal it!

To encourage our customers to try banking online, HNB has recently introduced a wonderful new banking package that combines all of these online banking features. This package, e.Banking, is free and offers a personal checking account with no minimum balance requirements and electronic services that today’s consumer enjoy.

e.banking Features:
Free checking with Bounce Protection
Free Web Banking
Free Online Bill Payment
Free Visa® Check Card
Free Web Statement Delivery
Anyone who likes to bank electronically and recognizes the many benefits of Web Banking should take advantage of this free package! It’s one more way you can conveniently do your banking and also protect yourself from identity theft.

Late payments

A late payment is reported by the creditor to the Credit Bureaus when you are 30 or more days late. There are 5 ways a bureau may record a late payment: 30, 60, 90, 120, & 190 day late. The longer the late the worse the impact on your credit score. Each month’s lateness will count as a new late mark affecting your score negatively each time.


Payment history is the most important factor when it comes to a good credit score. Our solution for late payments is to remove these negative marks from the creditor and/or third party records along with credit bureau files, resulting in a complete and permanent resolution.
If your payment is due on the 1st, and you are 20 days late, this would not get reported to the credit bureaus and should not affect your score. Although it will get recorded on the creditor’s internal records and affect your interest rate and relationship with them in addition to excessive late fee penalties.
The credit rating of someone with great credit (700-850) will be affected less significantly by a rare 30 day late payment than of someone who has consistent late payments and derogatory marks and is already on the low side of (450-680). A person who is consistently on time and has a proven track record along with more positive accounts which out weight the one rare negative mark.

Regarding collection accounts, our solution is to remove these negative items from the collection company and/or third party records along with credit bureau files, resulting in a complete and permanent resolution. In addition we permanently and quickly stop all the harassment calls and letters.
Here is some extra info:

• The original creditor may charge off (sell) your account after 6 months of non-payment.

• Negative accounts / items are reported to the credit bureaus by way of UDF (Universal Data Form.) Which is a form the creditor, collector or attorney completes in order to report your account to the credit bureaus.

• If collection account is not paid, the collector or creditor can sue you in court and may be awarded a judgment, garnishment of salary, or freeze of bank accounts.

Collection accounts are accounts which have been sold or transferred by the original creditor to the third party collection company or attorney collectors. In such cases the debt no longer belongs to the original creditor and is considered “charged off”. In some cases the original creditor may have their own internal collection department, but this is not very common.

Despite a collection account being paid or settled reflecting a $0 balance, if the actual rating of this account is marked “paid collection” or “settled collection” it will affect the score negatively. So not only does the credit scoring system rate you on what you owe, but also on the status of the account.

Online Lender Portals And How They Operate

Online payday loans are a great solution for many people who either cannot get out of the home or are too busy. They offer solutions for quick deposits into ones checking account in as little as 24 hours. It is not uncommon for people to live from paycheck to paycheck, which is why the payday loans can be very beneficial.

It is important to conduct a little research in the company, before filling out all the information. There are several companies online which do payday loans, knowing their terms up front is essential. You will need to complete an application. The application is going to ask for specific information, which is advisable to have beforehand. The items needed for an application area: driver’s license or state id, pay stub, bank statement and 10-15 minutes of time.

Depending on the company will depend just a bit on their process. Usually, after the application is filled out, you will receive an email or a phone call. Most companies are going to want the information faxed over to them as proof, before they make the transaction. If you’re approved, meaning you have passed their background checks, then they will continue the process.
Be advised that even though these loans are no credit check, they do run checking account verification. Using a third party system, they will see if the person who is applying for the loan has had a history of writing bad checks or a history of messing up checking accounts. If you have had problems this could be one way to be turned down for a loan.

After they have asked for the verification, they will communicate how much and when it is due. The terms are usually due by the next pay period. However, there are a few companies that do offer specials to get a payday loan with them. It is not uncommon to see 21 days for first loans or even 30 day lending.
There are a few companies online, which do offer longer terms, but they will vary. The interest rates are usually the same for all of them, as they are governed by the rules and laws for their area.
The entire process of getting a payday loan is not difficult. Once approved, an online company will deposit the funds into your checking account, within 24 ours. It is not uncommon to see companies offering to put money in the account on the same day. A payday loan can be very beneficial to those who need cash in a hurry. Used properly they can help get out a crunch in-between paydays.

Retirement Plans For The Self Employed


Being self employed has many benefits. However, it also has drawbacks. One challenge many self employed people face is retirement. Without a company to provide for them, entrepreneurs must form their own retirement plans. Here are some of the best retirement plans for the self employed.

SEP IRA

Simplified Employee Pensions (SEP IRAs) are simple, but they can get the job done. With a SEP IRA, self-employed people can contribute up to 25% of their net income, with a $49,500 (2011 numbers). Since all SEP contributions must be made by the employer, this is only the net income from being self-employed, not from a second job at a company. The reports required for a SEP IRA are fairly simple, which will save an entrepreneur precious time. Unfortunately, the SEP IRA does not have a Roth option.

Solo 401(k)

The Solo 401(k) is slightly more complicated than the SEP IRA, but it also have some added benefits. Solo 401(k)s are limited to business owners and their spouses. Through the individual contributions and company matches, business owners can reach the same ceiling that the SEP IRA has. For business owners over 50, this is actually increased by $5,000. A loan can be taken out against one’s Solo 401(k), but this is rarely advisable due to interest and fees. The Solo 401(k) is simple to set up, and many financial institutions charge less than $100, if anything, to create one.

SIMPLE IRA

The SIMPLE IRA, also called the Savings Incentive Match Plan for Employees IRA, is extremely easy to create. It should take anyone about 20 minutes. The SIMPLE IRA is a great way for anyone who owns a business to provide for their own retirement, as a self-employed entrepreneur, as well as their employees’ retirement. It has much lower limits than the SEP IRA and 401(k). In 2001, the maximum contribution was $11,500. For those over 50, it increased to $14,000.

The SIMPLE IRA is suitable only for small, but financially well-grounded companies. Any business that offers this to its employees must match the employee contributions. Typically, this has been a 100 percent match on up to three percent of the employee’s pay. It also is not available to anyone who has another retirement account, such as a 401(k) at a day job.

Other Investments

When considering retirement plans for the self employed, one must not exclude traditional retirement plans. Traditional IRAs, Roth IRAs, annuities and other investment accounts can all play an integral role in one’s overall retirement. The above plans offer many advantages over personal ones. Matches can be made by one’s company. Some plans have high contribution limits. The SIMPLE IRA does not have an income limit. However, entrepreneurs must not forget to also consider personal retirement accounts as well.

By understanding these plans, the self-employed individual can prepare for retirement. It may seem daunting, but retiring is possible. Anyone needing assistance in planning has many resources to help them learn about self employed retirement plans. There are tax-advantageous plans to help entrepreneurs along the way.

IRA Retirement Accounts

For many years I had heard about 401(k)s, IRA’s and the like, but was never sure of what they meant until I started this project. Use my research below to put you further along in your journey as well.

When saving for retirement, people are can choose from an array of investment vehicles: 401(k)s, 403(b)s, IRAs, savings accounts, brokerage accounts and others. Of these, the IRA is one of the most utilized investment accounts. These are five advantages of Traditional IRAs.

For Anyone


Anyone can open an IRA. Many investment accounts are restricted to a specific demographic. 401(k)s are only available to employees of companies that offer them. 403(b)s are only available to non-profit employees, clergy and public school teachers. This is not true with an IRA. IRAs can be open by everyone.

Tax Deductible Contributions

For most people, the contributions made to an IRA can be deducted from that year’s taxes. This is dependent upon income, and is not true for the extremely wealthy. However, the majority of Americans can deduct their IRA contributions. To avoid wrath from the IRS, everyone should check with a professional tax advisor before taking these deductions.

Defer Taxes

Taxes are only paid when money is withdrawn from an IRA. This is one of the major reasons to save for retirement in an IRA, instead of a standard brokerage account. The contributions made to it are not taxed when they are made. Growth is not taxed either. For decades, a nest egg can grow tax-free. It is only taxed when withdrawals are made.

NOTE: This is the major difference between Traditional IRAs and Roth IRAs. The above applies to Traditional IRAs only. When investing in a Roth IRA, taxes are paid on the contributions, but not when money is withdrawn. In a Roth IRA, money can grow for years, and tax is not paid on it. Which is more suitable for an individual often depends on one’s age. Consulting a professional investment advisor can help people decided if a Traditional IRA or Roth IRA is more appropriate for their situation.

Withdraw Before 60

The standard retirement age has been 65 in recent years, although it is slowly being moved back. With an IRA, people do not need to wait until 65 to withdraw their earnings. At 59 ½, money can be withdrawn without a penalty. (Withdrawals before that age incur a 10% penalty). For people who want to retire early, IRAs can be very attractive.

Flexible

IRAs offer the greatest flexibility of all tax-sheltering investment accounts. Unlike 401(k)s, which cannot hold individual stocks, or 403(b)s, which have strict restrictions, IRAs can hold a variety of investments. People can use IRAs to hold individual stocks, bonds, certificates of deposit (CDs) and other common investments. While employer-controlled accounts offer many advantages, they do not have the flexibility of an IRA.

There are few reasons not to have an IRA. Saving for retirement is important, and they are the IRS’s way of encouraging all Americans to save for the future. In an IRA, people’s savings are sheltered from taxes. The specific way is determined by the format of the IRA. With an IRA, people can invest how they want to. Everyone should consider having an IRA.