Put your savings to work with an IRA that fits you.
IRAs are tools designed for people who want to grow their money behind-the-scenes. Keep reading to find out:
What is an IRA and why does it matter?
Individual retirement accounts (IRAs), such as the Regular2 and the Stock Market3, work in reverse from a loan: instead of paying interest to the bank, the bank pays it to you. It's a tool that gives you the opportunity to grow your savings over the long term.
Whether you're thinking about saving for a set period of time or for retirement, these accounts offer the possibility of increasing the value of your money.
Plan your future with Platea and Popular
This article is presented by Popular. Learn more on its Mi Futuro page.
Start hereKey benefits:
✅ Tax reduction depending on the type of IRA you choose (A.K.A. a deduction on your tax return).
✅ Potential for long-term growth of your money for retirement.
✅ Flexibility to adapt to different financial goals.
Types of IRAs at Popular1
Popular offers different types of IRAs, whether you want to save for one year or 10, there are options for you. Let's go through them:
Regular IRA2
•
Principal and interest are insured by the FDIC.
•
Flexible terms of 1, 2, 3, 5, 7 and 10 years, auto-renewable.
•
Reduces your tax (income tax) payments while you save.
•
Allows you to deposit money up to an established limit. The principal contribution can generate interest monthly.
Stock Market IRA3
•
Only the principal is insured by the FDIC.
•
Term: 5 years. At maturity it automatically renews to a 5-year Regular IRA.
•
Interest is based on the performance of the Standard & Poor's 500 (S&P 500), one of the most representative indexes of the state of the stock market in the United States.
It's important to remember that investments come with more risk: they can go up or down depending on how the market moves.
Other investment alternatives for you:
Investment products are not insured by the FDIC, are not deposits or obligations of, nor are they guaranteed by Banco Popular de Puerto Rico, its affiliates and/or subsidiaries; they involve risk and may lose value, including the loss of the principal invested.
IRAs that invest in investment companies such as mutual funds are designed to take advantage of the potential growth of financial markets. Their performance is tied to the behavior of the securities market and is not insured
Popular Total Return Fund IRA4
•
An investment alternative offered by Popular Securities.
•
No fixed term.
•
An alternative with the opportunity for long-term capital growth and tax advantages.
Your stage of life
Depending on where you are in your life and what you're saving for, an IRA can help you meet your goals. Here are some practical examples:
📈 Ages 20-30: Don't underestimate the power of time
The earlier you contribute, the more your savings can grow. That means that even if you can only make small contributions right now, they can generate significant savings over time. You could use this money for retirement or for a dream, like a down payment on a house.
💸 Ages 30-40: In your financial pro moment
This is the period when you have to juggle multiple financial balls: maybe a mortgage, some little ones (or plans to have them), and that little voice reminding you about retirement.
But let's take a moment to remember that what you have going for you is that you're probably in your peak earning years, make the most of them! As your income grows, so does your savings budget.
💰 Ages 45+: Getting ready for retirement
Don't panic! There's still time, you just need a more aggressive plan. This is the moment to plan a comfortable transition toward retirement.
During this time it's time to adjust your strategy: gradually move your money toward safer investments, but keep one foot in growth. If your budget allows, maximize those contributions to the limit. Every dollar counts in this final stretch.
It's time to take action!
Consult a financial advisor, visit your Popular branch or explore your options at popular.com/ira.
We want you to reach all your financial goals. Don't put off until tomorrow what you can do today (wink!). Open your IRA and put your savings to work generating income — that extra money could come in very handy.
The suggestions and recommendations contained in these articles are offered solely as financial guidance. If you require any type of advice related to this article, you should seek it from a qualified professional of your choice. Banco Popular de Puerto Rico, its subsidiaries and affiliates do not provide legal, accounting or tax advisory services. If you require legal, accounting or tax advisory services, you should consult a professional who specializes in those areas.
1IRA Regular e IRA Stock Market: are products offered by Banco Popular de Puerto Rico. Member FDIC. Banco Popular offers numerous investment options for IRA accounts. You can obtain detailed information at any of our branches or at www.popular.com/ira to determine which investment option is best for you. Banco Popular does not provide legal, accounting or tax advisory services. If you require these services, you should consult a professional who specializes in those areas. Fees applicable to IRA Accounts: Processing fee: $5 per instrument for withdrawals and returns of excess contributions before age 75, $50 per instrument for transfers to another eligible institution and for the garnishment fee. Departamento de Hacienda penalties may apply to non-qualified withdrawals. Transaction fees per instrument. Local law requires the Bank to withhold 10% of the amount withdrawn if the withdrawal is for a non-qualified reason.
2IRA Regular: Principal and interest are insured by the FDIC up to the maximum amount permitted by law. Certain restrictions apply. Once the instrument is opened, no additional deposits or withdrawals are permitted until the maturity date. Interest is calculated daily on the daily balance and credited monthly. The method used to calculate interest is the daily balance method. This method applies the daily periodic rate to the principal in the account each day. When the opening or deposit is made by instrument (e.g., checks), interest begins to accrue from the business day on which the transaction is made. Renewal is automatic at maturity for periods of equal duration and applies the rate in effect at the time of renewal. There are no grace periods for IRA renewals. Penalties for withdrawals or cancellations before maturity are equivalent to 180 days of interest.
3IRA Stock Market: The principal is insured by the FDIC up to the maximum amount permitted by law. After opening the IRA Stock Market, no additional deposits may be made at any time. Partial withdrawals before the maturity date are not permitted. The interest to be paid under the IRA Stock Market account, if any, is 1.25 (125%) of the percentage increase in the S&P index up to a maximum of 40%, with no guarantee of a minimum return at maturity. "Standard & Poor's®", "S&P®", and "S&P 500®" are registered trademarks of Standard and Poors®, a division of McGraw Hill, Inc., and have been licensed for use by Popular Inc. The product(s) is/are not sponsored, endorsed, sold or promoted by Standard & Poor's®, and Standard and Poor's® makes no representation regarding the advisability of investing in this product. Please refer to the Individual Retirement Account Agreement for more information related to, among other matters, how interest is calculated. At maturity, the account does not automatically renew into another Stock Market product, and the total balance is invested in a Regular IRA for five (5) years. Penalties for early cancellation during the first year will be 30% of principal; 25% of principal during the second year; 20% of principal during the third year; 15% of principal during the fourth year; and 10% of principal during the fifth year.
4Popular Total Return Fund IRA: Product offered by Popular Securities, LLC. Investors should carefully consider the investment objectives, risks, charges and expenses of the Mutual Fund before investing. This and other important information is contained in the prospectus and in the summary prospectus. You can access the prospectus by visiting popularfunds.com/resources. Read it carefully before investing. Investment products are not FDIC-insured, are not deposits or obligations of, nor guaranteed by Banco Popular de Puerto Rico, its affiliates and/or subsidiaries; they involve risk and may lose value, including loss of the principal invested. Investment products and services are offered by Popular Securities, LLC, a registered broker/dealer, member of FINRA and SIPC. Investment advisory services are offered through Popular Securities, LLC, an investment adviser registered with the SEC. Popular Securities, LLC is a subsidiary of Popular, Inc. and an affiliate of Banco Popular de Puerto Rico. Popular, Inc. and Banco Popular de Puerto Rico are not registered broker-dealers or registered investment advisers. Banco Popular de Puerto Rico, its subsidiaries and affiliates, do not provide legal, accounting or tax advisory services. If you require legal, accounting or tax advisory services, you should consult a professional specializing in those areas. Garnishment fee: $50. Processing fee: $5 per instrument for withdrawals and returns of excess contributions before age 75, $50 per instrument for transfers to another eligible institution. Departamento de Hacienda penalties may apply to non-qualified withdrawals. Transaction fees per instrument. Initial fund management fee: 1% of the amount invested. Refer to the prospectus for current information on the annual fund management fee. Local law requires the Bank to withhold 10% of the amount withdrawn if the withdrawal is for a non-qualified reason.
This content was translated with the assistance of Artificial Intelligence (AI).
