So Your Tax Person Recommended That You Open an IRA...

Many tax professionals recommend that their clients set aside money in a tax-advantaged account to save during tax season. Maybe yours has, too. So now what? Here are some things to consider when deciding to open an Individual Retirement Account (IRA) with Finhabits:

Understand IRAs

These are investment accounts that let you put aside tax-advantaged money for your retirement. Two common types are 1) Traditional IRAs, which some people open to qualifying for a deduction on their tax return, and 2) Roth IRAs, which others prefer because it allows them to withdraw the savings tax-free during retirement. Check out our FAQ with more info about these two types of IRAs.

Know Your Fees

While IRAs themselves are a great investment in your future, many traditional providers will try to sell you products with hidden fees. Be sure to look for one that’s upfront about fees so you know exactly what you’re paying for!

Diversify Your Portfolio

It’s always better to spread your eggs out among lots of different baskets than to put them all in a single one –that’s called diversification. The more diversified your portfolio is, the higher are its chances to succeed over time. You don’t have to become an expert in investing or diversification, just make sure your money is invested across at least three different asset classes, including a real estate ETF since those are good to hold on to for the long term.

Put Your Savings on Autopilot

Whether you’re looking to start an IRA with your entire tax refund check or just a portion of it, it’s likely that you’ll make a first-time deposit when you open your account. However, it’s important to remember that you can also add money throughout the year. Finhabits lets you put small contributions on automatic so your account keeps growing, even when you aren’t thinking about it.

When it comes to your retirement savings, the most important thing is to make habitual contributions, even if the amounts are small. Finhabits makes it easy to start a Traditional or Roth IRA with as little as $5 a week. Our mission is to help everyone get into the smart habit of investing for the future, so you can forget about complex paperwork and expensive fees!

To open an IRA account, visit  or download our apps from the Apple or Android Stores.

The Finhabits app makes investing in your future an easy habit. Put your money to grow over time while you save - it's all automated, and in just 10 minutes, you can open Roth or Traditional IRAs as well as regular investment accounts. It’s that simple and you can start right here.

Finhabits does not provide tax advice. Please contact your tax professional for any questions regarding your taxes.


This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The information and opinions contained in this post are derived from proprietary and nonproprietary sources deemed by Finhabits to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Finhabits, its officers, employees or agents. This post may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this post is at the sole discretion of the reader.

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