What an IRA can hold.

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Individual Retirement Accounts (IRAs) offer a wide range of investment options, including various securities, to help individuals save for retirement. The specific securities you can hold in an IRA can depend on the financial institution or brokerage firm where you open your account. However, the following are common types of securities that can be held in an IRA:

Stocks: Individual stocks of publicly traded companies can be held in an IRA. These stocks represent ownership shares in the company and can potentially generate returns through price appreciation and dividends.

Bonds: Both corporate and government bonds can be held in an IRA. Bonds are debt instruments where an investor lends money to the issuer in exchange for periodic interest payments and the return of the principal amount at maturity.

Mutual Funds: Mutual funds pool money from multiple investors to invest in a diversified portfolio of securities, such as stocks, bonds, or a combination of both. Many types of mutual funds are available for investment within an IRA, including index funds, actively managed funds, and target-date funds.

Exchange-Traded Funds (ETFs): ETFs are similar to mutual funds but trade on stock exchanges like individual stocks. They can provide exposure to various asset classes, including stocks, bonds, commodities, and more. Many ETFs can be held in an IRA.

Real Estate Investment Trusts (REITs): REITs are companies that own, operate, or finance income-generating real estate properties. Some REITs can be held in an IRA, allowing investors to gain exposure to the real estate market.

Certificates of Deposit (CDs): While less common in IRAs, some financial institutions offer CDs as an investment option within an IRA. These CDs operate similarly to traditional CDs, providing a fixed interest rate for a specified term.

Options and Futures: Depending on your brokerage firm and the specific IRA account type, you may be able to trade options and futures contracts within your IRA. However, it's important to note that options and futures trading can be complex and carry additional risks.

It's essential to consult with your chosen financial institution or brokerage firm to determine the specific investment options available within their IRA offerings. Additionally, consider your investment goals, risk tolerance, and time horizon when selecting securities for your IRA. Seeking guidance from a financial advisor can also be beneficial in creating an appropriate investment strategy for your retirement savings.

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