Almost any type of investment within an individual retirement account (IRA) is allowed, including stocks, bonds, mutual funds, annuities, unit investment trusts (ITU), exchange-traded funds (ETFs), and even real estate. Another option is to convert some or all of the funds in a traditional IRA into a Roth IRA. This involves taking funds from traditional IRAs, paying ordinary income tax on those funds, and transferring them to a Roth IRA. This may make sense, especially if you expect to be in a higher tax bracket in the future and have an extended time horizon.
Two common types of IRAs are traditional IRAs and Roth IRAs. Earnings from these accounts can be accumulated tax-free or taxed at a later date. In addition, you may be able to deduct traditional IRA contributions. Clandestine Roth involves opening a traditional IRA, making non-deductible contributions, and transferring those funds to a Roth IRA at a later date.
To be safe, public accountants should emphasize investment vehicles for which established markets exist, such as stocks, mutual funds, bonds, bank certificates of deposit, annuities (although they may not be the best for an IRA, since IRA funds are already protected against taxes), real estate and select currencies.