IRAs - You Have a Choice.
By Amy C. Stone, Investment representative for Edward Jones

 Many people think of an IRA as a specific type of investment, like a certificate of deposit or bond, but it is really an account that allows the investments within it to grow tax-deferred.  You can put a variety of investments in your IRA.  Here are a few of your IRA investment choices:

CD IRA
 People may opt to invest their retirement funds in FDIC-insured certificates of deposit (CDs).  When you invest in a CD, your money earns interest at a specified rate, which usually increases with the length of CD maturity.  Two disadvantages of a CD IRA are that you own only one investment type, and your rate of return may be significantly lower than what some other IRA investment options offered.

Mutual Fund IRA
 IRAs comprised of mutual funds may be a good choice for investors who want more variety in their IRAs and more growth opportunities than CDs.  Mutual funds offer a mix of stocks and bonds that are professionally managed by the fund company’s money managers.

Annuity IRA
 Annuities offer two features that are not available on other investments.  1.  The possibility of income payments you cannot outline, and 2. A guaranteed death benefit.  A lifetime payment is valuable if you’re concerned about having enough income for a long life, and a guaranteed death benefit is important if you are concerned about what might happen if you died prematurely.
Self-directed IRA offers the most flexibility of all the types of IRAs.  Any number of investments such as stocks, bonds, m mutual funds, CDs and annuities can be used in self-directed.  This investment flexibility also allows you to better diversify your IRA to maximize your return potential and minimize your risk.
 Beginning January 2002, the maximum annual dollar contribution limit for IRA and Roth IRA contributions will increase from $2,000 to $3,000 for calendar year 2002 through 2004, with annual increases thereafter.
 Also beginning in 2002, there will be special “Catch up” contributions to IRAs for individuals 50 years and older.
 All of these investment choices are available in either a traditional IRA or a Roth IRA.  I can help you select the IRA that’s best suited for your retirement needs.