Have you already completed your return and need tax relief? An IRA is your solution, but first, you should check which IRA best suits your needs. Here are some tips to identify which is the perfect IRA for you.
First, you must start by identifying your risk tolerance level and establishing a balance between your personality and the expectations you have regarding your investments. The concept of risk tolerance is subjective and should not be taken lightly, especially when it comes to investments with which we are ensuring future financial stability.
Although general, there are some basic categories that will help you identify the IRA for you. If you want your money to grow over the long term or increase in market value, you can get an IRA that invests in the market. You must be clear that this type of investment may carry a higher risk than those that have the objective of security or generating income since it will be subject to market fluctuations. On the other hand, if security is the most important thing for you, you lean towards the conservative profile that aims to minimize the risk of losing the original investment. Therefore, it is in your best interest to put your money in instruments with guaranteed returns. If you are interested in generating a stable income, consider options that generate a fixed income stream through regular payments.
At Oriental, we have several IRA account alternatives so that you can choose the one that best suits your needs. For example, the Diversified Growth IRA (DGI)1 is a variable-yield IRA that invests in bonds and stocks and is managed by a group of experts in mutual fund management. It is the IRA with the greatest long-term growth potential right now. In addition, it is accessible since it allows you to make monthly contributions from a minimum of $25.00 to a maximum of $416.66 through an automatic transfer from an Oriental account or any financial institution. Meanwhile, the CD IRA 2 is a certificate of deposit that offers a fixed return according to the term you select from 1 to 5 years. Recommended for people looking for security of the highest kind and a guaranteed fixed return. While you fill out your form, analyze your situation, and decide. We have options for the financial security of your future.
Learn more about our IRA accounts here.
(1) Diversified Growth IRA (DGI) Only for individuals residing in Puerto Rico. The Diversified Growth IRA or DGI is not FDIC insured, is not a deposit or obligation of, and is not guaranteed by Oriental Bank, and is subject to investment risk, including possible loss of principal invested. It also carries increased risks from using borrowed money to leverage the asset base of the Diversified Growth IRA trust. Request the "Prospectus" from the DGI at any of our branches or at the offices of Oriental Financial Services Corp. (authorized dealer), Member FINRA/SIPC, and read it carefully before investing. Minimum opening balance: $250. Investment withdrawal charges (if the reason for the withdrawal is less than age 60, death, disability, or unemployment of the participant); 5% of the investment balance if withdrawn during the first year; 4% of the investment balance if withdrawn during the second year, 3% of the investment balance if withdrawn during the third year, 2% of the investment balance if withdrawn during the fourth year; and 1% of the investment balance if withdrawn during the fifth year. A $54.99 rollover fee will be charged for each transfer to an IRA at another institution. Subject to a 10% tax penalty (15% in certain cases) for early withdrawal if it does not meet any of the conditions allowed by the Puerto Rico Department of the Treasury. It carries an annual charge of 1.80% for administration and other services. This annual charge is calculated based on the average of the total assets of the DGI trust.
(2) CD IRA For individuals only. The minimum opening is $250. Early withdrawal penalties will consist of 365 days of interest on the amount of the early withdrawal. Tax penalty of 10% (15% in certain cases) for early withdrawal if you do not meet any of the conditions allowed by the Department of Treasury of Puerto Rico. Other charges: Distribution by check $14.99; Transfer to an IRA account from another institution $54.99.
Visit any of our branches or call us and find out about other IRA accounts that we have available. Go to www.orientalbank.com and obtain more details about the terms and conditions of the IRAs so that you can determine which one is best for you. Consult your tax advisor. Products offered by Oriental Bank. Oriental Bank is a subsidiary of OFG Bancorp. ©2022 All Rights Reserved.
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