Put your savings to work with an IRA that meets your needs.
IRAs are investment tools designed for people who want their savings to experience behind-the-scenes growth. Read on for details.
Individual Retirement Accounts, such as the Regular IRA2 or Stock Market IRA3, operate differently from a loan: instead of you paying interest to the bank, the bank pays interest to you. An IRA is a tool that gives your savings a chance to grow over the long term.
Whether you’re saving for a specific period or for retirement, these accounts allow you to increase the value of your investments.
Key benefits:
Popular offers different types of IRAs. Whether you’re saving for one year or 10, we have options for you. Let’s review:
It’s important to remember that investments carry higher risks. Depending on the stock market, they can go up or down.
Investment products are not insured by the FDIC, are not deposits or obligations of, nor are they guaranteed by Banco Popular de Puerto Rico, its affiliates, and/or subsidiaries; they carry risk and may lose value, including the loss of the principal invested.
IRAs that invest in investment companies such as mutual funds are designed to take advantage of financial markets’ growth potential. IRA performance is tied to the stock market’s performance and is not guaranteed.
Depending on where you are in your life and what you are saving for, an IRA can help you meet your goals. Here are some practical examples:
The earlier you contribute, the more your savings can grow. This means that while you may only be able to make small contributions right now, they can add up to big savings over time. You could use this money for retirement or to fulfill a dream, like saving for a down payment on a home.
At this stage, you juggle multiple financial matters: possibly a mortgage, kids (or plans to have children), and that little voice reminding you about retirement.
However, remember something that works in your favor: you are likely in your prime earning years; make the most of them! If your income is increasing, boost your savings budget as well.
Don’t panic! There’s still time; you just need a more aggressive plan. At this stage, it’s important to plan a smooth transition to retirement.
At this stage, it’s time to adjust your strategy: gradually shift your money to safer investments while monitoring growth. If your budget allows, maximize contributions to the limit –every dollar counts in this final stretch.
Consult a financial advisor, visit your local Popular branch, or go to popular.com/ira.
We want you to meet all your financial goals. Don’t put off until tomorrow what you can do today (wink!). Open an IRA and make your savings generate income; that extra money can come in handy.
Learn more about the tools and services available to manage your accounts and help you achieve your goals.
The suggestions and recommendations presented in these articles are intended solely for financial guidance or counseling. If you need any advice related to this article, you should seek it from a qualified professional of your choice. Banco Popular de Puerto Rico, its subsidiaries, and affiliates are not engaged in providing legal, accounting, or tax advisory services. If you require legal, accounting or tax advisory services, please consult a professional specializing in these fields.
Regular IRA and Stock Market IRA are products offered by Banco Popular de Puerto Rico. Member FDIC. Banco Popular provides multiple investment options for IRA accounts. You can get detailed information at any of our branches or at www.popular.com/en/ira
to determine which investment option is best for you. Banco Popular is not engaged in providing legal, accounting or tax advice. If you require these services, you should consult a professional specializing in those fields. Applicable fees on IRA accounts: Processing fee of $5 per instrument on withdrawals and refunds of excess contributions before age 75; $50 per instrument on transfers to another eligible institution and for the seizure fee. Penalties from the Puerto Rico Department of the Treasury may apply to non-qualified withdrawals. Transaction fees apply per instrument. If a withdrawal is for a non-qualified reason, local law requires the Bank to retain 10% of the withdrawn amount.
Regular IRA: The principal and interest are insured by the FDIC up to the maximum amount allowed by law. Certain restrictions apply. Once the instrument is opened, no additional deposits or withdrawals are allowed until its maturity date. Interest is calculated daily based on the daily balance and credited monthly. The interest calculation method utilizes the daily balance, applying the daily periodic rate to the account principal each day. When the account is opened or deposits are made using bills (e.g., checks), interest starts to accrue from the business day the transaction occurs. Renewal is automatic at maturity for equal-length periods, applying the rate in effect at the time of renewal. There are no grace periods on IRA renewals, and penalties for withdrawals or cancellations before maturity equal 180 days of interest.
Stock Market IRA: The principal is insured by the FDIC up to the maximum amount allowed by law. Once the Stock Market IRA is opened, no additional deposits may be made at any time. Partial withdrawals are not allowed before the maturity date. The interest payable under the Stock Market IRA account, if any, is 1.25 (125%) of the percentage increase in the S&P index, capped at a maximum of 40% with no guarantee of a minimum yield at maturity. “Standard & Poor’s®,” “S&P®,” and “S&P 500®” are registered trademarks of Standard and Poor’s®, a division of McGraw Hill, Inc., and have been licensed for use by Popular Inc. The product(s) is/are not sponsored, endorsed, sold or promoted by Standard & Poor’s® and Standard & Poor’s® makes no representation that it advises investing in this product. Please refer to the Individual Retirement Account Agreement for more information on how interest is calculated, among other matters. Upon maturity, the account does not automatically renew into another Stock Market product and the entire balance is invested in a five (5) year Regular IRA. Penalties for early termination during the first year will be 30% of the principal; 25% of the principal during the second year; 20% of the principal during the third year; 15% of the principal during the fourth year; and 10% of the principal during the fifth year.
Popular Total Return Fund IRA: A product offered by Popular Securities, LLC. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Investment Fund before investing. This, along with other important information, is included in the prospectus and the summary prospectus. You can access the prospectus by visiting popularfunds.com/resources. Please read it carefully before making an investment. Investment products are not insured by the FDIC, they are not deposits or obligations of, nor are they guaranteed by Banco Popular de Puerto Rico, its affiliates, or subsidiaries; they involve risk and may lose value, including the loss of the principal invested. Investment products and services are provided by Popular Securities, LLC, a registered broker/dealer and member of FINRA and SIPC. Investment advisory services are offered through Popular Securities, LLC, an investment advisor registered with the SEC. Popular Securities, LLC is a subsidiary of Popular, Inc. and is affiliated with Banco Popular de Puerto Rico. Popular, Inc. and Banco Popular de Puerto Rico are not registered securities brokers or registered investment advisors. Banco Popular de Puerto Rico, its subsidiaries, and affiliates are not engaged in providing legal, accounting, or tax advisory services. If you require legal, accounting, or tax advisory services, you should consult a professional specialized in those fields. Seizure fee: $50; Processing fee: $5 per instrument on withdrawals and on refunds of excess contributions before age 75, $50 per instrument on transfers to another eligible institution. Puerto Rico Department of the Treasury penalties may apply to non-qualified withdrawals. Transaction fees apply per instrument. Initial Fund Management Fee: 1% of the amount invested. Please refer to the prospectus for updated annual fund management fee information. Local law requires the Bank to retain 10% of the amount withdrawn if the withdrawal is for a non-qualified reason.
