Thursday, August 18, 2022

A Tool for Retirement

By on March 8, 2021

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Individual Retirement Accounts (IRAs) are one of the best alternatives we have to save for our future. If you decide to start planning for your future, then it is time that you consult with your financial adviser about what the best option for you is because there are different products on the market.

As part of that process, you must consider these two factors when contributing to an IRA. First, what is your retirement age going to be? This helps you define if the contribution you will make can be made in the short or long term. Second, what is your tolerance for risk? This will help you define whether the contribution you are going to make will be to a fixed-yield or variable-yield product.

Once you have these answers, learn about the benefits of the different options. In addition to saving for your retirement, IRAs allow you to have tax savings on your payroll. There are deductible products and non-deductible products, but if your contribution to your IRA will be through a deductible product, you will receive a tax deduction according to the amount of your contribution. You can make a maximum contribution of up to $5,000 per individual or $10,000 per married couple. According to the amount of your contribution and your current tax rate, it will be the tax savings.

If you choose a variable yield IRA, your best option is offered by Oriental with the DGI IRA1. The DGI is an IRA tied to the stock market; it invests in bonds and stocks and is the IRA with the most significant potential for long-term growth. Likewise, it is an accessible product where you can 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 to the DGI in installments.

Market-tied IRAs are considered an excellent alternative since they generate a good return while providing tax benefits.

Don’t miss the opportunity; you can open your IRA today without the need to leave your house, call 787-777-7777 or visit for more information about your IRA account. 

Legal disclosures:

(1) Only for individuals who are residents of Puerto Rico. The Diversified Growth IRA or DGI is not insured by the FDIC, is not an Oriental Bank deposit or obligation, is not guaranteed by the Bank, and is subject to investment risk, including the possible loss of the principal invested. It also carries greater risk because it uses borrowed money to leverage the asset base of the Diversified Growth IRA trust. Please request the DGI Prospectus 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. Fees for investment withdrawals (for reasons other than reaching 60 years of age, death, disability, or unemployment): 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 rollover fee of $54.99 will be charged for each rollover to an IRA in another institution.  Subject to an early withdrawal tax penalty of 10% (15% in certain cases) if the early withdrawal does not comply with any of the conditions permitted by the Puerto Rico Treasury Department. There is a 1.80% annual fee for administrative and other services. This annual fee is calculated based on the DGI trust’s average total assets. Product offered by Oriental Bank. Oriental Bank is a subsidiary of OFG Bancorp. All rights reserved.

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