Individual Retirement Accounts and Certificates of Deposit

Rebecca Dawson
Silber Bennett Financial, Los Angeles, Calif.

IRAs are available to anyone of any age as long as you have earned income. You can invest the funds in your IRA in, but not limited to, stocks, bonds, mutual funds, and CDs.

An IRA is an account that allows an individual to save for retirement with tax-free growth or on a tax-deferred basis, depending on the type of IRA.

A CD is a type of fixed-interest-rate deposit over a set period of time. When that term ends, you can withdraw your money or roll it into another CD.

CDs offer a low return but are among the safest investments a person can make. The interest rate is determined ahead of time. You’re guaranteed to get back what you put in, plus interest, once the CD matures. What’s more, if the bank goes under, your deposit is likely insured by the FDIC for up to $250,000.

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