G.I.C, Roth IRA, ETF DIA How do i find out what terms like this mean? How do I know the best place to save?

Question

It seems like there are an endless amount of terms used at banks and i have no clue what they mean where do i find out about this, i feel silly asking anyone at the bank, and i feel that if i do they will just try to get me to do whatever will get them more money.

Also, how do i know where to save my money? I am scared that if i put my money somewhere something will happen and i will lose it all....even though i am young (21) and dont have much money I want to try and save 2500 to put into savings

Answer 1

Check Investopedia.com for definitions to finance terms.

Answer 2

Yahoo! would be saddened you didn't avail yourself of their resources.

http://biz.yahoo.com/f/g/mm.html

I've been keeping my financial information in Yahoo! for over a decade - it's brilliant. All my stock basis information - for those of you who don't know - it's just a marvelous tool.

Go to the bank that pays the highest rate. Just put as much away as you can. And don't worry about the bank trying to sell you something. Just say "no".

When you're ready to invest - open a brokerage account.

Also, you can open an IRA now for last year - you have a month or so. Put that money in a retirement account! Starting early is HALF the battle in saving for the long-term.

You can save money anywhere. Bank, brokerage firm, mattress. As long as you save - you're doing great :)

Answer 3

It depends on what you are saving for. If you are saving an emergency, you need to put it in a savings account. If you are saving for retirement, the best place to put it is in a Roth IRA. The Roth IRA will grow tax free until retirement. The max you can invest in a Roth IRA is $4000/year, but it's a great investment. There are tons of books on personal finance at the library. Go there b/c you can browse through them without having to buy. Good Luck!