2007-03-09 11:56:02 · 3 answers · asked by k 3 in Business & Finance ➔ Investing
or cd's or regular savings
2007-03-09 12:01:16 · update #1
That's a very broad question. I assume you are young--if you are not making a whole lot of money right now, then the odds are you are in a low tax bracket. If this is the case, a Roth IRA is your best choice to start. You can contribute up to $4000 per year of after-tax income, and you will never be taxed on your earnings on investment if you don't make withdrawals before you're 59 1/2. But keep in mind, you will be taxed and penalized if you withdraw before that time. Inside the Roth IRA, stock market investments like mutual funds have historically provided the best returns. If you're not familiar with these, get a good financial advisor who can help you with asset allocation and fund selection. Keep in mind that these funds will be more volatile than bonds or CDs, but if you have a time frame of over 15 years to invest, it's almost certain you will come out better in the long run.
2007-03-09 12:23:46 · answer #1 · answered by bigfella422 2 · 1⤊ 0⤋
Bigfella covered the subject very well. But with the Roth IRA your contributions can be withdrawn anytime with no taxes or penalty.
This is not a good thing to do as it kills your long term returns but it is an option
2007-03-09 13:09:06 · answer #2 · answered by redd headd 7 · 0⤊ 0⤋
Roth ira put a mutual find it
2007-03-09 16:43:56 · answer #3 · answered by ? 6 · 0⤊ 0⤋