2007-03-17 12:05:52 · 3 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
A cd is good for short term purposes, but not good for long term purposes. An IRA will always outbeat whatever rates a CD makes because you can fund an IRA with mutual funds, bonds, money markets and so on. Mutual funds historically earn 12% in the past 25 years and CDs only do around 5-6%.
2007-03-17 13:20:39 · answer #1 · answered by Anonymous · 4⤊ 1⤋
Apples and oranges.
You can put a CD into an IRA. A CD is a type of investment.
Stocks are an investment. Mutual Funds are an investment. Bonds are an investment. REITs are an investment. ETF's are an investments.
An IRA is a tax sheltered plan (not an investment). An IRA is the type of account your investment goes into. A joint account is also a type of account your investment goes into. So are;
Custodial Accounts, ROTH IRA's, Joint Tentant, etc etc.
2007-03-17 22:06:21 · answer #2 · answered by Common Sense 7 · 0⤊ 0⤋
IRA can't be accessed till retirement without penalties,earns tax free until then.CD can be cashed at maturity,[determined at purchase],earnings are taxed at that time.It depends on how available you want your money,and long term goals.IRA investment choices are much broader,also.
2007-03-17 19:16:58 · answer #3 · answered by Anonymous · 0⤊ 0⤋