IRA, CD, Money Market: How to Choose?

IRA, CD, Money Market: How to Choose?

You wouldn’t know it from the long lines of holiday shoppers vying for everything from Lalaloopsy Silly Hair dolls to iPads, but consumers still tremble at the state of the economy. The wise investor is the informed, astute investor. When it comes to CDs, money market accounts, and traditional versus Roth individual retirement accounts, there’s a lot to learn about where and how you should invest your money. Steven Dolvin, Ph.D., CFA, associate professor of finance at Butler University, explains what it means to trust your money to these different types of investments.


With the current economic situation, how safe are IRAs?


IRAs are in and of themselves, neither safe nor unsafe. When you have an IRA, you deposit money in it and then decide what to invest that money in. That decision — where to invest — determines how risky the account is. If I invest $5,000 in an IRA and put it all in a U.S. government bond fund, that’s much safer than an investor putting the same amount in a small-cap stocks fund. The IRA is just a platform. The investments themselves and the basic security of the IRA itself determine the level of risk.


Given the instability of the economy, is an individual better off investing in a traditional IRA or a Roth IRA?


Selecting a traditional versus a Roth IRA is determined by your individual situation. Two issues come up here: your tax rate and your age. The lower your tax rate and the younger your age, the more attractive a Roth looks. The younger your age, the more time you have for that money to grow and when you eventually withdraw the money, you will not have to pay taxes. The economy could play a role in terms of tax rates and returns, but your age and your tax rate determine (the best choice).                 More


wordpress visitor counter

Get Free Email Updates!

Signup Now to Receive Updates and Alerts!

We will never give away, trade or sell your email address. You can unsubscribe at any time.


Candice writes for several publications, including The Christian Post, Red State, The Black Sphere and Patriot Update. She is the Science & Tech Editor at the Minority Report Blog and the founder and Editor-in-Chief at Front Lines. She's also the founder of Candice Lanier's Tech News and works as a computer consultant. Additionally, Candice is an antiques dealer.

More in


This Guy Got Divorced Then Said THIS To His Ex-Wife’s New Lover…WHAT?

Andrew SpaldingOct 6, 2015

Explained Perfectly: How Obama EXPLOITS Tragedy For Political Gain

Andrew SpaldingOct 6, 2015

‘Normal Barbie’ Just Got A Makeover, PROOF Why Feminism Is Gross

Andrew SpaldingOct 6, 2015

16-Month-Old Australian Boy Suffers Decapitation, Then His Head Is Reattached

Andrew SpaldingOct 6, 2015

Town Stuns State of Oregon With Unheard of Move After Shooting… Liberals ENRAGED

Andrew SpaldingOct 6, 2015
Screen Shot 2015-10-06 at 9.00.21 PM

Woman Muslim Gets Furious After She’s Denied Service… Then Karma Steps Up

Andrew SpaldingOct 6, 2015

The Minority Report is a network of websites devoted to Conservative & Libertarian politics in the United States. In 2014 the network had over 20 million page views!

On this site you'll find posts & links to some of the best and most comprehensive center-right news and opinion on the net...

December 2011
« Nov   Jan »


Copyright © 2014 The Minority Report Network