Dec 28

I notice from some investment company they offer IRA (that puts money in 2040, 2035, 50/50 or something like that) and IRA CD.

Those numbered IRA are not FDIC insured but the IRA CD is.
What’s the different? If the IRA CD is insursed. It sounds awesome, how come it seems like less people go with that?

thank you
By any chance if anyone know IRA CDs out performed by how much?
Is it worth the risk?
And how high is the interest right now for IRA CDs?


2 comments so far...

  • MikeeyMan Said on December 28th, 2009 at 7:25 am:

    Typically, Index funds outperform CD’s in the long run… This is probably why people choose to invest their IRA in index funds over CD’s…..

  • KP Said on December 28th, 2009 at 7:31 am:

    An Individual Retirement Account (IRA) can be made up of many investment options. An IRA such as a 2040 or 2035 is a balanced portfolio that invests in a combination of both stocks and bonds according to your retirement date and risk tolerance. (Ex. If your plan to retire in 2040, then the 2040 fund should fit your risk/return goals.)

    A IRA CD is similar to a standard savings account, except withdraws generally cannot be made until the age of 59 1/2 and that is why it is FDIC insured, the bank is paying you (minimal) interest to hold your money.

    Based on historical performances, securities such as stocks or bonds yield a significantly higher interest than that of a traditional IRA CD.

  • ziusi Said on January 19th, 2010 at 11:47 pm:

    @Aroukaria that’s true, but i think it’s more normal to find differences between cultures that have different traditions and history

  • Oshinkireidesu Said on February 12th, 2010 at 5:39 am:

    @KpopTheWorld What is the different between normal friedrice with beijing hangeng style?

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