ROTH IRA vs. CD vs. SAVINGS ACCOUNT?

[thapeopleschamp]

i know a bit about ROTH IRA's etc...
and if i start it now,it'll be great when i retire...
but...here's my question...

what if im SAVING this money FOR somethin...?
small business maybe? is this a wise choice?

so,for someone who wants to save $$$ for a few years and start a
small business which to pick?

ROTH IRA vs. CD vs. SAVINGS ACCOUNT?

 

[651akathepaul]

ROTH IRA's are great for long term (30 years). In the short term, you won't gain much. And especially right now, you won't see gains for awhile yetbecause of the economy.

 

[thapeopleschamp]

and it wouldnt be a question for me,if i didnt have this
small business idea,that id like see off the ground in 3-5 years...

that fact almost cancels out the roth ira idea.

 

[nt og]

high yield online check account or cd

 

[thapeopleschamp]

im thinkin :
$5000.00 in a CD 1yr 2.87 rate ...

AND

instead if saving $300 bi-weekly in a regular savings,into my ROTH? or cancel that part
and just save it in a regular ole savings account?

 

[andycrazn]

Originally Posted by ThaPeoplesChamp

im thinkin :
$5000.00 in a CD 1yr 2.87 rate ...

AND

instead if saving $300 bi-weekly in a regular savings,into my ROTH? or cancel that part
and just save it in a regular ole savings account?

that rate for the cd is horrible. etrade ftw at 3.75 and its a savings

 

[finnns2003]

yeah, ING really slashed their rates

 

[nt og]

or buy gold

 

[thapeopleschamp]

ok,i feel that... but Etrade is online and i just dont feel good about
theire not being a location i can go to cuss someone out if somethin goes wrong..
feel me? thats "supposedly" the best rate in texas...

 

[andycrazn]

Originally Posted by ThaPeoplesChamp

ok,i feel that... but Etrade is online and i just dont feel good about
theire not being a location i can go to cuss someone out if somethin goes wrong..
feel me? thats "supposedly" the best rate in texas...

oh i see. some people just dont trust online stuff so i understand. buy i-bonds? they give good rates too, but its from the government soyea........ well good luck with what your trying to do cause that cd rate doesnt even do anything against inflation

 

[kix4kix]

Regardless of what you start, start a ROTH IRA....

CD is ok as well. Savings account should be nowhere in the convo if you are younger than 30

 

[johnacio]

Best choice is to open up a cd...saving accounts have lower interest rates and IRA's are best only if youre saving for retirment.

 

[kicktionair]

I was lucky to lock a 4.5 APY interest before every bank lowered the APY to like 2.3

I should have placed all my money in a that CD

 

[thapeopleschamp]

thanks^
but ARGH! this @$!$ is always a headache...
what to do,what to do...


see i dont even know what u mean by "against inflation" lol...
im sucha beginner.
[23yo]


and im leaning towards a $5000.00 cd...
and NOW to FIND A GOOD ONE...

[why didnt i hop on the WaMu 5.00% when i had the chance]

 

[mexicansoul]

Do CDs and Start the Roth but act as if it doesn't exist. Find a short term if you need liquidity, though, I believe some CDs allow withdrawl withoutpenalty.

Check here for rates in your state http://www.bankrate.com/brm/rate/depsearch_state.asp

 

[thapeopleschamp]

^^^ thanks...


so,im feelin a little better...
but,all this raises the question...


im researching HIGHEST rates,blah,blah...
and the [what would appear to be]
BEST rates... arent in my STATE... OR online banks such as e*trade etc.
...the best i found in texas [houston specifically] was a 2.78 and i dont
wanna PICK that one just because its in the "H"...

argh.. im so close to the answer i can feel it

 

[madman4life]

I don't know if your member (they are the world largest credit union so you may be a member) but Navy Federal Credit Union is running a offer where theyhave a 1 year CD at 4.25 APY.

 

[derryj3]

Im planning on starting a ROTH IRA by years end and act like it doesnt exist. (hopefully my funds will be at that point where I wont miss the money everymonth)

 

[fortheloveofthegame8]

If you need the money in less than 5 years, keep it away from the stock market. That said, you'd probably want to park it in a CD or bonds. With whatyou've said, you certainly want to stay away from an IRA. In an IRA (Individual Retirement Account), youcannot touch the money (without penalty) until your 59.5. It's great to start early to take advantage of the compounding interest, but for your situation.... I'd advise against an IRA.

 

[bdeazy]

Originally Posted by 651akathePaul

ROTH IRA's are great for long term (30 years). In the short term, you won't gain much. And especially right now, you won't see gains for awhile yet because of the economy.

 

[toy collector123]

put it in an unsecured account... you can get an interest in the 5%.s if you do. highly risky, but better if you want cash fast.

 

[israel5ekla]

[table][tr][td][/td] [td]

I don't know if your member (they are the world largest credit union so you may be a member) but Navy Federal Credit Union is running a offer where they have a 1 year CD at 4.25 APY.

[/td] [/tr][/table]Thats as high as youll get.

Gmac bank offered 4.10% a month ago 1 year cd

 

[dey know yayo]

up until 2007, i woulda said roth IRA. now i say, none of the above, put it in gold.

no bank's interest rate will beat inflation in the future, with this massive debt monetization and deficit spending and quantitative easing that istemporarily sequestered in treasury-financed cash pools sitting in the federal reserve.

cash is a position, and it will be a terribly weak position in the coming future.