I just opened an IRA. What can I do to help my money grow?

For individuals who are just starting to save, certificates of deposit can be a good place to start, but the interest rates are usually low.

You may want to speak with the investment advisor at your bank about the investment options available to you. The investment advisor may recommend investment options such as mutual funds or other low-risk investments.

You may also want to consider encouraging your employer to establish a retirement plan for the business and employees. Some of these plans can be done at minimal cost to the employer and the business gets a tax deduction for contributions it makes to the plan. The business owner will also benefit under the retirement plan. Depending on your salary amount and the type of retirement plan you have, the contributions to the account can be sizable - up to $46,000 for 2008.

For further reading, see Compound Your Way To Retirement.

This question was answered by Denise Appleby
(Contact Denise)

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