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

By Denise Appleby AAA
A:

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)

RELATED FAQS

  1. How do I set up a 408(k) plan in my business?

    Understand the necessary steps for setting up a 408(k) retirement plan, and get an overview of the SEP and SIMPLE plan options ...
  2. What are qualified retirement plan types?

    Understand the different types of qualified retirement plans and what they mean in terms of employee and employer contribution ...
  3. How does a qualified retirement plan early distribution work?

    Weigh the pros and cons of taking an early distribution from a retirement account. Most early distributions are subject to ...
  4. What are the Roth 401(k) withdrawal rules?

    Understand the requirements for tax-free withdrawal from a Roth 401(k) account, how early withdrawals are taxed and options ...
RELATED TERMS
  1. Elder Care

    Elder care, sometimes called elderly care, refers to services ...
  2. Gold IRA

    Definition of Gold IRA
  3. Eligible Transfer

    An IRS-allowed movement of assets into or out of an individual ...
  4. Leveraged Benefits

    The use – by a business owner or professional practitioner – ...
  5. Multibank Holding Company

    A company that owns or controls two or more banks. Mutlibank ...
  6. Short Put

    A type of strategy regarding a put option, which is a contract ...
comments powered by Disqus
Related Articles
  1. Top Financial Frights: Emergencies & ...
    Investing Basics

    Top Financial Frights: Emergencies & ...

  2. Steps To Retiring With A Reverse Mortgage
    Retirement

    Steps To Retiring With A Reverse Mortgage

  3. Pick the Right Brokerage Account for ...
    Options & Futures

    Pick the Right Brokerage Account for ...

  4. When Your Job Offers An Awful Retirement ...
    Retirement

    When Your Job Offers An Awful Retirement ...

  5. Top 5 Strategies To Pay For Elder Care
    Retirement

    Top 5 Strategies To Pay For Elder Care

Trading Center