As a younger person in his 30s, what would investors recommend:
I get a $2000 check from my employer every year for savings/investing. What are the safe and best options to do with this money?
Last year I put it in a Roth IRA. Was that a wise move? I know nothing about investing.
Dec 6, 2010 12:29pm
Con_Alma
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Con_Alma
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Mon, Dec 6, 2010 12:33 PMDec 6, 2010 12:33 PM
A Roth IRA is not an investment. It is a tax qualification. What did you invest it in?
Dec 6, 2010 12:33pm
areyoukiddingme
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areyoukiddingme
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Mon, Dec 6, 2010 12:39 PMDec 6, 2010 12:39 PM
All I know is that it was some sort of an IRA/CD that I can contribute more money into it before April of 2011 and then it becomes mature?
Dec 6, 2010 12:39pm
Manhattan Buckeye
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Manhattan Buckeye
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Mon, Dec 6, 2010 1:04 PMDec 6, 2010 1:04 PM
If there is a maturity date I'm guessing the money is in some sort of U.S. Treasury issue. As Con Alma pointed out a Roth is just a tax mechanism, you pay taxes on the income currently but when you withdraw after following the rules the distribution is tax-free....it doesn't have anything to do with how you invested the funds.
It depends on how risk averse you are, if you want to keep your prinicipal Treasuries and bonds usually are less volatile. If you want to invest in equities there are some exchange traded funds that have reduced management fees.