IRA/CD withdrawal questions
9 years ago
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- 9 years ago
- 9 years agolast modified: 9 years ago
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Anyone have a Roth IRA?
Comments (13)Thanks meldy! I do have many places. I had this guy who has been working with my dear friend, who lost her husband very suddenly last year, helping me. I've been to the SSI retirement symposium so that I could hear what I might need to tell mom who is just about to retire (age 70 next year), and what I might start doing to position myself. I saw him in action there; he was giving the right advice. "Don't take Medicare until as late as possible", if nothing else, but there was more, and he was right on. I've been teaching my son that too, showing him how compound interest was the most important part, so much so, that he could invest X, by age X, and if it averaged X, then he'd have millions by the time he retired (way earlier than 65), even if he quit at a certain point... that he wanted to start now and doesn't plan to quit investing in it. He started his retirement nest egg at age 8 (three years ago), and will put it into his first CD by the mid-year next year ($1,000 minimum), which is pretty good because he started out with getting only $15 a month for everything he does, and although it's up to $45, that's all he ever get. Anything else, he'll have to work a job (to pay for a car, gas, insurance, designer clothes, etc.). He's never taken anything out of the retirement fund because he has another savings that he takes from when he wants the "big" things and already has spending money set aside. I think he'll do it. As long as some wretch doesn't get her hands on it later on. It has been fast because we knew how to pare down, set aside exactly what was needed for the bare bills, save as much as possible, and some small amount is now being added as investment. Some time next year, they'll get switched. The bigger savings will be all investment fund with a bit going into CDs. And I'll go back to my own personal having-fun-with-the-stock-market investing. I can make big bucks with that, even when the market is down. And God is good. That too. Moreso, because of that. :)...See More1099-r from tcf bank on an ira rollover
Comments (7)If I may intrude, I too withdrew a few matured IRA CDs in 2006 and thought it natural that because I reinvested it within one week into another bank, as an IRA (but with juicier interest hehehe) I wouldn't be sent the dreaded 1099R but I was. I've been handling my IRAs for years, and I don't recall being sent 1099s in the past for IRAs, but I think when my IRAs matured in those years, the institution would automatically give me some IRA forms which I presented to the bank opening my new rollover, hence, no 1099R...but I'm not sure. To avoid this I learned it's best to transfer from institution to institution which I'm just doing now. However, I have a problem about this particular rollover and hope someone could help? I just today arranged a rollover/transfer of my matured IRA but only now, after having mailed all the papers, I remembered one cannot make more than ONE rollover per year. Since this new CD is only for 3 months with a terrific interest, if I don't like the new rate after the 3 month maturity I won't be able to roll it over until a year from the time I opened this new IRA account and will be stuck... :( Am I correct? Or is there a way around to escape the new (probably) lower rates on maturity? One phone employee told me that on maturity it may go down about almost a whole percent (0.95%). Thanks so very much for any suggestions! Adela...See MoreRoth IRAs
Comments (5)Deemarie - The investment value of a Roth IRA will depend on how you invest it. Depending on the firm that you are with, you should have many choices as to the kinds of funds available. DH and I like our Roths because they are 1) tax free, and 2) we will never have to draw on them if we don't want to, and can leave them to our children. With a regular IRA you must begin withdrawing money at age 70 1/2. No such rule applies to Roths. I like Fidelity for Roths as it has an enormous number of funds, from money markets to many bond funds to a great array of equity funds. One click of the keyboard and you can switch to another fund at any time, with no penalties. Be sure to look for no-load funds....See Moreroth ira question
Comments (3)That depends on the financial institution with which you open the account. You need to find out if they are flexible enough in their procedures to enable you to add to your Roth account. You probably cannot add to the CD that you started with because CDs typically go for a certain period to maturity, and then they "mature," which means you need to open another one at the new prevailing interest rates. Adding to an existing CD, say, a few hundred dollars a month? I do not think so, but you can probably open a different account to enable you to do that. A question of strategy: Roth IRAs are tax free, which means that, although you pay tax on the initial contribution to the account, everything it earns after that is tax free. They are an excellent long term investment, money you just put in there and don't pay too much attention to it for a long, long time. Since your time horizon for a Roth is (or should be) at least 10 years, you can afford to take on more risk than a CD. To take advantage of the tax free feature, you need to keep the money in the Roth for a minimum time (I think at least 5 years, but I'm not sure of that). It therefore makes sense to think long term and take on more risk, say, an index fund of the whole stock market, or something like that....See More- 9 years ago
- 9 years ago
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