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rbeezy

Should I invest in a IRA or CD?

I have a little extra money about $500 and I don't know which would be better to invest in. I don't plan on needing it anytime soon but I want something that will earn the most money sitting there. Any advice for a newbie to the investment game? I also plan to continue to contribute to it, but only when I can. I don't expect to get rich from my $500 but I want to start a base for my future.

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IRA's have drawbacks if you need to get to your money later. Only invest in an IRA if you don't plan to touch it till you retire. The IRS accesses a huge penalty if you break it early

I have put money in high-interest checking accounts instead of CD's again penalties if you want it early. Capital One and others have them available

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In my opinion, you need to invest in IRA instead of CD. This is because this investment is a type of account, which has a number of tax characteristics. You can get more information about it on http://banking.about.com/od/investments/a/ira.htm.

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