Roth IRA at CU

February 2nd, 2008 at 10:53 pm

I ran some errands today and visited the credit union. I opened a Roth IRA and locked in 4.41% for a year. It was interesting that they offered a 18-month variable rate CD at 4.50%. I inquired about it and the branch says they update the rate weekly. Doesn't seem like a good idea in these declining days. Made another additional payment on the car note.

Now it is time to get ready for the Superbowl.

Posted in Financing | 9 Comments »

9 Responses to “Roth IRA at CU”

Amber Says:
February 3rd, 2008 at 12:01 am

On my regular roth ira at the credit union I earn 2.25% but with the roth ira cd I am earning 4.75% a decrease from 4.95%
Mr. Meager Says:
February 3rd, 2008 at 12:14 am

sweet
Ima saver Says:
February 3rd, 2008 at 06:03 am

That is a pretty good deal. I wish we had a credit union around here!!
disneysteve Says:
February 3rd, 2008 at 01:42 pm

I'm not sure how old you are, but is a low-yield CD really the best place for your retirement savings? How far are you from retirement? If it is more than 5 years or so, you may want to get more aggressive and invest in stocks/stock mutual funds. Putting retirement money in CDs you are barely going to keep pace with inflation over the long run.
Amber Says:
February 3rd, 2008 at 02:34 pm

Thanks disneysteve but I do invest agressively with the company's 401k plan in additional to funding a traditional ira, I have about 35+ years left before retiring
disneysteve Says:
February 3rd, 2008 at 04:28 pm

Amber, are you currently funding a Roth or a traditional IRA? If the latter, why not a Roth?
Broken Arrow Says:
February 3rd, 2008 at 09:32 pm

I have to second Steve's concerns here.

A bank typically offers CDs for their IRA investments, and for most, it's way too conservative. In fact, right now, it's just good enough

Please remember that our inflation is pretty bad right now and the interest rates are pretty low.

One may also argue that the stock market is down, but really, they're already down. So, it translates into pretty good buying opportunities out there.

And with a long horizon before retirement, you should expect your overall returns to be at least double of what CDs are locking you into right now.

CDs are a double-edged sword. They can lock you in to protect your interest rate, but they can also lock you in to deny you of better returns elsewhere.
Mr. Meager Says:
February 3rd, 2008 at 10:50 pm

disneysteve & BA, I maybe about 30+ years from retirement, but I might not live that long, but that is a totally another issue aside for savings advice. My decision at this time to keep my rother IRA and extra funds in CD's because I hope to maybe buy a home in 5+ years. Another reeason that some find silly is because I am very paperwork adverse. My personality is super conpulsive so I put alot and too much thought into every number on investment statements. It is very hard for me to not constantly look at my 401K work investments which are invested aggressively. I generally don't like having different types of accounts because of all of the statements that accumulate. I'm more for meager and simple life, rather the best possible return that I can find. Like my father, if know I would research all the many types of investments, and constantly debate in the back of my mind if a particular decision is the best. Then I start worrying about how a 12% return could have been 14%. I'm prone to stress, and try to lower my stress level.

Sometimes I wish I can still file my tax returns on the EZ form, but am content with the 1040A, which I still do manually. Does anyone know if I started to invest in mutual funds with my cash holdings, I would need to start filing with the long 1040 form?

Maybe someday, but not at this time.
Amber Says:
February 5th, 2008 at 07:30 pm

disney its a traditional roth

Mr. Meager $$$ Thoughts Blog

Though I would rather not be working, I am a slave to the Williams (bills).

Roth IRA at CU

9 Responses to “Roth IRA at CU”

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