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{ 6 comments… read them below or add one }

Miranda July 8, 2009 at 8:37 am Twitter: @MMarquit

Great post. I didn’t realize that was a point of confusion for some people. But it would be nice to have a regular, guaranteed return on an IRA…

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Bible Money Matters July 8, 2009 at 10:11 am Twitter: @moneymatters

love the line at the beginning: Individual Retirement Account: not – Investment that Returns A lot – or – Interest Rate Account.

classic.
Bible Money Matters´s last blog ..Saving Up And Paying Cash For The Things You Buy Makes The Purchase More Enjoyable! My ComLuv Profile

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Matt Jabs July 8, 2009 at 10:23 am Twitter: @MattJabs

Roth IRA’s don’t pay anything or have interest rates attached to them. They are just an account – a retirement account.

It’s scary how disconnected most people are from their investment accounts!

Just more proof that it pays to gain a secure understanding of where your money is, where it is heading, & what you want it to accomplish!
Matt Jabs´s last blog ..Sound Money Advice for You & Michael Jackson’s Kids – DFA Tip of the Week My ComLuv Profile

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U. Tony July 9, 2009 at 9:16 am

Jeff: The IRS just recently changed the official name of IRA to mean “Individual Retirement Agreement”

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Dylan Ross July 10, 2009 at 8:16 pm

I think you might want to take a look the tax code or even IRS Publication 590. It is a popular misconception that IRA stands for “Individual Retirement Account.” IRA actually stands for “Individual Retirement Arrangement.” There emphasis should be on the arrangement because that’s what it is, an arrangement between individuals and the government (if you follow these rule, the government will follow these rules.)

There are in fact IRA accounts and Roth IRA accounts that are deposit accounts at banks that do pay interest. So the question about rates for an IRA account does not necessarily indicate a misconception about what an IRA is, but instead it might indicate a misunderstanding over the difference between a brokerage account and a bank account.

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T August 27, 2009 at 2:06 pm

Some of these institutions can really capitalize on advertising to the uninformed like myself about opening an IRA, as I was in the dark until I researched more online (more like a shadow now) about how these accounts (err-umm, excuse me…arrangements) work. I wanted to open a Roth IRA for my two teenagers who just started working so they’ll have a slight advantage for in the future. The sooner the better. We really need it now for our upcoming generations who will probably be paying the higher price of our faults today!

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