Comments | 6 Responses

  1. Steven Sackey says

    I currently have two ira accounts with my bank for my wife and myself. from the time i opened these accounts 5 years ago i have lost money. i would like to retire in 10 years and am looking for the best place to invest my money for retirement. Everyone keeps telling me to put my money into a roth IRA, what is the difference between the IRA I have at fifththird bank and a roth IRA. I currently have 40,000 in my savings account and would like to know where i should be investing this money. i also have 80,00 in my 401K account.

    • says

      Typically the Roth IRA account you have are the same. The BIG difference, I suspect, is that at your bank, your IRA is invested into CD’s, which is why you’re not losing money. Kind of like my example above. To get a higher “rate” on your Roth IRA, you need to invest into something that has more growth potential, like mutual funds or ETF’s.

  2. Joe says

    I understand what you’re saying about a ROTH not being an investment vehicle. I totally get it. I think, though, what we mean when we ask our question is: “what kind of returns are the average investors making these days (in 2012) with their investments within their ROTH’s (that they opened through a brokerage firm) and – let’s say they have a “average” assortment of investments – fairly balanced and not too aggressive?? I realize that nobody can answer this exactly. I also realize that nobody can predict the future. But, still… what we mean by our question is: what do you, for instance, expect to earn from the investments within your ROTH over the next 10-15 years? What’s a reasonable wild guess??

    • Jeff Rose says

      @ Joe

      That’s the point. You can’t throw out a “reasonable wild guess”. There’s too many factors at play here.

      I’m sure most would like to earn an 8-12% rate of return on their Roth IRA, but once again – it all depends on what they are invested into.

  3. Johnathon says

    I’m trying to start saving, I’m 25 years old. I want to have a lot of money saved by the time i’m 50-60 years old. What is my best option to do this with the least if not 0 amount of risk if I’m willing to put back 3K a year.

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