One of my most favorite questions that I often get as a financial planner is “What’s your best rates on Roth IRA’s?” Coming in at a close second is, “What’s the best stock to buy right now?” So how would you explain to somebody concerning rates on Roth IRA’s? Initially, I explain what an I-R-A stands for: Individual Retirement Arrangement (emphasis on arrangement), not Investment that Returns A lot or Interest Rate Account. I have to admit that I even thought that the “A” stood for account (but was informed by my readers that IRS actually refers to them as “arrangement”. (Thanks to my readers for keeping me on my toes!) Roth IRA’s don’t pay anything or have interest rates attached to them. They are just an account – a retirement account.
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