Yesterday I made my first splurge of the week, and it is so humorous to me what it is. I blew $4 dollars, on a money magazine. My husband looked and asked me what the heck I had bought that for, and I told him I want to understand more about ira’s, roths and money markets or whatever the heck they are called ( I know NOTHING about any of these), everything, plus I heard the magazine had good tips for saving money. But it still seemed kind of funny that I would splurge on it. I really like it though, I honestly have no Idea what over half of it means, but maybe if I read It enough I will figure it out.
iras, money markets no idea
August 8th, 2008 at 11:59 am
August 8th, 2008 at 12:10 pm 1218197407
August 8th, 2008 at 12:17 pm 1218197876
But the IRAs are just retirement accounts. The Roth, you put in money after you pay taxes and you can tax out the money tax free later. A traditional IRA, you put in money before you pay taxes and you pay taxes when you withdraw the money.
A money market account or mutual fund is just the safest investments. (Stay away from enhanced money market funds, these could contain very risky investments called SIVs and CDOs). A money market is a greal alternative to a savings account. You can write checks and the yield is higher then savings accounts.
I think you should get a beginner book that will walk you through different types of mutual funds and how to diversify. But glad to see you have some interest in finance.