Comments on: Roth IRA CD: Tax-Advantaged Retirement Investing without the Risk

By: Philip Taylor

Philip Taylor — Thu, 01 Jan 1970 00:00:00 +0000

I think it depends on the institution. They will spell it all out for you when you sign up.

By: tammi

tammi — Thu, 01 Jan 1970 00:00:00 +0000

What is the penalty and/or tax for withdrawing the Roth IRA CD then instead of renewing it?

By: PT

PT — Thu, 01 Jan 1970 00:00:00 +0000

@McKay – They make a lot of sense for people who are looking to replace the cash portion (typically in MMA) of their retirement. But I agree, if you’re young and have a long time to retire then this doesn’t make sense, unless you are extremely conservative.

By: McKay

McKay — Thu, 01 Jan 1970 00:00:00 +0000

CDs just don’t make a high enough return for a realistic retirement investment. Those people who feel that the stock and bond markets present too much risk need to realize that their biggest risk is that they won’t have enough money to retire when they need to. Putting all of your retirement money in CDs is a great way to ensure you won’t have enough money (unless you make tons of money and can put huge amounts of it into your CDs). I see no problem putting a small percentage of your retirement in CDs. However, a well-balanced portfolio is still the way to go.