Message Font: Serif | Sans-Serif
 
No. of Recommendations: 2
I went into the Bank of America to roll my 401K into a traditional IRA but they offered a "CD / IRA" which had a specified term. The representative said she felt this was the traditional IRA.

Is this a traditional IRA?

Hopefully the rep knew whether it was an IRA or not. It sounds as if this is one of several types of accounts that fall under the IRA umbrella. It sounds like it is specifically invested in a CD with some interest rate and term.
The question is what do you want to invest the funds in? An IRA can be held by the financial institutions you were told about as well as a brokerage or mutual fund company. After the money is in the account it can then be invested in the investment of choice.
If you are interested in a savings account, money market account, or CD it is best held at a bank or similar institution.
If you are interested in investing in mutual funds you should look at mutual fund companies.
If you are interested in investing in individual stocks or ETFs you should probably look at brokerages.
Of course in real life it isn't quite that cut and dried since banks often provide brokerage services, mutual fund companies can also provide brokerage services and will often include mutual funds, money market funds, CDs and bonds.

Bob
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.