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Is a Roth IRA or any IRA, like a interest yielding savings account? Like can I just open up a Roth and watch money grow over the years? Or is it a place to put money aside to invest in stocks, funds, bonds, CD's etc without contributions making any interest? Seeking to set the record straight. Thanks
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Look at Roth IRAs, Traditional IRAs, 401ks, 403bs, savings accounts, etc., as just investment vehicles. They all look a little different and have different options that suit different people in different ways depending upon their personal life situations. But, they are all investment vehicles that can get you from point "A" (where you are now - financially speaking) to point "B" (where you want to be at some time in the future - again, financially speaking). However...these vehicles, all of them, can't get you to where you want to go on their own - they need gas in order to perform. The gas I'm speaking of is cash, CDs, stocks, stock funds, bonds, bond funds, etc - depending upon the particular vehicle/s you have. The more gas you add to these vehicles, the farther they can go.

So, if you want your Roth IRA, for example, to mean anything, you'll have to feed it cash, stocks, funds, etc. usually on a regular basis and then watch the compounding of your inputs and their resulting dividends, interest, etc. work it's magic.

Tax considerations are a significant part of these vehicles as well.

Here's a little rundown on the Roth IRA:

http://www.fairmark.com/rothira/roth101.htm

I hope that this helps you understand a little bit better.

Regards,
Bill
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