Skip to main content
No. of Recommendations: 0
Fellow Fools,
Let me start off by stating the obvious. I'm new to retirement investing. I also just turned 21. I'm interested in opening a Roth IRA. I would like to know HOW IRA's earn money. Is it a government thing so the rates are all the same? Or is it based on a CD that a certain bank offers? These questions arise from a discussion I had with two diffent bank employees. It didn't seem like either really knew what they were talking about, or maybe they just did a poor job of explaining it.
I know I can invest the money from a Roth IRA into CDs, stocks, mutual funds, and whatnot. But what happens if I just leave the money there? Does it need to be invested? If it isn't invested, do I just get the savings rate offered by the bank?
All of the information that I've been able to read about the Roth IRA are regarding it's requirements and restrictions. Any insight to HOW it makes money would be greatly appreciated.
Thank you,
Nick Singh
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.