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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
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