Can Sallie Mae dip into my Roth IRA, investments, savings, cd's to pay off a student loan?
No...this country does not owe you a job. If you can't take your education and get a job. The education is not the problem. You are the problem. You are coming on YA and making excuses for your lazy behavior. You are coming here making excuses for not living up to your responsibility. For not living up to your agreement. When you took out that loan - you agreed to pay it off. Don't give me--- and the millions of others who took out student loans and worked our Fanny's off to pay them off your load of cr@p. You're not forced to go over seas. You chose to. Of course they keep taking on interest. That's what a loan is! Every time you defer the loan.. the interest adds up. According to Suze Orman's book The Road to Wealth, The Answers You Need to More than 2000 Personal Finance Questions- Q If I default (on student loan) and the Department Of Education comes after me, what can they get? A "Almost everything: your bank account, your car, and any other property and/or assets you own - as well as garnishing your wages." You can not discharge a student loan in bankruptcy. So....grow up....stop being a lazy bum and start paying back the money you owe. The longer you put it off....the more the interest accrues.... penalties get applied and the amount you own only goes up up up. And if you don't pay it.....the government can and will come after you. You borrowed it -- You owe it.
How much should I be saving up every month?
It sounds like you are off to a good start. If you have accumulated at least a couple of months of expenses in your savings account you should be shifting your money to a ROTH IRA. You probably want to start off with a low cost index fund for the investment in your ROTH IRA. You are limited to 4000 in contributions in a year, so you will have some build up of savings that you might invest in something that is tax efficient. The big advantage of a ROTH IRA is that you withdrawl your contributions without penalty. So if you want to buy a house in a few years, you should have the start of a down payment in your ROTH IRA.
How much interest is gained on a Roth IRA?
Yikes!!!! You are scaring me. Don't ever borrow on a Roth IRA. When you change jobs, not if you change because we know you Will, any loan Will become due and payable. At your age you should invest in stocks but mutual funds would be the best. They have managers that watch your fund and make the decisions for you. That is why they are paid the Big Bucks. If you think you are smarter than those fund managers think again. Invest only in funds that have a track record of 10 years or more. Check with Vanguard or Morning star. Both are excellent funds that have low expenses meaning the management costs are Less than one %. I have seen many people both extremely wealthy or just reguler Joes and Josephines all of which are living paycheck to paycheck who take out loans on 401k's and can't pay them back. If you want to buy a house it is now a buyer's market and will only get better if you are a buyer and worse if you are a seller. My son bought a house in Minneapolis with a $9,000.00 forgivable loan/downpayment. The neighborhood is improving every year and it is in a nice location. Check with HUD, The interest is what you make it; S&P 500 averages 9 % per year.Learn the Rule of 72: Divide 72 by the interest rate and it will tell you how long it take to double your investment. So a return of 8% will double your investment every 9 years. Of course you won't get 8% every year as some returns will be less than 8 % and some will be more. Check out www.DaveRamsey.com. He has made me enough money to retire at 55.
Whats better a roth ira or a money market account?
Your mixing apples and oranges. A money market account is a way to save money, but not a very good way since interest rates are very low. A Roth IRA is a retirement vehicle that you use along with investments. The Roth IRA is best used with investments in stocks, bonds, mutual funds, ETFs, etc. You pay your tax now, but none when you make withdrawals in your retirement years. Also remember to keep some money in a bank account for emergency purposes.
Best place to open a Roth IRA?
Long term planing so now you could start with your local banks and then progress on during your life time after you do learn MORE about this matter and figure out where you will want to go from there when taking chances investing your ROTH funds in the future OK. Look out for the fees that some of them do charge for these transactions during each tax year OK. Hope that you find the above enclosed information useful. 09/03/2013
Should i invest in a cd or Roth Ira?
I wanted to know how much do i need to start investing and the advantages and disadvantages of a cd or Roth Ira? And what do you think i should invest in? I currently have a savings account but i want to make more money...
What is the difference between an HSA account, a CD account, an IRA, and a Coverdell account?
HSA is a special savings account created by the company you work for- the funds for this account come from your income - an individual is only allowed to use this account to pay for health related items or situations like a doctor's visit or to pay for a co-payment in prescribed medicine.CD is a special bank savings account that banks offer- this accounts have a minimum required deposit- usually 1,000 in the USA. These types of accounts go by a defined time frame and if you withdraw money before the time of agreement with the bank then you have to pay an early withdrawal fee penalty. These types of accounts can earn you some money but in the long run. These types of accounts are not recommended for short term.IRA is a special savings account designed and designated for retirement. IRA's accounts are divided into different categories like the SEP account also known as the 401k- in the SEP account- an individual decides how much to set aside from his/her wages and usually the employer will match that amount- for example if the employee sets aside 90 per paycheck then the employer might add an extra 45 or 30 everytime. The contributions of the SEP account is money deducted before taxes. Then it comes the ROTH- ROTH accounts are created with the money deducted from the employee after taxes. The IRA’s accounts can only be used after retirement or for a real life emergency like first home or surgery procedure needed- otherwise if an IRA is used then a large amount of the money saved up will be taken away as a penalty.A coverdell account is an account designated to save up money for the education of an individual and these accounts are created by the parents of a child.
Is a Roth IRA considered a Mutual Fund or a Brokerage Account?
A Roth IRA (Individual Retirement Account) is a type of savings account with special rules.You can put retirement savings in it and that money—and any investment profit you make on it—will never be taxed again, so long as you don’t take the money out prior to Retirement.Once you deposit the money, you can choose various ways to make it grow. Each type of Financial firm offers different choices:Insurance Company IRAs offer dozens of Variable and Fixed Annuities and dozens of Mutual funds. Annuities are investments that generally offer a minimum return that is guaranteed by the Insurance Company. Each of them have investment choices ranging from conservative to aggressive.Banks: Banks offer Interest Bearing Savings accounts and CDsMutual Fund Companies offer dozens of their own Mutual Funds. Each of them have investment choices ranging from conservative to aggressive.Brokerage Firms Brokerage firms offer everything: Stocks, bonds, CDs, options, futures, commodities, thousands of Mutual Funds and dozens of fixed and variable annuities.A brokerage account allows you to buy any of their investment choices and keep them all together in one (or several) accounts. A Roth IRA at a brokerage firm is just one type of brokerage account.You can also open a traditional IRA account, a taxable account and various Company Retirement accounts: SEP, SIMPLE, 401k and others.A mutual fund is an investment company that provides you with expertise in investing in Stocks, Bonds and/or combinations of the two. Basically, you give your money to the Fund and a professional Money Manager uses it to invest in Stocks or Bonds on your behalf.
What is the best bank to use for a Roth IRA?
When you walk into a bank to do a Roth, you will find two different companies operating under the same roof:The bank will offer a Roth with savings accounts and CDs. So, in that case, your best bet are the banks with the highest yields (see link). Those are likely to be a local credit union (usually good service) or an online bank (not much service).The bank’s brokerage affiliate will offer brokerage accounts with stocks, bonds, CDs, Mutual Funds, etc. On these, I cannot really help you, because bank brokerage services are very uneven.If I were you, however, I would consider using one of the big discount brokers, for this reason: if you are 10–20 or more away from retirement (or, your personal expiration date) you really should consider investing at least a portion of you money in diversified stock mutual funds. With bonds or CDs alone, your money is pretty near guaranteed to shrink in buying power, due to inflation. Stocks—-with all their volatility, get safer with the passage of 5, 10 and 20 years’ time—-are the only accessible antidote to inflation.But you can certainly also buy government insured CDs though a brokerage firm, if that’s what you want (brokered CDs—you can shop an assortment of banks— have have distinct advantages over a single banks own offerings).Schwab is excellent and provides plenty of educational materials and support, along with low fees. Fidelity and Vanguard are also good. Fidelity also has local offices where you can speak to people face-to-face.Good luck.http://www.bankrate.com/landing/...