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Home > $25 to a Money Market Account or IRA?

$25 to a Money Market Account or IRA?

January 11th, 2008 at 03:40 pm

I have Citizens Banking, and they have this new rewards program. When you earn enough points for a $25 reward, you can either get it as cash, have it go into a savings, an IRA or a Money Market Account. I was thinking it's free money to start an IRA or MMA with, but I don't know much about them.

Is this a good idea, or should I wait til I have a bigger amount?

Posted in | 9 Comments »

9 Responses to “$25 to a Money Market Account or IRA?”

  1. luxliving Says:
    January 11th, 2008 at 03:57 pm 1200067042
    1200067042

    On the IRA, what brokerage would it be with and if you did contribute more to it over time and then later wanted to transfer out to a bigger or different brokerage, what kinds of fees do they have for liquidating it? What kinds of things can you invest in with it?

    What is the interest rate that the MM fund is offering?

    Not knowing those answers and t'were me, I might put it toward the Emergency Fund or Tax Fund.

    Do you have an ING account? They have a nice little IRA program that you can start for about 250.00.

  2. Koppur Says:
    January 11th, 2008 at 04:09 pm 1200067776
    1200067776

    LOL I don't know the answers to any of those questions! But I am almost 30 and I have nothing for retirement yet, so I am looking to start something small.

  3. Ima saver Says:
    January 11th, 2008 at 04:20 pm 1200068415
    1200068415

    If possible, you need to open a roth IRA. Find out the rate that they are paying.

  4. Koppur Says:
    January 11th, 2008 at 04:31 pm 1200069090
    1200069090

    What's the difference between a Roth IRA and a regular IRA?

  5. ktmarvels Says:
    January 11th, 2008 at 04:58 pm 1200070704
    1200070704

    Roth IRAs are funded with after-tax money, but the withdrawal is not taxes. Traditional IRA's (regular) are funded with pre-tax dollars, but the withdrawal is taxed.

    If we had a magic ball that would tell us what tax bracket we would be in after we retire, then the decision on which to choose would be easy. Since we don't, most people keep some money in both Roths and traditional IRAs or 401Ks.

  6. Koppur Says:
    January 11th, 2008 at 05:03 pm 1200071039
    1200071039

    Oooh, I think I have a headache forming...

  7. luxliving Says:
    January 11th, 2008 at 05:09 pm 1200071392
    1200071392

    hahaha...here's an aspirin, take it and call me in the morning. You're right, it can be daunting!! I'd go for the Roth IRA. But ummmm, yeah, you should probably know the answers to those questions before you go to investing too much money in ANY savings or investment vehicle.

    Nothing wrong with starting small. Just keep it going!

  8. Toyguy1963 Says:
    January 11th, 2008 at 05:24 pm 1200072271
    1200072271

    Since its only $25 I wouldn't worry too much. But I would either take the cash and put it towards your own retirement or I would just put it into the money market account as an extra savings. Either way you can't really go wrong.
    Nice job getting the extra money though in any case.

  9. Broken Arrow Says:
    January 12th, 2008 at 03:55 am 1200110122
    1200110122

    Personally, I would invest in an IRA. I say that only because the hardest part is often times just getting it started and set up. Once it's set up, then it becomes much easier to continue contributing to that IRA, and in the long run, I think that will make the greatest impact in your life... especially if it's over a small sum right now that won't make too much difference where it goes.

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