“Should I invest in CDs or a Roth IRA?”

May 19 29 Comments latest by E

[Update]: See below for some great (and controversial) comments debating my stance that bonds are not for young people.

Sherene writes:

I am a recent college graduate and I want to put the little money I have saved (approx $3,000) into something that will give me good returns over the years. Would you suggest I get CDs or a Roth IRA?

The two are very different.

A Roth IRA is an investment account, but once you get it, you have to put money in it and invest. You can read all about it on my article The World’s Easiest Guide to Retirement Accounts.

A CD is a type of investment, which you can buy inside (or outside) of any investment account. And if you’re wondering what I think about CDs/bonds…

To post this image on your blog, MySpace, etc:

<a href=”http://www.iwillteachyoutoberich.com”"><img src="http://www.iwillteachyoutoberich.com/archives/bonds.jpg" width="200" height="300" title="Seriously, they’re not. More at iwillteachyoutoberich.com" /></a>

(1 votes, average: 2 out of 5)

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29 Comments latest by E

Links: Hilarious real-estate bubble seekers, investing yourself (not through a broker), clueless friends and asset allocation

May 8 12 Comments latest by Spread betting trader

Down to the last two weeks of my book manuscript, so things are going to be a little quiet around here. For now, here are some interesting links I’ve been reading.

Amazon book comments on a book titled Are You Missing the Real Estate Boom?: The Boom Will Not Bust and Why Property Values Will Continue to Climb Through the End of the Decade - And How to Profit From Them. Sadly, this book was written by the former head economist of the National Association of Realtors. The 5-star reviews from 2005 are sad, hilarious, cheerleader-ish comments for the real-estate boom.

Story about someone who had to cut his brother off because he kept asking for money.

JLP shows how you can save TONS of money by investing yourself instead of paying a broker.

How women look for men who have their financial house in order. It is wildly misconstrued by clueless commenters who are determined to miss the point.

His friends insist that long-term investing is “boring” but then have improperly allocated portfolios. With good math examples. Remember, asset allocation is the most important part of your portfolio, not the individual investments you choose.

See all my links on my del.icio.us feed and twitter.com/ramit.

(1 votes, average: 3 out of 5)

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12 Comments latest by Spread betting trader

Why the lady sitting next to me should pay $2,000 for a computer class

April 22 28 Comments latest by FollowSteph.com

I’m sitting at my neighborhood coffee shop listening to two women talk about their careers. Yes, I eavesdrop.

One of them is complaining about her job, but says that she can’t get another one because she’s uncomfortable with her computer skills. Which led me to this post.

If you take a $2,000 computer class and it lets you get a job with a $10,000 salary bump, you should do it. No question.

If you buy one book per week, for $20 each, that’s $1,000 per year. If you get one good idea per week, my friend Paul told me, it’s worth it. If you apply that idea, I can’t even guess how much it would be worth.

If you buy a new car for $8,000 more than a used car, it can sometimes be worth it.

Put the numbers in context and look at value, not just cost. A $2,000 conference sure sounds like a lot. But if you make $80,000 off it, it sure looks like an investment. (Which is exactly what another friend, Erica, just did.)

Of course, the excuses will come. I don’t have that kind of money. (Answer: Save up.) How do I know if the class will get me that better job? I could probably take the same class for $100 somewhere else. All this stuff is free online, anyway.

You don’t know. That’s part of deciding what’s valuable and what’s simply a cost. But remember, buying something is not just about a number. If the value exceeds the cost, do it.

(2 votes, average: 4 out of 5)

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28 Comments latest by FollowSteph.com

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