Hi friends I'm Laura Adams and you're listening to the Money Girl

podcast. A listener named Evan says,

your book, Moneygirls Smart Moves to Grow Rich

and weekly podcast have helped me get my finances together.

But I'm still confused about the IRA CDs that many banks

offer.

How do they compare to regular IRA's?

In this episode I'll tell you whether an IRA CD should be a part of your retirement plan

and give you four tips for buying CDs.

An IRA is a special type of account that comes with big tax breaks, which makes it a smart way to accumulate your retirement nest egg. IRAs are available to just about everyone,

but many shy away because they don't understand how they work.

Here's one of the most important IRA facts to know.

An IRA itself is not an investment.

Think of an IRA like a basket,

where you hold different kinds of investments and assets that get favorable tax treatment.

The money you put in an IRA can be invested in securities like stocks, bonds, or mutual funds.

Or it can be held in non-investment accounts,

like a savings or CD, which stands for a certificate of deposit.

What you put in an IRA is up to you because you manage every aspect of it.

You open the account, send contributions, and choose how to allocate your money.

There are different kinds of IRAs for individuals,

the self-employed, and business owners.

...