starting a checking account or somthing

College Confidential Community
21

<p>I just waited till I turned 18... 1k in a CD, 2k in a Roth IRA...and teh rest in meh pocket</p>

22

<p>I just did some thinking. Considering that taxes are always rising, IRAs might screw you over down the road. I think I will put a few dollars in a tax haven.</p>

23

<p>yeah, banks know that people can forge, so for any signature they need the person to be there and for them to show id. Why would a parent not want you to open a bank account? like, why would you need to forge it?</p>

24

<p>but with only like a thousand bucks, whats the point of a cd</p>

<p>your money is locked for a year, and youll only make like 30$ in profit...right?</p>

25

<p>oh i dunno . . my parents are kinda psycho.</p>

26

<p>bumppppppp</p>

27

<p>
[QUOTE]
I just did some thinking. Considering that taxes are always rising, IRAs might screw you over down the road. I think I will put a few dollars in a tax haven.

[/QUOTE]
</p>

<p>The income you contribute to a Roth IRA is taxed before you put it in...</p>

<p>and as long as you wait till the age of 60... you won't pay any taxes on the money you withdraw... :)</p>

28

<p>Oh I didn't know that. I used to think you pay taxes when you take them out..guess not.</p>

29

<p>
[QUOTE]
but with only like a thousand bucks, whats the point of a cd</p>

<p>your money is locked for a year, and youll only make like 30$ in profit...right?

[/QUOTE]
But that's $30 you wouldn't have otherwise had, and there are terms that last less than a year, you'll just make a little less interest. It's basically free money. also on $1000, you'd make about $50. I know the place I bank at, for a one year cd you get something like 4.9%, at least with the current rates.</p>

30

<p>
[QUOTE]
Oh I didn't know that. I used to think you pay taxes when you take them out..guess not.

[/QUOTE]
</p>

<p>for a traditional IRA, yes...you can contribute pretax dollars (up to 4,000 per year)...and are taxed while withdrawing</p>

<p>actually... that's not necessarily always true though... you might have to pay taxes on the money you contribute, and also on the money you take out. If you already have a 401k through your employer the amount of tax you can deduct decreases.</p>

<p>really the decision between going for a Roth or traditional IRA largely depends on what tax bracket you're going to be in upon retiring...</p>

31

<p>yea I def put mine in a Roth</p>