I was wondering if any one can tell me exactly how Cd's work, my husband is thinking about taking what little he has left in his retirement account and put it in a CD, but we dont really no too much how that works and if will be worth doing, the company he used to work for he quit so I guess its just sitting there making or loosing money?
If you pull money out of retirement account and put it in a CD you will have to pay taxes/penalties on it. You need to roll it over into an IRA and then you have the option to allocate the money into investments (stocks, etc.)with the risk of losing/gaining money or money market/cash so that it draws a small percentage of interest with no risk of losing money. Hope that helps!
right. You can't take it out, you roll it over to another IRA or you keep it in the one it's in and change where it is invested (non aggressive stocks or money market). You can find a lot of help in forums online. We have all of our stuff through Vanguard. you can learn a lot off the website.
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Cd's work fine as long as you are 100% your not going to need the money before the time is up. I had them for both of my daughters when they were in school. You make more for you money as long as you can leave it there and not touch it. But if you have to take them out early you lose a bundle. Look into other ways of saving before making a final decision.