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I want to put my money somewhere but not sure where. Can someone help me decide what I should do ?
Is a Roth the way to go, or money market acct. ?
Thanks for your responses !
A money market account you can get into pretty much at any time, not so with a Roth. It is designed to not be tapped until you reach a certain age (59 and a half, if I recall correctly)...without paying substantial penalties.
A money market account is an investment. With your money, you purchase a small number of shares in a very large money market fund; those shares are your money market account.
A Roth IRA is not an investment. You cannot purchase a Roth IRA because it isn't a "thing", an investment. It is a format, a box, a place into which you put investments for retirement.
A money market account is an investment. With your money, you purchase a small number of shares in a very large money market fund; those shares are your money market account.
Well, you're really describing a money market FUND, which is different than a market money ACCOUNT. A money market ACCOUNT is a type of bank deposit account that cannot lose value and is insured by the FDIC, whereas a money market FUND is, as you say, an investment, is usually purchased from a brokerage or directly from the fund family, is covered by SIPC insurance, and could possibly (though it's very unlikely) lose value. People confuse these two all the time.
Good anwer on the Roth, though. Beat me to the punch.
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