Roll Over IRA
I want an FDIC insured IRA with the highest possible APY, to rollover funds to, from a 403 B. Ideally, the IRA account could be managed online and changes made to its composition as conditions warrant. Any suggestions?
I want an FDIC insured IRA with the highest possible APY, to rollover funds to, from a 403 B. Ideally, the IRA account could be managed online and changes made to its composition as conditions warrant. Any suggestions?
Permalink Submitted by Alan Spross on Tue, 2007-08-28 21:12
Most of the major brokerage firms offer IRAs with brokered CDs that are FDIC insured. The difference from bank CDs is that instead of the typical early withdrawal penalty, these CDs carry a principal that fluctuates somewhat like a bond in response to interest rate changes. If you want to terminate the CD, it most be sold by the broker on the secondary market. But you do have considerable flexibility, possibly at the risk of principal loss. You could have the CD sold and move into other securities without changing the basic account wrapper, which is a brokerage account.
The alternative would be a bank IRA CD, which would be FDIC insured or CU CD IRA insured by the NCUA. These carry the typical early withdrawal penalty of a certain number of months of interest, but you cannot manage them on line. I am not sure what the on line banks like ING direct or E Trade Bank offer in this area.