Will you educate me on IRA and CDs and stuff?

The main description of a traditional IRA is it is an account you put money in that reduces your income now, so you are taxed less now, and then when you take the money out when you are older it is taxed at that time.

The growth, interest, and dividends the money earns while in the account is also not taxed while inside of the account.

If you are not making much income there might be no point to putting money in an IRA.

IRA’s you can start withdrawing the money at age 591/2, before that you incur a penalty. The government forces you to withdraw a portion of the money at age 72 and every year after that. It’s called a required disbursement.

I don’t think you can use inherited money for an IRA, but it’s something to check. I think it has to be earned income. You can’t use capital gains either.

In an IRA account you can have stocks, mutual funds, interest funds like a savings account, a whole variety, it just depends what the IRA account you choose allows for. The main role is to reduce income the year you contribute and earn money tax free until you withdraw the money.

CD’s typically are for a finite time and a fixed rate. For instance you might put your money in a 18 month CD at 1.5%. That means for the 18 months your money is locked up and you are earning the 1.5% even if savings accounts go down to .5% or up to 5%. If you withdraw the money you incur penalties. There are CD’s you can add additional money or allow an increase to the rate, but those are not typical.

IRA’s are easier for most of us because employers generally match a percentage of what you put in. So like @JLeslie said you may have better options.

Financial advisor’s are great as they often know the loopholes and tax consequences for all options. Good luck, nice problem to have!

Employers don’t offer IRA’s they have 401K’s or SEP’s, but it’s basically the same. Put money away now so it’s not taxed now.

The assumption is, you will be in a lower tax bracket when you’re retired so the money will be taxed at a lower rate when it’s taken out.

Talk to the investment person at your bank or credit union. I like credit unions, myself. They will help you understand those basic choices.

You can also talk to Fidelity Investments. They have advisors that can help you. They might steer you to some plans that have fees in the 1–2% range, which is not bad.

IRAs might have Required Minimum Distribution requirements: https://www.aarp.org/work/retirement-planning/required-minimum-distribution-calculator.html