Ask the Dolans: Are CDs still a good investment despite low interest rates
Filed under: Banks, Retire, Saving Money, The Dolans, Investing
Ken and Daria Dolan, America's First Family of Personal Finance, answer your money questions every Friday.
Dear Ken and Daria,
I am 71-years-old and have some CDs that are about to mature. With interest rates so low, are they still a good investment?
-Joe
Ken and Daria Dolan can help you find solid investments for your money, even in a not-so-solid economy! Get started now at the Invest Wisely section of Dolans.com.
Reader Comments (Page 1 of 1)
8-20-2008 @ 3:09PM
Harold De Lellis said...
I have always understand that after age 59 1/2 I can withdrawer cash from my 401K without being taxed by the Federal government!! Now I have read that you must be over the age of 70 1/2!! Please advise. Thank youI
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8-16-2008 @ 7:51AM
Gail said...
You can get a distribution from your 401(k) without the 10% penalty after 59 1/2, however, you will be still taxed at whatever tax rate you are in in the year of the distribution. Unless the law changes, you will always have to pay federal and state tax on the money distributed as you never did before. At age 70 1/2 you are required to begin at least partial distributions from your account. Taxes always exist.
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