I'm 36 and have never done that well at funding my IRA. I have about $8500 in a traditional IRA mutual fund with Pax World, and about $3000 in a traditional IRA CD held by Washington Mutual.

This year I'd like to put my full $5000 contribution into something other than those two accounts, but traditional--I need to minimize my tax liability this year. I can do a lump sum in April. I'm more concerned with safety than high earnings, considering how the economy and state of the world in general is going right now.

Suggestions? I am completely clueless on all things investing.

jennem, if you are more concerned with the return OF your money than the return on your money talk to an insurance agent about a Fixed Indexed IRA annuity. That will allow you to participate in some of the gains of the market without risking your principal.

Just understand at your age (36) if you were to NEED more than the 10% free withdrawal amount per year you will get triple slapped.

One, because the IRS imposes a 10% penalty on IRA distributions prior to age 59 1/2. Two, the insurance company will impose a decreasing surrender charge on the amount above the 10% frree withdraw provision (usually during the first 10 years) and three the IRS also wants the income tax on the amount you withdraw.

None of that should be of concern if you are setting the money aside towards retirement savings.

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Gary Spicuzza, *SAFE
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*Self Appointed Financial Expert

Hi Jennem,

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Personal Finance Advice

The most safest suggestion right now is to hold back for a few months, but if you are going for a very long term investments, then go for Mutual funds right now.. This is the right time as it is for sure the bulls will rise..but it would take some time to recuperate.
So long term investments would be the right choice in MF's

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The Marketing Guy.

Realizing that may well be your best route to success. Go to a bookstore and browse their financial books section. A lot of them are terrible to read but a few will be good. Browse them until you find one that covers the basics of personal finance and is easy to read. I found that the personal finance magazines, such as Money, Smart Money, Worth, Kiplingers, etc. are decent reads where you can learn the basics as well as the jargon of personal finance. The Internet is also a good resource for financial info. Educating yourself in this may well be your best investment. No one else will ever care as much for your future or your financial well-being as you do. I did it and it worked for me, so it can work for you too. It takes some time and effort but it is well worth it.