Re: APY on SEP-IRAs

AsymF <fearful.asymmetry@[EMAIL PROTECTED]
> writes:

> I was considering opening a SEP-IRA with our local SECU, but they show
> an APY of 3.50%. Most figures I hear about are in the neighborhood of
> 10-12% APY. Why would the SECU be so comparatively low on their APY?

It's a meaningless question to ask about the APY on a SEP-IRA.

A SEP-IRA isn't an investment.  It's a type of account.  The
return depends entirely on what investments are inside the
account.

The SECU (I assume that's some credit union) APY is 3.50% because
the only investments that are likely available for a SEP-IRA held
at a credit union are CDs, savings accounts, and money-market
demand accounts.  And 3.50% is about what a CD is going to yield.

> Who could I go with to earn upwards of 10% APY or higher on an SEP-IRA?

You'll have to hold your SEP-IRA at a mutual fund or brokerage
company and investment in funds/stocks/etc. to *have a chance*
at getting a return like that.  Keep in mind that to have a
chance at getting a return like that means you also have
a chance at losing money, perhaps a significant amount of money.
There's no place you're going to get a 10% return without
shouldering significant risk.

--
Rich Carreiro                            rlc-news@[EMAIL PROTECTED]
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