re: Need to Start Investing

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Everyday you have your money in a CD you are losing purchasing power. In fact most of the time a money market account will still be getting eaten up by inflation, but will still retain more purchasing power than a CD.

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Like most things in life the answer is it depends. I have CD's earning > 5%, which is greater than inflation and tax drag.

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ETA: Don't use the money you currently have in the CD to invest in your IRA because you will lose all liquidity which is what that "emergency' account is good for. By claiming to have 6-9 months of expenses in a CD for "emergency" purposes is pretty asinine as CD's are not liquid whatsoever.

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Most CD's, even 5-Yr, are liquid, you merely give up 3-months of interest to break them. 2.5% CD's beat the crap out of 7 bps Vanguard prime money market and most online savings accounts ranging from 40-115 bps. They are also safer at this point than buying ST to intermediate off the run bonds or funds that carry a coupon yield 1-2.5% above current YTM.