As you begin to set aside money for retirement, one of the first and most critical decisions you'll face is what type of account to put that money in. Should you contribute to your 401(k) first? Or is paying down debt a better idea? What about an IRA or a 529 plan? Should you be contributing to those as well? And what do mason jars and your mattress have to do with any of this? These are the types of questions we'll attempt to answer as we explore the most effective way to save for retirement.
Article Category: IRAs
When you begin to save for retirement, the easiest way to get started is to enroll in your employer-sponsored retirement plan (401(k), 403(b), TSP, etc.). The next step (or the first step, for those who don't have access to an employer-sponsored plan) is generally to open an Individual Retirement Account (IRA). These types of accounts provide great tax advantages, and come in two types: "Roth" and "Traditional."