3 common types of investment accounts.
Happy Sunday! welcome back to SUNDAYS & BUSINESS, This week featuring Chesky Deutsch, ChFC®, RICP® from CSD Financial with 3 common types of investment accounts
A regular investment account doesn't give you any special tax treatment. The key benefit of such a type of account is that it's the most flexible and accessible. There aren't any limits to how much you can invest or when you can access the money.
Traditional IRA or 401(k)
This account allows you to have the money that you contribute deducted from your paycheck and have the taxes deferred until you withdraw the money in later years. This account is ideal for someone that is in a high tax bracket now.
Roth IRA or 401(k)
This account doesn't provide any current tax benefits. However, it allows you to grow your money free of taxes, meaning if you follow the rules, any earnings on your investments will not be taxed.