Smart savers know to participate in their companies' 401(k)s to benefit from as many years of saving and compounding as possible. But REALLY SMART savers know to open an IRA, as well!
What is an IRA? IRAs are tax-advantaged savings account designed to help you save for retirement. There are two types of IRAs, Traditional and Roth, each offering their own advantages. Both IRA types offer tax benefits allowing the money you save to compound and grow quickly. With the Roth, you can even use the money on a first time home purchase, without penalty.