Investing 101 — Tax advantaged accounts that reward you for investing early.
Retirement accounts are special investment accounts that give you tax advantages as a reward for investing for the long term.
401(k): An employer sponsored retirement account funded from your paycheck, often with an employer match.
If your employer matches contributions, that is an immediate, guaranteed return on your money. Contributing enough to get the full match is one of the best deals in finance.
Traditional vs Roth: Traditional accounts often give a tax break now and tax withdrawals later. Roth accounts use after tax money now, then grow and withdraw tax free.
A young person in a low tax bracket often benefits from a Roth: pay the small tax now, withdraw tax free later.
15 practice questions with explanations. Free, and no account is needed to start.