Viewing a single comment thread. View all comments

MarcableFluke t1_j2fug6g wrote

Reply to comment by cheejiburga in I want to start saving and investing, but I have no idea what I'm doing and reading all this information is giving me whip-lash by cheejiburga

401ks and IRAs are special tax advantaged accounts that are intended for people to use for retirement. That's what the tax advantages are for.

A taxable brokerage is just an account that you use to invest money like you do with 401ks and IRAs, but there are no tax advantages.

2

cheejiburga OP t1_j2fut4a wrote

Ohhh okay. So I guess it's dependent on the person, but would IRA's technically be best for retirement if you dont have a 401k?

1

MarcableFluke t1_j2fwenx wrote

If your work doesn't offer a 401k, and you're not eligible for a Solo 401k (think business owner with one employee), then yes, an IRA is recommended for retirement savings

3

cheejiburga OP t1_j2fwqzy wrote

Thank you lots! I don't think I'm eligible for a solo 401k, but I'll see!

1