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New investors that are just starting out this is the thread for you!
Did you know that there are 3 different types of investment accounts that YOU can open RIGHT NOW and get started investing!
These are the 3 types of Investing Accounts
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Did you know that there are 3 different types of investment accounts that YOU can open RIGHT NOW and get started investing!
These are the 3 types of Investing Accounts
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First Investment Account
Taxable Account
You usually pay taxes on the contribution
You must pay tax on dividends and capital gains you accumulate
You usually pay NO taxes on a withdrawal
Great for Novice Traders
Taxable Account You usually pay taxes on the contribution You must pay tax on dividends and capital gains you accumulate You usually pay NO taxes on a withdrawalGreat for Novice Traders
Second Investment Account
Traditional Retirement Account
Pay no tax on the contribution
401 (k) contributions are removed directly from income
Pay tax on withdrawal as ordinary income including capital gains and dividends
Great for Investors
Traditional Retirement Account Pay no tax on the contribution 401 (k) contributions are removed directly from income Pay tax on withdrawal as ordinary income including capital gains and dividends Great for Investors
Third Investment Account
Roth IRA Account
Pay tax on the contribution
Tax-free on withdrawal including any capital gains and dividends
Money grows and grows tax-free
Great for Young Investors
Roth IRA Account Pay tax on the contribution Tax-free on withdrawal including any capital gains and dividends Money grows and grows tax-free Great for Young Investors
