Once you've saved the initial amount it can be both frightening and exciting to begin down the investment road. Yet there's something very fulfilling about setting up your finances and steering the course of your financial future.
A traditional IRA is a tax-deferred retirement savings account. Which means you'll pay taxes on your money only when you make withdrawals in the future retirement years. Deferring taxes means any of the dividends, interest payments and capital gains can compound every year you have the account without any hindrance by taxes thusly allowing your IRA to grow way faster than an account that is being taxed at the same time you're putting money into it.