How do I choose the right investment accounts?

How do I choose the right investment accounts for my goals?

Choosing the right investment accounts depends on your financial goals, risk tolerance, and time horizon. What are your main objectives?

I want to save for retirement and also for a house down payment.

For retirement, consider a 401(k) or an IRA, which offer tax advantages. For a house down payment, a high-yield savings account or a brokerage account might be better. Do you have a preference for tax-advantaged accounts?

Yes, I prefer tax-advantaged accounts. What are the differences between a 401(k) and an IRA?

A 401(k) is employer-sponsored and often includes matching contributions, while an IRA is individually managed with different contribution limits. Would you like to know more about the contribution limits or withdrawal rules?

Yes, please explain the contribution limits for both.

For 2023, the 401(k) limit is $22,500, and for IRAs, it's $6,500. If you're over 50, you can contribute more. Would you like to explore investment options within these accounts?