There are different account types for different goals. Is this fun money, set aside to build a vacation fund? Or will you be buying groceries with the investment returns when you're 85? Here are your main options:
401(k): If your employer offers a 401(k) or similar plan, make sure to take full advantage, especially when it comes to the free dollars available in the form of a company match.
IRA: Make the maximum contribution to an IRA, which allows your money to grow tax-free until you retire.
529: Start a 529 plan to save for your kids' college expenses.
Brokerage account: Open a brokerage account to start investing for goals that are more than five years in the future. Want to build a vacation fund? Use investing profits to upgrade your kitchen? This is the place!
