One of the most popular—and useful—tools you can use for retirement savings is an individual retirement account (IRA).
Think of an IRA as a bucket that you can fill with stocks, bonds, mutual funds, exchange-traded funds (ETFs) and other investment vehicles.
The investments in your IRA bucket provide tax advantages that regular investments don’t offer. Even better, the money you invest in an IRA is compounded tax-free year over year, helping your nest egg grow over time.
Here are some common questions about how an IRA works and whether it could be a good option for you as you save for retirement.