Silber Bennett Financial, Los Angeles, CA
A savings account is a deposit account held at a retail bank that pays interest. The money in a savings account typically does not have check writing privileges, like a checking account. Savings accounts allow you to set aside a portion of your liquid assets (cash) while earning interest.
A Roth IRA is a type of IRA in which you pay taxes on money going into your account but future withdrawals are tax-free if certain requirements are met. The IRS sets annual contribution limits for Roth and traditional IRAs. A Roth IRA’s main advantage is its tax structure.
You can contribute to a Roth at any age as long as you have income. A Roth IRA can be invested in, but not limited to, stocks, bonds, mutual funds, unit investment trusts, exchange-traded funds, and real estate limited partnerships.