Getting your feet wet in the world of investing can be intimidating. The investment jargon used often sounds like a foreign language. It can be difficult to make decisions about your financial future when you’re trying to remember what some of the technical terms mean.
With that in mind, here is a short list of some commonly-used financial terms. We hope this gives you some background, and confidence, as you enter the world of financial planning.
1. Individual Retirement Account (IRA)
An IRA is a tool to help you save for retirement by setting money aside from your current income. There are different types of IRAs: Traditional IRAs, Roth IRAs, SIMPLE IRAs and SEP IRAs. Ask your advisor which plan or plans will work best for you. Some IRAs allow you to make tax-deductible contributions if your income level qualifies.