BrandView
This story is sponsored by Zions Direct. Learn more about Zions Direct.
It's never too early to start planning for retirement. There are various types of retirement accounts that allow you to start saving for the future your way so when you retire, you can hopefully keep living the lifestyle you're used to.
Four common retirement accounts are Roth IRAs, Traditional IRAs, Defined Benefit Pensions, and Defined Contribution Plans.
Traditional IRAs often allow one to save and invest with pretax income, meaning one doesn't need to pay taxes on contributions and earnings until he/she begins to withdraw from the account. On the other hand, contributions to Roth IRA's can only be made after taxes, and they are never tax deductible. But because potential earnings grow tax free, and withdrawals starting at age 59 are also tax free, Roth IRA's are generally more applicable to those who will be in a higher tax bracket upon retirement.
In the past, many companies offered Defined Benefit Pensions to their employees. These guaranteed retirement income for a specific period of time. These days, many jobs come with Defined Contribution Plans. The most popular of these is the 401(k), which is funded by pretax portions of your own salary and can be matched or supplemented by your employer. These funds can be invested for potential growth. Until withdrawals start at the age of 59 you are not required to pay income tax on your earnings. Watch and learn more to help you determine which account fits your needs.