Coming out of college, many young adults face sizable debt loads today compared to prior generations. These new college-attendees now must face the difficult decision of choosing between paying off student loans or beginning to invest in earnest.
It’s never too early to start saving for retirement. Individual retirement accounts (IRAs) and company retirement accounts, such as 401(k), 403(b) and 457 plans are some of the most popular ways to save for retirement.
Best Retirement Investment Accounts for Young Adults
- No tax liability on contributions made into the account (deductible from your income)- No tax liability on gains recognized from investments made in the account (excluded from income)
- No tax liability on withdrawals made for qualified health expenses
If you can save money for a down payment on a house which looks to appreciate in value, you should consider setting aside money in a high-yield savings account or other riskless account which still pays a respectable level of interest.