Early Career Investment
There’s a reason everyone’s heard of “Wall Street”. Much that has to do with money and investing has and still does originate from the industry called “Wall Street”–even if many of the investment firms we associate with “Wall Street” are not necessarily based on that street in New York City.
Early Career Insurance Basics
Financial Terms You’ll Encounter
Anything with a “Roth” in its name is an after-tax investment account. That means you’ll pay income tax before you invest. Money you distribute for use as income later will not only not be subject to income tax (because you already paid it) but you will not report this income on your tax return when you take it from your account (because you did that, too, when you paid tax on it years earlier).
401k | 403b | 457 | IRA | SIMPLE | SEP
There’s an alphabet soup of retirement plans that are recognized by the IRS. Depending upon the type of employer you have, you may participate in one of these plans.
These are all names of retirement accounts, often based on the section of the tax code in which they appear. They are all pretax accounts, meaning the money you invest has not been taxed (but you generally may take a deduction from your income on your tax return in the year you invested this money which may reduce your taxable income that year). When you take the money from this account you’ll pay income tax on it.