Investment Glossary

Individual Retirement Account (IRA) - IRA's allow you to make contributions from your employment income into an investment account to save money towards retirement. Typically employers will take these tax-deferred deductions directly out of your pay, and may even match part of your contribution.

IRA's are generally a very safe investment but can go down if the financial market plummets (such as after the dotcom crash earlier this century). There are also stiff penalties for early withdrawal, in addition to paying income tax on any money taken out.

There are three types of IRA's: Roth IRA's, Simple IRA's, and Education IRA's.

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