Individual retirement account

An individual retirement account, usually called an IRA, is like your own personal savings account for when you get older. It's a special kind of account set up by the government, so you can put money into it and it won't be taxed until you take it out. That means you can save a lot more money for retirement, because you don't have to pay taxes on the amount you're saving now. When it comes time to retire, you can take out money from your IRA and use it to live on or invest elsewhere. The best part? All the money you make from your investments can also go back into your IRA, so it can continue to grow until you're ready to retire.