There are many ways to put your money to work after youve worked hard to save. Based on your unique needs, you may want to lower your tax bill, earn profits from investing, or keep it ready for an emergency. These six questions will help you choose which type of account may suit your savings goals:
What’s the money for?
If you’re saving for retirement, an IRA or annuity could help you save on taxes. If you’re putting away for college, a 529 college savings plan
will also lower your tax bill and leave more of the savings for paying those tuition bills.
How much money will you be putting away?
Some types of savings and checking accounts have rules about minimum or maximum balances.
How much interest will the money earn?
Your goal should be to get the highest interest rate you can while still getting all the other things you need (like accessibility, security, and low fees).