“IRA” stands for Individual Retirement Account, and there are all different kinds of IRAs depending on what you’re trying to accomplish. We’re not going to go through all of the types of IRAs in this post, though, we’ll break it down and start with the Traditional IRA.
First, an IRA isn’t an investment, so opening one and throwing money into it won’t automatically mean it’s going to grow when you hear someone on the news say “The Dow hit a new all-time high today!” (We’ll talk about what “The Dow” and “The S&P 500” mean later.)
Instead, think of an IRA as an empty apple cart. In fact, all your accounts are empty apple carts!