Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts

How An IRA Is Like A Parking Garage

Monday, August 30, 2010 - 5:28 AM
This Redeeming Riches blog post has a useful analogy for an IRA. It can be thought of as a parking garage. You either pay for parking when you enter or leave the garage. This is similar to how taxes are paid for an IRA. You can drive any car into a parking garage which is like an IRA in that you can hold many different types of investments in an IRA (CD, savings accounts, mutual funds, bonds, etc.)
Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
Rep Points: 125,708