5. Open an Investment Account

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Depending on your goal, open your investment account. You can take advice from your bank or do the research by yourself and decide what type of investment account you want.

For instance, if you are investing for retirement you can choose a retirement account like a 401(k) or individual retirement account (IRA) or Roth IRA. But if you want to open an account for some other goals, avoid a retirement account. This is because they have restrictions on how much money you can take.

For your other goals, seek a taxable brokerage account. This account will let you withdraw money anytime you want without paying penalties or additional taxes. Thus your taxable brokerage account won’t have any favorable tax treatment like IRAs or 401(k)s.

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