The most common types of retirement accounts are traditional IRAs and Roth IRAs. Many brokers also offer specialized retirement savings accounts for small business owners and self-employed individuals, such as SEP IRAs, SIMPLE IRAs and individual 401 (k) s, etc. If the company you work for offers a 401 (k) plan and matches any portion of the money you save in that account, contribute to the 401 (k) before funding an IRA. You can also invest in stocks outside your IRA, but you'll need to open a separate brokerage account for these transactions.
You won't have any tax deductions and you may have to pay the capital gains tax you get from selling stocks. However, you can withdraw any benefit from an account other than an IRA account to use it for other purposes, and there is no limit to the amount you can invest. Many investors open a brokerage account to start saving for retirement. However, the flexibility of this type of account means that you can withdraw money at any time and use the funds for short-term goals, such as a new home, a wedding or a major remodeling project.