Updated: Apr 19, 2022
For most individuals, the first place to begin investing is with your employer-sponsored retirement accounts like a 401K or 403B because there's usually a match of 3-9%. This is the closest to getting free money you can ever get. All high-income earners should max out their 401K/403B (currently $20.5K/year in 2022) but low income earners, should invest up to their company match and then move on to the next important account which is a ROTH IRA. For high-income earners, you are unable to contribute directly to your ROTH IRA due to restrictions placed by the government. For a single filer making over $139K, you must do what is called a “back-door-ROTH-IRA. This is can be done by opening a traditional IRA and simply converting the funds to a ROTH-IRA a few seconds later.