When I first started investing with an app at 21, I thought I was doing the right thing. I've since learned I had it all backward.
Get the Full StoryPhoto courtesy of Liz KnuevenI started out investing simply to grow wealth over time, but using an app that only offered one type of account meant I ended up investing out of order.
After several years, I realized that I wasn't actually investing in the best type of account for my goal.
For long-term wealth building, a tax-advantaged retirement account like a Roth IRA is a better option.
I'll be able to keep more money in the future by switching my focus from my individual taxable investment account to an Roth IRA.
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When I started out investing at 21, I did so somewhat blindly: I opened an account with a buzzy investment app on my phone and started an automatic deposit of 30 per week. But, what I didn't realize was that I should be prioritizing where I invest.
My main goal was really to just build long-term wealth for the future. I wanted to let compound interest work its magic for as many years as possible. I started out investing with an individual taxable brokerage account the only account type offered by the app I used at the time.See the rest of the story at Business InsiderSee Also:Instead of saving a total sum for retirement, I started thinking about how much I want to 'earn' monthly and it made me reassess the way I investThere's only 1 weekend left to file your taxes before they're due July 15I thought about pausing my retirement contributions when the pandemic slashed my income, but 2 financial planners convinced me not to
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