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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Retirement Accounts

Definition:

Life is fleeting, nothing lasts forever, and all that jazz.

Eventually, you too will get old, and no matter how cute you are now, you'll have to deal with hip aches and bratty kids. When you can no longer work, you'll want money to pay for food, heat, and adult diapers. You can invest money for that time with a retirement account—like a pension fund, 401k, or IRA.

These funds make your money grow faster (and a lot, if you start early); they offer tax breaks, to boot.