Last time we took a look at employer-sponsored retirement accounts like 401(k)'s and 403b's. Today we'll be discussing retirement accounts that you can open up on your own without the need for an employer–the Individual Retirement Account or IRA.

Let's get started.

What Is an IRA?

An IRA is simply an account that you can shelter your retirement in to help you save on taxes. It's super easy to open an IRA. You just need taxable income and to complete a little paperwork. You can open up an IRA at most banks or investment firms.

After you open an IRA, you can fund it with any type of investment you want–stocks, mutual funds, bonds, or index funds. I have an IRA with Vanguard and use a simple index fund to fund it.