The IRA was created in 1974 as a result of the Employee Retirement Income Security Act (ERISA). The IRA allows individuals to save for retirement on a tax-deferred basis. Contributions to an IRA are not deductible, but earnings grow tax-free. The IRA can be used to save for retirement in a variety of ways, including through a brokerage account. A brokerage account is an account that allows investors to buy and sell securities, such as stocks, bonds, and mutual funds. Brokerage accounts can be opened with a variety of financial institutions, including banks, brokerages, and mutual fund companies.
There is no definitive answer as to which is the winner IRA vs brokerage account. It depends on your personal circumstances and preferences. An IRA may offer tax advantages, while a brokerage account may give you more flexibility in terms of investment choices.