Foundations of Retirement Investing: 401(k)s, IRAs, and the Logic of Long-Term Wealth Building

Retirement investing is one of the most consequential financial activities most people undertake — and yet the underlying logic is rarely explained clearly. What exactly is the advantage of a 401(k) or an IRA? How do traditional and Roth versions differ? Why does starting early matter so much? This course answers those questions at a level of depth that makes every subsequent retirement planning decision more coherent. By the end of this course you will be able to explain how traditional and Roth tax treatments work, compare 401(k) and IRA account types across key dimensions, understand how employer matches function and why they are important, and articulate why time in the market is the primary driver of retirement wealth. What you will learn: - The two tax treatments for retirement accounts — pre-tax traditional versus after-tax Roth — and how each benefits different income situations - How a 401(k) works: contribution limits, employer matching mechanics, and vesting schedules - How a traditional IRA and Roth IRA differ and what income limits apply to Roth contributions - The compounding effect: a worked example showing how contribution timing affects final account value - How asset allocation within a retirement account shapes risk and expected return over different time horizons - The role of target-date funds as a default allocation tool and their limitations - What happens to retirement accounts at job changes: rollovers, 401(k) to IRA transfers, and leaving accounts in place - Required Minimum Distributions: what they are and how they factor into long-term planning The course is organized into four sections: the tax logic of retirement accounts, the major account types and their rules, the mechanics of compounding and long-term growth, and a conceptual overview of withdrawal planning. Each section uses worked numerical examples to make abstract concepts concrete. Designed for people who are new to retirement investing — early-career employees encountering a 401(k) for the first time, or adults at any age who want to understand the accounts they already hold. No prior investing background is required. This course is educational and informational and does not constitute personalized financial or tax advice.