Retirement account is a savings account with tax advantages that individuals can use to save and invest long-term.

Any person with earned income can open a retirement account in order to save long-term and enjoy the tax benefits they offer. Such accounts can be obtained through a bank, an investment company, an online brokerage, or a personal broker.

"The main benefit of a retirement account is your ability to have more investment options and choices," says Aaron, the certified financial planner.