There are several types of investment accounts that you can open. The most common ones include brokerage accounts, retirement accounts like IRAs or 401(k)s, and education savings accounts like 529 plans. For instance, if you open a brokerage account with an initial deposit of $1,000 and your aim is to achieve a 7% annual return, after 10 years you could have about $1,967. However, contributions to retirement accounts often have tax advantages, which can be beneficial in the long run.

Investment account types refer to the various types of accounts established for investing purposes, designed to serve specific financial goals. Each account type can have different features, such as tax treatment, contribution limits, and withdrawal rules. Understanding these distinctions is important to align your investments with your financial objectives and to utilize potential tax advantages.