Have you thought about opening an IRA, or Individual Retirement Accounts?
How they work:
When you deposit money into an IRA, up to the amount allowable under tax law ($5,000 for 2009), you’re making a “contribution.” A tax deduction is available for contributions. Earnings and gains from contributions accumulate tax-free until you withdraw money from your IRA. Therefore, you enjoy the ability to grow your money, untaxed, each year the funds remain in the IRA.
When you withdraw money from an IRA, you’re making a “distribution.” Distributions are subject to income tax during the year you make it.
Withdrawing money from your IRA prior to age 59 ½, the assumed retirement age, could lead to a tax penalty.
Click here to read more about IRAs including what’s new for 2010.