For example, retirement accounts, such as 401(k)s and IRAs, have contribution limits, which are set by the IRS each year.
How much you put into each account will be determined by your investment goal outlined in the first step—as well as the amount of time you have until you plan to reach that goal. This is known as the time horizon. There may also be limits on how much you can invest in certain accounts. For example, retirement accounts, such as 401(k)s and IRAs, have contribution limits, which are set by the IRS each year.