00:00 Intro 01:08 Brokerage Account 01:43 IRA 03:43 Employer Sponsored Plans 04:48 Brokerage Account 05:55 Unrestricted …
source
00:00 Intro 01:08 Brokerage Account 01:43 IRA 03:43 Employer Sponsored Plans 04:48 Brokerage Account 05:55 Unrestricted …
source
Input your search keywords and press Enter.
30 comments
Start setting up those buckets 1) A brokerage account 2) IRA (Roth or Traditional) 3) HSA – I wish we contributed to Roth more…now we have to worry about RMDs.
This is an older video, but I just wanted to acknowledge you and your work at helping to educate those like me who are unfamiliar with investment topics. I only learned about Brokerage Accounts while watching your channel recently related to retirement planning. I grew up with a family perspective of only having a 401(k), savings accounts, checking accounts, and credit cards and lay-away to pay for things. I thought Brokerage Accounts were only for "rich" people. Thank you for making it approachable.
Love ❤ video and all three accounts
Love all your videos
How much should I expect a brokerage account pay?
HSA is the best account: triple tax advantaged!
Since u love brokerage accounts just like me instead of putting emergency fund in HYSA why not put in a brokerage and gain maybe 8% instead of 3%
I went part time at 57 and just retired at 61. Phasing into retirement is a great path. I was surprised about the split you and your husband have (84 brokerage, 16 retirement). Very interesting…I think you can have a retirement vehicle as a brokerage account correct? I know that adds in some restrictions on use of funds but opens the door to the full range of investments available. Enjoy your channel a lot. Thanks
I was shocked when you said you contribute to Roth Jan – June, then you said you were self employed. For the W2 workers, contribute enough each month to get that company match. Take care not to max out before the end of the year and miss out
1. ROUTH IRA 2. 401K 3. BROKERAG ACCOUNT 4. IF YOU HAVE KID 529 OR AN ESA 6. If you have a kid TRUST OR SPESHALNEED SUB TRUST WHEN YOU KID START WORKING SET UP A ROUTH IRA FOR THEM! START ERLLY! IT IS EAZEY
I'm totally with you on the Vanguard index funds. Can you recommend a simple three-fund portfolio for a well diversified 60/40 split?
Being an academic, most of my investments were in a 403b through TIAA. These were heavily weighted to stocks, but with some TIAA traditional as a buffer (currently pays 3.7%). I never invested in brokerage accounts, but I did convert some of my pre-tax 403b to Roths after I retired. I am withdrawing about 5%/year in retirement.
I just opened a brokerage account last week. I had no idea how easy and inexpensive this was. I always thought you had to pay for each transaction. I am doing a $5 a day challenge.
05:18 How disappointing… Erin is already married. 🤣
One small adjustment. Money can be withdrawn penalty-free from a 401K or 403B at 55 AS LONG AS you have separated from service. This is great for those who want to retire at 55. Make sure you keep some of your 401Ks or 403Bs (many suggest rolling them into IRAs for greater investment choices). Then, if you retire at 55, you can live on the 401Ks or 403Bs between 55 and 59-1/2. And of course, you would use brokerage if you retired before 55. My favorite account is my Roth IRA. Since I am over 59-1/2, I have total freedom of investment (trading without worrying about taxes consequences–there are none) and I can withdraw money whenever I want.
If you only have long term capital gains and qualified dividends in your brokerage account you may wind up paying less tax than in a 401k or IRA.
Sure wish I understood what you’re talking about, but you are 3 levels above my investment vocabulary.
Why does nobody talk about the lame duck issue with Roth IRAs? There are MAGI-based contribution caps that hit way too early. Especially two income households filing jointly. You’re quickly going to end up with a $0 limit on Roth IRA contributions as you enter mid career. Yes, I know about the two-step, back door Roth contribution. Still a stupid restriction on Roths.
It's good to utilize several different types of accounts to manage your finances and fund a retirement. My favorite types of accounts are brokerage accounts and credit union accounts for the flexibility they provide for any given time frame.
I'm only 28 but so far my investment priorities has been:
1. roth to max yearly contributions.
2. 401k to employer match levels
3. brokerage is money currently to buy a house, but in the future after that purchase it will be money i hope to use to cushion if i retire early. I plan to fund this account more as my income grows but i am still systematically contributing 10% of my income to it monthly.
Definitely thought you were going to say HSA. Your research is right I have almost every account except brokerage.i guess the freedom was never an issue because I haven’t maxed out everything yet I max out Roth IRA and HSA but I don’t max out Roth 401k. So I assumed once that’s added then I’ll start putting whatever is left into brokerage. I’m investing the same thing anyways index funds and why not take the no taxes and emergency funds and savings are in fidelity cash management account or high yields. In my head didn’t make sense to take the taxes of brokerage but I’ll reevaluate things again, thank you! Your video was super informative! really great work! Keep up the good work!
So wait, you make 350K plus a year then? If you are putting in 25K for 401K then you are putting in 125K a year in the brokerage. Man the reest of us making under 100K have to do a lot more with our decisions then what house am I buying this year.
great eye opener.
Fidelity, robinhood, jp morgan.
That combination, along with my advisor, has been magic..
I agree, as I am in my early 50s I am realizing the idea of 60 or 65 for retirement would be a lost of many good years that my body can give me. I may work till 60s or 65 but I am ULTRA aware the dangers if I do. Seeing too many friends falling around me.
How would this apply to those of us over 59.5?
I’d be concerned about taxes with the brokerage account funding my retirement. I think the Roth 401 k is the best and my primary account. I like my brokerage account for vacations and other discretionary expenses.
ROTH IRA is my favorite. Great job as always, Erin!
In general 401k/IRA if your wage earner and Roth IRA if you’re a business owner with earned income after retirement. In general most people are better off with 401K/IRA due to pre-tax compounding.
You forgot to consider the "series of substantially equal periodic payments", also known as a SEPP plan, which enable you to withdraw money from pre-tax retirement accounts — such as a traditional 401 (k) or individual retirement account (IRA) — while avoiding early withdrawal penalties before age 59+1/2. So if you want to begin to draw down those tax advantaged account before retirement age, you can. And I acknowledge that it isn't ideal – you can't just take what you want, it is at least a way to begin accessing those funds. You also can no longer contribute to an account that you start withdrawing from. *I really enjoy your videos.* Great refreshers for me and occasionally I pick up a thing or two.