Why complement Retirement investment accounts like 401(k)s, IRAs, Roth IRA’s with a Brokerage account– otherwise known as taxable investment accounts?
The short answer is: Flexibility! Here are some of the advantages that investing in Brokerage accounts provides:
- There are a multitude of investments available in Brokerage accounts including stocks, mutual funds, ETFs, and other assets
- Unlike retirement accounts, which have limitations on contributions each year as well as age-based withdrawal constraints, Brokerage accounts allow investors to contribute and to withdraw money when they want. As a result, Brokerage accounts may be utilized as a vehicle for not only retirement goals but also for other financial planning goals such as a down payment on a home, purchasing a car, or maybe a home renovation project