Comparing 401k, IRA, and Taxable Investing Accounts: Which is the Optimal Choice?

What is the best investing account? A retirement account like an IRA or a simple taxable brokerage account? We are recommended retirement accounts SO often and for SO many people that they seem like the obvious choice for everyone. But the restrictions, rules, and limitations that come along with them actually make them a bad choice for some people. Speaking of bad choices...how bad is a taxable brokerage account really? It must be bad for taxes since its literally named a "taxable" brokerage. Lets do a little more digging and discover just how bad it is when we compare it to the competition! ⏱Handy Timeline: 0:00 Preview 0:10 Everyone recommends retirement accounts 0:33 Why we use retirement accounts 2:01 Personal confession 3:18 4 Reasons to avoid the simplest account 5:37 Using the money we invest 6:15 Using Roth IRA money 6:39 Using Traditional IRA money 7:06 Using 401k money 8:17 The problem with retirement accounts 9:00 The truth about taxable brokerage accounts 10:37 Example: $110k tax-free 12:30 The New Normal in Investing 13:45 2023 Long Term Capital Gains Brackets 14:17 The Strategy 14:47 The best way to get information 14:57 Which investing services I recommend 15:05 Secrets ===== The Investing Apps I Recommend: 📈M1 Finance Investing: (Get $10-30 when you start investing today! To get it, invest at least $100 in an individual account or at least $500 in a retirement account) 🐿Start investing with Acorns! Best app for beginners! Get $5 when you use my invite link: 📊Get 2+ free stocks with WeBull after you make a first deposit! (The best app for getting free stocks. Yes, actually free!) ==== My Free Newsletter How I organize everything in my life: Notion! It’s free and absolutely incredible. (I only pay for the pro version to have more storage) Morning Brew A free investing newsletter that's pretty fun to read and is short!: (I read this every week while eating breakfast! It's starting to get more ads so that's annoying) ===== 🎥 Investing Videos: 🐿Acorns 1-Year Review! [And My Actual Returns!] 🔑 M1 Finance 2-Year Review (The Good, The Bad, and The Rating) 🎥Best Investing Apps for Beginners in 2021: ❓What EXACTLY Happens to Your Money When You Invest: ===== 💰The Savings Accounts I Recommend: 💰Yotta Savings: The savings account that feels more like a lottery! Use my link and we will both get 100 tickets! Just sign up with code BRENDAN4 or tap this link: 💰Prize Pool: The newest "gamified" saving app, similar to Yotta. Sign up and get a 10% bonus on top of all your prizes forever! Use code MQD33 or this link: ===== 📚The 3 books I recommend most often: 📖1️⃣Atomic Habits by James Clear: 📖2️⃣Financial Freedom by Grant Sabatier: 📖3️⃣Your Money or Your Life by Vicki Robin: 📱🆓Free trial of Amazon Audible: “As an Amazon Associate I earn from qualifying purchases” (It means Amazon pays me a small commission and it costs you nothing extra!) ===== #investing #financialfreedom #BrendanEvan Disclaimer: Any financial or investing-related topics discussed on this channel are not from a professional investment advisor and are not financial advice for you. This is for entertainment and inspirational purposes only. 🕰Make sure to check the time stamps to navigate to the most interesting parts easily. 🏎💨If I am talking too slowly, just click on the video settings option and look for “Playback Speed”. Changing this to 1.25x or 1.5x can make the video flow a little better if you want to pick up the pace! 📥Contact me here for business purposes: Brendanbizinquiries@gmail.com...(read more)

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LEARN MORE ABOUT: IRA Accounts INVESTING IN A GOLD IRA: Gold IRA Account INVESTING IN A SILVER IRA: Silver IRA Account REVEALED: Best Gold Backed IRA

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Which Investing Account is Best? (401k vs IRA vs Taxable) Investing is an essential part of securing your financial future. And when it comes to investing, choosing the right account is crucial. It can be overwhelming to navigate through the various options and understand which investment account is best suited for your needs. In this article, we will discuss three popular investment accounts – 401k, IRA, and taxable account – and help you make an informed decision. 1. 401k: A 401k is an employer-sponsored retirement account. It allows employees to contribute a portion of their salary before taxes are deducted. One significant advantage of a 401k is the possibility of an employer match, wherein the employer contributes a percentage of the employee's salary to the account. This matching can be considered free money and is an attractive incentive to contribute to a 401k. Contributions to a traditional 401k are made pre-tax, meaning you don't pay taxes until you withdraw the funds during retirement. However, withdrawals from a 401k are subject to income tax. Pros: - Employer matching contributions - Tax-deferred growth Cons: - Limited investment options chosen by the employer - Early withdrawal penalties and restrictions 2. IRA: An Individual retirement account (IRA) is another popular retirement account for individuals. Unlike a 401k, an IRA is not employer-sponsored and can be opened by anyone, regardless of employment status. There are two common types of IRAs – traditional and Roth. Traditional IRAs allow tax-deductible contributions, but withdrawals during retirement are taxed as income. Roth IRAs, on the other hand, are funded with after-tax contributions, and qualified withdrawals are tax-free. Pros: - Flexibility to choose your investment firm and options - Potential tax deductibility for traditional IRA contributions - Tax-free growth in Roth IRAs Cons: - Contribution limits lower than 401k - No employer matching 3. Taxable Account: A taxable investment account involves investing in stocks, bonds, or other securities without any tax advantages or restrictions. Unlike retirement accounts, contributions to a taxable account are made with after-tax dollars. Pros: - No withdrawal penalties or restrictions - No contribution limits Cons: - No tax benefits - Taxes are owed on capital gains and dividends Choosing the Best Account: Determining the best investment account depends on your situation and goals. If your employer offers a matching contribution, it is recommended to take full advantage of it by contributing to a 401k. The match is essentially free money and an excellent way to maximize your savings. If you have already maximized your 401k contribution or your employer doesn't offer a match, an IRA can be a good choice. It provides more investment choices and tax advantages, depending on whether you opt for a traditional or Roth IRA. A taxable account is suitable for investors looking for flexibility, accessibility, and no limitations on contributions or withdrawals. It is especially useful for individuals who have already maximized their retirement contributions. In conclusion, there isn't a one-size-fits-all investment account. Your decision should be based on your financial goals, income, and eligibility. It may also be beneficial to consult with a financial advisor who can guide you through the complexities and help create a tailored investment strategy that aligns with your needs. Remember, investing wisely today can lead to a more secure financial future tomorrow. https://inflationprotection.org/comparing-401k-ira-and-taxable-investing-accounts-which-is-the-optimal-choice/?feed_id=134443&_unique_id=64fca603795cc #Inflation #Retirement #GoldIRA #Wealth #Investing #howtoinvest #howtoinvestinstocks #howtoinvestinstocksforbeginners #investingforbeginners #stockmarket #stockmarketexplained #stockmarketforbeginners #thebestinvestingaccount #whatisinvestmentaccount #TraditionalIRA #howtoinvest #howtoinvestinstocks #howtoinvestinstocksforbeginners #investingforbeginners #stockmarket #stockmarketexplained #stockmarketforbeginners #thebestinvestingaccount #whatisinvestmentaccount