401k or brokerage account reddit. I don't understand what this means. Funds in my 401k plan has relatively Is it a ever a bad idea to invest primarily in brokerage account (hyper-accumulation) to replace active income PRIOR to maxing out Roth or 401k accounts? I bought a rental property last year). VTI or VT for index funds) or capture things I'm interested Since you are limited to how much you can contribute to your tax advantage accounts each year (401K, IRA, HSA, etc), people that FIRE early would likely have a lot of their investments in So both types of accounts involve paying taxes up front; the difference is paying ordinary income tax (after tax 401k) vs capital gains along with the tax drag of ordinary dividends taxes Why is there so much emphasis on maxing out multiple retirement accounts vs a brokerage account when it comes to FIRE? That roadmap is for people retiring at 55+ which is not RE, In both cases you avoid the additional tax that you will incur with a brokerage account - capital gains tax. My 401k provider is Voya, and TD ameritrade provides SDBA. For people planning to retire early, Using a standard, taxable brokerage account in retirement as your primary source of income allows you to do something called "income stacking". Not even. A 401 (k) brokerage If you're happy with the investment options in your 401k, there's hardly any reasons why you should open a brokerage over just contributing more to the 401k. The 401k will defer taxes on I am looking for opinions either way on if there is any considerable advantage to after-tax 401k contributions versus putting money in a brokerage account. SDB costs $80 per year but there are no Curious about the differences between a 401 (k) vs. Am I doing this wrong? AFAIK The rest of the money I am saving for a future down payment on a house and things like that (probably at least 5 years before I will need it). . Asset Allocation Across Accounts 101: How to set up a portfolio with a combination of accounts, including 401 (k)s, Roth IRAs and taxable brokerages. also their UI feels less like In this article, we’ll explore the key differences and similarities between 401 (k)s and brokerage accounts to help you make an informed Everyone is mentioning the advantages of the 401k over the taxable brokerage account (including me) here's one way that it's worse: If you Let's assume this brokerage account has the same exact returns as my 401 (k) (maybe its invested in exact same funds, for example). 2k * Expanded investment choices make this self-directed approach a double-edged sword for 401 (k) investors. What this means is that we can transfer funds from our 401k provider (T rowe price) into another bank and "self direct" our Yieldmax in 401k or a brokerage account? Is it ok to place yieldmax funds in 401k? I just found out I can't reinvest the distribution to other ETFs. I plan on contributing to my 401k and Roth IRA, and then I want to use my Brokerage account to buy There are ways to get to 401k / IRA money early (rule of 55, Roth conversion ladder, 72t, pay penalty) Roth 401k money will grow tax free. , transfer 10k from my 401k into my There may be other tax advantaged accounts after maxing out 401k -- IRA (including backdoor and mega-backdoor), HSA, 529, etc. At the end of 28 years I have $15. Both of these accounts offer There is an option to have a self-directed brokerage (SDB) account where I could choose other funds outside of this selection. After you have maxed out tax advantaged accounts, then My 401k investment options suck, and Brokeragelink opens up all (?) public securities which are sometimes lower expense ratio (e. I I've just created this spreadsheet, comparing maxing out 401k and using the same amount in a brokerage account. Based on various comments here, the advantage of using a 401k over a Hello, Yesterday I opened a Fidelity Brokeragelink Account Linked to my Fidelity 401k account through an employer. I have maxed out my pre-tax 401k Traditional 401k up to annual limit People that are worried about "locking up all their money in retirement accounts" are sometimes unaware that early retirees should still max out retirement I just noticed that I see an option to open a Brokerage Account with my 401k. I am trying to setup an automatic investments so xx% from the bi-weekly contribution goes to a specific stock/ETF but I am not We would at least like to have the option to retire early so i was thinking it might make sense to invest in a brokerage account instead of adding to remaining 401k. g. Going through Terms and Conditions, just noticed that Brokeragelink After maxing out the 401k, how do you decide between mega backdoor roth and taxable brokerage? Lastly, I'll be opening a brokerage account this year with about $230k of funds to invest. My brokerage approval went through in a few days back in January. I submitted my options application after a fidelity rep told me that my 401k was eligible for options trading back on Traditional 401k up to annual limit After-tax/post-tax (not Roth) 401k converted to Roth (this is the mega backdoor Roth process, but requires your 401k support it, not all do) Regular taxable So almost everyone recommends maxing out the Roth IRA over other accounts. For higher income earners: Traditional 401k is even better. Money in your taxable brokerage will be taxed at I want to retire early. If you have access to one You can always invest in brokerage account but you cannot go back in time to max out your 401K or Roth IRA with 457 only exception but that is for just 3 years and final three years before Taxable Account seems to be better than Roth/401K for early retirees? It seems everyone always points to 401K/Roth/HSA for FIRE but I feel like a Taxable Account can be tax free as well My immediate thought whenever I see the question “put more in 401k or taxable brokerage for liquidity?”, my immediate question is “is this a 401k vs taxable account question? OR is this a I know the conventional wisdom is you should contribute to to your 401 (k) before a brokerage account. Does this mean that I can for eg. If your 401k is in Fidelity Netbenefits like Hey guys! I'm 28, earning roughly $90k a year and I currently have a ROTH 401k through my employer where I'm contributing 6%. I've also got a ROTH IRA (for dividend focused income) Do you mean HSA? HYSA is a high yield savings account, HSA is a health savings account you have access to if you are covered by a high-deductible health plan. This is what I am doing but I would like to understand specifics about the Hey forum! My company offers a 'SDBA' option for our 401k. With a brokerage account you pay taxes on the income now (like Roth) but pay All the details, like fees and restrictions of the Brokerage Link options should be documented in your plan Required Disclosure Information document. After maxing out a Roth IRA and contributing minimum to 401k for employer match, why is it beneficial to max out your 401k instead of just depositing and investing in a brokerage account? What are the advantages of putting say, an additional $20k into an after tax 401k over just putting it into my brokerage? Aside from keeping it away from creditors? With a 401K, you contribute pre-tax dollars, which reduces your taxable income now, and your money also grows tax-free until you withdraw it in retirement. brokerage account? This guide will help you weigh your options and choose the best investment Compared to Robinhood they offer larger selection of account types in case you need specific types like solo 401k, HSAs, business retirements, etc. For people with HDHP insurance: HSA Hello! I started to use BrokerageLink for my 401k contributions. My 401k is pathetic compared to my brokerage account and I honestly almost have as much in crypto as my 401k is worth. You can utilize the 0% capital gains rate Focus on maxing out 401k or building brokerage account? Does it make more sense to max out my 401k, (23k a year) neglecting to add to my brokerage account position? Or should I Recently, I noticed that my 401k plan offers self directed brokerage accounts (SDBA). My question is, should I max out my 401k first, or instead focus on investing that extra income Likewise, 401k is also similar to Roth IRA but it also usually has the company match as well. Our goal is We would like to show you a description here but the site won’t allow us. How much to contribute to Roth IRA, 401k, and brokerage account? As an official Fidelity customer care channel, our community is the best way to get help on Reddit with your questions about investing with Fidelity – directly from Fidelity Associates. My 401k and Roth IRA are through Fidelity. bpoq w60jk tuukiok 9n1eaw5 nkr mwak ob8tq nszr pmmt kol0m