Why taxable brokerage accounts are worth it

Taxable brokerage accounts come in handy for several expensive expenses before retirement, but sadly we don’t get a tax break on this one. I'm breaking down why it's worth building your wealth in a taxable account while also contributing to other retirement accounts.

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[GraceOliviafy]

Tax laws can be so complex, and it’s super helpful to break them down like this. Understanding how different policies can impact our finances is crucial for making informed decisions.

[markstone]

if your Roth contribution has been in a Roth for 5 years you can pull it out for a home purchase or for whatever is u want. just not the gains. also with an HSA if you have been saving medical receipts you can also pull out funds tax free for purchases (obv a little more complicated bc you need to have paid for medical expenses with after-tax dollars)

[Keeptruckn]

Or retire early who wants to work with 59 1/2

[aaron___]

Can you address Jake broe's 401k video, "your 401k is a waste of time"? He says brokerage accounts are preferred over a 401k even with the tax advantages.

[pioneer]

Totally agree with having a nice taxable account. I actually accidentally prioritized my taxable account ahead of some retirement accounts and am happy to have about $100k in it, and have from time to time used some funds for nice purchases for myself, plus its a nice safety cushion in addition to cash. It is generating over $2500 a year in dividends and I am now doing more into retirement accounts. Just nice to have, even if its not super tax efficient and makes me feel more wealthy than just having retirement accounts.

[taylorvice]

I keep hearing that in brokerage accounts, the dividends are taxed yearly even if you're not pulling money out of the account. Does that also mean that your gains are getting taxed yearly even though you're not pulling money out? Or will I get long-term capital gains tax on the brokerage only when I pull money out? My plan is to invest in index funds with my brokerage account. Thank you for clarifying!

[DallinBunnell]

Great content! The flexibility makes this a wonderful place to save and invest. But Pres. Biden's proposals to raise capital gains taxes gave me a scare this week. No, his proposal didn't apply to me, but it showed me just how easy it is to change the rules on this account. I'll need a good amount of money here, but hopefully not more than I need!

[NetizenGames]

Is 100% VT in a taxable brokerage okay? I am 34.

[jimmyshirley]

Can you do a BACK DOOR ROTH for a Taxable Brokerage Account???

[appleztooranges]

How much are you taxed on these brokerage accounts though

[DillyDogSays]

What fund(s) should I hold in my Vanguard brokerage account?

[BrattoBiz]

A majority of Americans, at least 80%, cannot comfortably afford to invest ~$33k/yr into retirement accounts. Average networth across ages barely break $1M at the highest with a majority of the worth tied up in illiquid non cash flowing primary residence and retirement accounts. I don’t understand the general consensus to max out retirement accounts as this does not apply to most Americans. Not to mention they never factor in alleviated debt or Social Security as part of the retirement strategy.

[appleztooranges]

Screw retirement do brokerage. Okay thanks

[ruutholii]

You contributed $1, 675/month on a $3, 000 gross monthly We seriously need a REAL person to start making these types of videos.

[kevinhuff]

Deducting contributions to IRA's doesn't help someone who is a low tax bracket as much as it does a high earner. Taxes can be avoided from taxable accounts by selecting funds with capital gains instead of dividends. Even then, qualified dividends are treated favorably.