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#24: The Finance Flash Go Podcast | Important Topics About Money | Taxable Investment Accounts
This episode of the Finance Flash Go! podcast discusses some important considerations with asset location!
The first account we’ll review is a taxable investment account.
This is the account that you probably think of when you imagine investing your money in the stock or bond market. This account does not carry any special considerations from the government or IRS.
Anyone can open one of these accounts by signing up for one on Vanguard (my recommendation), Fidelity, or any other brokerage.
In general, the money that you put into this account has already been taxed (post-tax money) and any money made in the account is taxed when you take it out via capital gains taxes (long term capital gains taxes for money left in the account greater than 1 year are less than short term capital gains taxes).
However, you can remove the money from the account at any time without a penalty. Other accounts, as you will see, have age limits for withdrawal. Take money out before a certain age limit and you will be penalized. This is not the case with taxable accounts.
In general, you will want to contribute the maximum to your tax advantaged accounts before contributing to your taxable account.
Please enjoy the Finance Flash Go podcast! We plan to release a new episode every weekday answering important finance questions. If you ever want to submit a question to our podcast, send an e-mail to [email protected], and please be sure to check out Jordan Frey’s blog prudentplasticsurgeon.com where he gives great financial advice.
A brief disclaimer While we are providing knowledge and awareness around financial topics in this show, we are not held responsible for any financial decisions you choose to make in response to the podcast. We hope to provide accurate information in regards to money and different methods of wealth creation, but it is always the learner’s responsibility to due their due diligence before making important financial decisions.
We hope you enjoy the show and thanks for tuning in, and if you like the podcast please subscribe, share, and leave us a review on the podcasting platform of your choice!
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By Taylor Brana
5
55 ratings
This episode of the Finance Flash Go! podcast discusses some important considerations with asset location!
The first account we’ll review is a taxable investment account.
This is the account that you probably think of when you imagine investing your money in the stock or bond market. This account does not carry any special considerations from the government or IRS.
Anyone can open one of these accounts by signing up for one on Vanguard (my recommendation), Fidelity, or any other brokerage.
In general, the money that you put into this account has already been taxed (post-tax money) and any money made in the account is taxed when you take it out via capital gains taxes (long term capital gains taxes for money left in the account greater than 1 year are less than short term capital gains taxes).
However, you can remove the money from the account at any time without a penalty. Other accounts, as you will see, have age limits for withdrawal. Take money out before a certain age limit and you will be penalized. This is not the case with taxable accounts.
In general, you will want to contribute the maximum to your tax advantaged accounts before contributing to your taxable account.
Please enjoy the Finance Flash Go podcast! We plan to release a new episode every weekday answering important finance questions. If you ever want to submit a question to our podcast, send an e-mail to [email protected], and please be sure to check out Jordan Frey’s blog prudentplasticsurgeon.com where he gives great financial advice.
A brief disclaimer While we are providing knowledge and awareness around financial topics in this show, we are not held responsible for any financial decisions you choose to make in response to the podcast. We hope to provide accurate information in regards to money and different methods of wealth creation, but it is always the learner’s responsibility to due their due diligence before making important financial decisions.
We hope you enjoy the show and thanks for tuning in, and if you like the podcast please subscribe, share, and leave us a review on the podcasting platform of your choice!