The theme this week on the Retirement Quick Tips Podcast is: Best Retirement Savings Accounts in 2022...And How To Fund Each One

Today, I’m talking about funding the account that should come last in your retirement savings accounts priorities - a taxable account. This could be a joint, trust, or single brokerage account in your name.

The best thing about funding a taxable account is that of all of the investment accounts you can fund for your retirement, it’s the most flexible. There’s no income or funding limits, so if you have a high income, they’re a great way to sock away additional funds for retirement once you max out your HSA, 401k, pay down debts, and fund your IRA - which is what I’ve been talking about so far this week. 

The downside of the taxable account and why it’s last on the list is that it’s taxable. You don’t get any tax breaks on money going into the account like many of the other retirement savings vehicles, and you’ll be taxed every year on dividends, capital gains, and interest that is generated within the account. 

Great for specific savings goals or earmarked funds for other purchases. Beyond the fact that there is no limit to what you can save inside of a taxable account each year, this is where taxable accounts shine the most. 

• Withdrawal restrictions & penalties on 401k, IRA, and HSA accounts
• You can withdraw any amount at any time, and your tax bite is limited to your capital gains from what you sell, which is taxed at lower rates compared to your income tax rate in most cases. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance