Thursday, May 26, 2011

Don't forget brokerage accounts.

  I've talked about 401k's,Roth IRA's,and traditional IRA's. All of which have tax advantages but don't forget brokerage accounts. Brokerage accounts don't have any limit on how much you can save annually. Brokerage accounts are setup through
 a broker to allow you to purchase securities such as stocks, bonds, mutual funds, and money markets, etc. The money sits in a money market or cash account until you are ready to invest it in securities. There are fees for purchasing securities which vary depending on the company you choose for your account. Brokerage accounts can also offer check writing, debit, and ATM cards for access to money in the account. Since there are no tax-advantages of a brokerage account, money can be withdrawn at any time. These accounts are perfect for additional savings that you want to invest in your baskets. Have a great week, Finwiz.

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