How to invest: Understanding different types of investment accounts (401k, IRA, brokerage)
So you want to know how to invest? Then you've come to the right place! This is part 2 of my How to Invest series.
Part 1: How to budget for investing - • How to invest: Budgeting expenses, savings...
Part 2: You are here!
In Part 2, we're learning how to understand different types of investment accounts. You have your employer-sponsored plans, like the 401k, 403b, and 457b. Then, you have your individual retirement accounts (IRA). And finally, you have a regular old taxable brokerage account.
Have you ever wondered what's the difference between those employer-sponsored accounts? Or what an employee match means? How about the difference between Traditional and Roth accounts? Which accounts should you have?
I address all of those questions and more. By the end of the video, you should have a good understanding of the different types of investment accounts, what their rules are, and how to use them in your overall wealth strategy!
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Timestamps:
0:00 Intro
0:23 Disclaimer
0:33 Employer-sponsored plans
1:31 Traditional or Roth?
2:13 Employer match
2:59 401k rules
4:58 IRA
6:18 Backdoor Roth IRA
7:00 Taxable brokerage account
7:26 Which one should you have?
8:02 What order to invest in?
9:00 Ending