should I open a Roth IRA or just keep buying voo with my personal brokerage account?
>>62392778You should absolutely use some kind of retirement account to avoid the immediate tax burden. I’m personally a big fan of Roths as I believe US taxes as a percentage of income are the lowest they’re ever gonna get and locking in some post-tax earnings at the current heavily discounted rate is a no brainer.
>>62392790Just wait until you're 60 for your life to begin lmao. Never mind that the brain starts degrading at 50. Put it all in a brokerage, that way you can at least realize the gains in your prime years if you want to.
>>62392790Roth doesn't avoid the immediate tax burden.Brokerage accounts are subject to capital gains taxes, but the lowest tax bracket for capital gains in the US is 0% tax up to $98k per year (which is adjusted for inflation each year). And unlike with the Roth, there are no restrictions on withdrawing money from a brokerage account.>inb4 muh SEPP 72(t)Will pay your monthly bills, but won't help you with a vacation or a new car or the down payment on a house. And that brokerage account will also pay your monthly bills tax-free as long as you keep it under $98k/yr.
>>62392927Also that $98k is gains, if you sell a stock that has tripled in value since you bought it, your gain is only 75% of the selling price, so you could withdraw $122k/year without paying taxes.
>>62392778401k Advisor Anon here-Great question! It depends on how much money you are planning to invest and what your time horizon is. The annual contribution limit for a Roth IRA in 2026 is $7500. Anything you plan to invest this year beyond that amount will have to be in your personal brokerage account. If you don’t think you’ll need to withdraw funds before retirement, a Roth IRA is the way to go. However, you can tap into a Roth IRA early if necessary. The principal (which is a post tax contribution) can be withdrawn at anytime without tax or penalty. But the real benefit comes if you’re willing to wait. As long as the account is held for at least 5 years, and withdrawn after age 59 1/2, then the capital gains are also tax exempt. If you’re in your 20s or 30s now, this is a monumental advantage. 30-40 years of gains in the market can be exponential.
>>62392964>ChatGPT enters the thread
>>62392790Correct.>>62392806Roth IRA contribution max is only $7500 a year. If that's all you have to invest you were never going to make it anyways. Max out your Roth and invest the rest in a brokerage account.
>>62393017>If that's all you have to invest you were never going to make it anywaysI take it you don't know about Peter Thiel's $28B Roth account?
>>62393013I’ll take that as a compliment. And don’t forget to invest in your retirement early! Time is your advantage! You don’t want to be a broke ass bitch working at the grocery store in your 60s.
>>62392778If youre not margin maxing there is little downside to using roth since you can always pull your contributions. If you have to backdoor roth, its a 5 year timer for no penalty.
>>62392778Open a roth ira via a brokerage (robinhood, webull, schwab, fidelity, idgaf) and invest 7500 per year into that.
>>62392778Why is it so hard for women to look and dress like this 24/7?
