Early year planning - Max out Roth before brokerage, or make even payments?

[Spondulix]

This year, I'm budgeted to max out IRAs and save extra to a brokerage account. Is there any advantage to maxing out the Roth before putting anything into the brokerage? I was planning on spreading payments through the year ($500/month to Roth).

[MDM]

Assuming equal return rates, in theory (i.e., statistically) prioritizing the Roth will be better because the investments will have longer to grow and are not taxed.  E.g. if you will get $1000 returns in one account and $500 in the other, you would prefer the $1000 to be in the Roth.

In practice, the vagaries of short term market moves can toss statistics on its ear.  But you might as well play the odds, slight though they may be, and do the Roth first.

[SaintM]

I suggest you max out the Roth IRA as soon as you can. You never know what budget-busting event might happen.

[chasesfish]

When I was eligible, I would always max my Roth on January 2nd, even moving money from the brokerage account. 

There's tax efficiency to having the dividends/interest earned in the current year in a sheltered account.

[Spondulix]

Very helpful - thank you!