Author Topic: Accounts-where to keep funds  (Read 1251 times)

phillystash

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Accounts-where to keep funds
« on: November 30, 2014, 01:25:26 PM »
Hello, this is a question of where you are supposed to put your investments for early retirement.
I have a savings account for my emergency fund, an IRA and 401k (I need to understand these a little better to see how they can be used in early retirement), a checking account for monthly expenses (am now trying to put groceries and living related expenses on a cash back credit card to be paid in full each month from the checking account). The rest of the money is in a brokerage account and is investing, is that the best place for it in the long term? I am hoping to be FI in about 15 years which will be around when I am 40 if that makes a difference.  Thank you

catccc

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Re: Accounts-where to keep funds
« Reply #1 on: November 30, 2014, 02:59:05 PM »
Are you already maxing out your 401K and IRA?  If so, check your 401K plan to see if it allows after tax contributions.  If it doesn't, a taxable brokerage account is the next step, I believe.

The 401K and IRA will be accessible via a Roth pipeline set up, or IRS rule 72T, aka SEPP/Substantially Equal Period Payments.

cincystache

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Re: Accounts-where to keep funds
« Reply #2 on: November 30, 2014, 08:27:02 PM »
I agree with catccc

unless you have some high interest debt in which case I would pay that off first and then max out retirement accounts.