3 Types of Accounts You Want to Have to Save for Retirement, Ep #118

<p>There are three types of accounts—that are not the same as my <a href= "https://retirementmadeeasypodcast.com/why-i-love-the-retirement-bucket-strategy-ep-24/" target="_blank" rel="noopener">bucket strategy</a>—that I believe everyone needs to use to save for their retirement. These accounts will <em>benefit you in retirement</em>. They are Roth accounts, traditional accounts, and brokerage accounts. Listen to this episode of the Retirement Made Easy podcast to learn more about each and how they can benefit you!</p> <h2>You will want to hear this episode if you are interested in...</h2> <ul> <li>[4:33] Get a FREE 30-minute coaching call at RetirementMadeEasyPodcast.com</li> <li>[7:15] <strong>Account Type #1</strong>: Roth IRA, 401k, 403B, or TSP</li> <li>[10:13] <strong>Account Type #2</strong>: The traditional IRA, 401k, 403B, or TSP</li> <li>[14:48] <strong>Account Type #3</strong>: A brokerage account/trust account/non-qualified account </li> <li>[18:42] Why you want all three types of accounts for your retirement</li> </ul> <h2>Account Type #1: Roth IRA, 401k, 403B, or TSP</h2> <p>With a Roth account, you pay the taxes now. You can invest the money however you want and it will grow tax-free until your death. When you retire and take withdrawals from the Roth IRA, you will not have to pay taxes on those withdrawals. Biting the bullet and paying taxes now, in a favorable tax environment, can make a positive impact on your retirement. </p> <p>If you’re younger and just starting out with your first job, you’re likely in a lower tax bracket. It’s far easier to pay 12% taxes now than when you make more money and land in a higher tax bracket down the road. Another bonus? You’re never required to take withdrawals from a Roth IRA. </p> <h2>Account Type #2: The traditional IRA, 401k, 403B, or TSP (tax-deferred)</h2> <p>With a traditional tax-deferred account, you get a tax deduction when you contribute. Any money matched by your employer is pre-tax as well. So taxes have not been paid on what you’ve contributed or