When it comes to investing, most investors stick with the tried-and-true classics. We’re talking about 401(k) plans and individual retirement accounts (IRAs).
And that makes sense. After all, for most people, the bulk of our investments is designated for retirement, and by using these accounts, we can save when it comes to tax time. Investment gains in IRAs and defined contribution plans can either tax-deferred or tax-free.
But investors may not want to forget about the old fashioned taxable account.
There’s plenty of tax efficiency and flexibility when it comes to using a regular brokerage account. In the end, it should be part of your investment menu.