Should I open an IRA or Brokerage Account (Which is better)

by | Sep 11, 2022 | Traditional IRA | 27 comments

Should I open an IRA or Brokerage Account (Which is better)




In this video, I will be covering the popular question of, should I open an IRA or Brokerage Account? #Brokerage, #IRA, #Retirement

Saving for retirement is a long-haul kind of game.

While there are many ways to save and invest your hard-earned money, you want to make sure you’re picking the best investment tools that are right for you.

You may be in a situation where you’ve maxed out your 401(k) and are considering other options like an individual retirement account or a brokerage account that have unique features that may benefit your overall investing strategy.

Each account has different purposes. Broadly speaking, a brokerage account is for investing in the stock market, while IRAs focus on retirement planning.

The different tax treatments of each type of account are what can ultimately sell an investor, given that money is subject to taxation at some point in time. Here’s what you need to know about IRAs and brokerage accounts that may help you efficiently invest for the long term:

What I’ll cover:
What is an IRA?
What is a brokerage account?
Which one is best for you?

Best funds for IRA:
1. (FSRNX) –
2. (VTSAX) –
3. (VTWAX) –
4. (VOO) –
5. (VTI) –

Best funds for Brokerage Account:
1. (FZROX) –
2. (FZILX) –
3. (VTI) –
4. (VOOG) –
5. (MGK) –

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DISCLAIMERS & DISCLOSURES

This content is for education and entertainment purposes only. Tray does not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal….(read more)

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27 Comments

  1. Let's Talk Finances with Tray Truitt

    Are you trying to decide between a brokerage account or IRA? Which one are you leaning towards and why? Don't forget to like and sub. I appreciate you all.

  2. MiamiElite777

    The system is built so that middle class stays middle. Its ridiculous that they have a cap on your contributions but yet you can still do a backdoor conversion from Traditional to ROTH.

  3. Brett Nash

    What’s the difference between a traditional ira an a simple 401k? Curious cause I have both an maxed out my Roth with 6000 this year an do monthly contributions of 3% to get my full match in my 401k

  4. Andre Law

    What if your apart of the Fire moment, and want to retire early, wouldn’t investing into both be best?

  5. John Meehan

    I don't understand, why are low growth, low divided funds the best for a brokerage account? I thought a brokerage account was essential for shorter term investments then retirement accounts, so wouldn't you want to make as much as possible in a shorter time?

  6. RJ John

    Brokerage account FTW I’m not waiting until 60 or 70 lol you kidding

  7. PECV

    Index funds which one I can buy. I know brokerage account you can buy etf’s. But index funds which one I can use???? I am or working I am retired now . I do have a brokerage account on Wells Fargo. What is the difference with a brokerage account with vanguard. ??

  8. Captain Nitrous X

    HOW FAR? ALL THE WAY AND THEN SOME!!!! AIRBORNE!!!!

  9. Captain Nitrous X

    Also, low turnover for Brokerage Accounts! Helps you to avoid short term gains which has no tax advantage.

  10. roanee roane

    What if u dont make enough to max out the ira should you still do an ira and a brokage account or just stick to an ira

  11. Kona

    both, duh

  12. king Richards

    If I invest into a brokerage account with high dividend stocks but reinvest it back into my account would I pay taxes on my investments?

  13. Vicky Y.

    I may have missed this answer but my understanding is you can withdraw what you put in your brokerage account as well as the gains. However you can only pull what you put in for your Roth not your gains correct.

  14. Daniel Sueros

    I just opened up a brokerage account but haven’t put any money yet, should I put money on it or switch to an index fund or what do you recommend?

  15. Jaynon Jackson

    Army guy here, I am glad I came across your channel. Thanks for all the financial knowledge.

  16. R Rubio

    How is your money pretaxed on a roth IRA? Do you report the contributions at tax season?

  17. SMM

    Thank you for the video. I opened brokerage accounts. Many accounts are high dividends and mutual funds. This is useful for investment going forward.

  18. Wilfredo Lee

    If you have money saved, this is already taxed right? Then you put this into your Traditional IRA. If I get it right, this money which was pre-taxed, will not be taxed when it starts earning and compounding interests? Is this correct Mr. Truitt?

  19. Steven Wilson

    What about bonds in either acct's?

  20. Tonio Yendis

    So I have a brokerage account with TD Ameritrade that I rolled over an IRA to. It is a Traditional IRA account, but i use it to buy stocks and ETF''s. This week i bought shares of VT & VIG before seeing this video. Just wondering if i did right, since it is both a brokerage and IRA all in one. Thanks for your explanation on this.

  21. Vixy Paris

    Do u offer financial education services? I need one on one help

  22. Afterlife Empire

    I just opened a Fidelity account and new to investing. I noticed you mentioned many Vanguard investments to add to your Roth Ira. Is there a Fidelity equivalent? Thanks!

  23. Sean Winterton

    In a brokerage account, are you taxed while you hold your stocks, or are you taxed when you sell? If you’re taxed when you sell, does it automatically come out?

  24. Youssef Trachen

    Thank you for the video and all the information. I was a little confused when you said you can only contribute with $6000 to an IRA but then you mentioned if you put $10.000 does that mean that you can actually contribute with more ?

  25. ZahIsKing

    Hey Tray! Are you sure FZROX is good for a taxable account? I’ve been reading a lot and a lot of ppl say that FZROX should go in the IRA. I have an IRA with TSP and I didn’t want to open another one through fidelity, but I do want to hold FZROX, I just want to make sure I’m holding it in the right account. Any insight you can provide would be greatly appreciated.

    V/r

  26. bentheman234

    If I’m going to invest in FNILX, what account should I use?

  27. SFCRMSA

    Thank you Tray as always for this good information. It is so easy to get started investing with an IRA account and a Brokerage account.

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