Retirement Accounts
401(k)s, IRAs and Roth accounts — the tax wrapper around your investments.
The account type decides how your gains are taxed. Traditional accounts defer tax; Roth accounts pay it up front.
The account type decides how your gains are taxed. Traditional accounts defer tax; Roth accounts pay it up front.
Employer matching is the highest-certainty return available to most investors.
Key concepts to master
- 01.Total cost of ownership, including fund fees and platform fees
- 02.Liquidity: when, and on what terms, you can get your money back
- 03.Tax treatment and which account type this belongs in
- 04.How this exposure overlaps with what you already own
Common mistakes
- ×Sizing a position based on recent performance rather than a written plan
- ×Confusing infrequent valuation with genuine stability
- ×Ignoring the tax drag of frequent trading in taxable accounts