When Should You Choose Taxable Investment Accounts?

KXLY
April 9, 2021 6:51 AM
E. Napoletano - Forbes Advisor
Posted:
Updated:
April 9, 2021 12:24 PM
While tax-advantaged retirement accounts, like 401(k)s and IRAs, are the most common way Americans own stocks, it’s possible—and even advisable—to choose taxable investment accounts for some of your financial goals. While taxable investment accounts aren’t right for every situation, but they could be a good fit for some of your investing dollars.
What Is a Taxable Investment Account?
First, a refresher: A taxable investment account lets you buy and sell investments like stocks, bonds, exchange traded funds (ETFs) and index funds. You can open one at an online broker, with your financial advisor or with a robo-advisor and then deposit cash in the account to purchase securities.

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