Would you use a brokerage account as retirement fund/strategy?

Hey, my company does not match any IRA or 401k plan.

Im thinking of opening a taxable brokerage account with Fidelity or Etrade for the objective of long term monthly sp500 investing instead of a non taxable roth IRA so ill also want the option to do some day trading as well.

Would you recommend this strategy?

What would be a better strategy?

4 Answers

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  • Eva
    Lv 7
    1 month ago
    Favorite Answer

    That's not how you build a retirement account. The idea is to tax defer any income taxes, and if you do the Roth there aren't any. You can open a self-directed Roth that will allow you to trade stocks and/or mutual funds within it. Open a separate open brokerage account for your more speculative endeavors such as day trading. You'll pay taxes on any dividends and capital gains, whether you take them out or not, so you could be on the losing end, which is something you don't want to risk with your retirement money.

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  • B
    Lv 7
    1 month ago

    you should support your roth IRA first, and then do the taxable account. S&P500 is one way to invest, but stocks which pay dividends and increase those dividends each year, would be a good way to invest too.

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  • Anonymous
    1 month ago

    Your retirement account is still pretax money which is good, and grows tax free which is also good.

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  • 1 month ago

    My opinion.

    Split your money in two.

    1)  Roth IRA for the long term (ie Retirement)

    2)  Taxable Brokerage for the short term (ie Speculation).

    • How much would you split monthly for each account?
       

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