Why You Need A Brokerage Account | Jill on Money

[@manueljoya5480]

Love this show

[@TheCompoundNews]

Thank you!

[@imdoc7872]

Why not borrow against the brokerage account to buy RE?

[@tlau4710]

Congrats on getting the CFP, not an easy task! Cheers!

[@FrancisMacomber1936]

At 37, we now have enough in brokerage to end the mortgage. But we'd rather stay in the market and likely earn more than 3.1%. Its peace of mind to know we COULD close it. Or as Jill said, use it for some other short term expense.

[@doubleclick21]

Margin loans 🤠

[@scottholt694]

love the show but wish you would talk some more about people who dont have alot of money .

[@DiFinni]

Love the brokerage. Been in it only for about 8 years now, wish I had done it years earlier. Great for the retirement.

[@MikeyDVC]

Great episode!

[@TheCompoundNews]

Thanks!

[@NormanOkada]

I love have a 401K, IRAs and Taxable accounts. Different goals and options.

[@Sylvan_dB]

You can also use the assets in a brokerage account as collateral for a loan (equity line of credit) or for a margin loan. Just be certain to borrow significantly less (I suggest only 1/2) of what you would be allowed to borrow. That way if the market goes down, you still have enough collateral. Usually this debt, being collateralized, and no payment required, does not count against a mortgage but check first.

[@doubleclick21]

Just watch out for the brokerage deciding overnight that they need to triple your collateral requirements... ⚰️

[@Sylvan_dB]

@@doubleclick21 Excellent point. If your portfolio looks risky, they will act to reduce their risk. So far in 30 years the worst I've seen is about a 10% increase. 🤞 Also note, an equity line of credit (or pledged asset loan) does not have that problem for funds drawn, but they might restrict the ability to further draw on the LoC.

[@EdTheFed77]

Here is another answer to the question why. In my case, I retired early and wanted to keep investing. But you have to have "earned income" in order to put money into an IRA or Roth IRA, so without earned income I started a brokerage account.

[@filamphibian2980]

Exactly what I had to do!

[@epbrown01]

My question would be about SIPC limits. A brokerage failing seems pretty rare but I see people *terrified* of maintaining a large portfolio in their brokerage account - is that a reasonable concern or just paranoia?

[@jaredbrehmer7060]

It me. I'm about to buy, trying not sell everything in my brokerage

[@wilma6235]

Question. You said to put a POD or beneficiary on your brokerage account. This is after tax dollars. Wouldn’t ones beneficiaries lose out on the step up basis in the holdings if it didn’t transfer in a will?

[@NextArchipelago]

No, they would get the step up. It's still included in their gross estate for estate tax purposes, and that's what matters.

[@WingofTech]

You know… I feel like you share a bit of a resemblance with the great physicist Richard Feynman. Surely You’re Joking Mr. Feynman was such a good book!!

[@matt.stevick]

brokerage accounts hold the greatest key to your personal total freedom and happiness, not sorry.

[@user-mx4uv5gn4y]

Mark mentioned he keeps an account for his kids. I am currently not doing so for my grandkids for the reason of not having assets in their name for FASFA. If there is a possiblity of college aid should you not put money in kids' names post freshman year in high school?

[@ericgilmore5949]

Why not put it in an education account 529 whatever its called

[@umavenkatesh2502]

Hi, what do you all think of leveraging Hood Bonus week

[@learninglessons7428]

Having a "Brokerage" account is not anything without being educated on all the things that go into saving, investing and growing your money.

[@FlaviusBrosephus]

Great show! One small critique... Brokerage accounts are not just taxable accounts. They can be opened as Roth, Traditional, HSA, and more. They are not mutually exclusive. For example, I can open a Brokerage Roth IRA at Fidelity.

[@nicholas5396]

Totally correct however in the financial advisory world it's synonymous with taxable ie taxable brokerage account. Alas you are not wrong Brosephus

[@FrancisMacomber1936]

Brokerage account usually means account with no tax advantage.

[@FlaviusBrosephus]

@@FrancisMacomber1936 Traditionally, yes I agree. I'm just pointing out that is no longer the case. A Brokerage Roth IRA, for example, is now understood to be a "self-directed" Roth IRA (instead of one that is professionally managed by an advisor). It is a brokerage account in that it allows the owner to buy and sell securities, but it is within the registration of a Roth IRA that maintains the favorable tax treatment. They are growing in popularity, at least that's my understanding.

[@ZacharyMcBride]

Came here to say the same thing. Brokerages are non retirement and retirement now.

[@rossmacintosh5652]

@@silentnot4812 I agree completely. They do it with good intention. They try to help by dumbing things down, but then the inaccuracies end up adding confusion. Another example is the tendency to categorize mutual funds as active funds & ETFs as index funds. They think they're helping by simplifying but the misinformation can lead to more confusion. Reality is a mutual fund can be either active or indexed just as an ETF can be.

[@MrHumbleOne]

In the Uk we have an amazing investment vehicle called an ISA. An Individual Saving Account is a wonderful way to contribute up to £20,000 per year in a tax free brokerage account - no capital gain or income tax payable!

[@rossmacintosh5652]

The American equivalent is a Roth IRA and in Canada it would be the TFSA. For both a Roth IRA and a TFSA the contribution limits are quite a bit lower than that £20k. The Roth IRA has controls & limits on withdrawals. The TFSA has no restrictions on withdrawals but has rules on when you can recontribute any past withdrawals. I love my TFSA. ♥

[@SMTraz]

Harder to use/sell than save/invest!

[@Hdbdhrhr]

I don't need a broker and you either ….

[@scottiebumich]

what a stupid question, "why do I need a brokerage account". It's like asking why do I need a car, or refrigerator. How else will you build wealth? Roth only works for people making almost no money. IRA/401k is a HORRIBLE way to to grow your money as you pay income tax (vs capital gains in a taxable brokerage) plus you can use the money however you want, whenever you want, and there is a step up basis for your heirs. Invest in solid companies with low dividends and but and hold great compounders and your annual taxes are minimal.

[@carrotbutter-h1i]

egg pattewy

[@ThatBoi1995]

Meh wish this was less beginner level

[@beau6113]

the title of this clip is "why you need a brokerage account" please provide me with any essay style list of advanced reasons to have a brokerage account

[@gavinsweeney1554]

First

[@fernandoalcoverde399]

Your not supposed to take money out of your brokerage account, your defeating the purpose of compound interest

[@maxm2656]

*you’re, your, you’re. But also this is only partially correct. Yes, take advantage of compound interest and let it grow. But when you want place to invest money that’s higher than a HYSA for big purchases like a car, house, etc, a brokerage account is perfect. I’m 25 right now and almost able to max my retirement accounts and will be putting into a brokerage account for a home purchase