Roth IRA. That said, I strongly suspect the extreme tax advantages of one will be disappearing soon.
Trading stocks can make ones taxes a bit difficult to do, especially with capital gains taxes and dividend taxes that are constantly in flux, and certain to increase in the coming months. Perhaps Mitch will expound more on the subject. Rick From: mercedes@okiebenz.com Sent: December 31, 2020 2:34 PM To: mercedes@okiebenz.com Reply-to: mercedes@okiebenz.com Cc: astr...@indiana.edu Subject: [MBZ] question for young investor For those of you who might have some investment backgroud, does it make more sense for an 18 year old to open an investment account as an IRA or as a normal brokerage account? My thought is that he's not going to have significant taxable income for at least another four or five years, and will eventually have more immediate needs for the funds such as qualifying to buy a house. I think an IRA starts to make more sense when you can contribute from salary witholding and possibly getting employer matching. Not trying to get him into active trading at all. Just establishing the habit of dollar-cost-averaging into an index fund or ETF for the long term. Allan _______________________________________ http://www.okiebenz.com To search list archives http://www.okiebenz.com/archive/ To Unsubscribe or change delivery options go to: http://mail.okiebenz.com/mailman/listinfo/mercedes_okiebenz.com _______________________________________ http://www.okiebenz.com To search list archives http://www.okiebenz.com/archive/ To Unsubscribe or change delivery options go to: http://mail.okiebenz.com/mailman/listinfo/mercedes_okiebenz.com
