What investments accounts should you own?

I think you should own THESE 5 accounts:

HSA

401k

Backdoor Roth

ROTH IRA

403b

I’m going to be giving you the reasons WHY you should use these accounts, and what exactly the accounts entail.

1. HSA (Health Savings Account)

Using an HSA can help you save on medical bills, by letting you save pre-taxed money for medical bills, (doctor visits, vision and dental care.)

It can lower your potential costs for medical as well as the chance to grow your money (mutual fund).

2. 401k

It allows employees to contribute a partial amount of their salary towards individual accounts. Employers can match your contributions (some do 3%, 5%, etc.)

It’s done pre-tax, so you won’t have to pay taxes until you withdraw, and you will have a penalty if you take it out before 59 1/2 years of age.

3. Backdoor Roth

No, it’s not illegal. This is mostly for higher-earning individuals who can’t directly invest into a Roth IRA. The actual process is transferring assets from your IRA to a Roth IRA. You owe taxes on your investments when you transfer, so it is NOT a tax dodge.

  4. Roth IRA

An individual retirement account, you can only contribute post-tax cash, and there is an income limit of 161k for single, and 240k for married individuals. Tax-free growth after 59 1/2 (Account must also be open 5 years or longer!)

5. 403b

A 403b is a less-known and talked about option, mostly because it’s for specific employees in the education and non-profit sectors.

You could possibly have more limits compared to a 401k, and less investment options readily available.

You cannot contribute if you make over 345k in 2024.

I have two more accounts that I will be talking about in my premium newsletter in a couple days, you should check out my other amazing content in the meantime! ⬇️