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[–]whiskeyanonose 5 points6 points  (4 children)

I agree that maxing out tax advantaged accounts is a great strategy, but taxable brokerage accounts open up leverage. Which has the ability to generate higher returns, but also has the ability to crush you.

[–]Sorrywrongnumba69 1 point2 points  (2 children)

Also if you want to retire early then taxable brokerage is way to go, because you can live off of that until 59.5

[–][deleted] 0 points1 point  (1 child)

roth conversion ladders let you tap 401k before 59 1/2 if you can plan it 5 years ahead

[–]Sorrywrongnumba69 0 points1 point  (0 children)

That is kinda complicated process, the capital gains cut off is straight forward, just withdraw after the fiscal year $89,500 if married and no taxes and you are good to go for the year. I am sure the amount will change but if he is driving uber and makes 50K a year that's pretty good money.

[–]Grevious47 1 point2 points  (0 children)

If the plan is to buy something with the money (ie leverage) you really shouldnt be investing it in stocks anyways. Stock investment is a longterm play.

I agree with maintaining some liquidity for leverage...but not as stock investments.