Brokerage Account Investing Updated for 2021

What is a Brokerage Account? Reasons to Use a Brokerage Account

What is a brokerage account? A brokerage account is a non-retirement investment account. Essentially, a brokerage account is the opposite of a retirement account like an IRA or 401(k) in nearly every way. There are no restrictions (income, investment options, limited additions, access, etc.) or tax benefits. Because there are…

Kristin McKennaSeptember 28, 2020

Brokerage Account Tax planning Updated for 2020

What You Need to Know About Capital Gains Tax

What is a capital gains tax? When you sell an asset like a stock or a home, your gain could be taxable. The tax rate will depend on several factors, such as your holding period, type of asset, and your taxable income for the year. Depending on your income, it's…

Kristin McKennaJune 29, 2020

Brokerage Account Cash Management Debt Management Financial Planning Infographics Investing Updated for 2021

What To Do With Excess Cash: 7 Ways to Use Extra Savings

What should you do with excess cash? If you are holding too much cash, consider how to use the extra money to your benefit. If you have extra cash in the bank, you may be wondering if you should invest the money or pay down debt. Assuming you already have…

Kristin McKennaMay 27, 2020

Asset Management Brokerage Account Diversification Investing Tax planning Updated for 2020

Tax-loss Harvesting After a Downturn in the Stock Market

Tax-loss harvesting is the process of selling an investment at a loss to offset other gains or carry the loss forward to future years. It's the ultimate silver lining: using the recent losses in your investment account to your advantage. During widespread selloffs like in March 2020, most equity positions…

Kristin McKennaMarch 30, 2020

Asset Management Brokerage Account Building Wealth Cash Management Current events Diversification Early Retirement Investing Investing During a Crisis Managing Risk Retirement Planning

Should You Keep Investing Through a Recession?

There's a lot we know about the current state of the stock market, but we can only make an educated guess as to where the economy goes from here. Both are sobering to think about. As of the writing of this article, we have descended into the fastest bear market…

Kristin McKennaMarch 22, 2020

Brokerage Account Inheritance Tax planning

What is a Step-up in Basis? Calculating Cost Basis of Inherited Stock or Other Assets

A step-up in basis is a tax advantage for individuals who inherit stocks or other assets, like a home. A step-up in basis could apply to stocks owned individually, jointly, or in certain types of trusts, like a revocable trust. Sometimes called a loophole, the step-up cost basis rules are…

Kristin McKennaFebruary 24, 2020

Asset Management Brokerage Account Investing Rebalancing Tax planning Updated for 2020

Is Tax-Loss Harvesting a Good Idea?

Tax-loss harvesting is the process of selling an investment that has lost value in your portfolio to 'realize' the loss for tax purposes. Investors can use this loss to offset taxable capital gains and potentially even reduce ordinary income by up to $3,000 in the current year. The remainder (if…

Kristin McKennaOctober 22, 2019

401(k) Plans Brokerage Account Cash Management Early Retirement Infographics Investing Roth IRA Secure Act Traditional IRA Updated for 2020

I Maxed Out My 401(k), Now What? What to Do After Maxing Out Your 401(k)

Ways to Invest After Maxing Out a 401(k) Wondering what to do after maxing out your 401(k)? If you're looking for ways to save outside of your retirement plan, most individuals have three options: a brokerage account, Traditional IRA, or Roth IRA. Looking for ways to invest after maxing out…

Kristin McKennaOctober 8, 2019

401(k) Plans 403(b) Plans Brokerage Account Financial Planning Retirement Planning Secure Act Tax planning Updated for 2020

Should You Always Max Out Your 401(k)? The Downside of Pre-Tax Retirement Accounts

Is it always a good idea to max out your 401(k)? For wealthier retirees or individuals with a sizeable pension, you might not want to max out contributions to your 401(k). Here are some situations where maxing out your 401(k) might not make sense. (more…)

Kristin McKennaSeptember 5, 2018

Brokerage Account Employee benefits Financial Planning Updated for 2021

Beware of the Deferred Compensation Plan

If a deferred compensation plan a good idea? A nonqualified deferred compensation plan (NQDC) or supplemental executive retirement plan (SERP) allows executives to defer income until a later date, therefore avoiding paying income tax until the money is paid out. While the cash is in "deferral mode," you can select…

Kristin McKennaMay 20, 2018

Brokerage Account