Using different accounts for different goals
A brokerage account can help you invest for a variety of goals such as retirement, education, vacations, and wealth accumulation. Even in retirement, some investors use brokerage accounts to set up streams of income and cash management services. Consolidating your different goals into one account can simplify your financial life significantly.
There are usually far more investment options to choose from than you might find in a workplace savings plan like a 401(k) or 403(b). With more choices, you can better align the investments you choose to your objectives and savings goals.
Brokerage accounts usually offer cash management services that pay competitive rates on the cash you keep in the account. Most cash management accounts offer services similar to bank accounts such as FDIC insurance, debit cards and checkwriting, making them an attractive place to hold funds when you sell securities or receive dividend payments.
Certain securities may not be suitable for all investors. Securities are subject to investment risk, including loss of the principal amount invested.
Investment (including securities), insurance and annuity products are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.
The tax information contained herein is not intended to be used, and cannot be used, by any taxpayer for the purpose of avoiding tax penalties. Taxpayers should seek advice from an independent tax advisor based on their own particular circumstances.
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