The Harsh Truth

I have some news for all my investors out there. With all the misinformation on the internet, I want to make sure I reiterate this one simple fact.

The two best investment accounts to have are a 401k, (Roth) IRA, or some other tax-advantaged account retirement account.

The yearly limit for a 401k is $19,500.

The yearly limit for an IRA is $5,500.

For my self-employed folks, the yearly limit for a solo 401k is $57,000.

This means you need to be contributing $2,083.34 a month for my employed crowd and $4,750.00 for my self-employed individuals. If you are not contributing at least this amount to these accounts, you shouldn't be investing in any other specialized investment accounts. No matter what any of these "gurus" tell you, no other investment account is as profitable as a retirement account.

I've heard it all, from life insurance policies to options-brokerage accounts. None of these will out-do a retirement account. We can invest in the $TLSA at the same time, and I will make more profit in my retirement account than you will in a regular brokerage account.

I know there are hang-ups about keeping your money in an account you won't have full access to until your age of retirement, but there are ways to use these accounts to your advantage during your lifetime. Google: "Taking a loan against your 401k account".

The only things that takes priority over these accounts are any form of savings (rainy day funds, housing funds, vacations, etc.) or a self investment, like school or starting a business.

Roth IRA: https://www.schwab.com/ira/roth-ira

IRA: https://www.schwab.com/ira

Solo 401k: https://www.schwab.com/small-business-retirement-plans/individual-401k-plans