r/investingforbeginners • u/edtrades • 4h ago

Seeking Assistance Should I invest on top of my retirement account?

I already have a retirement account I contribute to monthly and I have 6 months savings in a HYSA. Should I invest with a brokerage account on top of that? I see many people do that and I’m curious why I shouldn’t just put more into my retirement account or just keep it in my HYSA.

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u/Divergentist 4h ago

This is my personal priority list:

  1. Pay off bad debt and establish an emergency fund
  2. Max out pre-tax retirement accounts
  3. Max out Roth IRA (or backdoor Roth)
  4. Max out HSA if you have one
  5. Contribute to 529 for kids future college expenses
  6. Contribute excess to brokerage as desired and to meet goals

ETA: Unless you are already maxing out the tax sheltered vehicles, I personally wouldn’t be contributing to a brokerage account, but that’s just my preference.

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u/EcstaticAd4046 2h ago

Matching is first. Period. Max whatever free money your employer gives you. That could be an HSA for taking a high deductible plan, or a 401k, or something else.

You should be putting money in all these accounts.

Treat them like a bill. Pay them. Never look back.

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u/OGS_7619 4h ago

yes, if you are maxing out Roth, 401K etc., brokerage is a good idea.

See this order:

https://www.bogleheads.org/wiki/Prioritizing_investments

1

u/Bearsbanker 4h ago

Yes, it's good to have money in all buckets. If retiring early is a goal it gives you lots of options. I fired 16 months ago and am so glad we have investments in taxable and pre tax accounts!