Show 80- Taxable Brokerage Account for Early Retirement with Rachel @TeacherToMillionaire
In this episode, I talk with Rachel about taxable brokerage accounts and why she is using one to help her retire early.
4/9/20251 min read
There are so many different evers we can pull when it comes to investing you need to know what your goal is before you start pulling levers. Rachel Rahmlow knows her goal, to retire at 40 from teaching to spend more time with her kids, and to do that she is putting money into her taxable brokerage account (TBA). Depending on your goals a TBA might be a good idea! Listen to the episode and find out.
Show Notes
On Instagram: @teachertomillionaire
How do I get out of a high fee vendor? Free resource from Rachel
Cheat sheet for tickers to invest in from Rachel
457 episode with Gerry Born the Millionaire Educator
Invest with Fidelity like I do (referral link)
Recommended Books (Amazon Affiliate Links)
The Simple Path to Wealth by JL Collins
Key Ideas
Taxable brokerage accounts have number of benefits over retirement accounts.
Flexibility: The money can be used at any time for any purpose without penalty.
No caps: While you can only put a certain amount into an IRA or a 403b, there is no limit for TBAs.
No capital gains taxes for long term gains under a certain income level (we’re talking about 120K for a married couple!)
The purpose of investing is to buy time freedom, so start now!
Bonus Tip
Here is a bonus tip I didn't get to in the episode.
The fact that you can have a long term capital gain of 0% on money invested in a taxable brokerage account (if your total income is beneath a certain amount) is incredible because that basically turns a taxable brokerage account into a more flexible ROTH account. The only difference is that you are guaranteed not to pay tax on the gains in a ROTH account but you might on a brokerage account depending on the circumstances when you withdraw it.