Hello!! I have a 403b through my job (which doesn’t match). I am a few hundred dollars per paycheck under the max contribution.
I am considering opening an individual brokerage account with extra money. I understand the concept of just letting it grow until 65 without touching it, but I am concerned about not having “available emergency money” in the event I need it.
According to the checklist, am I supposed to max out on my 403b before opening a brokerage account? Roth IRA is not an option.
Thank you
Is traditional IRA an option or backdoor Roth? I assume Roth isn’t an option based on the income limits.
Yes that is correct. A traditional IRA is an option, but I am nervous about not having access to it without penalties. At least with an individual brokerage account I have emergency access?? Is this not a good way to look at it?
Just put money in it that you’re not “afraid” to “lose” like your 403b. Consider it your investing money, but keep enough emergency funds/cash/brokerage money you feel comfortable liquidating.
Of course worst case is you pay income tax + 10% penalty.
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