When you are ready to start investing your money, choosing the right brokerage account is the key to reaching your financial goals and building the right foundation.
A brokerage account is an investment account that will allow you to buy and sell various investments like stocks, bonds, mutual funds, index funds, or ETFs. It’s also an account that can hold cash, so you have money ready to go to work for you when you are ready to invest.
Utilizing a brokerage account is a great way to help you accumulate wealth, save for a large purchase in the future, and invest for retirement outside of your 401k or IRA.
You should open a brokerage account when you have savings goals five years or more away but might not be for retirement. This account can be a great companion to your emergency fund, which can elevate your overall financial health.
The challenge with choosing the right brokerage account is that many offer similar features, services, and price points for trades and accounts.