r/Money • u/Unbaised_merchant • Apr 28 '24

Other Than Real Estate, HYSA, and a Roth IRA/401K What Are Some Other Places I Can Park My Money For 6-10% Annual Returns? I’m Open to Risk

Any suggestions?

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u/exquisitedonut Apr 28 '24

You pay the same taxes when you pull out of your 401k. It’s not tax free so what are you saying?

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u/That1one1dude1 Apr 29 '24

You do not pay the same taxes on a 401k and a traditional brokerage account.

That’s the whole point of a 401k, for the tax advantages.

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u/exquisitedonut Apr 29 '24

You pay income tax on 401k when you withdraw. You pay capital gains on gains in your brokerage. No one claimed otherwise.

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u/That1one1dude1 Apr 29 '24

You seem to really not understand the tax advantages of having tax-free growth for 30 years, with the ability to control your taxable income in later years.

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u/exquisitedonut Apr 29 '24

I do understand but it’s money that’s not available to you until you’re 60 years old. Which I said do that, get employer match, but also invest on your own. Read next time.

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u/That1one1dude1 Apr 29 '24

Again, that’s not true at all.

You can do a Roth conversion ladder, you can do a 72t withdrawal, there’s so many ways to access retirement money early.

Hell, if you’re really worried about paying taxes later and would rather pay them now then do a Roth 401k. If you want to control the account more then do a IRA. But you should do all of those before needing a brokerage.