Prioritizing investments - Bogleheads
Investors are faced with a variety of choices on where to invest their money; for example, a taxable account, a 401(k), or an IRA. Knowing which accounts to invest in first will maximize return with a minimum of taxes. Prioritizing investments indicates the appropriate order in which investments go into these accounts. Take care to ensure that any investment priority decision aligns with your Investment Policy Statement. Here is a general account funding priority that often works well for many people[1][2][3] (not all points will apply to everyone). Refer to Figure 1. It is important to realize that these steps are not cast in stone. The above list should be considered with some flexibility for your needs and personal preferences. If the company plan offers good, low-cost funds, it may be preferable to contribute to the company plan before contributing to an IRA; see: Comparison between IRAs and employer plans. Also, your marginal tax rate may influence the decision: those subject to h
Investors are faced with a variety of choices on where to invest their money; for example, a taxable account, a 401(k), or an IRA. Knowing which accounts to invest in first will maximize return with a minimum of taxes. Prioritizing investments indicates the appropriate order in which investments go into these accounts. Take care to ensure that any investment priority decision aligns with your Investment Policy Statement. Here is a general account funding priority that often works well for many people[1][2][3] (not all points will apply to everyone). Refer to Figure 1. It is important to realiz
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