I assume the brokerage account is taxable. The Roth is not.

I have both, I can only contribute $8,000.00 in a Roth this year, but I want to invest more than that. My earnings in my individual brokerage accounts grow tax free, until I sell the stock. If I hold them long enough, I also get a more favorable tax treatment as long term capital gains. If a dividend is paid, I do have to pay taxes on that, however, most of the stocks I own in my brokerage account don't pay a dividend anyway. Don't let taxes be your only reason/guide for investing.

I have both a Roth for myself and one for my wife , (401, 401 Roth), brokerage accounts for myself and custodial a brokerage accounts for the kids.

Retirement accounts have limits. for me this year it's 23k in the 401 and 401 Roth account combined, an additional 10% after tax can be put in that does not count words the 23k limit an other company match does not count words the limit. The Roth limit is 7 k. I want to invest more so opened a Roth for my wife. She has no earned income but we file jointly so I can put another 7k in a Roth for her. I have brokerage accounts for the kids and they get monthly deposits automatically to build savings up for them.

Basically both if you are saving for retirement hit the limits if you can. Then explore back door Roth options, health saving accounts, are another tax advance account to look into if you hit your the limits on the others.



I prefer the Roths because I think tax rates will go up and would rather get the tax free growth and pay the taxes now. So in my 401 it all goes into the Roth 401 option except the % I need to get the company match that goes in a pre tax part. the extra 10% after tax gets moved into the Roth buy Roth conversion every 6 months basically a back door that let's me put in more than the 7k limit and get the tax free growth on it.

A lot of people think the pre tax 401 I'd better because they will be in a lower tax bracket when they retire so mmnot paying taxes now and having more to invest is better. But Many are surprised to find they make more retired than when they were working especially if they invested well. Add in the growing government debt and the likelihood of tax increases it may be better to pay taxes now than in the future.

I'd lay odds that the roth will lose its tax free status

Excellent point about taxes in the future PF. I agree with you that it is likely that taxes will be higher, both nominally and in real terms, in the future.