Top Three Financial Accounts to Open in Your 30s or 40s

Hi, I'm Tyler, a former financial advisor and portfolio manager, and now I create financial content for free so that you don't have to pay for it.

1. High Yield Savings Account

I would fund this account with about $500 a month until it could cover three to six months of living expenses for me and my dogs. Those bloodhounds eat a lot! Currently, I can get about a 5% return for very little risk.

This rate will not necessarily last, but as long as it does, you need a high yield savings account right now!

2. Roth IRA

I would fund this account with $583 a month to take advantage of my maximum annual contribution. I would invest that money in a low-cost index fund and let it grow for the next 30 years.

Odds are, I’d have about a million bucks waiting for me at retirement. Since it's funded with post-tax money, those gains are 100% tax-free. Additionally, I would actually use this as my second emergency fund. If I needed any of my contributions back before 59 1/2, I could take them back penalty and tax-free at any time, for any reason.

3. Taxable Brokerage Account

I would put any additional disposable income that I could into this account, even starting with just $20 to $25 a week. This account would also be invested in low-cost index funds.

This would serve as my five to 15-year goal account, and all capital gains would be taxed at about half the rate of my ordinary income.

If any of this information is helpful, feel free to like and follow, and I’ll keep trying to get you one step closer to where you need to be!

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