This isn't terribly interesting or useful, though. A casual reading of these accounts even in your early 20s immediately makes this information clear.
What pisses me off is no one talks about organizing your accounts around early retirement. There seems to be no benefit in using any tax advantaged accounts if, say for instance, you wanted to retire at 35. Further still, if you did use tax advantaged accounts and wanted to retire early, you've screwed yourself because you pay a penalty for pulling those funds out.
> There seems to be no benefit in using any tax advantaged accounts if, say for instance, you wanted to retire at 35.
Only if you don’t plan on living past 59. You still need to save for your post 59 life even if you begin retirement at 35. With a 401k, you still have something for later, if you can retire at 35, it isn’t wise to start tapping all your saved resources early.
I think your comment is pretty mean spirited.
The usefulness is in the summary - I do not think you can find a high level overview of these accounts in one place elsewhere. If you do, let me know.
You say "What pisses me off is no one talks about organizing your accounts around early retirement"
but I allude to this in my post about Traditional 401k* -> Traditional IRA -> Roth IRA conversion.
There is a huge benefit to this if you have an early retirement.
I'm sorry it came off as mean spirited, but I don't know what to say. Vanguard themselves provide layman explanations for this stuff on their site. Fidelity, too. Everyone does.
I don't know what you "allude" to, but no one who retires early uses a Roth IRA. You incur the same penalties and have to follow rules on withdrawals, so I don't know what you're talking about.
Yes, there are articles out there on using an HSA brokerage account, but I don't know a single person who thinks its a good idea to commingle your investments with your healthcare. An overwhelming amount of people have a PPO over anything else.
If you were planning on exotic types of investment strategies, you're better off doing that in your actual investment choices versus the vehicles you plan on using to do so.
Tax advantaged accounts are for people who plan on retiring at traditional retirement ages. Brokerage accounts for everything else.
Most people who purchase healthcare do it for healthcare purposes, not investing. Turns out most people don't like high deductibles.
Who actually says to themselves, "Yeah, I'm going to set up a backdoor or mega-backdoor tax advantaged account," but also wants to retire at 67? It just sounds insane to me that you'd put in all of this effort to screw yourself.
Might just be the nature of internet communication, but your comments are coming off as not in a good nature and are a bit misinformed. This will be my last reply.
Vanguard has this stuff across many different webpages managed by different groups. The usefulness is that this info is all aggregated in one page, and also includes info not provided by Vanguard.
Not that I need to justify this post to you, but Vanguard does not talk about: heartbeat trades on mutual funds, 529 on unborn child, megabackdoor, SEPP, amongst many other points.
"no one who retires early uses a Roth IRA."
This is just patently false and I would recommend researching schemes like ROBS to benefit yourself. Peter Thiel and Mitt Romney are famous examples, the former literally has billions in his Roth.
Also, as mentioned in my post, you contribute to your traditional 401k tax-free in your high-earning years and then convert to a Roth Ira in your early retirement slowly.
"If you were planning on exotic types of investment strategies, you're better off doing that in your actual investment choices versus the vehicles you plan on using to do so."
If you have a high edge investment strategy, you actually would want to do it in a Roth.
"Tax advantaged accounts are for people who plan on retiring at traditional retirement ages. Brokerage accounts for everything else."
This is false. If you have 10M at 25 and will never make a single dollar ever again, you'd still want to contribute to your retirement accounts, albeit in a smaller rate.
"Most people who purchase healthcare do it for healthcare purposes, not investing. Turns out most people don't like high deductibles." Key word: "most". If you are young and healthy, you can take it. In the case of an absolute disaster, you'd quickly hit your deductible limit (e.g. my HDHP has a $3k deductible. Easily handled).
"Who actually says to themselves, 'Yeah, I'm going to set up a backdoor or mega-backdoor tax advantaged account,' but also wants to retire at 67? It just sounds insane to me that you'd put in all of this effort to screw yourself."
Look up the SEPP exception.
> There seems to be no benefit in using any tax advantaged accounts if, say for instance, you wanted to retire at 35.
Various Tax Advantaged accounts provide various legal protections though different states have different laws about said protections. Still, many of the protections, especially in my state, make it worth it.
What pisses me off is no one talks about organizing your accounts around early retirement. There seems to be no benefit in using any tax advantaged accounts if, say for instance, you wanted to retire at 35. Further still, if you did use tax advantaged accounts and wanted to retire early, you've screwed yourself because you pay a penalty for pulling those funds out.