The “Typical” Account 

Annual Contribution Max: None

Why we like Taxable or Brokerage:

• Can hold any marketed securities and assets
• Easy to set up and administer
• Benefits are universal and hold no limits on assets
• Can be used to house capital gain indefinitely (great for legacy planning or gifting)
• Can add leverage through margin or asset based loans
• Can seek correlated and alternative assets
• Great place to save additional income

Why we don’t like Taxable or Brokerage:

• Exposes the investor to some potential tax liabilities
• Can expose investors to undue and uncompensated risk
• Requires the ability to value assets effectively

A brokerage is a baseline account and allows an investor to buy and sell a variety of investments, such as stocks, bonds, mutual funds, and ETFs. Funds can pass into and out of a brokerage account with little to no tax ramifications depending on how they’re invested, but all activity is tracked and will be reported for tax purposes on a yearly basis. Whether you find yourself setting aside money, saving for a goal, or building an income stream, you can view this type of an account like a versatile bank account. 

Your InSight-full® financial plan will most certainly have at least one of these accounts, they are incredibly common.