Drucker Wealth

What’s the worst piece of financial advice you’ve heard?

What is the most underrated investment account type??​​​​​​​​​​​​​​​​​​Most clients we come across are doing an excellent job saving into their employer sponsored retirement plans (401k, 403b, 457 plans, SEP IRA, Solo 401k etc.).
We love that.

Provided you have the cash flow, cash reserves, and short-term goals already funded, this is EXACTLY what you should be doing.

Most clients we come across have also done a great of building up their emergency reserves/cash position... satisfying the amount they need in the bank based on their personal short-term priorities, lifestyle expenses, and the relative stability of their household income.

In our experience, the most underutilized type of account to save/invest for the future is what we call the Flexible Individual/Joint investment account.

Here are some the benefits:

✅ No contribution limits...
✅ You can buy stocks, index funds, or mutual funds to compound your wealth over time.
✅ No early withdrawal penalties
✅ Tax Loss Harvesting Opportunities
✅ Long Term Capital Gains Treatment if held for longer than 12 months.
✅ You can set it up as a Transfer on Death (TOD) Account to avoid probate upon your passing.
✅ It still can be treated/thought of as retirement funding...but it doesn’t NEED to be for that purpose.
✅ Stepped Up basis for your beneficiaries upon your passing.

When’s the last time you did a review of ALL of your accounts to make sure that you have the most efficient set up possible?

Schedule your 15 minute "Right Fit" call with me at the link in bio... happy planning!