30 Day Investing Challenge, Day 7: Your Current Accounts
The next step in your 30 day financial freedom journey is to take stock of all the investment accounts, balances, and contributions amounts you already have. This will show you where you are in your investing journey and how you can add more opportunities to growth your wealth. Here’s a list of the types of accounts you could have:
Workplace Retirement Account
If you’re a W2 employee who has an employer you’ll probably have a workplace retirement account (not always though and that’s okay — you have other options). This is usually a 401k, Roth 401k, 403b, 457, TSP, Simple IRA, etc.
Traditional or Roth IRA
These are your Individual Retirement Accounts and can be opened at any brokerage firm. Brokerage firms are places like Vanguard, Fidelity, or Charles Schwab. Each account has their own limitations when it comes to income and contribution limits for 2024. You’ll want to take stock of these for the second action step below. Note for the Traditional IRA, if you don’t have an employer retirement plan you do not have to worry about income limits.
Health Savings Account (HSA)
If you have a qualified high deductible healthcare plan you can open a health savings account or HSA. The contribution limits for 2024 are $4,150 for individuals and $8,300 for families.
Brokerage Account
This is your basic investing account that anyone can open at any brokerage house. I recommend Vanguard, Fidelity, or Schwab’s brokerage accounts.
Action Step: Write Down Your Open Accounts
Write down all the investment accounts you already have open
Write down the balance in each of these accounts
Write down how much you’re currently investing in these accounts every month
Optional: if one of these is an employer retirement plan, write down how much your match % is
Action Step: Write Down The Accounts You Could Open But Haven’t
Note the limits on the accounts I mentioned above
Write down the accounts you qualify for that you haven’t opened yet
Check back tomorrow for our next challenge: evaluating what you’re currently invested in.
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