2 investment accounts I see young people misuse too often - Business Insider

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I'm a financial planner, and I keep seeing millennials misuse 2 types of investment accounts

I've made my fair share of money mistakes over the years. But now, as a financial planner, I can help others avoid the same.

Roth retirement accounts can be useful, but pre-tax accounts may be your best option when you're in your 20s and 30s.Regret, unfortunately, is part of life. We all have decisions we wish we'd made differently, or actions we'd rather take back — especially when we look back on our finances and see mistakes we made in the past.

that accumulates cash value. These products are often oversold by insurance salespeople — meaning, the people who purchased the policies bought far more than they truly needed. pre-tax investment vehicles The cash accumulating within a life insurance policy does grow tax-deferred and can be withdrawn tax-free via policy loans — but you'd need to do a detailed tax projection to see if punting your tax benefit into the future provides a greater benefit than writing it off today. Most people simply eyeball this analysis, which may not always yield the best decision.

 

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