A short advice clip by Craig Wear, CFP® explaining the three main "buckets" of retirement savings: tax-deferred accounts (e.g., traditional IRAs), taxable accounts (e.g., brokerage accounts), and tax-free accounts (notably Roth IRAs). The speaker emphasizes planning where retirement income will come from and notes tax implications of different account types.
It's important that you figure out where your money's going to come from when you no longer decide that you want to go to work. Most people, as you save, you develop money in different, I'll call it buckets. So you've got a bucket that is tax deferred, which is your ira. You got buckets that have taxable implications when you buy and sell something, and that's a brokerage account or something like that. And then there's the tax free bucket, which could be tax free bonds, but even buying and selling those, you can have some tax implications. But the biggest tax free account is going to be your Roth ira.
