How to Rank Your Investments: Your Financial Pyramid
When it comes to investing for future goals, we can’t always do it all, at least not at the same time. We need to make some hard choices. But the best approach may not be super clear.
For example, if you have a child headed to college soon with nothing saved for his or her education, is it wise to pump the brakes on your 401(k) and, instead, allocate money towards a 529 college savings account? College is sooner on the horizon, after all.
And if you have a workplace retirement plan, should you invest in it over a Roth IRA? Which takes precedence?
And where might a diversified brokerage account stack on your financial pyramid?