I have two brokerage accounts with Fidelity. One is for a future car purchase, and the other is for house down payment. I don’t plan on drawing from these investments for a few years. But, I still want to be able to access them before the traditional retirement age. Plus, I didn’t want to use a high yield savings account, which currently pays out 0.5% at Ally. That money needs to work harder than that. Brokerage accounts make sense … … if you want to invest your extra cash and you don’t need them for a couple of years. If you sell the investment within a year, you will be subject to short term capital gains tax. This is equal to your ordinary income tax. If you hold your investments for longer than a year, they will be subject to long term capital gains tax. Long term capital gains tax

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