Finance Friends You Should Have

There’s a wise Spanish saying that goes, “dime con quién andas, y te diré quién eres.” 

“Tell me who your friends are, and I’ll tell you who you are.” You might laugh 😂 or roll your eyes 🙄 because your padres would tell you this growing up, but there’s truth in it—especially when it comes to finances. In the world of finance, there’s lots of resources and plans to help your finances for the future. 🙌 You want to make these your best friends and keep them close like you kept your Daddy Yankee Barrio Fino album closeby back in 2004. 💀We’re going to take a look at three of them. 👀

Roth IRA

We know this sounds like a character from ESTAR WARS 🚀, but actually this is a special retirement account that helps you once you get to be an abuel@. 👴👵 What makes the Roth IRA different is that you pay taxes on money going into your account so that in the future all the money withdrawals are tax-free. This is a great account to have where you pay now and know that in the future, you’ll have all the money in the account for yourself. Once you have that money, you can blast some Ozuna & keep the party going!  💃🕺💸

401k

This is probably the most common account you’ve heard of and what your padres & ti@s talk about a lot at your primo’s 3rd birthday party after the cake has been cut 🎂. In simple terms, a 401k is a plan that goes through your company. It’s a retirement account that you can contribute to every paycheck with your employer. You’ll be putting a little bit of money with every paycheck.  📈 Some employers match your contributions too, meaning they’re putting money into your account as well. The 401k will grow despacito like Daddy Yankee but it’s a fantastic account that will pay off in the long run. A little bit goes a long way! 💯

Brokerage Account 

A brokerage account is an agreement between an investor (you) and a brokerage firm. 🤝 Once the agreement is made, you deposit money with the firm and they start to make trades for you. This may make you feel uncomfortable giving your money to other people to handle 😬, but it’s important to make sure you pick a licensed brokerage firm. Also keep in mind that even though a brokerage firm works with your money, the assets belong to you—cue the reggaeton party music! 💥🎉😁

These different accounts may sound intimidating, but with a little education and help, you’ll be on your way to making more money and investing in your future! 💰 These are three accounts you want to keep close to you to help you reach that financial freedom! No matter what, you’re not alone in this financial world and what better way to keep the wealth growing than to tell your three best friends about what you just learned! 👏