# 🍴 Set the Table

**Published by:** [Let Them Eat Cake](https://paragraph.com/@ltecake/)
**Published on:** 2022-06-18
**URL:** https://paragraph.com/@ltecake/set-the-table

## Content

TL,DR: Where your store products matters as much as what you buy Depending on your goals, and the type of investments you make, you may need a variety of financial accounts. Each account provides different levels of preservation and protection of your money and products - kind of like the storage in your kitchen. Kitchen Table / Checking and Savings Account Extra cash in checking and savings accounts like food on your kitchen table. You’re not taking any precautions to preserve it because the food is ready for consumption. Refrigerator / Brokerage Account Investments into individual products like stocks and bonds should be made into a brokerage account. Think of brokerage accounts like your refrigerator, which makes items accessible but is not the best place for long term storage. Items in a fridge, like investments in a brokerage account, are accessed and liquidated with relative frequency. Pantry / IRA The pantry is for long term storage. Individual retirement accounts have limitations to the amount you can put in ($6K)- and are not intended for immediate withdrawal (59 1/2 or 10% penalty). They are tax deferred- meaning income earned can be put directly into the account without being taxed. Upon withdrawal taxes are applied based on your current tax bracket. Freezer / Roth IRA Unlike pantry items, frozen products can be precooked and ready to eat. Roth accounts are funded post-tax - but withdrawn tax free. William Roth was a senator from Delaware who passed legislation encouraging responsible saving. Pantry at Work / 401K Like the pantry at work- 401K’s store your products within a work account - and are often augmented or matched by your employer. In addition to whatever products you added to the pantry - your employer may also contribute various snacks accessible to you. Similar to a traditional IRA, a 401K is tax deferred, not eligible for withdrawal until retirement, and limited in contributions. Freezer at Work / Roth 401K Like the freezer at work- Roth 401K’s store your products within a work account - and can be pre-cooked (post-tax). Emergency Food Storage / HSA Like emergency foods, HSA’s last for a long time and maintain their value. HSA’s, or Health Savings Account, serve a similar purpose and do a great job preserving wealth. They are triple tax advantaged, meaning they are not taxed upon contribution or withdrawal, and interest and gains are not taxed either, assuming you use them to pay for healthcare. Before investing in any of these accounts - you must set them up through an employer, bank or brokerage platform.

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