Should I invest in a taxable brokerage account or a retirement account first?

Fund tax-advantaged retirement accounts before a plain taxable brokerage, because the tax savings compound for decades. The usual priority order is: capture any 401(k) employer match first (free money), then max an IRA ($7,000 in 2025, or $8,000 if you're 50+), then return to the 401(k) up to the $23,500 employee limit, and only after that invest in a taxable brokerage account. A taxable account still has a role — it has no contribution cap, no early-withdrawal penalty, and no required distributions, so it's ideal for goals before age 59½ or for money beyond what retirement accounts allow. The trade-off is that you owe tax on dividends and realized gains each year. Map your own sequence with our retirement planner at wealthserene.com/tools/retirement-planner.