The Brokerage Account (7 investing perks)
Aug 16, 2025Read time - 4 minutes / Disclosure
Investing with a brokerage account can:
- Give you more options.
- Create a cushion of cash.
- Help you quit 9-5 life early.
Unfortunately, they're rarely talked about.
Too Many Options
Investing can feel mindboggling with all of the different options:
- The IRA.
- The 401k.
- The Roth IRA.
- The Roth 401k.
- The Brokerage Account.
What the heck do you pick?
Most people follow the crowd and start with a retirement account at work like the 401k.
That's exactly what I did.
But several years later I realized..
Most people following that path are planning to leave 9-5 life in their 50s or 60s.
After years of demanding bosses, difficult co-workers, and a lot of business politics (aka: corporate life).
I decided leaving 9-5 life in my 30s or 40s sounded better than sticking it out the full 40 years.
Not to sip margaritas on the beach (ok maybe a few).
But to have more control over my time to do things I truly enjoy like traveling, seeing family more, or this little online biz.
Old way:
— JOHN HENRY (@thejohn_henry_) August 4, 2025
- 40 years at a job
- 50 hour work weeks
- 15 years of freedom
New way:
- Investing early & often
- Escaping 9-5 life early
- Having more freedom
I knew if I just used a retirement account.
Leaving 9-5 life decades early would be a challenge since retirement accounts are designed to be accessed after age 59 1/2.
There's a few ways to get around this, but the options are limited.
So I looked around to see what successful people were doing with their money (since I worked at a bank).
I noticed most people that left 9-5 life early invested in retirement accounts plus a brokerage account.
So I split my investments between retirement accounts and a brokerage account.
That became my new strategy (plus figuring out how to own real estate without much money). Both stocks and real estate eventually helped me leave the 9-5 in my later 30s.
Here's 7 investing perks I learned along the way about brokerage accounts (hope it's helpful).
Let's dive in:
1. The Anything Perk
Brokerage accounts are all-inclusive.
Unlike a retirement account at work.
Brokerage accounts allow:
- Individual stocks.
- Startup companies.
- Commodities (like gold).
- Companies in other countries.
...plus much more.
Many IRAs (individual retirement accounts) or Roth IRAs allow these investments too, but they often have restrictions.
Brokerage accounts give you the most investing options.
2. The No Rules Perk
Brokerage accounts are rule-less.
Meaning, unlike retirement accounts.
Brokerage accounts don't have any rules like:
- A 10% penalty is owed if you take money out of a retirement account before age 59 1/2 unless it's a special exception (like buying a home, a disability, etc).
- $7,000 is the most you can put into an IRA and a Roth IRA combined each year as of 2025.
- Taking money out of an IRA must start at age 73 as of 2025 per the IRS.
These rules can be a pain.
Brokerage accounts don't have rules like retirement accounts.
3. The Unlimited Perk
Brokerage accounts have unlimited deposits.
That means flexibility.
Came into a large sum of money you want to deposit (lucky you!)...?
No problem.
There's no annual limit with brokerage accounts unlike retirement accounts.
Brokerage accounts are the most flexible investment account.
4. The Transfer Perk
Brokerage accounts are easy to change.
Unlike a retirement account at work.
You can pick where you want to open your brokerage account.
Plus, you can change companies anytime you want just like changing your savings account from one bank to another.
Your investments (ie: stocks) can be electronically transferred from one company to another in a few days.
Same thing goes for IRAs and Roth IRA accounts.
Brokerage account investments can be transferred whenever you want.
5. The No-Tax Perk
Brokerage accounts are tax friendly.
When you own stocks that go up, the IRS calls it a "capital gain".
As of 2025 long-term capital gains (investments owned at least 1 year) as a single tax filer pays $0 if taxable income is under $48,350 per year or $96,700 as a married couple filing jointly.
That's a mouthful, this chart explains it better:
Brokerage account stock earnings often pay less tax than job earnings.
6. The Anytime Perk
Brokerage account funds have no restrictions.
Unlike retirement accounts where you pay a 10% penalty if you take money out before age 59 1/2 unless it's a special exception (like buying a home, a disability, etc).
Money inside a brokerage account is always available without a penalty.
- Want to take a year off?
- Want to leave 9-5 life early?
The funds are available.
Brokerage account investments are available without a 10% penalty.
7. The Extras Perk
Brokerage accounts come with extras.
These extras aren't as common with retirement accounts and often include:
- Free educational tools.
- Up to the minute stock market resources.
- Cash back promotions linked to your brokerage account (ie: credit cards).
Brokerage account companies usually offer many extra perks.
The Bottom Line
There's one big thing brokerage accounts do that retirement accounts don't do.
They act as a bridge.
A bridge from "non retired life" (20s, 30s, 40s) to "retired life" (50s+).
Using a brokerage account first was my plan after leaving 9-5 life early, then switching to my retirement accounts later on.
But the funny thing..
Life rarely plays out exactly as you're planning.
Most people leaving the 9-5 early think they won't make much money afterwards.
I know this because I was one of them.
But leaving 9-5 life doesn't mean income stops completely, unless you want it to.
It simply means income shifts from "I have to do this" income (a 9-5) to "I want to do this" income (a part time job, a small side hustle, or a small online business).
Income tends to follow your passions.
That's all for today.
See you next Saturday.
