A Brokerage Account (often called an "Individual Taxable Account") is the most flexible way to invest in the stock market. Unlike retirement accounts, which have strict rules about when and how much you can invest, a brokerage account is designed for any financial goal, at any stage of life.
At Harvest, our Brokerage accounts give you full access to our biblically responsible portfolios with no "strings" attached.
What is a Brokerage Account?
Think of a brokerage account as a specialized "holding tank" for your investments. While a savings account holds cash, a brokerage account holds assets like ETFs, stocks, and bonds. It provides you with a portal to the global markets while allowing you to maintain total control over your liquidity.
The Benefits of a Brokerage Account
1. No Contribution Limits
While IRAs limit how much you can save each year (e.g., $7,000 or $8,000 depending on age), a brokerage account has no cap. Whether you want to invest $10 or $10,000,000, the door is always open.
2. Maximum Flexibility (Withdraw Anytime)
This is the "liquid" investment account. Unlike a 401(k) or IRA, where you may face a 10% penalty for withdrawing money before age 59½, you can sell your investments and move your cash back to your bank at any time for any reason.
3. Ideal for All Ages (Especially Students)
Because there are no earned income requirements to open one, brokerage accounts are excellent for students or young adults. It allows you to start the compounding process early, even if you aren't yet focused on retirement.
Important Considerations: Taxes
Because this account does not have the "tax-sheltered" status of an IRA, there are two primary things to keep in mind:
Capital Gains Taxes: When you sell an investment for a profit, the IRS considers that a "capital gain," and you will owe taxes on that profit.
Dividend Taxes: If the companies in your portfolio pay dividends, those are generally taxable in the year you receive them, even if you reinvest them.
No Upfront Tax Break: Unlike a Traditional IRA, contributions to a brokerage account are made with "after-tax" dollars and are not tax-deductible.
Important Disclosure & Disclaimer
No Tax Advice: Harvest does not provide tax or legal advice. Tax laws are subject to change and vary based on individual circumstances. We recommend consulting with a tax professional regarding your specific situation.
Investment Risk: All investing involves risk, including the possible loss of principal. Brokerage accounts are held at our custodian, Alpaca Securities LLC, and are protected by SIPC up to $500,000 (including $250,000 for claims for cash). This does not protect against market loss.