There are 3 separate buckets you should have for your investments:

• Bucket #1 is the tax-deferred bucket.

• Bucket #2 is the tax-free bucket.

• Bucket #3 is a taxable account.

A brokerage account is a financial account that allows an investor to buy and sell various financial instruments, such as stocks, bonds, mutual funds, and other securities. The account differs from Roth and IRAs due to the use of after-tax money and different tax rules. A brokerage account can be accessed anytime. It is not a retirement account. Instead, it is taxed on just the capital gains, which are profits generated from the sale of investments that have appreciated in value.

If you're not familiar with HSAs, they are a great tool for managing your healthcare expenses while also providing tax benefits.

When it comes to retirement savings, a Roth IRA is an investment account that offers significant benefits. Not only does it provide tax-free growth of earnings, but it also allows tax-free withdrawals during retirement.