Open the right accounts

Building wealth takes a long-term mindset. As you approach retirement, when you'll need the bulk of this money, you'll want several accounts growing alongside each other. The main reason for this is taxes. Having different tax-advantaged accounts gives you flexibility now and later. This combination of accounts offers the most tax benefits. The smart order of withdrawals during retirement, to save the most on taxes, is typically 1) Brokerage, 2) 401k, 3) Roth 401k, and 4) HSA for medical expenses along the way.