I'm new to investing, using M1 Finance, and have been doing some overall research.
From what I know, Roth IRA is tax-free income and mostly used as a retirement plan so if I invest in a Roth IRA account, all the dividends income are not taxed (correct me if I'm wrong). In contrast, with a regular taxable account I will have to pay tax on dividends earned as well as trading earned.
- Wouldn't a Roth IRA be more beneficial since I won't get taxed on the income?
- Why would anyone prefer one over the other?
- Is it a good idea to have a taxable account AND a Roth IRA account at the same time?