As a fiduciary financial advisor in Simpsonville, Holland Capital helps professionals in their 40s decide where each new dollar of savings should go among a 401(k), a health savings account and a taxable brokerage account. Clients here work with us by video and phone, and we sit down in person by appointment at a Regus meeting room off Millport Circle in Greenville.
Three accounts. Three sets of tax rules. One paycheck to divide.
Census figures for 2020 to 2024 put Simpsonville at roughly 26,100 people, with a median age near 37.
In your 40s, the money to save is finally there. The harder question is where to put it. A 401(k), a health savings account (HSA) and a brokerage account are each taxed in a different way.
How Each Account Is Taxed
Pretax 401(k) contributions lower your taxable income now, and withdrawals are taxed later. If your plan offers Roth contributions, those go in after tax, and qualified withdrawals can be tax-free.
An HSA is available only if you are covered by an HSA-eligible health plan. Contributions can be deductible, and withdrawals for qualified medical costs can be tax-free.
A taxable account has no contribution limit and no age rules. Dividends and interest can be taxable each year, and gains can be taxed when investments are sold.
Which Account Gets the Next Dollar
There is no single order that fits every household. It depends on any employer match, your tax rate now and later, your health costs and when you may need the money.
We look at those facts and write down a saving order for your household for the year ahead.
Roth or Pretax Inside the 401(k)
If your plan offers both, the choice turns on whether your tax rate is likely to be higher now or in retirement. Some households split their contributions between the two.
We run the numbers with your actual pay and deductions, and revisit the choice as your income changes.
Investing Across All Three
Once the money is saved, where each investment is held can matter too. Our guide on asset location strategy explains the idea.
With investment management, Holland Capital manages the accounts as one portfolio with one target mix.
How We Work with Clients in Simpsonville
Holland Capital Management is an independent registered investment adviser and a fiduciary. M. Chad Holland, CFA, CFP® works directly with clients and is responsible for the planning and advice.
Bring a recent pay stub, your 401(k) statement and plan summary, your HSA statement and health plan details, your brokerage statements and last year’s tax return.
You leave with a written saving order for the year and an investment plan that covers all three accounts.
The first conversation is free. If there is work worth doing after that, we will define the scope and cost before you decide whether to move forward.
Our offices are in Charlotte, North Carolina and Winter Park, Florida. We work with clients in Simpsonville primarily by video or phone. When an in-person meeting makes sense, we meet by appointment at the Regus center at 128 Millport Circle in Greenville.
For clients whose investments we manage, accounts are held directly at Charles Schwab in the client’s own name. Holland Capital manages the investments but does not take custody of client assets. If a client ever needs in-person assistance from Schwab, the closest branch is in Greenville at 12 East Washington Street.
We work with clients throughout South Carolina. You can see the other South Carolina communities we serve here.
Our what we do page explains how a planning engagement works.
RETIREMENT ENGINEERING™
The Order Matters
Five retirement decisions and why timing matters.
Frequently Asked Questions
Is an HSA Better Than a 401(k)?
Neither is better for everyone. You can contribute to an HSA only while you have an eligible health plan. We compare both against your health costs and your tax rate.
Why Use a Fiduciary to Plan Your Savings?
Holland Capital acts as a fiduciary when providing financial planning and investment advice. With three account types in play, that means advice on the order of your saving as well as the investments.
We agree on our fee in writing before any work starts.
Where Can We Meet Near Simpsonville?
We reserve a room at the Regus center at 128 Millport Circle in Greenville, about 12 minutes from downtown Simpsonville. Calls and video meetings fill in between.
Photo: Bill Fitzpatrick / Wikimedia Commons / CC BY-SA 3.0, cropped.
