Tax-advantaged accounts can help
You can take advantage of the tax-sheltered retirement accounts like 401(k)s and IRAs.
- If you qualify for a Roth IRA, use it. The Roth IRA will come back to you tax-free when you're older.
- If you contribute to a 401(k) account, at least 5 percent will be matched from your employer. This means you'll only need to save 15 percent of your paycheck. The money you put into a 401(k) will be deducted from your paycheck before taxes.
808
2.97K reads
CURATED FROM
IDEAS CURATED BY
The idea is part of this collection:
Learn more about moneyandinvestments with this collection
Identifying the skills needed for the future
Developing a growth mindset
Creating a culture of continuous learning
Related collections
Similar ideas to Tax-advantaged accounts can help
Paying for retirement
- Try to save at least 15% of your paycheck for retirement.
- If you're able to save more, open a Roth IRA. You'll pay taxes on your contributions now, but your earnings will accumulate tax-free.
- Even if you haven't saved anything for your retirement, there's still time to bui...
Week 3: Open 2 Investing Accounts
Open:
- a 401(K) account
- a regular investment account.
Next:
- If your employer offers a 401(k) match, invest to take full advantage of it. Contribute enough to get 100 percent of the match.
- Pay off debts. This give you a significant instant return.
How to Save Right for Retirement
- Start Saving ASAP. Money you put in your retirement fund now will have more time to grow through compound growth.
- Avoid cashing out your retirement account early as it prevents your money from being invested and leads to penalties and tax bills.
- Contribute mo...
Read & Learn
20x Faster
without
deepstash
with
deepstash
with
deepstash
Personalized microlearning
—
100+ Learning Journeys
—
Access to 200,000+ ideas
—
Access to the mobile app
—
Unlimited idea saving
—
—
Unlimited history
—
—
Unlimited listening to ideas
—
—
Downloading & offline access
—
—
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates