Planning and saving for retirement is an excellent fiscal strategy. The advantages for retirement plans are 3 main principles.
1. They lower your tax bill now (in most cases). The money in an IRA or 401K are before taxed dollars. You will not pay for the taxes now, but you will on the way out. One exception to this is the Roth IRA or Roth 401K. In these cases, you pay the taxes now, but you don’t on the withdrawal
2. The money grows tax free until your withdrawal in retirement. You don’t get taxed on yearly gains. You will get taxed on the withdrawal, but chances are it will be less than the taxes on your working years.
3. Great way to build wealth. Most employees should contribute to the 401k. It is a saving mechanism that forces you to grow your wealth.
Planning a good retirement is a must for a Fiscal Investor. You must learn to save something every month. Starting now is important. I will be explaining this in detail over this in upcoming articles.
Please reach out to info@fiscalinvestor.com with any concerns you may have. We look forward to hearing from you.