I’m willing to bet that your goal is to live a long and happy life… I hate to bring up a depressing realization, but a long life is expensive.
There’s a single difference between people who can sit back and relax during retirement and people who spend their remaining years stressing out about finances.
That difference is in the amount of taxes each type of person pays.
Which side of the fence would you like to be on? I’m assuming the tax-free side…
The best part about dodging the taxman is that you get to keep your money where it belongs… in your pocket!
These 3 simple tricks will show you exactly how to do that:
Invest your money in a Health Savings Account (HSA).
You can invest up to $7,000 a year (if you’re 55+) and this money will cover any of your medical expenses tax-free.
You’ll pay an initial income tax, but this money will be recuperated from the growth of your HSA.
If you maintain a healthy lifestyle and don’t need to spend this money on medical bills, you can either place it in a trust for a family member to inherit or withdraw the money for other expenses (this is costly if you’re under 65).
Invest your money in a Roth IRA account.
You have the option to invest up to $6,000 a year with a Roth IRA account and there’s no federal taxes to pay when you withdraw it on the other side.
This is money you can spend on whatever you like, whether it’s a property, a car, or other expenses.
Invest your money in a Roth 401k.
A Roth 401k allows you to invest up to $22,000 if done correctly. If you’re lucky enough to have employer matching, you could double your $11,000 contribution and withdraw a whole lot of money tax-free when you retire.
This is a fairly new trick that the IRS introduced which lets you withdraw your money tax-free in retirement by using a 401k or 403b account.
Altogether, these 3 simple tricks allow you to invest up to $35,000 a year. After 10 years of doing this, your investment could be worth up to $440,899 tax-free!