Don’t Miss Out, You’ll Regret It (Part 5)

Key Points

  • The best way to grow wealth is to never pay any taxes.
  • The simplest way to accomplish this is to take advantage of tax-advantaged investment accounts.
  • The most common such accounts offered by the U.S. Government are the individual retirement accounts or IRAs.
  • There are two flavors. The Traditional IRA is funded with pre-tax contributions, but earnings are taxed at an individual’s marginal tax rate at retirement.
  • The Roth IRA is funded with post-tax contributions, and the earnings are not taxed at all at retirement.    Continue reading “Don’t Miss Out, You’ll Regret It (Part 5)”

Don’t Miss Out, You’ll Regret It (Part 3)

Key Points

  • By holding a profitable investment for over a year before selling, an investor has the opportunity to significantly reduce the amount of taxes that he or she will have to pay.
  • By holding an investment indefinitely, an investor can hold off on paying taxes indefinitely.
  • By deferring the payment of taxes, capital can grow exponentially faster than otherwise.

Continue reading “Don’t Miss Out, You’ll Regret It (Part 3)”

Don’t Miss Out, You’ll Regret It (Part 2)

Key Points

  • Solid financial plannings means taking care of any tax advantage you can.
  • However, it’s important to understand that most tax breaks have deadlines, meaning: you snooze, you lose.
  • The HSA could potentially be the best plan you never heard about.
  • This program allows you to potentially invest with pre-tax savings, and spend without taxes as well.

Continue reading “Don’t Miss Out, You’ll Regret It (Part 2)”