Do you want to keep more of your hard earned money? Then you need to contribute more to your retirement. One of the simplest ways to reduce your taxable income is to contribute to a work provided 401k. Typically your company with have some sort of match for people that take advantage of this 401k. Don't throw your money away! The minimum you should contribute is what your employer will match. If they match up to 4% then you should put in 4% of your paycheck. The earlier you start working towards your retirement the better off you will be when you retire. The great thing about the 401k is that your taxable is lowered by however much you put in. If you make $50,000 a year, and contribute 10% your taxable income is lowered by $5,000 at the end of the year. If you don't have an employer sponsored 401k then you can put money into a ROTH IRA. A ROTH IRA allows you to put money in after tax, this takes quite a bit more self control. The great thing about a ROTH IRA is that the money grows tax free in your account. If you like to have control of your investments then you can open up a Scottrade account. This is the best trading platform that I have found. It is simple to use and has access to most every type of investment that you could want. This will allow you to invest in low or high risk types of investments. Don't get crazy with your retirement though, if you lose it, it won't magically come back. You also get a tax break for contributing your after tax money into a ROTH IRA, this could be money very well set aside and lower your taxable income. See more Articles about Finance.
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Taxes, retirement, 401k, Roth IRA, Save $$, Tax discount,
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