STEP
8  
Cut taxes: never miss tax-deferred investment
opportunties, and keep funds with higher taxes out of
your taxable account:
- Don't miss out: contribute the
maximum every year to your tax-deferred accounts:
to your regular IRA and Roth IRAs at the start of
the year, and to your employer-sponsored
retirement plan or SEP IRA as you go through the
year
- How much is the maximum amount
you can contribute for each account? Find out here
- Invest any remaining money you
have in your brokerage account, which you should
invest in a large-cap index fund, because
large-cap index funds generate lower taxes
NEXT
STEP
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taxable
accounts
invest
your brokerage account only in a
large-cap index fund
|
tax-deferred
accounts
invest
your regular IRA, Roth
IRA, SEP IRA, and
employer-sponsored plans (401k, 403b,
457) in anything
|
Shelter your money from
the axe of taxes by making the maximum allowable
contribution each year to your tax-deffered accounts,
which can be invested in anything, and putting the rest
into your brokerage account, which should be invested in
a large-cap index fund
|