How is this done you may ask? Pretax retirement accounts: IRA’s, 401k’s, 403 B plans and SEP IRA’s!
For working people this is an absolute must. This is TAX DEDUCTIBLE for you. Only 15% of working Americans are taking advantage of this. The government takes about 27 cents out of every dollar in federal income withholding taxes.
On top of that local governments can also do the same. Open a pre-tax account and start putting a portion of you income in it. There are certain limits as to the total amount you can put aside on a yearly basis and this changes year to year.
As an example, let’s say you put $100,000 in an investment that generates 10% a year. At the end of 30 years you would have-$661,000. However, if you had this in a tax deferred account the amount would be-$1.7 million!
A good way to start is to save an hour a day of your income. Say you make $50,000/yr, that’s about $25/hr. That would equal $6,250/yr.
To do:
1. Put a portion of your salary into a pretax retirement account.
2. This should be at least an hour a day of your income.
3. Start now!
Jacques
CreatingWealthThatLasts
2 comments:
Hi Jacques .. that's an amazing amount .. I wish I'd started earlier!
Thanks - go well ..
Hilary Melton-Butcher
Positive Letters
Jacques, thank you for this information. It is worth doing.
Dan and Deanna "Marketing Unscrambled"
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