Leveraging the Power of Taxes
No one likes to talk about taxes. . . unless you are talking about saving on taxes!
There are many strategies to save on your taxes, so you want to make sure to consult your CPA, but let’s talk about a familiar way many people leverage their retirement to save on taxes.
Let’s keep it simple. You have probably heard about an IRA. Almost anyone can put money in an IRA. Plus, you can ‘self-direct’ your IRA.
That means you can direct what your IRA invests in. There are a lot of details to know, but this article will not get into the nitty gritty.
IRA’s are taxed in two ways. A traditional IRA puts money in ‘pretax’ and you are taxed when you take the money out. A Roth IRA can grow tax free because the money put in this type of an account is put in after taxes.
You should be getting excited. Let me explain . . .
When you invest in a Roth IRA, or transfer another type of retirement account into a Roth IRA, that money can grow without tax penalty if it is structured properly.
A Roth IRA can be used to leverage your retirement and grow for years without causing additional taxes. This can also be done with money set aside for health expenses, an education funds, and even some life insurance policies.
You want to consult your CPA, but understanding the power of how you can leverage your investments to grow without tax penalties can be an amazing way to grow your money.
If you think about it, since your money is growing without having to pay taxes, it could be like an automatic 20% increase in your funds depending on your tax bracket.
Here at Black Brick, we want to help you make the most of your retirement, education or other investment funds.
We may even be able to help you find funds you did not even know you could use for investing. Contact one of our helpful representatives today and leave a detailed message. We will schedule a meeting and get you started right away.