To improve your chances of attaining your long- term investment goals, you need to make the right moves — and one of the smartest moves you can make is to put away as much as you can afford, year after year, into tax-deferred investments such as your 401(k) and traditional IRA.
When you contribute to a tax-deferred account, your money has the potential to grow faster than it would in an investment on which you paid taxes every year. Over time, this accelerated growth can add up to a big difference in your accumulated savings.
Of course, you will eventually have to pay taxes on your investment, but when you’re retired, you might be in a lower tax bracket. And depending on how much you withdraw each year from your tax-deferred account, you can have some control over your taxes.
The more years in which you invest in tax-deferred accounts, the better. So start putting the power of tax deferral to work soon.
(Provided by Jeff Rencher, your Edward Jones financial advisor located at 614 Fremont St, next to the police station, in Rupert, at 208-436-1520)
