or Health Savings Accounts and Insurance
If you qualify for a Health Savings Account, you can save money with before tax dollars, and get it back in after tax dollars as long as you can tie it to medical expenses. Retirement Accounts come in two forms, Traditional (you save pre-tax dollars, and pay taxes in retirement), and Roth (you save post-tax dollars, never taxed when the money comes out). Insurance Company products can accomplish a large range of financial goals that benefit from the tax advantaged nature of retirement. Tax strategies can involve moving “high tax bracket income” today into “low tax bracket income” in the future, so tax deferral seems neutral until you consider that you can structure your deductions at higher tax brackets and withdraw it over time in retirement at lower tax brackets.
One challenge people have is that the information on these investment and insurance products primarily comes from the companies themselves or their commissioned sales representatives. Finding impartial fee-only advisors is terrific once you have an investment strategy. We are not investment advisors, have no financial incentive to sell you an investment product, but can help you develop a tax strategy to maximize your investment dollars and minimize your tax obligations.