The 3 Best Ways to Invest for Retirement Personal finance
As if that weren’t enough, investing in your 401 (k) offers tax benefits. In a traditional 401 (k), you get an immediate tax deduction based on your contribution. In a Roth 401 (k), you can potentially withdraw your money tax-free in retirement. In either 401 (k) style, your money will be compounded tax-deferred over the life of the plan, which will help your nest egg grow faster.
These three tools can each play an important role in growing your retirement account balance. Put them all together, and they create a powerful combination that can speed up your ability to build a nest egg for your golden years.
The sooner you put your plan into action, the better your money can work on your behalf to get you closer to where you want to be. So start now and see how far to start early, investing often and making it automatic can take you on your quest for a financially comfortable retirement.
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