In an ideal world, we would all like to think, upon approaching retirement, that we could sit back, relax and put our feet up. It seems that now, this is far from the case, especially with the younger generation. So, if you’re reading this, and you have genuine concerns about your retirement funds, especially if you feel that, whatever you save is going to be sucked away by the government, what are the best tax-free methods to save for your twilight years?
Individual Retirement Accounts allow you to save for retirement with tax-deferred dollars. But, your standard dollars aren’t for the only option for IRA, you can purchase Bitcoin in IRA now, taking advantage of the cryptocurrency trends. What happens with a standard IRA is that it allows you to save with tax-deferred money. Essentially, you don’t pay any taxes until it’s withdrawn. As a result, it’s a great way to keep your money stockpiled until the time you retire.
Health Savings Accounts
While it’s not a savings account in the traditional sense, the contributions that you can make to a healthcare savings account is tax deductible. Because medical costs are a genuine concern for each and every one of us, it could be where the bulk of your savings goes as you get older. So, by opening a healthcare savings account as soon as possible, you can keep this open, and contribute money to it over the years. And when you make withdrawals from this account for the purposes of medical expenses, it is tax-free.
Sometimes it’s as simple as this. By claiming back some money for yourself, you can set up an investment account, and any savings that you have beyond a pre-tax account can go into the second account. And this account is great for things like inheritance, gifts, real estate rental costs, and your tax refunds.
Peer To Peer Loans
This is one of the more alternative investments options but it is now gaining momentum. This is tax-free in the United Kingdom, but only up to a certain limit. As a result, to see any return, you would need to invest a higher amount.
Gold bullion and specific gold coins are tax-free, and this, again is classed in the United Kingdom. Gold is one of those investments that can be volatile, but as with any investment, this is par for the course. You need to make sure that, prior to any proper investment, you undertake the relevant research, and enter into these transactions with open eyes.
As many employers offer 401(k)s, it’s a great way to save for retirement with tax-deferred dollars. Of course, for those outside of America, this isn’t an option, but beware with this, because the fees can be quite high. But you can bypass this by asking your employer for a self-directed 401(k), which enables you to choose where you want to put your money.
Tax-free investments are a godsend in the modern world, so, as long as you know where to go, you can begin to save for your retirement, and, hopefully, not have to work until you are physically unable to.