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Set aside a few thousand bucks in an IRA. You don't pay taxes on that money -- but also, since you're young, you can let it sit there earning interest. It'll
by MilnerRoute 1y ago
Set aside a few thousand bucks in an IRA.
You don't pay taxes on that money -- but also, since you're young, you can let it sit there earning interest. It'll double in value roughly every 10 years, so if you start with, say, $8,000, it'll be $128,000 by the time you're 65. (And you can also tap the money for medical emergencies or college expenses.)
- gabrielsroka 1y ago> You don't pay taxes on [IRA] I'm pretty sure you do--now, or later.
- MilnerRoute 1y agoYeah, I'd meant to say "You don't pay taxes on that money (now)" -- so it's nice to see a lower tax bill. And when you do finally pay some taxes (in retirement), your tax rate should be much, much lower...