Your retirement savings can be broken down into four types of money. By reading the names of each type below it is very easy to determine which catagories are the most valuable.
Free Money
- The most valuable type of money.
- Just like it sounds money that you get for free.
- Very difficult to get enough of it to retire on.
Tax-Free Money
- The second most valuable type of money.
- This is money you don’t have to pay taxes on.
- Often skipped over when retirement planning is done.
Tax-Deferred Money
- The third most valuable type of money.
- This type of money you don’t pay taxes on until a later date.
Taxable Money
- The least valuable type of money.
- This money is taxable by the government.
Do you know which categories your retirement savings fall into? Which catagories your retirement money fall into can mean the difference between postponing your retirement and you living out your retirement dreams.
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