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Investing in Your Retirement
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As mentioned briefly before, you can also invest in a retirement account, as these will usually diversify your earnings as well while also being tax-free. Retirement accounts are worth getting if your employer is willing to match your savings, such as contributing 6% of your income as additional retirement income. The benefit to these accounts is that they are not taxed when you retire. There’s also a neat rule in several states in which you can tap into the retirement account to pay off major bills, also tax free. Do a little more research and see if this is the right option for you.
Tips
- Invest in retirement for a balanced portfolio.
- Retirement accounts can have employer contributions.
- Not taxed when retired, and can sometimes be used for emergencies.