Laura tells you the 4 best places to invest your money and grow your nest egg.
In order to build the most wealth, it’s important to put your money in the right types of accounts.
Here are the 4 best places to grow your nest egg:
Place #1: Your workplace retirement plan
A 401(k), 403(b), or 457 is the very first place you should stash your cash, especially if the boss pays matching funds!
Contributions are deducted on a pre-tax basis from your paycheck before you ever see them, which is a great way to make sure you’re investing for the future on a regular schedule.
Place #2: Individual Retirement Arrangement (IRA)
An IRA is where you should turn after you max out your retirement options at work. The maximum contribution limit is about a third of what you can put away in a workplace plan, but it offers nice tax benefits.
Did you know that you can max out your plan at work and an IRA in the same year? Try one of the easiest investment services on the planet and get a $25 discount when you fund an IRA here.
Place #3: Retirement Account for Your Business
If you’re self-employed, a SEP-IRA or a SIMPLE 401(k) can turbo-charge your retirement savings and keep your employees happy.
Place #4: Brokerage Account
This could be any non-retirement account where you invest money. The earnings are taxable, but the upside is that you can access it at any time with no penalty.
When you dip into your retirement accounts early, there’s typically a 10% penalty. No never put money in a retirement account that you might need before the official retirement age of 59½.