Three ways to cut your tax bill, starting with retirement accounts. If you own a business, you have more options: self-directed 401(k)s, SEP IRAs, SIMPLE IRAs. The main win is tax-deferred growth that lets you stop working sooner.
Here are 3 quick, easy ways to reduce your taxes. First one, retirement accounts. Now, if I'm an individual, meaning I don't have a business, there are just a few things that I can do. I can invest in an IRA, or if the employer that I work for has a 401 plan or some other type of retirement account, I can potentially contribute to that. If you have a business, Now there's a lot more options in how you set up a retirement account. You can create your own 401 plan, you can do a SEP IRA, you can do a simple IRA, you can have self-directed, meaning you choose what it's invested in. Those can be Roth, meaning you use after-tax dollars and then the growth inside of the account is never taxed. So those are some options. There are some cons though. So like pros, benefit is retirement accounts. Everything that I mentioned are things that help people get to retirement, meaning they have money when they retire so they don't have to keep working forever.
