I love blueberries. I also am frugal and love saving money. Because of this, when I go to the store and blueberries are not on sale, I will not buy them. Although, if blueberries are on sale, then you know I am stocking up. My entire freezer and refrigerator are full during those times.
Just like blueberries, taxes are “on sale” right now, and you should be stocking up by opting for Roth IRAs, Roth 401(k)s and Roth conversions. Taxes are at near-record lows, and they are only expected to go up. There is a window of time before the Tax Cuts and Jobs Act sunsets in 2026 and tax rates revert to their previous higher levels. If you are like me and like saving money, then this tax sale will save you more money than any blueberry sale.
Taxes Are on Sale
We already know that tax rates are set to go up in the short term, but what about the long term? We can only guess, but many experts think tax rates will rise, and few people believe taxes will decrease over time. Also, our country currently has more than $30 trillion in debt. My question is, how does our country earn revenue to pay off that debt? There are a few ways — including raising taxes.
Because of the above, my favorite investment is a Roth IRA — a true gift from the U.S. government. I often ask people where they would put all their money if they had a magic wand. The obvious answer is a Roth IRA, but most of the money U.S. savers have in retirement accounts is not in Roth IRAs. Even worse, only 20% of households owned a Roth IRA in 2020, according to the Investment Company Institute.
But I am here to tell you about a powerful strategy that ANYONE can use to get a Roth IRA (assuming you have a tax-deferred investment). It doesn’t matter your income, age, employment status or even if you like the University of Michigan (Go Bucks! O-H). This strategy is a…
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