Investment & Reducing Tax Burden...

[Dietrich_R1]

Besides the short list below, what other ways to people use for savings & reducing their tax burden????

ROTH IRA
529

[jbnwc]

A regular IRA will do a better job of reducing your tax burden than a Roth IRA in the immediate time frame. Roth is all put in post-tax and earnings are removed tax free when you retire or under certain circumstances.

Another "great" way I have discovered is to start a business and take massive losses. It won't do much for your immediate savings, but it sure does reduce your tax burden and ideally it will improve your savings in the future!

[~Barn~]

Have children.

[jbnwc]

Have children.

That destroys the "savings" part...

[~Barn~]

That destroys the "savings" part...
YMMV, but parenthood (and marriage to some degree...) has made me far more fiscally responsible than I probably would have ever been on my own.

That said, they are still very young. As they get older, I could see a shift happening. I'm not a "spoiling" type Dad though, I try to teach them how they can eventually spoil themselves.

Oddly... through saving. :lol:

[bulldog]

Owning a home is what helps most for me; always get back money because of that :up:

[3point5]

+1 to owning a home and the 401k…

I claim 8 dependents for state and federal…It equates to a few hundred dollars extra per month…I funnel that money(along with my monthly savings) into an online savings account…

I'm still responsible for all that tax at the end of the year, but I'm not lending money to the government (at 0% interest), I make a small amount of interest on that money and if I must dip into it, I can...

[Clovis]

Basically traditional IRA vs ROTH IRA equates to a tax deduction now versus tax free withdraws later on.

There are income limits however.