I always love it when I see investments referred to as "Tax free growth" ... is similar to the "winnings" when you cash out with what's left from the slot machine. 🙂 Haven't you seen the asterisk? "Investments may lose value." Yep.
Yes, investments outside of the IRA and SEPs make sense. So, if you are careful, watch cap gains, income and take advantage to minimize those, the gains can fall within 0% for a tax bracket.
If there are no beneficiaries (another asterisk or footnote that is usually assumed but often has no bearing on a person's individual situation) that can be another box to uncheck. (Just try to find online "advice" on where to live, retire, what to invest in that isn't all about the kids, or not being white, married and straight).
IRA and SEP are just another vehicle that a person can use to defer paying taxes immediately to 1)lower your taxes by taking a deduction; 2) in order to pay less to the federal government. And actually, you can save quite a bit over the years in taxes by taking advantage of the deduction and putting those to work in a low/no cost account that is connected to your bank. You know, for all those winnings. (especially after 59 1/2).
There are few deductions left, especially if you aren't self-employed, and even then they are being reduced (meals, entertainment, or mileage now are a nightmare to figure). And actually, setting up the 401K for SE makes great sense - but the asterisk/footnote/secret is you can't wait until April 15th like you can with the others; it has to be done per calendar year. But, self employed people should look into them because you can defer a larger portion of taxed income when you need to. Anyway, that's my two cents. I'm not an expert; I just play one on tv.
