Rule 5: Minimize your taxes
The rich stay rich, in part, because they’re savvy enough not to let Uncle Sam take too much of their money.
When you’re investing your retirement money, be sure to use tax-sheltered accounts such as IRAs and 401(k)’s whenever possible. In addition, be smart about which type of account you use.
Traditional retirement accounts let you invest money tax-free now and then pay the piper once you make withdrawals in retirement. Meanwhile, Roth IRAs and Roth 401(k)’s tax you now and make the withdrawals tax-free.
You’ll probably want to discuss with a financial adviser the best option for your particular situation, but generally, Roth accounts are preferable for younger investors. In theory, you should be making more when you’re 65 than when you’re 25. As a result, your tax rate now may be lower than the rate you’d pay at retirement. However, if you’re within a few years of retirement, you may want to consider a traditional account to get the tax benefits now. (http://finance.yahoo.com/news/10-golden-rules-retiring-rich-160040271.html)
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