Tax Free Investment Strategies

Edward Jones's Tye Hoffman and Chris Marburger talked to us at our October Luncheon about ways to invest that are tax free. Here are three smart ways to invest your money while paying the least amount of taxes.


1. Retirement Accounts

When it comes to retirement accounts, Tye and Chris recommend setting them up early in life - as early as you can. With Roth accounts you only pay taxes on the money you contribute. You must do this upfront, but this is a great way to go if you can put a chunk of money in your account. As your retirement investments grow over time, the rest of that money is tax free.

If you are setting up a retirement account later in life, it might be in your better financial interest to have a traditional account. When you are ready to pull this money out, you pay taxes on what has been built up. If this option ends up being less taxes, this is the best way to invest. (For full details on all information in this article, please visit with your financial advisor.)


2. Municipal Bonds

Depending on your state, investing in local municipal bonds can be tax free. These bonds are also very safe and can be insured. Investing in bonds helps your community by bringing in money to your town, county, and schools.


3. Life Insurance Retirement Plan

Putting money down for life insurance not only guarantees your family some financial stability if a loved one dies, it also is tax free. You can invest a lot of money into these insurance retirement plans, and also be able to borrow from it as needed. Win, win, win.



A great question was asked at the end of the discussion about what will happen after the election as far as stocks etc. Chris and Tye said the pattern after elections is USUALLY this: No matter which party gets into office, Democrat or Republican, the opposing party members will usually sell their stock out of fear. After a short while, the stock market goes back up and money invested is still growing. So, what's their final advise? Do not sell. Do not get scared. Don't look at your stock values daily. Let the stock market go back up and you should be fine. With that being said, it is a great time for the first couple weeks after an election to buy stock because it is so low.


For questions about investments, or for advise for other financial needs, don't hesitate to call Tye or Chris at 435-833-9440.


Lunch was delicious, variety sandwich boxes from Subway. Thanks you Subway and Edward Jones for the wonderful afternoon.


Announcements:

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November Chamber Luncheon is cancelled due to COVID uncertainty. The Board will vote on December Social happenings.

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