Build tax efficiently as you save

   Reducing taxable income allows you to keep more of your money. You get a tax deduction for contributions to 401k's and traditional IRA's. You also don't pay taxes on dividends or capital gains in these accounts. When withdraws are made, they are treated as income regardless of gains or losses in the investments. Annual income can be reduced by putting high yield investments in tax deferred accounts.Taxable brokerage accounts are reconciled every year at tax time. Put lower yielding investments and stocks that don't pay dividends in these accounts, and you're starting to think like a pro. See you soon, Finwiz.