Many teens are thinking about retirement but lack knowledge on how to plan. Experts recommend starting with a Roth IRA, even with small contributions, due to the advantage of time. The sooner you start saving, the more time your money has to grow tax-free. While teens usually think of banks for savings, investing with a financial advisor can provide greater returns. Opening a Roth IRA is a suggested first step for teens, even if they only put away small amounts.
There are still ways to reduce your taxes or get a bigger refund before the April 15th deadline. Consider putting money into a pretax IRA, a spousal IRA (if you're married), or a health savings account. These contributions can lower your taxable income or provide tax-free growth.
Married couples can choose to file taxes jointly or separately. Joint filings typically offer lower tax burdens due to higher brackets and a larger standard deduction. However, separate filings may be advantageous for spouses with student loan repayment plans or who prioritize itemized deductions. Filing separately can entail penalties and the forfeiture of specific tax benefits.
