Part 7/9:
Understanding these avenues allows individuals to safeguard their hard-earned wealth from unforeseen downturns.
Keeping What You Have: Tax Savvy
The final principle revolves around keeping what you have. Effective money management goes beyond growth and protection; it inherently involves understanding tax implications. Many individuals are unaware that different accounts are taxed in various manners. For instance, funds in a 401(k) are endured with penalties before a certain age, and any withdrawal will incur taxes based on the current rate.