Tax Playbook · Investment tax wins
Let it compound: defer your taxes
Every dollar you pay in taxes today is a dollar that cannot grow for you. If you let your gains build up untaxed and pay the tax only at the end, you keep more of the total. One example: $10,000 growing 7% a year for 30 years ends up about $12,850 richer if the 24% tax is deferred to the end instead of paid each year. Pay later, and the money you would have sent to the IRS works for you the whole time.
Good for: For anyone choosing where to hold long-term investments — including which accounts to use.
Learn the basics
Recent articles & guides
- Fidelity — Tax-efficient investing guide (PDF)
- Solo401k.com — Pre-tax contributions and tax-deferred growth
- Aptus Capital — The $437k vs $825k deferral illustration
- Aptus Capital — Defer income, let it compound, pay less tax
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Educational summary, not tax advice. Limits and rules change — confirm current law with your tax adviser.