If You Don't Make This Simple Move, You're Giving Money to the IRS
If there's one thing most Americans can agree on, it's that they don't like paying taxes. But no matter how much you earn, you have a real opportunity to lower your tax burden and give less of your money to the IRS year after year. It's called contributing to a tax-advantaged retirement savings plan, and it's a move that can not only slash your tax bill but also ensure that you have enough money to live comfortably in the future.
You should be motivated to save independently for your golden years without a tax break. The reason? Social Security won't provide enough income for you to live on in the future. In a best-case scenario, those benefits will replace about 40% of your income if you're an average earner, but most seniors need roughly twice that amount to maintain a reasonable standard of living. Throw in the fact that Social Security benefits could face universal cuts in the not-so-distant future, and it's pretty clear that relying on them in the absence of other income is a bad idea. And often, that other income comes in the form of an IRA or 401(k).
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Source Fool.com
