“Albert Einstein was quoted saying, “Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn’t ... pays it.”
“Tax deferral makes this eighth wonder even more powerful when accumulating wealth. That’s why it still amazes me that as the tax deadline approaches, we have to scramble to be sure all of our clients are doing their IRA contributions for last year.
“If you have the cash and are not doing all your deductible contributions you are needlessly paying Uncle Sam taxes at your top tax rate (10 – over 44 percent on 401k and employer plans), rather than putting that money in your account. Even if you can’t deduct contributions, everyone that is less than 70.5 and earns income has a once a year opportunity to put the eighth wonder of the world to work by contributing to their IRA.
“Rather than scramble for the April 15 deadline, why not begin monthly contributions to your retirement accounts now and fully fund them each year by year end? Start early and be sure all your options to contribute to tax deductible and tax deferred accounts are on auto pilot.”