Let’s face it: earning money is difficult. Even at the most basic level, it requires the earner to perform a task or provide a product in exchange for compensation. At its highest level, executives who run companies that employ thousands of employees are still compensated for using their finely-honed skills to advance their company’s good or service. In either case, or any in between, the earner rightly wants to keep the money they’ve earned. Whether it takes the form of wealth management for professional athletes or smart saving for retail associates, here are good ways to invest money with little risk or tax implications.
Let’s start with the simple fact that land is a good investment. They’re not making any more of it, after all, are they? If you can embark on a venture that pumps money into land, or better yet, rental properties, you can realize profits for many years to come with one of the most bankable assets there is.
A more traditional and financially conservative approach is to deposit money into a retirement fund, like a 401(k) or IRA. This should be viewed as a very long-term financial play, as there are penalties for withdrawing from such accounts. On the other side, however, there are significant tax benefits to allowing these investments to mature until you are ready to retire.
While it may not seem like an investment, charitable contributions can help in a roundabout but simple way. Assuming you quantify your donations properly and receive proper receipt documentation, you can deduct them from your taxable income. In this scenario, you’ve not only helped a charity serve its base, but saved yourself money. A true win/win!
You’ve worked hard to earn your money. Put it to work for you with wise investments that won’t come back to haunt you!