Did you know, regardless of how savvy an investor is when choosing stocks, if they lack the understanding of which type of account is most effective for their personal financial situation, they could end up paying Uncle Sam tens of thousands or more in taxes than necessary over a lifetime. Taxes are never fun to pay. Therefore, it is encouraging to know that the government has provided a variety of tax benefits to incentivize retirement savings. With access and flexibility of the Aramco Savings Plan, you may be able to benefit from current tax savings, tax-deferral on investment returns you earn during pre-retirement years, and possibly even tax-free income in retirement. A successful retirement savings strategy may likely include a combination of the many investment options of which the Aramco Savings Plan provides. However, the reality is for most of us it should be a decision between two retirement accounts: deductible tax deferred (pre-tax contributions to a 401(k) or Traditional IRA) or Roth (after-tax contributions to a Roth 401(k) or Roth IRA). Since the Aramco Savings Plan has both, you may be wondering which option fits best to your unique needs. Find the answer by reading part two of our Wealth Strategies series, a completely free tool to helping you map out your financial future and keep more in your pocket and less out of Uncle Sam’s.
Be sure to visit Aramcoexpats.com next month to learn more about the building blocks to creating your financial road map, in part 3 of 12.