ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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tax-advantaged investments
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investments
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inflation
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risk
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Detailed explanation-1: -The key to minimizing your tax liability is reducing the amount of your gross income that is subject to taxes. Consider increasing your retirement contributions. Putting pre-tax dollars into an employer-sponsored retirement plan like a 401(k) is one easy way to reduce your taxable income for the year.
Detailed explanation-2: -Saving for retirement by investing in a tax-deferred vehicle can give you a big boost over time-forgoing the tax bite while you grow your money and potentially lowering the tax impact when take income. Tax-deferral is a feature of many investment vehicles (variable annuities, IRAs, 401(k) plans).
Detailed explanation-3: -Tax-advantaged accounts, such as an IRA, 401(k), or Roth IRA, are generally a better home for investments that lose more of their returns to taxes.
Detailed explanation-4: -PPF (Public Provident Fund) Tax Saving FDs. ELSS (Equity Linked Savings Scheme) NSC (National Saving Certificate) Life Insurance Premium. NPS (National Pension Scheme) Home Loan Repayment. Payment of tuition fees. More items