Which account first? Ordering your tax-free wrappers

5 chapters·18 min·action plan·mastery check

Chapter 1 of 5

The idea

Putting money in the right account can be worth more than picking the right investment.

A common order

1) Enough into your workplace retirement plan to get the full employer match — it's an instant return. 2) Clear expensive debt. 3) An emergency fund. 4) Tax-free investment accounts for flexible goals. 5) Extra retirement contributions if you're a higher earner, because the tax relief is bigger. Names and limits differ by country — check your local rules.

Predict first

Your employer matches pension contributions up to 5%. Putting in 5% of a $30,000 salary gets you how much in total each year, before tax relief?

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