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GOBankingRates’ editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services – our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines<\/a> and our products and services review methodology<\/a>.<\/p>\n 20 Years Trusted by While $500 doesn\u2019t seem like much money in the context of a 30-year retirement, a small amount of money can open up massive tax savings.\u00a0<\/p>\n These baby boomers and investing experts found the following $500 investments to pay massive dividends in the years that followed.\u00a0<\/p>\n Tax Planning Software<\/p>\n Julia Rueschemeyer<\/a>, divorce attorney, said the best $500 she ever spent to boost her retirement savings<\/a> went toward tax planning software.\u00a0<\/p>\n \u201cI spent $149 on the Maxifi financial planning<\/a> software which does complicated calculations about federal, state and IRMAA taxes along with RMD\u2019s,\u201d Rueschemeyer explained. \u201cCounterintuitively, it shows you how massive (e.g., $1,000,000) Roth conversions can save you hundreds of thousands of dollars over thirty years, even if it temporarily puts you in nosebleed tax brackets<\/a> today.\u201d<\/p>\n<\/p>\n She went on to explain that while you can\u2019t control your investment returns<\/a>, you have more control over your taxes. By losing less money to taxes in retirement, you don\u2019t need to save as much for a nest egg. <\/p>\n \u201cThe tax strategies I\u2019m using are saving me a couple hundred thousand dollars over the course of my lifetime,\u201d Rueschemeyer added.<\/p>\n Tax Strategy Session<\/p>\n Not everyone wants to DIY their tax planning. For them, that $500 can go toward sitting down with a certified public accountant (CPA) or a certified financial planner (CFP) for a few hours.\u00a0<\/p>\n Financial planner Jay Zigmont of Childfree Trust<\/a> pointed out that most workers and retirees don\u2019t know which accounts they should withdraw from in which order in retirement. \u201cYou need to know what money to use and when to lower your total tax bill. Your tax plan will also outline when you should do a Roth conversion<\/a> and how to avoid IRMAA surcharges.\u201d<\/p>\n Health Savings Account<\/p>\n Many Americans don\u2019t realize that health savings accounts (HSAs) offer the best tax benefits of any account. They combine the immediate tax deduction of a traditional IRA<\/a> with the tax-free withdrawals of a Roth account.\u00a0<\/p>\n \u201cThis oft-overlooked account is one of the best ways to save for healthcare costs during retirement,\u201d said Whitney Stidom of eHealth<\/a>. She urged investors to think of their HSA not just as health savings, but as a secondary retirement account. In 2026, the individual contribution limit rises to $4,400 and the family limit rises to $8,750.\u00a0<\/p>\n These accounts do require a high-deductible health plan \u2014 which could either save you money<\/a> or cost you money, depending on your health-related spending in any given year.\u00a0<\/p>\n Precious Metals<\/p>\n Beyond investment returns, you also don\u2019t have any control over inflation<\/a>, government debt or loss of purchasing power.\u00a0<\/p>\n![\"\"](\"https:\/\/cdn.gobankingrates.com\/wp-content\/uploads\/2023\/11\/icon-20.svg?webp=1&quality=75\"){kind=icon}
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