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Here are three strategies you should consider to help youbuild a financial legacy.
Healthcare costs, inflation and unpredictable markets make it critical to diversify.
IRAs offer unique advantages that you dont get with 401(k) plans.
You have more options to increase your assets.
Traditional IRAs grow tax-deferred and can affect your tax bracket.
Monies you invest in a traditional IRA are subtracted from your earned income for tax purposes.
Meanwhile, real estate can serve as an inflation hedge.
Real estate investmentsor other comparable sources of passive income can safeguard against inflation, Edwards said.
Evan Potash, executive wealth management advisor atTIAA, recommends utilizing brokerage accounts for their wealth transfer benefits.
For tax efficiency, invest in passive assets like individual stocks, ETFs, index funds or municipal bonds.
Roth IRAs and tax-deferred annuities can help minimize your tax burden while maximizing savings.
Going beyond the 401(k), adding Roth IRAs provides more tax-efficient withdrawal strategies, Edwards said.
Roth IRAs are particularly useful for funds you want to leave behind.
These documents help ensure that your assets are distributed according to your wishes.
For those with young children, naming a guardian is essential, he continued.
Life insurance can also be an integral part of an estate plan.
Thats because life insurance pays a death benefit to your beneficiaries tax-free.
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