Tax-advantaged accounts (401(k), IRA, ISA, RRSP, TFSA, and equivalents) are among the most powerful tools for long-term wealth. They let money compound without annual drag from capital gains and dividend taxes.
Most jurisdictions offer either upfront deduction (tax now, taxed later) or backend growth (tax now, tax-free later). Contribution limits are usually annual and vary by account type.
Practice this in Aurora
Project this decision against your real numbers with a private, calm dashboard.
Open Financial OS →Frequently asked questions
Should I max these before taxable investing?
For most people, yes — especially any account with employer matching. The tax savings compound alongside the investment return.
Related terms
IRA (individual retirement account)
A US tax-advantaged retirement account you open on your own, separate from an employer plan.
401(k)
A US employer-sponsored retirement plan with tax advantages.
Compound interest
Interest earned on both your original investment and the interest it has already generated.
Capital gain
The profit made when you sell an investment for more than you paid.