#004 - The first thing you do, if you don't already have one, is open up a Roth IRA.

A Roth IRA pays taxes first; there is no advantage in terms of tax savings vs. a traditional IRA.

Why is it better? Because once net capital is within the investment vehicle, you defer capital gains until you exercise distributions (cash out). There are also no distribution penalties past 59 1/2 years of age, unlike a Traditional IRA where you must take distributions. Otherwise, you pay a 10% fee (that's $100,000 for every 1mm in the vehicle every year); Which means your portfolio can balloon at a higher monetary value with the same annual returns.

Simple math: Let's say you have $1mm in your account at 59 1/2, an 8% return is $80,000, which compounds annually, and you can grow your retirement account even more if you can live off other assets as opposed to having to withdraw your passive income. Allowing you to keep ballooning your Roth while living off dividends, thus effectively making everything free.

Bonus Tip: You transfer this asset to a trust before you die; there are no estate taxes for your kids, thus making everything free for them. Congratulations, you have just read your way to creating generational wealth.

https://www.investopedia.com/terms/r/rothira.asp