According to Fidelity Investments, you need to have saved at least 10 times your final salary by age 67 to cover your retirement needs. That’s a tall order‎, and one that makes every cent count.
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When you save for retirement in a tax-favored account, such as a 401(k) or IRA, there are always a set of rules you must follow in order for those types of accounts to retain their tax-deferred status. And once your money is outside of that tax shelter, you lose a savings advantage of having your money grow and compound tax-free.