One of the most frequent questions I get asked is: What is the best way to save for retirement?

When I tell them, “your tax savings.” I love seeing the shell shocked look.

Let’s say you have $0 saved for retirement. You’re 40, living in New York City, home of one of the highest tax rates and high cost of living in the country.

And after tax preparation, two years ago, especially because of the new Trump tax laws, you became “tax smart” and attended a tax planning class to learn how the new laws apply to your life–and how to take advantage of them.

So last year, you applied the tax codes that applied to your children, college, new business, medical and charity expenses, and voila: you saved $5,000 In taxes.

So you put that $5,000 into a stock index investment account.

Now here comes the good stuff. By saving $5,000 every year going forward towards retirement (let’s say 30 years) and let’s say reinvested into the index fund interest (10 percent) every year going forward?

In 30 years, the tax savings account will have $890,242. The contributions will be $147,600, or 17 percent. The rest will be growth, 83 percent.

Now of course at 70, a client of mine is smart enough to have consolidated this account into a more fixed account. And, say, if current fixed rates, 30 years from now at the bank are three percent, they can still receive $26,707 yearly.

Now, let’s be frank, do you know of any other way where you can start at $0 in savings, have guaranteed investment contributions through tax savings, and regrow that money to over $800,000 in 30 years or over $26,000 a year?

So, want to save for retirement? Yes, having a piggy bank works. Putting away money works, cutting your budget works. But the painless way might best be through your creating a tax savings for retirement strategy. And when does it restart? Every time you see your tax preparer. Now that’s a good reason to be happy during tax season.

Professor Anthony Rivieccio, MBA PFA is the founder and CEO of The Financial Advisors Group, celebrating its 20th year as a fee-only financial planning firm specializing in solving ones financial problems. Mr. Rivieccio, a recognized financial expert since 1986, has been featured by many national and local media including: Klipingers Personal Finance, The New York Post, News 12 The Bronx, Bloomberg News Radio, BronxNet Television, the Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS 1010 Radio, The Bronx News, thisisthebronx.com and The Bronx Chronicle. Mr Rivieccio is also currently an Adjunct Professor of Business , Finance & Accounting for both, City University of New York & Monroe College, a Private University. For financial assistance , Anthony can be reached at (347) 575-5045. If you would like a FREE copy of The Forbes Magazine 2018 Tax e-Guide just give our office a call. Feel free to visit their FACEBOOK Business page for past Financial Focus articles:  www.facebook.com/iwantmytaxmoney