Three Accounts 'Average Joes' Can Use To Invest Like Millionaires: Maximizing Roth IRAs, 401(k)s, and Tax-Free Withdrawals

Rich people often utilise the free money from 401(k) employer matching options. (Credit: Andrea Piacquadio/Pexels.com)

Wealthy people often use the most commonly available banking and investment accounts to compound their wealth and avoid tax liabilities on future withdrawals. They love liquidity and tax benefits and generally maintain a frugal lifestyle. For these reasons, high-net-worth individuals often gravitate towards tax-advantaged accounts like 401(k), Roth IRAs, and brokerage accounts that offer them access to low-cost funds with high liquidity.

The Wealthy Leverage Backdoor Roth IRAs To Avoid Future Taxes