So I've been reading the wiki. The flowchart is too pixilated though for me to read. But anyway this will eventually lead to a "what do I do with x money" question. 

So I'm debt free (paid off car and college, renting apartment)

Have a savings account worth like 2 years of living (I know its a lot)

I maxed out my employer 401k 

I still have money coming that I dont want to dump into my savings account.

If I'm reading the wiki right, the next step is to get an IRA and put 6 grand into that yearly to reduce taxes? Is that the next approach or am I missing a step? 

Thanks in advance for any and all help. 

Side note: I came to the realization that I'm very ignorant on how to reduce taxes and that may be the next big thing to research.
Congratulations on your financial discipline so far. You're doing great!

Given the information you've provided, opening an Individual Retirement Account (IRA) could indeed be a good next step. There are two main types of IRAs, Roth and Traditional. 

A Traditional IRA provides you with a tax deduction now, but you'll need to pay taxes when you withdraw the funds in retirement. A Roth IRA, on the other hand, doesn't give an upfront tax deduction, but all withdrawals in retirement are tax-free. The choice between the two largely depends on your current tax bracket and where you expect it to be in retirement.

The annual contribution limit for IRAs in 2021 is $6,000 (or $7,000 if you're age 50 or older), so you could start by investing that amount.

Additionally, there are also other tax-advantaged accounts such as HSAs (Health Savings Account) or 529 plans (for future education expenses), depending on your specific needs.

Finally, it's also important to consider investing in a taxable account, especially if you have more money left over after maxing out all tax-advantaged accounts. This could be in the form of individual stocks, ETFs, or mutual funds.

Regarding tax reduction strategies, there are indeed many ways to reduce your taxable income, such as making full use of tax-advantaged accounts, tax deductions, and tax credits. However, tax planning is a complex topic and it might be worth consulting with a tax professional or doing more detailed research on this topic. 

Remember, it's always important to align your financial moves with your personal goals and risk tolerance. It might be beneficial to consult with a certified financial planner or advisor to ensure your choices align with your long term goals. Also, laws and tax codes change frequently, so it's important to stay updated or consult with a professional.
### Human
So I've been reading the wiki. The flowchart is too pixilated though for me to read. But anyway this will eventually lead to a "what do I do with x money" question. 

So I'm debt free (paid off car and college, renting apartment)

Have a savings account worth like 2 years of living (I know its a lot)

I maxed out my employer 401k 

I still have money coming that I dont want to dump into my savings account.

If I'm reading the wiki right, the next step is to get an IRA and put 6 grand into that yearly to reduce taxes? Is that the next approach or am I missing a step? 

Thanks in advance for any and all help. 

Side note: I came to the realization that I'm very ignorant on how to reduce taxes and that may be the next big thing to research.

### Assistant
Congratulations on your financial discipline so far. You're doing great!

Given the information you've provided, opening an Individual Retirement Account (IRA) could indeed be a good next step. There are two main types of IRAs, Roth and Traditional. 

A Traditional IRA provides you with a tax deduction now, but you'll need to pay taxes when you withdraw the funds in retirement. A Roth IRA, on the other hand, doesn't give an upfront tax deduction, but all withdrawals in retirement are tax-free. The choice between the two largely depends on your current tax bracket and where you expect it to be in retirement.

The annual contribution limit for IRAs in 2021 is $6,000 (or $7,000 if you're age 50 or older), so you could start by investing that amount.

Additionally, there are also other tax-advantaged accounts such as HSAs (Health Savings Account) or 529 plans (for future education expenses), depending on your specific needs.

Finally, it's also important to consider investing in a taxable account, especially if you have more money left over after maxing out all tax-advantaged accounts. This could be in the form of individual stocks, ETFs, or mutual funds.

Regarding tax reduction strategies, there are indeed many ways to reduce your taxable income, such as making full use of tax-advantaged accounts, tax deductions, and tax credits. However, tax planning is a complex topic and it might be worth consulting with a tax professional or doing more detailed research on this topic. 

Remember, it's always important to align your financial moves with your personal goals and risk tolerance. It might be beneficial to consult with a certified financial planner or advisor to ensure your choices align with your long term goals. Also, laws and tax codes change frequently, so it's important to stay updated or consult with a professional.<eos_token>