Growing your money without the burden of taxes can be a powerful tool in the quest for retirement. In a tax-deferred account, like an IRA or 401(k), earnings from interest, capital gains or dividends grow tax-free until withdrawals are made.

Tax-free growth has its benefits, including compounding returns free from Uncle Sam’s hands. Of course you will pay taxes eventually, but withdrawals are normally made when investors are earning little or no income and are taxed at a lower rate.