9 Things Only Senior Citizens Get Free

7) Tax-Free Investment Income

By investing in municipal bonds, you can earn interest that is not taxable. While these kinds of investments are not free from risks, they do offer the opportunity to get tax-free funds if you handle your money right. Much like a municipal bond, a Roth IRA lets an individual invest for the long haul and avoid paying taxes on capital gains. While a traditional IRA requires that you start making withdrawals by 70 1/2, a Roth IRA does not have those requirements. You can continue making contributions every year, including the additional $1,000 annual catch-up contribution. This gives you the opportunity to continue to grow your funds without being penalized.