Question

What is the advantage of investing income before taxes?

It lowers the amount of yearly taxable income.
It increases the total amount of investment income.
It means never paying taxes on investment income.
It provides maximum flexibility in spending income.

Answer 1

one advantage of investing income before taxes is: It lowers the amount of yearly taxable income
Since investment does not guarantee any return, it could be considered as an expense in your total income, which will reduce its overall taxable amount in during that tax period.