Investors have only a few days left to contribute to their 2023 IRAs before the April 15th tax filing deadline. Both Traditional and Roth IRAs offer significant tax advantages, but it's important to have a plan for saving for retirement that considers taxes without basing decisions solely on them.

Contributions to traditional IRAs can be deducted from taxable income, but taxes are owed when you withdraw the money in retirement. With Roth IRAs, there is no upfront deduction, but withdrawals can be made tax-free.

IRAs allow investors to buy individual stocks, bonds, ETFs, or mutual funds. ETFs are becoming increasingly popular since they are excellent tools for building a diversified retirement portfolio at a low cost. Income-paying assets are well-suited for IRAs since income is deferred or sheltered from taxes.

The SPDR Portfolio S&P 500 ETF (SPLG Quick QuoteSPLG - Free Report) is now the lowest cost S&P 500 index tracking ETF. It has about $34 billion in assets under management and charges just 0.02% annually. Microsoft (MSFT Quick QuoteMSFT - Free Report) and Apple (AAPL) account for about 13% of the portfolio.

The Schwab U.S. Dividend Equity ETF (SCHD Quick QuoteSCHD - Free Report) invests in high dividend stocks selected for fundamental strength relative to their peers. Texas Instruments (TXN Quick QuoteTXN - Free Report) and Cisco (CSCO Quick QuoteCSCO - Free Report) are among the top holdings in the portfolio.

The iShares Core High Dividend ETF (HDV Quick QuoteHDV - Free Report) provides exposure to high quality companies that have had strong financial health and an ability to sustain above average dividend payouts. Exxon (XOM Quick QuoteXOM - Free Report) and Chevron (CVX Quick QuoteCVX - Free Report) are its top holdings.

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