Minimizing taxes and maximizing wealth
Last night my lady friend and I went out to dinner with a lifelong friend, Mr Billy Heart who does my taxes, and provides me with financial information. So I thought I would share some of that information with the W.A, community, my family today. These are some of the tips that he gave me.
(1) If you are in a higher Tax bracket and you are working, contribute to a traditional IRA, it will allow you to put money into a retirement account and deduct your contributions from your current income. This is a good thing if you are in a high tax bracket right now because it will minimize the taxes you pay today and leaves more of your income available for you to invest and grow your money. Billy also explain to me that the nice thing about a traditional IRA is that you can use just about any income strategy to generate extra money within your IRA.
(2) If you are in a lower Tax bracket, and if you are working, contribute to a Roth IRA, the good thing about a Roth RIA, is that no matter how much your account may grows, you'll never ever have to pay a penny of taxes on the money again. Now the downside is your Roth IRA, contributions are not Tax deductible right now. However, if you're in a low tax bracket, it will make more sense to pay some small taxes today and have your Roth IRA money grow without you ever having to pay Tax again. Billy told me you can use almost any income strategy with this type of account as well.
(3) If you are considering heaven an education savings accounts, and if you're looking forward to paying education costs for a student in your life, like I had, a 529 savings plan can help you save on taxes. While contributions to a 529 plan are unfortunately not tax-deductible, (here's the cool part), the growth in your 529 plan is not TAXABLE. These strategies can do a decent job of helping us get our money into a place where our dear government can't touch it-or at least my WA family where the government has minimal ability to tax what is rightfully ours.
Recent Comments
18
Hi Earl,
I need your help. This was the last message I got from. Since I have not been getting any messages from WA. Site support says they have to send it to senior admin.
I just want to see if this gets to you.
Please respond if it does.
I have to access all my e-mails through the WA dashboard. Not good.
Thank you Earl
Michael
Essential resources of knowledge on taxes that have a direct effect on all of us. Thanks for sharing this valuable information, E!
Good information to pass on Eddie. I am working on a similar blog for newbies about incorporating and how advantageous it is.
Looking good my friend! We will outlive many of these Millenials or whatever they are calling themselves these days. lol
Mark
Good evening my friend, that's what we do right. We Gather good information pass it on to our family here at wa, and as far as outliving those wealthy people, we will outlive them however you and I will be wealthy also, hahaha have a great night my friend.
See more comments
Thanks for the tips.
Jerry