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Walk-Away Wealth Wilson in “3 Tax Strategy Power Moves”

Are you giving interest-free loans to Uncle Sam?

Are you giving interest-free loans to Uncle Sam?

You may think you’re covered when it comes to tax strategy… but most likely, that’s not true.

In a lifetime of taxes, what do you think the average six-figure earner pays?

If you’re thinking “too much,” you’re probably right. So, it would probably make you smile if you could (1) reduce the amount, or (2) transfer the money to yourself for investing and saving purposes. Right?

Now, you’ve probably already picked the low-hanging fruit, like maximizing salary deferrals and contributing to a health savings plan. With those out of the way, let’s talk about 3 additional ways you can save.

(BTW – if you haven’t done those first things, check out this video  👇🏾👇🏾👇🏾👇🏾👇🏾

Here are 3 power moves you can make to help your year-end tax strategy:

  1. Make after-tax contributions to employer retirement accounts.  This can be tricky, and you usually need a few hours on Saturday—or a knowledgeable professional—to check your plan for eligibility.  If you want a walk-through of the strategy, click here: https://djh-capital.com/wealth-guide/
  2. Create a tax-efficient investment strategy.  I’ve never been one for letting the tax strategy tail wag the investment dog, but your boilerplate low-cost index fund is notorious for passing onto you unnecessary taxes through portfolio turnover and capital gains distributions if you’re not careful. For starters, you should:  (1) minimize turnover and capital gains tax, (2) place tax-inefficient funds in tax-deferred accounts, and (3) start tax-loss harvesting to lower your tax bill.
  3. Increase your charitable giving.  There are so many vehicles for this nowadays, including donating to your alma mater, using donor-advised funds, using a charitable trust, and then bunching these contributions across tax years.

My clients currently enjoy annual tax projections like those ones below, which help them avoid the traps and keep more of their hard-earned dollars in their pockets.

 

 

Think you might benefit from a second set of eyes? Give me a call.

Use the scheduler below to find a convenient time for us to talk.  I look forward to meeting you!


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