Monday Mantra
“It’s not how much you make, but, how much you keep”
The biggest factor in how much of your income you keep is centered on how much in taxes you have to pay. My research has shown me that one of the ways the rich get richer is through reducing taxes as much as possible. Imagine how much more wealthy you would be if you were able to keep some or most of that money that goes to state and federal income taxes each check.
One way to lower your taxable income is to take advantage of a traditional IRA account. Although the money you contribute to the account is after tax; the amount is deductible on your tax return at the end of the year. The account also will allow you to invest and collect tax deferred gains on those investments! Check with your accountant or tax professional to see if you can take advantage of this.
Another way to lower your taxable income is through a company sponsored 401k plan. If your employer has a 401k or profit sharing type of savings plan it behooves you to take full advantage of this pre-tax savings plan. I personally contribute the max that my company matches and I suggest you do the same. Check with your tax professional to see how you can lower your taxes by contributing to this kind of plan.
Also look into flex pay accounts if your employer offers this benefit. It allows you to set aside pre-tax dollars for use on health related expenses such as prescriptions, glasses, contacts, OTC medicine, and co-pays for doctor visits. It takes a little bit of time to calculate how much to set aside and also to request reimbursement but will save you money with less income tax taken.
Most, if not all, of the wealthy people in the United States also start, own, operate, or control some sort of business that helps them to have more control over how much of their money goes to Uncle Sam. It’s not as hard as you might think to start and run your own business. As a matter of fact you probably have numerous hobbies or interests outside of your work that can become a successful business. Once again I must suggest that you consult with your accountant or tax professional to see how starting a business can help you financially. A good book I read to get you started is
Lower Your Taxes“It’s not how much you make, but, how much you keep”
The biggest factor in how much of your income you keep is centered on how much in taxes you have to pay. My research has shown me that one of the ways the rich get richer is through reducing taxes as much as possible. Imagine how much more wealthy you would be if you were able to keep some or most of that money that goes to state and federal income taxes each check.
One way to lower your taxable income is to take advantage of a traditional IRA account. Although the money you contribute to the account is after tax; the amount is deductible on your tax return at the end of the year. The account also will allow you to invest and collect tax deferred gains on those investments! Check with your accountant or tax professional to see if you can take advantage of this.
Another way to lower your taxable income is through a company sponsored 401k plan. If your employer has a 401k or profit sharing type of savings plan it behooves you to take full advantage of this pre-tax savings plan. I personally contribute the max that my company matches and I suggest you do the same. Check with your tax professional to see how you can lower your taxes by contributing to this kind of plan.
Also look into flex pay accounts if your employer offers this benefit. It allows you to set aside pre-tax dollars for use on health related expenses such as prescriptions, glasses, contacts, OTC medicine, and co-pays for doctor visits. It takes a little bit of time to calculate how much to set aside and also to request reimbursement but will save you money with less income tax taken.
Most, if not all, of the wealthy people in the United States also start, own, operate, or control some sort of business that helps them to have more control over how much of their money goes to Uncle Sam. It’s not as hard as you might think to start and run your own business. As a matter of fact you probably have numerous hobbies or interests outside of your work that can become a successful business. Once again I must suggest that you consult with your accountant or tax professional to see how starting a business can help you financially. A good book I read to get you started is
Don’t have a tax professional or accountant? Don’t know where to start or have further questions about any of these topics? Email me and I can help. AJSinvest@gmail.com
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