5 Simple Tax Saving Tips

5 Simple Tax Saving Tips

These are my favorite 5 simple tax savings tips that will help you to increase your money and take control of your future wealth.

Just how do individuals and business owners take advantage of the tax laws to legally avoid taxes?

Judge Learned Hand of the U.S. Supreme Court once said that no man need arrange his affairs as to pay the Treasury any more than legally required.  

This concept is known as tax avoidance and tax avoidance is perfectly legal. Tax avoidance is something that I advise my clients to take advantage of when ever it is legally possible.

In contrast, tax evasion is a willful intent to evade paying taxes and is a crime that gets you a new roommate and three square meals a day in jail.  Nobody wants to experience that.

Part of the strategy of tax avoidance is to do things with your money before you receive it and not pay taxes.  

5 Simple Tax Saving Tips

I get asked what are some of the best ways to avoid taxes and these are my top tips that will help to save you more money at tax time.

Tax Tip Number 1: Individual Retirement Accounts (IRA)

Wouldn’t it be nice to put money away without paying taxes and reduce how much tax you pay today?

That’s exactly what an individual retirement account can do for you. The money you put into an IRA will grow tax free until you reach age 70 ½.

If you happen to die prior to that age, the IRA can transfer to your spouse and children with some very beneficial results.

Tax Tip Number 2: Qualified Retirement Accounts like 401(k)’s.

A 401(k) also is a way to take money before it is taxed and put it away for your future.

Sometimes called free money, the really good thing about a 401(k) is that oftentimes your employer will make contributions to your 401(k) so you are getting free money from your employer which grows without tax.

Like the individual retirement account, at age 701/2 you must start taking money out unless you are still working in which case you can defer the tax even longer.

Tax Tip Number 3: Annuities

Certain kinds of annuities are promises by a life insurance company to grow your money without tax until you die.  

Then it goes to your children.  In some cases, they can spread the receipt of money over their life and pay only a tiny bit of tax when they receive the money.

That’s a pretty good promise.

Tax Tip Number 4: Life Insurance

Do you want to make your children millionaires?

Buy a million dollar life insurance policy. It’s that simple. Life insurance is tax free. You put money in and you never have to take it out.

Your money grows and you never have to pay tax on it. You can pull money out of the policy and not pay tax.

At your death, your children will receive the money and never have to pay tax on it. It’s that simple.

Tax Tip Number 5: Roth IRA’s and Roth 401(k)’s.

I call these the tax angels. Tax free.

The money you put into Roth IRA’s and Roth 401(k)’s is tax free. And, it grows tax free.

Another benefit is that the money also comes out tax free and you never have to withdraw the money like you do in a regular IRA or regular 401(k).

Keep More Money in Your Pocket

If you are ready to start avoiding tax and build, grow and sustain your wealth for yourself and future generations Business Growth By Design is ready to help you.

Take action by creating a long range plan for your business that will help you keep more money in your pocket rather than the government’s.

Set up a meeting with one of our tax professionals and discuss ways to position your company for success by giving us a call at (760) 579-0079.

Or you can contact us >>HERE<<

Unless your situation is very straightforward we are well positioned to find ways that will more than compensate you for the time and cost you spend with us.