Slash Your Tax Bill Now!
b"With Phil DeMuth, Managing Director at Conservative Wealth Management and author of The Overtaxed Investor: Slash Your Tax Bill and Be a Tax Alpha Dog
When it comes to figuring out the tax code, most of us meander between Confusion Lane and Anxiety Road. You want to pay the legal amount but not a penny more, so how can you arrive within that safety zone?
Phil DeMuth addresses this conundrum in his new book, The Overtaxed Investor: Slash Your Tax Bill and Be a Tax Alpha Dog, an especially important read if you\\u2019re an investor in a high-bracket watching the earnings from your portfolio being poured out each year into the coffers of the tax authorities.
A California resident in this group, for example, could be looking at 33% of all earnings from dividends and capital gains going to the state and federal governments, a sure roadblock to building wealth. As a counter-measure, Phil advises that all dividends, stocks, taxable funds, everything which is tax-intensive, be held in tax-qualified accounts such as 401ks or IRAs and to steer clear of mutual funds that pay dividends and incur capital gains.
And if you are invested in high-dividend stocks, make sure to house them inside a tax-qualified account, like an IRA.
For those approaching retirement, you want to avoid finding yourself in a higher tax bracket because you\\u2019ve saved diligently and socked away a large portion of your income into a large IRA which requires you to begin taking distributions each year according to the government\\u2019s life expectancy schedule.\\xa0 Phil says that somewhere before retirement, perhaps in your 60s, it would be smart to convert some of your IRA to a Roth IRA, transferring only an amount that puts you in a more reasonable tax bracket.
When it comes to taxes, avoidance doesn\\u2019t pay, but a well-thought out strategy to keeping your hard-earned money working well for you into retirement does.\\xa0 Phil DeMuth\\u2019s entertaining book, The Overtaxed Investor: Slash Your Tax Bill and Be a Tax Alpha Dog, can help steer you away from your tax code worries.
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Steve Pomeranz: Who understands the entire tax code?\\xa0 The answer is no one.\\xa0 No one understands this tax code.\\xa0 Finding your tax rate is like shooting a ball into a pinball machine.\\xa0 You watch it getting slingshot around the board lighting lights, buzzing buzzers, and ringing bells, until the end when you look up at the game board and you find out what you owe.\\xa0 Well, that's craziness.\\xa0 How do you get this craziness under control, so you end up paying the legal amount due in your taxes but not a penny more?\\xa0 Well, my next guest, Phil DeMuth, answers that question for us in his new book"