Skip to site content
The Show

Timeless Tips and Tax Advice

Many investors are looking for a hot, flavor-of-the-week investment tactic to bring them success.  With a long-term outlook, though, it is important to develop a sensible investing strategy that will withstand the test of time.  In today’s show, we cover some timeless retirement planning and business tips to help you reach your goals.

A recent email from a podcast listener actually inspired today’s show.  This particular listener’s income is too high to contribute to a Roth IRA, so he wanted to know if it is more advantageous to contribute to tax-deferred accounts or suck it up and pay taxes on his income now while rates are historically low.  First, let’s cover the different pots of money that you can hold your retirement assets in:

  • Tax Free:  If you invest your money into a Roth account, you do not get a deduction for your initial contribution to the account, but your money grows tax free and you do not pay taxes when you take distributions in retirement.  Another advantage:  you are not required to take distributions from your Roth account at age 70 1/2.
  • Tax-Deferred:  If you contribute money to a tax deferred account (Traditional IRAs for example), you may defer paying taxes until retirement distributions are made.  In an ideal situation, you would be in a lower tax bracket by retirement and pay less in taxes.
  • Taxable:  If you choose to hold retirement assets in taxable accounts, such as a savings account or investment account, you will pay taxes on account earnings and capital gains each year.  Advantages:  there are no limits to how much you can save and there are no required withdrawals in retirement.

Our belief is that just like you diversify across different asset classes, you should also utilize tax diversification when planning for retirement.  If you are above the threshold for contributing to a Roth IRA, see if your company offers a Roth 401k option.  You should also contribute to tax-deferred accounts as well as hold a portion of your assets in taxable accounts.  By not putting all of your eggs in one basket, you are leveraging yourself for the possibility of tax rates increasing or decreasing by retirement.

To close out the show, we shared some principles from The Business Guide or Safe Methods of Business, a sort-of business Bible published in 1904.  We were blown away by how relevant these principles are to running a successful business today.

Safe Principles and Rules:

  1. Remember that time is gold.
  2. True intelligence is always modest.
  3. Don’t cultivate a sense of over-smartness.
  4. A man of honor respects his word as he does his note.
  5. Shun lawsuits, and never take money risks you can avoid.
  6. Never forget a favor, for ingratitude is the bases trait of man’s mean character.
  7. Remember that the rich are generally plan, while rogues dress well and talk smoothly.
  8. Remember that steady, earnest effort alone leads to wealth and high position.
  9. Never be afraid to say no.  Every successful man must have the backbone to assert his rights.
  10. To industry and economy add self-reliance.  Do not take too much advice, think for yourself.  Independence will add vigor and inspiration to your labors.

The Money-Guy Team is heading out to celebrate the nuptials of Bo and his lovely bride-to-be.  Maybe we will even post some pictures on our Facebook page!  Thanks for listening and have a great weekend.

Enjoy the Show?

Where You Can Watch and Listen:

Subscribe on these platforms or wherever you listen to podcasts for new episodes every Friday, live streams every Tuesday at 10am CT, and new highlight clips throughout the week.

Related Content

Free Resources

Tax Guide 2023

Updated for 2023! Ever wonder what the highly trained professionals use to tax plan? Wonder no more! We’ve assembled the…

View Resource

Financial Order of Operations®: Maximize Your Army of Dollar Bills!

Here are the 9 steps you’ve been waiting for Building wealth is simple when you know what to do and…

View Resource

Wealth Multiplier By Age

How much to save every month to become a millionaire.

View Resource

Articles

How To Invest for Retirement the Right Way

, , ,

Read More

Can You Have Too Much Money in a Roth Account?

, ,

Read More

What Is Considered Critical Mass During Wealth Building?

, ,

Read More

Financial FAQs

Courses & Tools

How about more sense and more money?

Check for blindspots and shift into the financial fast-lane. Join a community of like minded Financial Mutants as we accelerate our wealth building process and have fun while doing it.

https://moneyguy.com/wp-content/uploads/2023/10/accent-icon-book.png

Millionaire Mission (Brian’s Book)

Buy Now
https://moneyguy.com/wp-content/uploads/2023/10/accent-icon-math.png

Know Your Number Course

Buy Now
https://moneyguy.com/wp-content/uploads/2023/10/accent-icon-pencil.png

The Money Guy Net Worth Tool

Buy Now

Recent Episodes

It's like finding some change in the couch cushions.

Watch or listen every week to learn and apply financial strategies to grow your wealth and live your best life.

FULL WhyAmericansAreBroke A

Why Americans Are Actually Broke! (2024 Edition)

Watch Now
maxresdefault 3

Is the Economy DOOMED? (And What to Do About It)

Watch Now
FULL AreYouOnTheMilllionaireTrack A

Are You On Track to Becoming a Multi-Millionaire? (Don’t Miss These Important Milestones!)

Watch Now