Alright, we are on the last and final step of the tax strategy
framework. This is number eight of eight.
It's called the investment planning. And this is investment planning where
I'm going to, I'll go through quickly. Some of them do give tax breaks,
some of them don't. but really, or some of them give tax breaks like
up front when you're doing the investment. And some of them you just need
to be aware of the impact on your taxes down the road as you're
planning, like, whether to put in more or as you're planning kind of
the ongoing investment into that specific thing.
So to start, well, and remember,
like, because of all these listed, there are a lot up and I'm going
to be just rapid firing through these on this episode,
but I do have these in the tax strategy framework spreadsheet.
Again, we're available at WealthGame.io on the basics course,
just completely free or in the WealthGame Alliance portal. Reach out if you don't
have access to it. We can, we can get it to you.
We've updated it recently, because as we're building out and adding more of these,
and we're adding more resources or specific episodes on these individual items,
we're adding more links to those just so it's easy to navigate them.
but this one, so what,
like the ultimate goal of saving taxes while I was talking with the family
member just yesterday about this, but like the ultimate goal.
You think of like, why we want to save taxes,
why, why we want more wealth, why we want to save money.
like that's, that is part of the goal. Like we want to keep more
of our money, but that's like, why, like, if you keep digging into why,
like, why are we doing all this? In the end,
we want to spend more time with friends,
family, more time doing,
like, experiencing things, more time developing relationships.
A lot of times that is. That is the why. If you really dig
deep, like, really start to think of, like,
why these things interest you,
why you want to save the money, why we're,
we're jumping through all these hoops to do this. It's like,
it buys us more time. So it's, it's time.
Time to do the things that we really want to do.
And if you've added up, if you start to chip away and add up
all these, like even some of these things are seemingly small,
but if you do three, four, five, 10 of them,
they'll add up. And they really can add life.
They can add time to your life, help you retire a year sooner,
help you not have to work as hard,
or help you have more passive investment income,
help you really maintain more income,
get into more investments that you're enjoying. So to jump into this,
the, the first one, which I am biased because I love real estate and
I've talked a lot about it and that's what my wife and I do.
But this first, when it comes to investment planning,
first thing that comes to my mind is how can I save on taxes
so I can get into more real estate, but also getting into real estate.
This is part of, this is the strategy part. Well,
can getting into real estate actually be the vehicle that's getting it,
that's saving us taxes. So not only are we saving on taxes to get
us into real estate, but the act of getting into real estate is also
saving us on taxes. So we're winning on both sides there,
but with real estate specifically, it's cost aggregations,
it's depreciation, short-term rental loophole.
If you're a real estate professional, like if one of the spouses,
like if your spouse is a real estate professional, if you are,
you can offset your other spouse's income. It's pre- pretty amazing some of the
planning tools you can do there. But there are multiple episodes on real estate
planning specifically. and then the next one I'll talk about is for business owners
specifically, some of the investment planning you can do,
like, invest- investments for your business that would be deductible would be,
like, typically, like, capital expenditures,
like, CapEx, like, equipment or tools or supplies,
things you need, things that you're bringing into the current.
Right near as a tax deduction, there's really favorable terms or really favorable tax
deductions right now for business owners, or if you're even getting into a building
for yourself, your own business, a lot of really good advantages there.
And then there's no specific order of the.
These started with real estate, but from,
from then on, there's no specific order. So I'm going to just kind of
jump into a few of them. It's going to seem a little random because
it kind of is. but it's really you wanting.
I wanted to get these. In a list out to you and then the
things that pique your interest, you can start seeing the other episodes and start
digging into the specifics on it. But one of these is conservation easements.
So it's a type of investment where you can get a deduction.
Conservation easement. Is where you're donating,
donating like the right to develop a property in the future.
And so you're, you're limiting the value of that property.
So it brings the value down, but by that drop,
the drop in. you was the amount of the deduction that you can get.
And there are actually, there are people that pool funds together and buy properties
together. A lot of times you can get two,
well, I think it's capped at two and a half times your investment as
a deduction. So if you put in, $100,000,
they could potentially kick back like a $250,000 deduction.
There were some, like, if it's your own conservation easement,
you're not going to be capped like that. But if someone's raising funds for
it, you're going to be capped. But conservation easements,
there's. A lot of, a lot of fun planning there,
but something to think about and then captive insurance is one of those,
kind of like an investment because you're,
you're, I put it in this investment portion because you're,
you're. You're p- planning for, potential at catastrophic events for your business and you're
self-insuring your own business, but then you're putting these funds into
your own insurance company in that your own insurance company can.
Invest those funds into the future and then eventually you can get those funds
back. So you get a deduction up front and then years down the road,
you can get the funds back if you didn't have a big claim.
You can get the funds back typically at a lower tax rate. Then f***ing.
When you are first putting them in. So kind of a cool way to
plan to the end of the future. donor invite,
donor advised funds is more of like charitable planning,
but I put it in here because you can actually invest.
Inside of a donor advised fund. If you're like,
okay, I want to give to charity,
I want to give a certain amount of charity to charity every year.
Instead of investing your own funds in your personal account,
paying tax on the gains or,
or. . . dividends or whatever the form of income is,
instead of paying tax on that and then donating to charity,
you can donate to charity into a fund that you have control over invested
in there and all those gains are tax free in.
And you're, you're donating from your donor advised fund.
So pretty cool way to give a smart investment planning.
So tax efficient investments, tax free investments,
then also it ties in with your charitable giving plans.
one when I, I do, which I really do like our oil and gas
investments. this is, you'll see probably advertisements for these.
I just saw them on Facebook and Instagram just in the last couple of
days. People raising funds for them. I don't love advertisements or when
they're trying to raise funds through ads. I just feel like there,
it's a bit of a stretch. Like, if it's a good enough, good enough
investment, I don't think they would need to advertise it. but there are,
there are good operators Out there that I've found that I've liked investing with
and we get monthly returns, monthly distributions.
And it's been great the last few years. But the big thing with oil
and gas investments is a big deduction up front.
Even if you're a doctor. On a W-2 or any type of employee,
because of the way they're structured in the tax code,
you can get a big deduction. A lot of times it's 80 or 90%
of your first year. Like how much cash you put in that first year.
You actually Get a reduction of your taxable income of that.
And it's different from real estate investments where you might be limited on the
deduction and might just have to use it in future years oil,
future year oil and gas you can use in the year that you put
the money in. so then another thing we talked about in this,
in the last one, just tax-free ways to get income,
opportunity zone investments related to real estate.
If you get into those types of investments, it's just a potential.
It's actually a tax-smart way to get into real estate.
And, and then I,
I have listed here what's more very generic,
and this is a big, could be a very big topic,
but just planning, smart planning with stocks.
Like, ETFs,
mutual funds, and other paper assets. There's a lot that goes into that.
Really getting into the details and managing the funds.
Like, from a high level, we'll talk with clients about it,
but right now, No. No. we'll, we'll refer,
like, the management out to some of our partners of the specific funds.
Or if you're doing it yourself, just being aware of realized gains
versus unrealized gains, short term versus long term.
All of those types of things that needs to go into your tax projections.
You gotta be able to pull that information and get accurate information
if you're trying to, like, come up with a good tax projection
for the year. Because we've seen people get blindsided,
like, really high-income year, and they have no idea what their investment account is
doing, or they have no idea, they might know the end dollar amount,
they don't know, like, what the tax impact is gonna look like on a
10.99 at the end of the year. They're doing their tax,
so they go, oh, I didn't know I had $30,000 of taxable income,
I just reinvested it, but if you reinvest it,
you're still paying tax on it, you gotta be aware of that.
And then smart investment planning with, like,
gold, Silver, precious metals,
similar to stocks, like, if you're buying it and you're trying to just,
you buy it today, and a month from now, you sell it,
that's a short-term capital gain. So just watch that if you,
I've held something for 20 years,
you might have a big capital gain, so just think through that before you
sell something, because it will end up hitting your tax return and be reported
as a 10.99 for you. And then another one is crypto,
currencies, just smart investment and tax planning around cryptocurrency investing,
also similar, pretty similar to stocks and like gold and silver.
it's a capital asset where you've got capital gain.
If you're buying and selling it,
but then if you're mining it, or if you're getting rewards for it,
that's another type of income. Cause if you're getting rewards, like, if you're getting
something for free, whether it's free coins or free, say you get U. S.
A dollar coin for staking, ETH,
or your Bitcoin or something, there's, that's going to be reported to you on
a 1099, like just regular ordinary income,
which could just add to your tax bracket. So think of all these things
as we're compiling your. Information to come up with the tax bracket.
Think of the cryptocurrency things as well.
And then the last one related to, investment planning that we talk about is
like, if you're investing into where people raise funds.
Like syndicated investments or real estate funds or,
like, someone's raising money for a real estate deal and you're putting money in
it and you're a part owner. Remember that you're going to be getting a
K1 from that. Like, you're a part owner and, that.
They'll be typically send you a K1. So just being aware of if,
if they can give it to you, sometimes they don't eat, the operators don't
even know, GPs don't even know, they might not even know the tax impact
until tax time. But you're going to be getting a K1.
And it's a tax form you've got to include in your tax planning.
and there, there's that thing here, a pointer here,
I'd say is sometimes you can get distributions that are tax free,
which is great. But as soon as it starts exceeding,
like you're originally. There's no contribution and if there's no debt,
there could be some capital gain even if it's not sold yet.
But just, yeah, just smart planning with that.
But there, there are some really good tax opportunities there.
If you've got passive income. And you invest in something like this and they
kick out a loss to you, that's where a lot of the planning,
like, kind of related to what we've talked about so far and all these
different strategy steps, entity structuring and the types of income and converting income.
It all. So that's it for the investment planning.
That is the eight, eight step strategy framework to kind of wrap it
all up. Remember, number one,
we talked about deductions. Number two. Was deferring income and accelerating expenses.
Number three was tax credits. Four was entity structure.
Five was tax brackets. Six was converting your income types.
Seven is talking through the tax exempt income.
A cash flow that you can get. And then number eight is the investment
planning. And there's all sorts of different things inside of each of these.
We have our tax strategy framework spreadsheet where we've listed them out and link
specific spreadsheet or list, listed specific pot.
God. Test episodes, but I would download that,
start taking notes on it. Have a question.
If you're meeting with someone one on one about tax strategy,
you could bring up specific things there. Or if you are in the wealth
game alliance, wealth game alliance group. You can ask questions there to the group,
submit them, we'll cover in the group, or I'll do recorded videos and answer
your questions there. But, yeah, thank you for,
yeah, listening through all these. And, yeah,
feel free to get your questions submitted for the wealth game alliance.
Or go through the additional videos and resources we have there in the wealth
game basics course in wealthgame.io. So,
have a good rest of the day and talk to you later. See ya.
