Have you ever watched Shark Tank?
While I’m not a fan of most reality TV, this show is incredibly unique.
Every week small business owners ask a group of venture capitalists (The Sharks) to invest in their company.
If you ever doubt the value and virtue of free-market capitalism (or worry that it is no longer alive and well), watch this show!
My favorite is Mo’s Bows. A mother and son team (Mo, the son, is 9 years old) who created a line of bow ties.
Mo designs them while Mom and grandma sew them (or at least they did until Damon John invested $50,000 and turned them into a fashion sensation).
In 2015, sales hit $200,0000.
Even after Shark Damon takes his 20% cut, Mo & his family should clear a nice profit.
Mo recently signed a seal to put his ties in Nieman Marcus. Not bad for a third grader from Memphis.
At the time they appear on Shark Tank, most of these thriving entrepreneurs are just barely getting by.
They work long hours, usually, have a second job, and invest almost every dollar they make back into their business.
But for those who make it (and many do), a new world awaits them: The Tax World.
So whereas before Mo & his family may have qualified for things like the Earned Income Tax Credit, they are now firmly entrenched in the top Federal tax bracket (they wisely live in Tennessee, which has no state income tax).
But I’m not worried about Mo.
He and his mom are very smart and no doubt have already hired some of the best advisers to not only develop strategies to cut their taxes now but also during retirement (which for Mo will probably be when he reaches 11).
But what about you?
You still likely to face taxes when you retire?
Will your 401k or 403b be taxed?
What about your other savings?
Will those also be taxed, increasing the chances you’ll pay taxes on your social security benefits?
When was the last time your CPA told you he knew a way to lower your taxes?
There’s a huge difference between tax planning and tax filing.
Isn’t time you learned it?
Take a lesson from Mo.
Work with a planning shark to get you to a new level. Call me now at 513-563-PLAN (7526)to learn the power of a zero tax rate during retirement. I won’t ask for 20% like Damon John or 40% like the IRS.
Best,
Dan Cuprill, CFP®
PS: I take only one new planning a month. Call me now so we can get started ASAP. 513-563-PLAN (7526)