Why it’s Important to Plan, Yesterday’s Taxes are not Today’s Taxes.
The gang is here to discuss all things taxes. Well, two out of three of the TFG crew. As you reach new income ranges, it also comes with a new tax bracket and a reduction in tax credits. With income growth opportunities running stagnant, don’t miss out on how to strategize your taxation plan. The goal is to pay less and do way more with your own money.
Unless you want to pay up? To quote Cardi B, “That’s suspicious, that’s weird!”
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What to do about your taxes?
Alainta is finding out the hard way. More income equals more taxes for the middle class. To reduce your liability, double down on investing in yourself through your 401k, 403b, or 457b. In 2023, the contribution limit reached $22,500 per person.
If you are a teacher with access to a 457b and either a 401k or 403b, your limit is up to $45,000 through both. Those are opportunities to reduce your taxes by at least $2,700 (at 12 percent).
For a family, that’s around $5,000 per year.
Additionally, you can also invest up to $6,500 per year in your individual retirement account (IRA).
On top of that, there is an extra +$7,500 in a 401k, 403b, and 457b if you are older than 50. An extra +$1,000 if you are in an IRA. After that, the next best thing is to buy a home for tax credits and future capital gains. Beyond that, the next true tax break is having kids or getting dividends. Either or, there are many ways to cut your tax burden.
Beyond Conversations about Tax Savings
The Financial Griot is a play on two words (Finance + Griot) that hold significance in closing the wealth gap while embracing our differences. We tell the stories that others don’t. Stories about growth, opportunity, and embracing changes. Beyond that, we talk about Finances. Specifically, how to become Financially literate, incorporate actionable steps, and ultimately build generational wealth.
Can you imagine being a Millionaire in 20 years or less? Yeah, it’s possible. 80% of millionaires are the first generation. That means they didn’t come from wealth. We teach you how. As you scale up, it’s also very important that you learn to mitigate your tax due while increasing your cash flow.
Although as the hosts of the Financial Griot joke and laugh about things, we were able to amass over $3 Million in wealth in about 9 years and are on track to retire early. We are proving that it’s possible to be happy on the journey.
If you want the secrets; we will gladly share them since the opportunity is abundant and Win-Win. PS, the secret is that there isn’t a secret to this at all. Just hard work and making constant adjustments.
Want to talk about more than taxes, connect with us on Instagram:
- Alainta Alcin – Blogger, Travel and Money Enthusiast @alainta_alcin
- Lovely Merdelus – Entrepreneur and Small Business Growth Specialist @lovelymerdelus
- Lawrence Delva-Gonzalez – Federal Auditor, Blogger, and Tax Specialist @theneighborhoodfinanceguy
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