February 2, 2019

How To Redirect Your Money Legally To Avoid Tax

SMR 16 | Redirect Your Money Legally

 

Are you looking for tax deductions? Get educated about the current tax law. Saving on tax deductions is about taking advantages of all that information. There is a way to totally avoid paying taxes on your social security and redirect your money using a strategy where the income is not reportable on the 10-40. It’s legal and it’s around for 100 years. Discover that strategy here as well as other things you could do to get Uncle Sam off your hard-earned money.

Listen to the podcast here:

How To Redirect Your Money Legally To Avoid Tax

I’m a citizen of this country and I get to come in this radio booth and hammer out some issues. I’ll tell you exactly what I’m doing with my own money. I’ve been unfortunately having to talk about politics because sometimes politics play a role in our money, especially tax rates. In case you didn’t know but I think all of you do know in the greater Baton Rouge area, we have some Idiots as elected officials. I’m not a doomsday prepper or conspiracy theorist person and probably borderline but I’m not. We have seen the radical left wing socialist. They have reared their ugly head in several categories. One of them is the abortion thing and it’s even hard for me to discuss that because in my opinion is absolute lunacy. New York, Virginia, Rhode Island and we haven’t even heard what California is going to do, there’s no telling what they’re going to do and it’s lunacy. I won’t get into that anymore but surely if you listen to the news and read a little bit, you’ve seen what’s going on and it’s absolute lunacy. I have voted for Democrats before, mainly in the local elections. Sometimes they’re only Democrats running where I live so I had to vote. I voted for Democrat before, to me it’s a polarizing effect. When you parlay that in with my lane of tax rates, which is absolute lunacy. You’ve had several people come out. An article titled, she’s a moron up in New York. The Cortez lady, 70% tax rate and that was from the Washington Post.

From MarketWatch this article, January 31st, Bernie Sanders proposes big hike in estate taxes after Elizabeth Warren floats wealth levy. Senator Bernie Sanders introduced legislation that would boost the estate tax on billionaires. The latest effort on the left to increase taxes on the wealthiest Americans. It goes on and on and it’s my opinion, my belief tax rates are going to be higher in the future. When these bold lunatic liberal elected politicians are talking about 70%. I don’t care if you make $1 million, none of your money should be taxed at 70%. Socialism is theft. Unlike Elizabeth Warren “Pocahontas” thinks capitalism is theft, she said that. I had to turn the TV off because I felt my blood pressure immediately increasing. She said, “Capitalism is theft.” Show me a successful socialistic society. Several years ago, Bernie Sanders was bragging on Venezuela. Look at that Venezuela, I read where their inflation rate is 10,000%. I can’t even comprehend that. What does that even mean? My issue is this, these idiots, these morons who want to increase taxes, how come we never hear about government cuts and budget cuts? Why can’t we trim budgets? Why can’t we stop hiring so many federal workers and state workers on a state budget? The answer to these lunatic Democrat people, the far-right Republicans get on my nerves too because they always talk about being fiscal hawks. They’ve done nothing more to be fiscally conservative. They’re not as crazy, quite not as crazy as left-wing lunatics.

How does that affect what we do? First of all, these people are going to dictate to you not to me because I don’t have any money in the 401(k) in a qualified plan. We’re talking 401(k) SIMPLE IRA, all that stuff. They’re going to dictate to you what the tax rate’s going to be when you were ready to pull the money out. You’re in a government-sponsored program and Uncle Sam is your partner. If you have any money in a 401(k) IRA, SEP, SIMPLE any of that, Uncle Sam is your business partner. The tax thing for me wouldn’t be quite so bad if the government was good at spending money, if they weren’t quite so wasteful. If you are looking for something different, if you’re open-minded, you don’t want all your investments running through Wall Street. You’re looking for other strategies to get some of your wealth off the radar screen of the IRS, if you’re looking to possibly get any lower tax bracket or two, by making money into a direct participating oil and well project. The tax advantages, the tax benefits, the tax, the deductions in that are amazing. The tax rates have a little break from 2017 to 2018.

Oil And Gas Package

The top tax bracket in 2018 is 37%. Actually, it’s more than that because they stick to you on the Medicare tax, the Social Security tax, depending on your age and all that. $600,000 or more income, 37%. 32% is up to $315,000, 24% is below $315,000 that’s why I have seen people make an investment into an oil and gas. They’ve made a contribution into an oil and gas package and it knocked them down 8% or more, maybe 10% depending how much you put in. There is nothing else out there that I’m aware of as far as receiving a tax deduction like this and also too the first 15% of the income every year into perpetuity of the wells is tax-free. The first 15% of the income is tax-free. I’ve only seen one person do this, if you don’t need the deduction this year, you can carry it forward up to three years. That’s pretty cool.

You’re not going to hear about these from your traditional financial planners, your traditional stock guys. I’m more to the beat of a different drum. I use toothpaste with no fluoride in it, I’m weird. I’m a weird guy, I still pick up pennies in the parking lot. My children make fun of me until they need money and then I always say, “Why are you coming to the guy who picks up pennies in the parking lot?” Trying to teach my kids the fundamentals of money, how it works. Simple interest, compound interest, debt, all that things that I didn’t learn. I knew about making money and stuff. My Dad was a business owner and then had to shut his business down because of capitalism but my dad didn’t complain when Walmart and Sam’s started selling tires. It crippled a lot of the local tire businesses and my dad was one of them. My dad had the tire shop. We call it the tire shop in Port Allen next to the Candlelight Inn. If you’re driving around Baton Rouge and you hear me and you know where the Candlelight Inn, it means you ran after midnight over there on the Gold Coast in Port Allen. My dad had a tire shop there called Day Brothers Tire. He and my uncle Jimmy, who’s still alive, my uncle Jimmy lives up there and beautiful Ethel, Louisiana. He had to shut it down. My uncle actually left the business early. My dad went to work for a tire distributor and it’s capitalism.

SMR 16 | Redirect Your Money Legally

Redirect Your Money Legally: Tax wouldn’t be so bad if the government was good at spending money and if they weren’t quite so wasteful.

 

He couldn’t compete with the companies that were buying the tires in big bulk at much lower prices than he could. Looking back, I didn’t complain to my dad because I would’ve got choked down but complaining that myself hot breaking down those big West Baton Rouge Parish school bus tires, putting onto some winches, putting on some bumpers, mounting and ballast tires. I knew at a young age I didn’t want to be putting tires on when I was 55 years old like him. He told me that he’s like, “Make sure you go to college, you’re not doing this when you’re 55 years old.” I remember when he told me that but things happen and you got to move on. I’ve learned so many lessons, I’ve been very fortunate, very blessed to have some mentors that I’m not afraid to ask questions, “Mike, you’re 63 I’m 42, what did you do when you were 42 that you’re glad you did with your money? Mike, what do you regret doing? What do you know, Mike, at 63 that you wish you would have done at 42?” I asked those questions and I’m doing some of the same things that the ultra-wealthy are doing but on a much smaller scale. You have to know about them. Some of these things you are not going to hear about from traditional financial planners, from financial advisors, from your main street or your strip mall financial advisors.

You’re not going to hear about them because they can’t offer them. They’re not going to talk about them. If you want to learn some alternative ways for your money to make money, you are looking for maybe a tax deduction, you’re looking for income in retirement that is tax-free and no, I am not talking about an annuity, annuities are bad, annuities are good. I don’t like the thought of locking my money up for fourteen years. I don’t think it’s a great idea. There may be maybe somewhere where if you’re looking for some type of income. It seems like my experience meeting people that have called me on the show, they don’t like the annuities they’re in. That’s my experience on that. I’ve only met one lady who was happy with an annuity and she showed it to me five years ago and she took it out twenty years before that.

Higher Tax Rates

What is your objective to your money? Why are you saving? Why are you contributing money to your 401(k) or to whatever you’re doing? I’ll challenge you if you think tax rates are going to be higher in the future, then why are you contributing to your 401(k). If you think tax rates are going to be higher in the future like me, why are you still contributing to 401(k)? I don’t put anything in a 401(k). It goes back to the seed versus the harvest. Would you rather pay taxes on the seed now or pay taxes on the harvest years down the road? As a country, we are in some of the lowest tax brackets ever in this country. I’m going to roll the dice and pay the taxes on the seed now. That’s what I like to do. Does that make sense to you? My challenge to you, if you’re driving around, you work for a company and you are putting in, you are contributing more than the match of your 401(k). That’s what I call overfunding your 401(k) and if you’re open-minded, call me. I agree you should put in if you want to contribute the minimum amount to receive the match.

Tax rates are going to be higher in the future. Socialism is theft. Click To Tweet

You can take the rest of that which you’ve been doing and redirect that into one of the strategies I’m doing. If the goal in retirement is to climb the mountain. Let’s say you were hiking, you were climbing the mountain, what’s the goal? The goal is to climb the mountain but they also get back down. If you taking pictures as you go up, you want to climb back down the mountain to show your friends and family. Retirement as you work, you are in the accumulation phase, the pre-retirement phase. You are working, climbing the mountain, you retire, you stick the flag on the top of the mountain. You’ve conquered the mountain. You have retired, then you got to come down the mountain and that is the income in retirement, the distribution. Unfortunately, the corrupt government and the lunatic politicians who set tax rates are going to dictate to you what the tax rates are going to be, when you’re ready to pull your money out of your 401(k) account. That throws that makes people pay taxes on Social Security unknowingly unnecessarily because of where their money sits. Question yourself on why you’re overfunding your 401(k) and the objective is to come up the mountain and down the mountain. 99.9% of traditional financial planners, they’re all about accumulation. That’s what the conversation is with them. When you sit down with them it’s all about accumulation, climbing the mountain. What about coming down?

There are things you can do to set yourself up for future tax rates. It doesn’t matter what they are, to avoid them. There are ways to literally avoid taxes on Social Security and yes, it’s legal. There is a way to not pay taxes on your Social Security because it all depends on where your money is. The government loves people like my parents. Old Hollis and June Day, I’m talking textbook definition of middle class, hardworking. My mom was a nurse. My dad on the business had to shut it down, went to work for another company, work their butts off. I knew that as a kid but I guess I didn’t appreciate it as much as I’m older. Unfortunately, they’re not around for me to say thank you but I did say thank you a lot before they died. The government loves people like Hollis and June because the government forced my parents like they force us. They forced my parents to put into Social Security and Medicare. My mom passed away from ovarian cancer at 54 years old in June 2006. My dad died at seventeen months later, very unexpectedly of a pulmonary embolism. My mother was 54. She had applied for Social Security Disability but you’ve got to be disabled I think for two years before you get it. She did not receive any Social Security Disability. When she passed away, my dad received a check for $255 to help bury my mom. If you haven’t paid for a funeral, they’re every bit of $10,000.

SMR 16 | Redirect Your Money Legally

Redirect Your Money Legally: There is a way to not pay taxes on your social security because it all depends on where your money is.

 

The Biggest Thief

Actually ours was $10,000 but because my uncle he gave us the one, we had to pay for that. It was still $10,000. Where does $255 come in? My mother received $255 of all the money she put into Social Security. My mom was an assistant at Baton Rouge Clinic years ago when it was on Goodwood. Dr. Leggio was my pediatrician. She was his assistant for years and then she went back to nursing school. She worked at Baton Rouge General Mental Health Unit, worked at River West in Plaquemine, worked at the West Baton Rouge Parish Health Unit at several jobs as a registered nurse. The government forced her all those years put into Social Security. She never got a dime from it. That’s theft and you’ve got Elizabeth Warren “Pocahontas” who’s such a liar. She’s such a liar, a cheat and basically a piece of garbage who is going to sit there and say, “Capitalism is theft.” The government is the biggest thief of all.

The government’s different from the country. I love our country but our government’s corrupt. I’m talking Republicans and Democrats are both corrupt to the core. I was in DC with my daughter on a little DC class trip for five days with her school. I’m telling you, I felt the darkness in DC. It was a dark, corrupt feeling. The government’s going to dictate to us a lot of things. I took my dad to the Social Security Office in October of 2007 because he was going to turn 65 in March of 2008. He said, “I want to start receiving my Social Security benefits the month I turn 65 when I get on Medicare.” We go to the Social Security Office on Harding Boulevard. It was actually a pleasant experience. My dad died Thanksgiving of 2007 very unexpectedly. All that money he put into Social Security, where did it go? Let me circle back to this ramp I’m on, the government, these lunatic politicians want us to pay more in taxes but yet we pay into Social Security, Medicare.

If you die before that you won’t even get to see, why would we want to trust them with more money? Social Security, Medicare systems are broke. They’re done unless some things have to happen before they actually run out of money. They’re done, it’s laughable. They want us to pay more in taxes. It’s a joke. There are some politicians, I’m telling you if I saw them in a public place, I will take one for the home team. You had these career politicians who have been in there 30 plus years in DC and that’s too long. They’re worth millions and millions of dollars, 30 years ago weren’t worth a lot of money. How are they worth $25 million? It’s all on the table is lobbyists and unions have ruined this country. If you’re looking for something different, probably a lit bit more politics than I wanted to. I felt anger on the whole Virginia and New York abortion thing. I was angry. I used to avoid some conversations but I’m engaging fully in conversations with anybody, anywhere about some of this stuff. How long are we going to sit back and watch it? Somebody’s got to tell them, “You’re a freaking moron for wanting the 70% tax rate.” It’s lunacy. That’s the word. That was my point. I thought about a word. How do you describe this? It’s lunacy. I truly in my heart believe that Elizabeth Warren is a lunatic. She should be committed somewhere.

Show me a successful socialistic society; there's none. Click To Tweet

She’s a lunatic. What kind of person lies about their ethnicity to get a job and then talk about taxing people at a crazy, astronomical rate? If you know of a better word to describe it, call in, let me know. If you’re looking for a way to buffer your money and keep Uncle Sam’s hands out of your pocket, out of your account and obviously if you have money in the 401(k) the taxes do have to be paid on that. We’re at historically low tax brackets and who knows what the next several years are going to be. There are ways to protect and this is not a scare tactic. I’m going to show you what I’m doing with my own money. What’s going on in the economy? What’s going on with the stock market? A very volatile year, anybody would agree in 2018. The market depending on what you were invested in it being maybe down a little bit but you’ve wasted a year. The gains were wiped away right there towards the end. There’re things out there that you have to do a lot of digging and research where you can make decent money on your money. Make decent interest, decent return, decent profit, not greedy but it’s not run through Wall Street indirectly.

Tax Advantages For Investing In Oil Wells

One of the things that I’m excited about and I always talk about is the way I work for a company out of Dallas. I’m a salaried employee for a company out of Dallas on oil and gas exploration company. A little small company and we drill oil wells and there are some major tax advantages, tax deductions for investing in oil wells. That does spit off monthly income. It’s patient money, there’s no other tax deduction like this. You can potentially make an investment. The minimum is $50,000 for accredited investors only you can make an investment, make a contribution for $50,000 or $100,000 or whatever and then potentially get a deduction for that amount depending on when the drilling is at the wells and all that. When you made the contribution, there’re a couple things there. The law used to allow up to 85% and then the administration came in and tweaked a couple of things where you can accelerate the depletion allowance to gather the other 15% in the first year. The opportunity is there to put money in and get a deduction for up to 100% of what you put in. I don’t know of anything else out there like that.

SMR 16 | Redirect Your Money Legally

Redirect Your Money Legally: There are some major tax advantages and tax deductions for investing in oil wells.

 

I have learned from some things here that’s got my interest going on some mitigation banking. That’s something I’d never heard of. It grabs my attention and I liked the stuff I know about it so far but still have a lot to learn about that. The oil and gas sector, number one, are we going to hit oil? Number two, the price of oil per barrel. Number three, how many barrels per day are being pumped? There’s risk involved in everything but then also too before that happens, we go lock down the land. We go lease the land. This company uses the funds, uses the money from lenders, from investors. I had this exact thing going on with our family land up there in Ethel, Louisiana. Beautiful East Feliciana Parish, some of you may know where the old FS Williams Country Store is. My grandfather bought some land there in the mid-‘60s about four miles behind the store.

Leasing The Land

My grandfather was in the thoroughbred race horsing business and bought 400 acres up there and had a beautiful piece of land, had a little pond. I grew up there as a kid, seeing these beautiful thoroughbreds trotting around the tracks was amazing. He had a little racetrack, even a little small track he’d built up there to work the horses. My grandfather died in 1995, James Warren Day Sr, born in Greensburg, Louisiana. He settled down not too far in Ethel and he had four children and my dad is the only one to pass away to be deceased of the four kids. I have an uncle and two aunts. Me and my sister had my dad’s share of the 400 acres, which is 100 acres. We were contacted actually by ConocoPhillips about leasing the land and we didn’t lease it to them. A lot of people did. We’ve been contacted again by another company about leasing. Point being is what we do with our company, we do the same thing the big boys do but on a much smaller scale. We lease this land in 2011 and it never was drilled on so that lease came from Devon Energy leased that the first time. Where did Devon Energy get the funds, the money to pay the Day family for the lease? Devon Energy is a publicly traded company, shareholders, stockholders. Our company out of Dallas. Where do we get the money to go lease the land? From you, lenders. It’s a perfect place for IRA money or cash and in turn, this company pays you not home run but a decent rate of return.

Right now you're in a government-sponsored program and Uncle Sam is your partner. Click To Tweet

There’s a way to receive simple interest or compound interest. Simple interest is paid monthly. It’s a way to put money up to invest your money in something and to receive monthly income from that and for the basis, the principal not to be decreased, see a decent gain. For number’s sake, you basically have for the simple interest, if you want monthly income, if you commit to one year it’s 8%. Two years, 8.5%, three years, it’s a 9% rate of return. You lock your money for three years, receive 9% every year for three years but it’s paid monthly to you. For number’s sake, you lock up $150,000 for three years, you’re going to make $40,500 over the course of 36 months will be paid to you. That’s roughly a little bit over $1,000 a month without decreasing your basis. Three years is up, you have the option to renew, pull your basis out, walk away.

The Compounding Route

Simple interest, one year, 8%, two years 8.5%, three years 9% not bad, not a home run. Hit investment type deal where you’re going to go get rich and go buy a beach house in Costa Rica or something. This is a good way for your money to make money, where you can actually realize the money every month and see it or cash investment like me back to your checking account. If it’s IRA, money will be sent back to your IRA every month or you can go the compounding route, which is like a CD. You put your money from one year. You get nothing back until the end of the term is up. The compounding for one year is 8.3%. The compounding for two years is 9.23%. The compounding for three years is 10.28%. In that three-year example I showed you, $150,000 on the simple interest is $40,500 paid basically over 36 months on the three-year compounding. $150,000 is going to give you $46,296. Show me another investment where you know to the penny how much you’re going to get. This is a way and this company’s taken, they’re borrowing your money, you’re lending them your money and they are going to lease some land to eventually drill for oil wells in these two different investments.

Self-Directed IRA

When you invest money in the oil well package, we hit oil, we extract it from the ground and then sell it. You get paid for that every month. The income is not consistent because the price of oil per barrel changes every nanosecond. Number one, are we going to hit oil? Number two, what’s the price of oil per barrel? Number three, how many barrels are being pumped per month? There are some factors there on that check. If you’re looking for a fixed interest rate, a fixed rate of return on your money, it’s perfect for IRA money, SEP money, solo 401(k), you can actually transfer your money to a self-directed IRA custodian that allows for this. There are no taxes, no penalties if you’re not taking the money out, you’re moving it from one custodian to another.

SMR 16 | Redirect Your Money Legally

Redirect Your Money Legally: There are ways for your money to make money other than what Wall Street has to offer.

 

There’s no cost to do that except there’s a small cost to open the account at the new custodian. They charge a onetime fee of $50 and then a yearly fee of $250, whether you put in $50,000 or $500,000 that’s what they charge. I’m a salaried employee. When you put your money in, I’m not getting a commission from that. It’s very important. I try to address these questions because I’m somewhat cautious as well and I want someone to know what the things that I would want to know. I want to be transparent. If you transfer your IRA money, you can do this and don’t take the money out. You’re transferring it from one custodian to another. Very easy to do, maybe for a small portion of your money. You have cash and you’re looking for a way to earn interest on the cash. I have people that put money in this and they’re using the interest to fund other things, to fund other strategies, to fund the other strategy that I love that gets your wealth off the radar of the IRS. I love having my money off the radar screen of IRS and yes, it’s illegal. What are you doing? How is your money making money?

First of all, I’m not a financial advisor. I’m not a certified financial planner. I don’t rip people off. Let’s just throw some numbers out there. If you have $1 million in a 401(k) or IRA, that’s a lot of money no doubt. I know people that work at Dow or Exxon Energy somewhere and you commit to working your butt off for 30-plus years. You’d worked your butt off, shift worked, all that. You walk away from there with a big 401(k). I have clients that retired from these places, they have large money. If you have $1 million in 401(k), how much of that money is yours? Technically yours but you owe the government first. You’ve got to pay Federal taxes, State taxes, Medicare taxes, security tax. You’ve got to pay all of that. All those things where the government steals our money from us, you’ve got to pay all that and then it’s yours. I didn’t think about this. I heard this about a few years ago and it’s pretty profound. If you have $1 million in a 401(k), whatever your number is, $500,000 to $250,000 whatever. I’m using $1 million for even numbers. You have $1 million, 25% tax bracket. Off the top $250,000 is not yours.

The government is the biggest thief of all our country. Click To Tweet

More than likely, you’re probably paying at least a 1% fee on your money for your guy to manage your money. I’ve seen some over 2%, some 2%. It’s usually around 1% for someone to manage your money. You’re paying a fee for him or her to manage your money and one-fourth of that money you’re never going to get. You’re paying a fee for someone to manage money for the government. You’re never going to get 25% of that money but you’re paying a fee on that. That’s profound, you need to know that. It’s the way the system’s set up.

The Corrupt System

There are ways for your money to make money other than what Wall Street has to offer. You can actually go to the website and listen to the podcast. I keep all the shows up on the podcasts. You can read through them as well. I had a great show with my good friend and mentor, Mark McKay. I had a great show with Rebecca Walser. She has a book called Wealth Unbroken. Go back and listen to that podcast with Rebecca Walser. You can also download the iHeart Radio app on your phone and go to Sage Money Radio there and I have all the podcasts on there as well. There are several different ways to listen to. I know most folks are driving short distance and you just hear bits and pieces of what I’m saying but I like doing business with people that believe what I believe, our beliefs line up. If you believe that we don’t pay enough in taxes, don’t call me because we’re going to waste each other’s time. I believe we pay too much in taxes, therefore two to three strategies that I deal with are tax related. We pay too much in taxes. The government pretty much gives us the middle finger every paycheck when we see money go into Social Security.

The government is pretty much telling us, “Hollis Day Jr., you pretty much suck at managing your own money, give money to us. We’re going to manage it for you and then we’re going to pay it back to you when you’re 65, 67. If you’ve done a pretty good job, went to work every day and have accumulated some other assets, then we’re going to tax you on Social Security. We’re going to tax you. Congress called provisional income.” You’re like, “I’ll put money in. The government takes money. I have no choice and then the government enticed, dangled this carrot in front of me, encouraged me to contribute money to a 401(k).” I’ve already paid taxes on Social Security as you’re taking from me, after tax and it’s got like a Roth. I’ve already paid taxes on Social Security money. I took the bait, put money in the 401(k) and you’re going to penalize my Social Security. You’re going to tax my Social Security again because I have money in the 401(k) which you told me to put money into. Ladies and gentlemen, do you see the system is corrupt and it’s what 99% of the people are doing. They sit down with a job with their HR person and they check off some target date mutual funds, you lock your money up unbeknownst for fourteen years in annuity and you don’t have access to it, it’s what main street is doing.

SMR 16 | Redirect Your Money Legally

Redirect Your Money Legally: You can totally avoid paying taxes on your social security, and it’s not an annuity.

 

I totally march to the beat of a different drum. I’m weird, I use toothpaste with no fluoride in it. I have some little weird quirks about me. I’m only going to show you the things, the strategies of where my own money is. I don’t think the other 99% of people doing this, they’re going to tell you that you should be in this target date mutual fund because you’re 40 and that you can take on more risk because you’re young and as someone that’s 55, no. When you sit down with the person selling the annuity, the mutual fund, whatever, tell them you want to be in the same financial strategy that they are in. Have you ever heard the myth that you will be in a lower tax bracket when you retire? That’s a myth. I have several retirees, I have several clients that are retired. They are not in a lower tax bracket and that may be for some people. That is definitely not an overall broad-stroke approach. If someone’s giving you financial advice and they’re telling you that you’re going to be in a lower tax bracket when you retire, ask them to sign and date it on their letterhead, see if they will. They won’t because they’re pretty much telling you they can read the future and predict future tax rates.

Redirecting Your Money

I believe mainly because of this country’s debt and because of the lunatics. The absolute lunatics that we have elected in Congress serving this country that wants 70% tax rates. They want a wealth tax. They don’t think we are taxed enough. They don’t have the backbone or the knowledge to cut. We’ve all probably lost a job before. I was managing nursing homes and I had a corrupt owner by our nursing home. I was working for a big chain. We had this guy, he’s corrupt. He bought us and let me go about a year and a half later so his son in law could run the nursing home. He’s a piece of garbage the way he runs his business. I took a 50% pay cut but I had a job within two weeks. I had to make some adjustments in what I was doing. The government can’t acknowledge that. They want to tax, we are taxed enough. I will never vote for a tax increase. I don’t care what it’s for. I think the government sticks it to us every paycheck already, why do I want to pay more? The government is proven that they do a terrible job of managing money. If you are still contributing to that 401(k) or you’re overfunding it, it’s probably not a bad idea to contribute the minimum amount to get the match from your employer. You’re overfunding that money. Call me, I want to show you a strategy that I’m doing and you’re going to redirect that money.

You’re not going to miss it anyway because you haven’t been seeing it. You’re used to it and be diversified. Put it in bucket three, I love bucket three. Maybe for a small portion of your money, the money you want you decide how much. Can you stomach an 8% or 9% rate of return per year? Can you stomach that? Can you live with that? That’s not correlated to the stock market. It’s a fixed rate of return paid every month, not 9% per month, 9% per year. It’s on annualized yield. Are you looking for tax deductions? I encourage you to look up IRS tax code section 469(c)(3), IRS section 263(c) 59(e), IRS tax code section 611, 613 and then 613(c)(6) or you can call me. You can get in touch with the company I work for and see if it’s right for you. It’s about taking advantages. Knowing, getting educated about current tax law. Did you know there’s a way to put money into an account when you withdraw it ten years down the road? This is not an annuity but it does take a little time to build up. The income is not reportable to the IRS. The income is not reportable in the 1040. There is a way to totally avoid paying taxes on your Social Security and no, it’s not an annuity. There’s a way to redirect your money into a strategy where the income is not reportable on the 1040. I’m doing it. Yes, it’s legal. It’s been around for 100 years. Does that interest you? Do I am doing with my own money for me and my wife.

My wife works at a private school here in Baton Rouge. We’re blessed that she has a job in a fantastic school. She didn’t make a lot of money. I’m doing a SERP, Supplemental Employee Retirement Plan for her, so she does have a retirement. Do the same strategy, I’m not pumping in $500,000 a year like some of the ultra-wealthy are doing. What I’m doing is on a much smaller amount but it’s the same exact strategy. I encourage you to go to the website, SageMoneyRadio.com. You can send me an email from there, go back and listen to that Rebecca Walser episode. If you can go to Amazon.com and order her book, Wealth Unbroken. Hope you enjoyed the show. I’m not going to apologize for getting ramped up on the lunatic politics but it’s something we’ve got to deal with. God bless you. God bless the USA.

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