.The first chapter deals with increasing your income, and focuses on reducing tax liability. I am intimately familiar with the need to reduce taxes, but I never really connected the concept of reducing taxes with increasing income! What a simple concept! And something you can do right away! So how do you do that? By creating the types of income that are taxed less, such as passive and deferred income. I thought I had read all the advice by the financial gurus, but no book I have ever read really explained the difference between different types of income and how the income is taxed differently. I had no idea. I have been struggling with whether I should contribute the maximum to my 457 plan at work and this book has helped me see the contribution as non taxed deferred income, rather than a pre-tax retirement contribution, which sounds less like a benefit. So I am thinking that I am going to do it, because this year's tax situation was abysmal. If I had made 7K less, I would have gotten 13K back, but instead, I had to pay the feds!
Monday, April 28, 2008
Trump University and Asset Protection 101
I am currently reading Trump University Asset Protection 101 (Trump University) .The first chapter deals with increasing your income, and focuses on reducing tax liability. I am intimately familiar with the need to reduce taxes, but I never really connected the concept of reducing taxes with increasing income! What a simple concept! And something you can do right away! So how do you do that? By creating the types of income that are taxed less, such as passive and deferred income. I thought I had read all the advice by the financial gurus, but no book I have ever read really explained the difference between different types of income and how the income is taxed differently. I had no idea. I have been struggling with whether I should contribute the maximum to my 457 plan at work and this book has helped me see the contribution as non taxed deferred income, rather than a pre-tax retirement contribution, which sounds less like a benefit. So I am thinking that I am going to do it, because this year's tax situation was abysmal. If I had made 7K less, I would have gotten 13K back, but instead, I had to pay the feds!
.The first chapter deals with increasing your income, and focuses on reducing tax liability. I am intimately familiar with the need to reduce taxes, but I never really connected the concept of reducing taxes with increasing income! What a simple concept! And something you can do right away! So how do you do that? By creating the types of income that are taxed less, such as passive and deferred income. I thought I had read all the advice by the financial gurus, but no book I have ever read really explained the difference between different types of income and how the income is taxed differently. I had no idea. I have been struggling with whether I should contribute the maximum to my 457 plan at work and this book has helped me see the contribution as non taxed deferred income, rather than a pre-tax retirement contribution, which sounds less like a benefit. So I am thinking that I am going to do it, because this year's tax situation was abysmal. If I had made 7K less, I would have gotten 13K back, but instead, I had to pay the feds!
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