Latest / Earn Your Leisure / 12 Retirement Plans EXPOSED! | How to Use Family & Relationships to LEGALLY Lower Your Taxes

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12 Retirement Plans EXPOSED! | How to Use Family & Relationships to LEGALLY Lower Your Taxes · Earn Your Leisure

0:00
Speaker 1: Somebody had asked some questions about retirement planning. So it's
0:05
Speaker 1: end of the year, so I think it might be
0:06
Speaker 1: a good time to kind of go over that. Yeah,
0:09
Speaker 1: maybe we can go over the twelve different type of
0:11
Speaker 1: retirement plans for individuals and business owners quickly. So four
0:16
Speaker 1: one K plan is something that everybody probably is familiar with.
0:20
Speaker 1: That is for for profit businesses. You can actually contribute
0:22
Speaker 1: up to twenty three thousand dollars a year if you
0:25
Speaker 1: are an employee, an additional seventy five hundred dollars if
0:30
Speaker 1: you are over fifty, so that's thirty thousand, five hundred
0:34
Speaker 1: so benefit with the four one K you put money in,
0:37
Speaker 1: it lowers your taxable income, save money on taxes. You
0:40
Speaker 1: take it out when you're fifty nine and a half
0:42
Speaker 1: without avoiding a penalty. If you work in a school
0:46
Speaker 1: or a hospital, you might have what's called a full
0:49
Speaker 1: three B plan, same type, same type deal, same rules apply.
0:55
Speaker 1: But that is for the nonprofit world. But it still
0:59
Speaker 1: allows you to actually put money in. And then with
1:01
Speaker 1: the four one K plans and a four three B
1:03
Speaker 1: sometimes as well, they give you a rough option. We'll
1:06
Speaker 1: talk about that later, but four fifty seven plan is
1:09
Speaker 1: for government employees, so they're all in the force. I
1:12
Speaker 1: don't know why the IRS coded it like that, but
1:15
Speaker 1: the four one K for for profit, four three B
1:17
Speaker 1: for nonprofit, four fifty seven for government entities, and then
1:22
Speaker 1: the IRA is for individual people that want to put
1:26
Speaker 1: money away. If you have a business, or if you
1:28
Speaker 1: don't have a four on one K, you can open
1:30
Speaker 1: up an IRA. Anybody can open up an IRA. You
1:34
Speaker 1: can do it yourself. You can work with a financial advisor.
1:37
Speaker 1: You can put up to seven thousand dollars and that
1:39
Speaker 1: an additional eight and additional one thousand to bring into
1:43
Speaker 1: eight thousand if you're over fifty. And then you have
1:44
Speaker 1: a rough IRA option also which the rough you don't
1:48
Speaker 1: pay taxes and you take the money out, but you
1:50
Speaker 1: don't get a tax reduction when you put the money in. Now,
1:53
Speaker 1: for business owners, this is where it gets a little
1:57
Speaker 1: bit more complicated. Simple IRA allows you to put sixteen
2:03
Speaker 1: thousand dollars in and an additional thirty five hundred dollars
2:08
Speaker 1: if you're over fifty, but the employer must match an
2:11
Speaker 1: employee contribution dollar for dollar up to three percent. So
2:16
Speaker 1: as a business owner, you're number one, your number one
2:19
Speaker 1: thing is a business owner is how to save money, right,
2:22
Speaker 1: And one of the best ways to save money is
2:25
Speaker 1: to implement a retirement plan. And you kind of kill
2:27
Speaker 1: two birds with one stone because you're lowering your tax liability,
2:31
Speaker 1: but you're also putting yourself in a position to actually
2:34
Speaker 1: have more money down the line. Right. So it's like
2:37
Speaker 1: you can just buy a computer and that's the tax deduction,
2:42
Speaker 1: but you're not really getting that money back, right, Yeah,
2:46
Speaker 1: something that is beneficial for you. But when you put
2:48
Speaker 1: money into a retirement plan, that's like you're saving money
2:52
Speaker 1: as far as it's lowering it. And that's how when
2:54
Speaker 1: they say you're saving money, that's what that means. Right.
2:56
Speaker 1: It's lowering your tax liability, but you're also going to
3:00
Speaker 1: be getting that money back because it's money that's invested.
3:03
Speaker 1: So it's not like you just bought something. You actually
3:05
Speaker 1: you're investing the money as well. Right. Solo forur one
3:09
Speaker 1: K is like a four one K, but it's for
3:13
Speaker 1: an entrepreneur, so it's just one person, right, And then
3:16
Speaker 1: you have a pension plan to find benefit that's a
3:20
Speaker 1: little bit more complicated. Mike. You can split the screen
3:25
Speaker 1: and that allows you you can actually put up to
3:27
Speaker 1: two hundred and seventy thousand dollars in a pension plan.
3:32
Speaker 1: So that's obviously a lot more than a regular retirement account, right,
3:37
Speaker 1: and that's one of the benefits. Like you always say,
3:39
Speaker 1: the tax code was not made for employees. It was
3:43
Speaker 1: made for entrepreneurs and investors, right, So you see, Okay, Now,
3:49
Speaker 1: as an employee, the most you could put in is
3:50
Speaker 1: twenty three thousand with the four one K, But if
3:53
Speaker 1: you're a business owner, you can put depending on how
3:56
Speaker 1: your your business is set up, you can put up
3:57
Speaker 1: two hundred and seventy thousand dollars away that what ten times?
4:02
Speaker 1: That's like yeah, time difference profit sharing plan. You could
4:08
Speaker 1: put up the sixty six thousand dollars into that cash
4:12
Speaker 1: balance plan that's a little bit more complicated. There's not
4:15
Speaker 1: really a set amount that depends on how much money
4:17
Speaker 1: at your businesses actually bring in. Then you have the
4:20
Speaker 1: thrift Savings Plan which a lot of teachers have, that
4:24
Speaker 1: also better known as a TSP, and that's kind of
4:26
Speaker 1: like the four one K where you can put up
4:28
Speaker 1: the twenty three thousand dollars a year as well the results.
4:31
Speaker 1: Please consult with a tax advisor CPA to know your options.
4:38
Speaker 1: But a lot of times you're leaving money on the table,
4:41
Speaker 1: especially if you're a business owner, because you're not you
4:45
Speaker 1: might not even be aware that you can do a
4:46
Speaker 1: pension plan, right, and you think that okay, the most
4:49
Speaker 1: I can put it into a four one K, but
4:51
Speaker 1: you can, actually you can do a full one K
4:53
Speaker 1: and you can do a pension plan. So you might
4:55
Speaker 1: be putting away twenty three thousand dollars and you think, okay,
4:57
Speaker 1: that's great, but you you still might be paying three
5:01
Speaker 1: hundred thousand dollars in taxes. Well, if you put away
5:04
Speaker 1: another one hundred thousand dollars into a retirement plan, now
5:06
Speaker 1: that might cut your tax liability by eighty thousands. That's
5:10
Speaker 1: that makes a real difference, right, And for the regular employee,
5:14
Speaker 1: you might be funding your four one K at minimal levels. Right,
5:18
Speaker 1: This is a way to actually, you know, put more
5:21
Speaker 1: money into it. So vitally important when you talk about investing,
5:25
Speaker 1: because we talk about retail investing on the brokerage side
5:29
Speaker 1: most of the time, but there are other ways to
5:31
Speaker 1: invest and you can invest that money, and most of
5:35
Speaker 1: the time it's different funds. Sometimes they let you invest
5:38
Speaker 1: in individual stocks, but most of the time it's like
5:41
Speaker 1: different funds and index funds, etf stuff like that. But
5:45
Speaker 1: it's important because, like I said, that that makes a
5:47
Speaker 1: real difference as far as paying one hundred and fifty
5:50
Speaker 1: thousand dollars in taxes as opposed to paying fifty thousand
5:53
Speaker 1: dollars in taxes, right that one hundred thousand only not
5:56
Speaker 1: only are you saving one hundred thousand, but the opportunity
5:59
Speaker 1: cost that one hundred thousand could potentially grow into a million.
6:03
Speaker 1: So you actually lost a million dollars by not taking
6:05
Speaker 1: advantage of something that is here, is designed for you.
6:09
Speaker 1: But you know, like I said, it's kind of complicated.
6:11
Speaker 1: You have like twelve different options, right, so if you're
6:14
Speaker 1: not educated and your CPA is not educated, then you
6:18
Speaker 1: might not even be fully taken advantage of ways to
6:21
Speaker 1: max out your retirement to save money on your taxes.
6:28
Speaker 2: It's a great list value from the highest level and
6:30
Speaker 2: from a celebrity.
6:36
Speaker 3: Celebrities, twelve ways them up sound like you do this
6:41
Speaker 3: for a living.
6:43
Speaker 1: It was a great list. And the way inflation is going.
6:46
Speaker 2: I mean, I know that the accident used to be, hey,
6:48
Speaker 2: build a business, that's the best way to wealth. But
6:50
Speaker 2: It's like you have to invest the money inside of
6:51
Speaker 2: the business to help grow because the way inflation is going,
6:55
Speaker 2: you don't know what the market is going to be
6:57
Speaker 2: like in fifteen years. Like imagine being an entrepreneur and
7:00
Speaker 2: two thousand and eight, twenty ten and seeing these valuations
7:05
Speaker 2: and home prices score up and commercial building score up.
7:07
Speaker 2: Like if you're not having that money work for you,
7:09
Speaker 2: lord forbid, if the business goes under, at least you'll
7:11
Speaker 2: still be making some money from the returns you should
7:13
Speaker 2: gettingut of one of these plans.
7:15
Speaker 1: That's a fact.
7:16
Speaker 3: Fact, That's it. I mean, obviously I'm being frocegious. You
7:21
Speaker 3: obviously did this for a living. I want it now,
7:23
Speaker 3: like as you were speaking, based on technology, based on
7:27
Speaker 3: the way the world the landscape is. Now, what are
7:30
Speaker 3: the biggest differences you see in financial plan and financial
7:33
Speaker 3: advising from the day you started to present day.
7:39
Speaker 1: I'm not in this space anymore, so I'm not really
7:42
Speaker 1: sure as far as like the day to day, but
7:43
Speaker 1: I know technology has definitely changed everything as far as uh,
7:49
Speaker 1: you know, when I came in, it was paperwork, you know,
7:52
Speaker 1: like glasses amounts of paper, and now a lot of
7:55
Speaker 1: a lot of that has been changed and so everything
7:57
Speaker 1: is online, even how they keep your records one And
8:00
Speaker 1: that's one of the things where I like the blockchain,
8:02
Speaker 1: Like that's how I understood blockchain early, and I understood
8:05
Speaker 1: like how it was going. Everybody kept talking about blockchain
8:07
Speaker 1: as far as cryptocurrency, but blockchain, what is going through
8:10
Speaker 1: to the once again, the healthcare industry is going to
8:14
Speaker 1: be phenomenal because it's like you know, when we used
8:17
Speaker 1: to auder medical records for somebody that won the life insurance.
8:20
Speaker 1: So if you want a life insurance, you have to
8:21
Speaker 1: fill the application, but then we have to nine times
8:23
Speaker 1: out of time, we have to audito medical records, which
8:25
Speaker 1: we call the APS attending physician statement. Now this is us.
8:30
Speaker 1: Actually the insurance company is reaching out to the hospital
8:34
Speaker 1: or the doctor saying can you give us records? Right,
8:37
Speaker 1: and then they give them the records and then they
8:39
Speaker 1: have to review the records. I've seen it take up
8:42
Speaker 1: to eight months. The secretary is just incompetent. They don't
8:49
Speaker 1: get back. And this is the physical process of they
8:52
Speaker 1: have to facts or email paperwork, but in the doctor's
8:57
Speaker 1: office they have thousands of paper This is unthing I've
9:00
Speaker 1: seen with my own eyes. So I understand, like, all right,
9:03
Speaker 1: once this and it's going to take a long time
9:06
Speaker 1: to get fully digitalized, but it's going to get digitalized
9:08
Speaker 1: at some point in time. So at one point, at
9:11
Speaker 1: some point in time, all of these medical records are
9:14
Speaker 1: going to be on the blockchain and it's going to
9:16
Speaker 1: take a minute. It's going to say, Okay, he had
9:19
Speaker 1: an EKG in February. I'm not I even got to
9:23
Speaker 1: call nobody. It's going to be all in the system.
9:26
Speaker 1: A database is the insurance company is gonna have a
9:28
Speaker 1: system with all of the hospitals. They're going to put
9:30
Speaker 1: the code in and they're going to send it and
9:32
Speaker 1: then they're gonna send it back. Little stuff like that
9:35
Speaker 1: saves so much money, becomes more efficient, it's everything, so
9:40
Speaker 1: it all ties in. So that's one of the things
9:44
Speaker 1: that I just I even knew back then, like this
9:46
Speaker 1: is going to change everything once they really can get
9:48
Speaker 1: this done on a more efficient level. As far as technology, then,
9:51
Speaker 1: of course, robo advisors. I don't think robo advisors has
9:54
Speaker 1: taken off the way that people have planned. Yeah, but
9:59
Speaker 1: who knows that might be something in the future. As
10:01
Speaker 1: well as far as you know, people fully relying on
10:06
Speaker 1: AI to be their financial advisor as opposed to a
10:10
Speaker 1: person I don't like I said, it's not there yet.
10:12
Speaker 1: You still need a human touch. But as they're getting
10:17
Speaker 1: better with artificial intelligence, that might be something to look
10:21
Speaker 1: out for for sure.
10:22
Speaker 3: Is that one of those career paths where we look
10:25
Speaker 3: at it fast forward to the future when we talk
10:28
Speaker 3: about AI and general AI, at least some of those
10:32
Speaker 3: career paths that you could see being ident to replaced,
10:35
Speaker 3: right because the access to information is there even now,
10:38
Speaker 3: like a lot of people are getting access to the information.
10:42
Speaker 3: Technology is going to streamline it as well. How much
10:46
Speaker 3: of in the future you think the human touch is
10:47
Speaker 3: going to be needed in that space.
10:49
Speaker 1: I think it's still needed. Even if you look at taxes, right,
10:53
Speaker 1: I mean, theoretically you can probably send all your information
10:56
Speaker 1: to AI right now and AI could do your taxes.
11:00
Speaker 1: Me personally, I would still want a human I still
11:06
Speaker 1: need to talk to somebody, explain things to them, tell
11:08
Speaker 1: them like yo, this is no, this was this, this
11:11
Speaker 1: was that so. But I do think that humans need
11:16
Speaker 1: to utilize AI. So if you're a CPA, if you're
11:19
Speaker 1: a financial advisor, you should be utilizing the technology as
11:23
Speaker 1: it's what everybody keeps saying, like a lot of the
11:25
Speaker 1: things is not necessarily going to totally replace somebody, but
11:29
Speaker 1: it will replace. Like if you have an assistant that
11:34
Speaker 1: might not be needed, but that's actually could be beneficial
11:37
Speaker 1: to you because you don't have to pay an assistant anymore.
11:40
Speaker 1: So thank the lord from a financial standpoint to help you.
11:45
Speaker 1: So like I don't feel like it's I think it's
11:48
Speaker 1: it's especially for wealthy people. I think the wealthy people,
11:52
Speaker 1: if you got you got one hundred million dollars.
11:55
Speaker 2: You still you're not hitting give my doubt, manage the
11:59
Speaker 2: family off.
12:00
Speaker 1: I'm sorry for like a lawyer, right, Like, yeah, if
12:03
Speaker 1: you got a public defender, you might just want to
12:06
Speaker 1: take your chances with a robot at that point. But
12:10
Speaker 1: if you got one hundred million, you still might. Now,
12:13
Speaker 1: the lawyers need to be working with AI to make
12:16
Speaker 1: sure that they get all of the data collective. But
12:20
Speaker 1: I still think that that personal, that personal interaction needed.
12:24
Speaker 1: But like I said, you should definitely be working with
12:26
Speaker 1: somebody because you know, I got audited it before, and
12:29
Speaker 1: that's because years ago I tried to do my own taxes.
12:32
Speaker 1: This is like probably seventeen years ago. I did turbo tax,
12:35
Speaker 1: so I learned the valuable lesson trying to save money.
12:37
Speaker 1: You end up, you know, going you end up costing
12:40
Speaker 1: more money. So I never I never used turbo tax.
12:43
Speaker 1: Of again, shot of Turbo had nothing against them. But
12:47
Speaker 1: you want to use a professional. That's my whole thing
12:50
Speaker 1: in life, Like if I want to put a painting up,
12:54
Speaker 1: I'm not qualified to put a painting up, right. You
12:57
Speaker 1: might think you are until it's crook it and then
12:59
Speaker 1: you drilled the whole in the wall. Now you've got
13:01
Speaker 1: to drill another hole in the wall, and you think,
13:03
Speaker 1: what's the big what's the worst that can happen? It's
13:05
Speaker 1: just a painting until you take you that's a fact.
13:12
Speaker 1: That's a change order. I'm a big proponent and paying
13:20
Speaker 1: professional to services. I have no problem with doing that.
13:28
Speaker 1: But yeah, shout to everybody out there that's an entrepreneur.
13:30
Speaker 1: Make sure that you know you're making them mostly your situation,
13:34
Speaker 1: because the government's gonna get their money, but they're always
13:38
Speaker 1: to limit, they're always to limit the amount of money
13:42
Speaker 1: that you're paying legally, legally, keep working.
13:49
Speaker 2: But oh no, as far as a debate too, I
13:54
Speaker 2: think it's gonna be a battle between the subpart and supreme.
13:57
Speaker 2: Those who are supreme at doing their job, they're always
14:00
Speaker 2: be spaced for you.
14:00
Speaker 1: But if you're a subpar.
14:03
Speaker 2: Even since Chad GPT came out, like I've talked about
14:06
Speaker 2: this before, man like I've been able to replace at
14:09
Speaker 2: least eight people, and then I don't have the complaints
14:13
Speaker 2: about the retired or have too much down Julio the
14:15
Speaker 2: night before, great good old chat GBT and mid Jerdey
14:18
Speaker 2: gonna be right there.
14:22
Speaker 1: Thank you, don Julio. This is a message brought to
14:26
Speaker 1: you by education finally fvitally important and that you don't
14:30
Speaker 1: you don't you know you're never gonna learn that in school.
14:33
Speaker 1: So that's, you know, one of these things you gotta
14:35
Speaker 1: learn on your own, right. They're not gonna teach you
14:36
Speaker 1: retirement planning in school. So it's like it's one thing
14:41
Speaker 1: to become a business owner, they're not gonna teach you that,
14:43
Speaker 1: But it's another thing. How do you maintain your wealth?
14:46
Speaker 1: How do you maintain it, how do you save it?
14:48
Speaker 1: How do you grow it harder? Art, These are all
14:51
Speaker 1: things that you gotta even shock I heard he was saying, like,
14:53
Speaker 1: you know, I picked up a gym from him when
14:55
Speaker 1: he was like, I'm not just gonna pay my mom.
14:58
Speaker 1: I put on payroll. If I'm gonna give you, If
15:01
Speaker 1: I'm gonna give my mom money anyway, why not just
15:03
Speaker 1: give her a job? Right? And there's plenty of job
15:06
Speaker 1: that you can give your mom. But so many people
15:09
Speaker 1: like we just see rappers and it's not therefore they're uneducated.
15:13
Speaker 1: Like you see you ever see these videos with raptors
15:15
Speaker 1: give their like their mom, like fifty thousand dollars in
15:17
Speaker 1: cash or ten thousand dollars in cash for their birthday
15:22
Speaker 1: or even the girl they do that the top they
15:23
Speaker 1: do it. I see like girls on Instagram they get
15:25
Speaker 1: like they get like money, like this amount of money
15:27
Speaker 1: in like a burken bag and it's like happy birthday, babe.
15:31
Speaker 1: I'm like, all right, if I'm gonna give you the money,
15:33
Speaker 1: if we're talking every day, why don't you be a
15:35
Speaker 1: consultant for me? Right? For real? Why don't you be
15:39
Speaker 1: on payroll? And now you'll help me because the money
15:43
Speaker 1: that I'm paying you is tax deductible, But I also
15:46
Speaker 1: help you as well, because yeah, you do have to
15:48
Speaker 1: pay money on the taxes, but at least you can
15:49
Speaker 1: have some income that you can show when you need
15:52
Speaker 1: to buy a car, when you need to buy a
15:54
Speaker 1: home right now, as opposed to you just having no
15:56
Speaker 1: money to show at all. Now at the very least,
15:59
Speaker 1: if if we're in a relationship and I am going
16:02
Speaker 1: to give you money, well why not, let's let's do
16:05
Speaker 1: it that way, as opposed to it looks good on Instagram.
16:11
Speaker 1: But that's that's the issue. AFT the thousand is not
16:13
Speaker 1: something I'm ever going to get it back.
16:15
Speaker 3: You just brought up a great point inside of and
16:17
Speaker 3: I know that's something we had conversations about the past
16:19
Speaker 3: where it was like, yeah, as an entrepreneur, I can
16:22
Speaker 3: write things off. I can write things off. But as
16:24
Speaker 3: you're doing that, you're also bringing it down your income level.
16:26
Speaker 1: Right.
16:27
Speaker 3: So if you wrote everything off and now you have
16:29
Speaker 3: twenty thousand that you said that you've made this year,
16:31
Speaker 3: well yeah, you try to go buy that house, to
16:34
Speaker 3: go buy something, you know you only make twenty thousand, right, Yeah,
16:37
Speaker 3: And so you gotta be you gotta be mindful of
16:39
Speaker 3: jesusision that you make.
16:41
Speaker 2: Fellas if hit I feel like love let her go.
16:45
Speaker 3: But I heard them on Market Money say you should
16:48
Speaker 3: put me on salary.
16:49
Speaker 2: Girl back in them back soon as a part of
16:52
Speaker 2: our social media job.
16:53
Speaker 1: Also, motherfucker going back to the education process though, Like
17:03
Speaker 1: you know what I'm saying, Like you've got a vat
17:05
Speaker 1: if you we talked about women following men, right, Well,
17:09
Speaker 1: if you're not a leader, you can't be followed. So
17:13
Speaker 1: if you want to be following, if you want to
17:14
Speaker 1: be a leader, it's up to you to be an
17:17
Speaker 1: educator as well. Right, Like, let me sit down an
17:20
Speaker 1: educate you. I'm gonna educate you on why signing is
17:23
Speaker 1: W nine is important and it's nd A W not
17:27
Speaker 1: India together w nd A PLA sign both know what Where.
17:35
Speaker 3: We are we at dinner as we're saying this, like
17:37
Speaker 3: or just like big fact car, Like I want to
17:42
Speaker 3: make sure in the future that even if I'm not here,
17:45
Speaker 3: you're good.
17:49
Speaker 1: I'm doping, but it's real, it's real.
17:51
Speaker 3: I'm just saying, at what point, maybe this is like
17:54
Speaker 3: a black but like, at what point do we say,
17:55
Speaker 3: like yo, you know, just.
17:56
Speaker 1: I want to talk about this paperworker. It's not paperwork
17:59
Speaker 1: like you like he said, like, I mean, it is secure,
18:03
Speaker 1: it's financial security. It is you're getting put on payroll.
18:07
Speaker 1: Who wouldn't want to be put on payroll. Facts. Half
18:11
Speaker 1: these dudes ain't even paying for they nailed. But the
18:13
Speaker 1: girls nails. That's tricky, like with real jail looking crazy
18:18
Speaker 1: on their fingers, y'all.
18:19
Speaker 3: They just they're just throwing the bread right like you said,
18:21
Speaker 3: Like I'm putting fifty thousand dollars in the bag, and
18:23
Speaker 3: it's like.
18:23
Speaker 1: Well, it's not tricking if you got And half the
18:25
Speaker 1: time they're taking the money back after the cattle go off.
18:28
Speaker 1: That's true too, that's true too, your love.
18:32
Speaker 3: And when you see that paper inside the car, don't
18:34
Speaker 3: ask no questions.
18:36
Speaker 1: Yeah, just sign this, bring the food out for the drinks.
18:41
Speaker 1: What's that the check? Now? No?
18:42
Speaker 3: No, Now you see that sticker that says signed here.
18:44
Speaker 1: The NDA, the NDA player both both that's the seat
18:48
Speaker 1: throw on me and more both got right, both on them.
18:52
Speaker 1: That's some free game for y'all. Y'all, do what y'all
18:54
Speaker 1: want with it.