Continuing our discussion about saving money on your taxes as an entrepreneur…
Let’s talk about one big vehicle for that.
You’re probably familiar with a 401k…
Everyone knows about those.
With a 401k your employees are limited to contibutions of about $19,500 a year.
However…
Business owners can put close to $60,000 each year into a 401k (or a SEP IRA).
That’s a huge chunk of money…
And you get to write that full $60,000 off on your taxes.
So not only are you saving money on your taxes this year…
But you’re also socking away $60k in an investment account to grow.
I know this is really basic stuff.
But…
You’d be shocked at the number of business owners who are NOT doing this.
I know one entrepreneur who refuses to do this…
And he just stuffs all his money into a savings account and gets a piddly .5% return on his money.
Dumb, dumb, dumb.
He’s missing a big tax deduction…
And missing out on the traditional 6-7% return he’d get by investing it.
I personally utilize my 401k and SEP IRA every year.
It’s the first account I put money in.
And I make sure I max it out.
So if you’re making good money…
And you’re not doing this already…
I suggest starting.
And once you do that, then you can move on to more advanced strategies like cash balance plans and captive insurance…
That’s a topic for another day…
But I suggest starting with the easy wins like this.
Simply max your 401k or your SEP-IRA out every year.
You’ll get a nice tax break…
And in 15, 20 or 30 years when you decide to retire, you’ll have a big chunk of money waiting for you.
Easy peasy.
That’s all I got for ya today…
Hope you’re enjoying these…
– Justin
P.S. – for those who have asked for an intro to my tax strategist, Jeff, I’ll give ya a little more info on him in an email tomorrow.
So if you’re interested in working with him, be on the lookout for that…
If you want to hear more from Justin, he has a private email list for top marketers, copywriters and business owners. To apply to be on the email list simply click the button below that says “apply now”.
