8 Tax Strategies Your CPA Won't Tell You - Part 2

And the first strategy that I specifically wanna talk about today that most CPAs are not talking about, in addition to the other eight that I've already provided, is simply when it comes to tax diversification.

This is one that we see very, very often and we see that people come into us and we often see that all of their investments are in tax-deferred vehicles.

We don't see they have many in Roth, we don't see too many tax-free options, mostly all and tax deferred.

And so I don't call this tax diversification because you have all of your eggs in one basket.

And we all know from an investment standpoint, that is not typically a good idea.

We probably don't want all of our money in gold.

We probably don't want all our money in Bitcoin.

And that's something you've been told over all your life.

And so that's the same concept we typically advise people at this stage, knowing they have their pension, all these tax deferred investments.

We know that that pension could also be considered that tax deferred because every payment that spits out is going to be taxed at your ordinary income rate.

So you're going to end up in a higher tax bracket later on.

You've probably been told all your life you'll be in a lower tax bracket.

And now I'm telling you probably in the same or even higher moving forward.

So we want to plan for that.

So a lot of our clients specifically like to have more of a balance between those buckets, specifically when it comes to tax deferred and tax free.

The other type of bucket you can have here is what's called a taxable bucket.

That would be taxed at capital gains.

If you have that vehicle, we're specifically going to talk about a couple other strategies here today that you could look to implement to save a lot on taxes.

But typically what a lot of people do is they want to take these two buckets and how do we make them more into tax-free options? And that may be contributing to a Roth IRA if we're still working and have earned income, Maybe it means contributing more to our Roth 401k if we have that ability.

There's ways that we can shovel money into these tax-free vehicles.

And one of the premier ways to implement this tax diversification for most people out there in this 2% club is what's called a Roth conversion.

Now, I've done other videos on Roth conversions that you can check out by clicking above or in the description below.

but that is where a lot of people find a lot of value.

And if implemented the right way, you can save thousands of dollars.

So if that's a new strategy to you, or maybe you haven't done that, check out those videos specifically on that.