89: Our Favorite Tax-Saving Strategies for 2024
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Heavy one in welcome back to the rich habits podcast, a top ten business podcast on spotify. My name is Austin hankins, and i'm joined by my co host, Robert croke. Robert is a seasoned entrepreneur in his fifties with lifetime revenues over three hundred hundred million in every entrepreneur in my late twenties with the background and finance economics.

Since quitting my full time job in corporate finance a few years ago, i've built a seven figure media business and actively advice some of the most well known vinter companies around the world, as the show name might suggest, every episode we talk about rich habits as they relate to business finance. In mindset, however, we try to bring you two unique perspectives, one from an industry veteran, which is Robert, and then the other myself, someone who is. So the process of building wealth and figuring IT all out. So Robert, what are we going to be .

talking about in today's episode? I'm so excited about today's episode, but i'm a little upset that you had to lead us in with top ten business podcast. Everyone share the episode.

You've GTA keep us in the top five. We need our help. We put all this work in all this value to make all of you become financially free.

So help us stay in the top five. And we would love to see there. okay. So in two days episode, after my mini rant of the habits podcast, we're going to be sharing six of our favorite tax saving strategies for twenty twenty four. And I know six might sound a lot, but we will rapid fire and get through these because they're very important and we want all of you to take advantage of them.

So considering we only have two months left in the year, we're hoping some of these strategies can serve as some last minute ideas for you all, allowing you to save thousands of dollars, if not tens of thousands dollars, on your tax bill come April of next year. And if you're anything like me, come october. Robert, this episode.

so much fun, right? These tax strategies will help lower your tax bill if you're A A W two employee, if you're a side, your false time entrepreneurs somewhere in the middle like these are tons of ideas that anyone can implement that are really to move the needle for years. So let's start with a first strategy.

Number one, tax loss harvesting. This is a strategy we've talked about a nadia in the past, specifically when we spoke to the CEO of redox com about the automation of IT. But simply put, this is a taxi strategy that involves selling your stock at a loss to offset capital gains that are realized from other investments.

Here's how IT works. So let's say that, like me, you've been dollar cost averaging into big coins since the beginning at twenty twenty three. And now europe big on your investment.

Let's pretend you sold that bit coin for a twenty thousand dollar capital gain and you realize that profit you sold IT. You now have twenty thousand dollars more in this account than you started with. You can offset some of that twenty thousand dollars profit with losses that you also incurred during the same calendar year. So for example, I know super micro computer stock is getting crushed right now because of all the fraud going on. It's down seventy five percent since the recent all time high.

So if you got in the crossfire of that, you could sell your sc eye ck for a, for example, potential loss of would say, like five thousand dollars, which means you can use that five thousand dollar loss that you occurred over here to offset a twenty thousand dollar gain that you incurred over there, right? So you made twenty thousand with bitcoin, your last five thousand with S M. C.

I. And when you kind of twenty thousand minus five thousand, you really now only o taxes on the fifteen. Now it's really important about this. Is the timing right? This only during the same calendar year. So if you solved your S, M, C, I stock january a second of next year, you wouldn't be able to use that loss to offset the gain incurred in twenty twenty force and make sure you have those timings figured out for the same calendar year. And I protists .

that I want to add to this, and that was a great breakdown, is that if you don't have capital gains to offset, you can still sell up to three thousand dollars of your losing stock and use those losses to offset your up taxi ble income. So that's a little protists that a lot of people don't know about that I wanted to get in there, but that is a great breakdown. So let's go in to number two.

And that is health savings accounts, and they are triple tax advantage. And this is essentially a savings account you create. But the money you spend out of IT has to be specifically used on medical expenses, think prescription mads medicines, copays and other medical expenses.

Now a few things to remember that are very important here, as you can only contribute to an h. sa. If you're participating in a high deductible health plant.

There are specific limits on what qualifies is that. So make sure you do the research there. But most people do qualify. Next, you can only contribute forty, one hundred and fifty dollars per year towards the account in the year of twenty twenty four as an individual and eighty three hundred as a. Now the cool thing is this boring one hundred and fifty dollar contribution is tax deductable, which means if your effective tax rate is twenty five percent, like me, you're immediately saving one thousand and thirty seven dollars on your taxes for literally saving money for those inevitable health expenses. I love this plan, and it's just there's so many.

Now let's talk about that triple tax advantage, a rubber just laid up the first tax advantage, which means that you contribute this forty one fifty into the account. You get to write that off your taxable incomes. That's number one.

The second way is, once this money is in your essay, you can now invest those contributions into the S M. P. Five hundred, having a grow tax free over time, right? Say you're my age, you don't really have that many medical expenses.

I don't have any prescriptions. I know you not really spend that much on medical, but I could still be investing this four thousand a year. Markets up fifty five, sixty five percent over last two years.

Robert, I mean, let's call IT three thousand dollars so far of profits that I would have realized in this ha that three thousand of profits are tax free, and they stay tax free, assuming I spend the profits on medical expenses. So that is the three ways that the ha is triple tax advice. Ge, the contributions, the growth and the spending are all tax advantage.

Now here's the best part robbert. For people that are below the age of sixty five, they have to spend these profits in the contributions into this aga on those medical expenses. But over the age of sixty five, this turns into essentially a traditional I R A.

You can take the money out and spend IT any which way you want. You would do have to pay the taxes on those with draws like you do with another traditional I R A. So the hc, if used correctly, triple tax advantage is one of our favorites.

I love IT. Yeah, I don't think it's talked about enough. That's why i'm so excited about this episode. You know we've been preaching to the mountain types is not what you make, is what you keep. And these strategies are exactly those little hacks that we talk about to our audience to really help them keep more their money and pay their share attaches, but do IT the right way.

Now our third point is that is kind of new to me, maybe not new to robbery, but it's a really interesting one and that is donating your stock joining us to help break down this topic of Steve let them, the C E O of donors c 点 com。 It's a really, really interesting take saving strategy. So let's jump in and see what he has to say.

Super, super excited that Steve is jining us for the section of the episode. So this just jump right in the first. And for most, what is stock gifting and how does IT impact someone's taxable income?

IT is, as this sounds, it's not appreciated shares directly to and our profit organza could be charity, hospital, school, community organza community oundle any five, one, three, three if you donate, appreciate to stock the significant tax benefits and any more impact given a larger pretext gift.

And so just run the same page. You keep saying appreciated stocks, we'd say, for example, I took ten thousand dollars two years ago. I bought in video stock with IT and now it's worth two hundred thousand dollars, right? So my cost spaces of cash out of pocket is ten thousand dollars, but is now worth two hundred thousand. And my broken account, you're saying I could take that two hundred thousand dollar, the value of stock gifted to a nonprofit five once c three organization, and write off that two hundred thousand dollars .

against my taxes all income yeah, it's effectively allows you donate that stocks. So if you behind IT for more than two thousand months, you can deduct the miser deduction to full two hundred thousand thousand. In that case, in that hundred and one thousand other game, if you would sold the stock and then give the cash, you're going to get hit with the capital against tax.

Depend on where you live and how much money you make. I can wear from eighteen point eight to thirty five percent. So IT also produces them out that you can then deduct.

So you, if that will say, just run at two two hundred thousand dollars and says at twenty five percent tax, fifty k would come off the top to cabal gains. Instead of paying that taxes, you can give that directly to the unprofiting entire mouth. They are tax to exams, so they don't pay tax on IT.

So they get a larger pretax gift. You avoid the couple gains tax and then you get to write off the full fare market die. Today's value a regards what you paid for you.

So let's break down the tax benefits of this gifting. You know, who does this? What are the benefits to them? Because to me, that sounds a little bit confusing. If I made one hundred and ninety thousand dollars on the video and I had a ten thousand million cost spaces, do I want to give IT all away and I donating all of IT to avoid taxes, and I do in a portion of IT just offset my earnings for the year? Walk us through in the listeners through this so they understand that part of IT of the tax benefits .

well starts with at how much you are allowed to deduct. So the irs logy to deduct about thirty percent of you adjust a growth income as a no cash deduction. So if you will say your income for the year get a great year to say you may turn one thousand dollars, you could in theory, donate up to sixty thousand dollars in stock and deduct that from your first income, taxable income.

So you want to start there with how much to give in? The question is, how much invidia do you? If you own two million yet one hundred thousand is probably in a reason that all you, you may not want to give all that way. Course can do you minimum.

But I really boils down to how much do you want to donate an aggregate to qualify for your agi? But then secondly, how much of your stock you want to give away if you want to? Harder some games now and and take some off the top and reduce your concentration is the captain is an amazing tool for that.

Because tax for your way, otherwise, if you sell the stock, you're going to get here with some pretty big taxes, especially you on NVIDIA. Lilly met us in these other high fliers last few years. I spent the really amazing time to be in the markets, great for investors and it's great for our profits that are out there introducing us to donors to say, hey, why did you share your gains? But that aligning your financial objectives with your phone tropic objectives, you save more when you give in a smarter way.

I love IT and I talk about and all the time, it's not what you make, its what you keep and I think donates stock. That com really kind of fits right in that thesis for me and what I preach on my side of the world here.

And so Walker listeners, through the platform, how did you get here? What was the cause of creation of IT? And why aren't everybody doing this and making IT easier for people to be able to donate and utilize these tax strategies?

It's the million other question, the billion other question really, because I can went around for decades. It's been very intelligent, aggressively used by the wealth est households, often with the help of their financial advisors. And blood is generally stayed one of the best keep secrets and personal finance, because most people just are not aware the benefits.

When someone told me fifteen years ago, a friend of mine who's an advisor told me about IT at that wall, why I write in checks when I own stocks that's appreciate this kind of stupid. And then I went to the process, I make a stock gifts to, took me about three days, several IT was such a hassle, I just wasn't worth the effort. And so I was like, okay, I get at this beneficial is just too much hassle, can be rather red.

Twenty, twenty, I was thinking about was doing the pandemic, and everyone is taking, how can we help the world? And I thought about my experience back in stock, getting back in those thirteen years prior to that, or whatever there was one thirteen years prior. And I realized when to solve the problem with still was archaic, painstakingly cess.

So that was really the inspiration to start when I stock at initially, if the kind of just a project and then IT evolved actually into a commercial entity. And something now that we're really excited about to the mission of transformer chat will given in over time, given that two thirds of americans now own stock, if you build in the market more than a few years, five years, ten years, you're sit on significant gains. It's just it's certain that should be in everybody's article as ways that there giving smarter saving on taxes leave you more money to invest more money to enjoy your life.

You can give generously without eating your pocket book to ards. So it's a great way, is a great tool for everybody. So we're trying to one make people aware to make IT easy. And that's really that to cut of primary objectives of doni stock.

That's so cool, men. And I just look at the website right now and IT says five simple steps, right? You guys do all the back and work is a really to donating like the donor, like myself, a robbert.

In this instance, we just have to go in fighting on profit we like and then send them the stock. Talk a little bit just a quick now as we wrap things up about what if someone is looking to donate to a five or once a three that might not be listed on the sider. IT was a very well known non profit and someone still units, lesser known non profit organization. And there may be a local small community.

So we actually have one point five million unprofitable ages on our site. So if there are five ones, three in good standing with the for us, we have a page for them. We can actually donate to them.

Even if we don't know them, we will actually process the gift. We'll a stock well, what they don't know, your stocks received IT was sold, cares your receipt and then we send the cash to our profit. So if we don't know them, we can still get the cash to them. And that's actually how probably half of our twenty three, twenty four hundred customers, no profits actually come to us because someone made a gift to them. And that's how we got started.

That's so cool. Congratulations on building out the spot form and two or listers there. A ton of you who are sitting on perhaps of thousands of dollars of capital gains, maybe that's an tax advantage account or not. But if you want to consider lowering a tax bill and making a nice chat, donde a non profit of that you aligned with, and maybe do that through donate.

sock com could give a couple data points to, there might be of interest to the audience. So when IT doesn't be a bit gift, average gift is about five thousand, but arranges everywhere from two hundred dollars to several million dollars, really depends on, you know who you are, where you are, what you have. Historically, eighty plus percent of dollars have been jenks and older.

But we're seeing more and more Younger doctors who they may not have the net dollars, say that be the parents to blood. They're sharing their gains. It's great way, say I got lucky a bottle stock. It's up ten x, i'm going to give some of that to you and it's a very fun, easy, benevolent way to unlock generosity sixty percent the dog gist. I'll take place in december as when people do their tax planning and their tax lots harvest in which you guys have covered and all the other tax advanced rateable es take place, stock getting should be part of your arms.

Very cool, Steve. And yeah in right early november now as people listen to this so shock clock is there. You got two good months.

If you want to make a cool donation, check out, donate to come and can wait a heavy back of more about this maybe in twenty twenty five saa hour. Thanks, Steve. That conversation was super insight ful robbert.

I flic, every time we bring guests onto the show, I get to learn something. But I get to now take what I learned and implement at myself into my own tax saving strategy. So I was super .

pumped about that. Yeah, I think IT goes along really well with everything that we do here in the rich habits. Ts podcast and the rich habitat is uncovering those nuggets, as we say, of just new ways to not only make more money and make more gains and invest Better, but also be able to have really good tax strategy.

So i'm really excited for people to read up and listen on this because I learned a bunch myself. And as a high network guy, I can really utilize these as well as possible. So i'm really excited about IT.

Let's jump into strategy number four, maxing your retirement contributions. So if you're A W two employee, which means you get a paycheck, you work nine to five at your own salary. We all know that contributing to your four one k work is a tax deduction against your earned income, right? We've all that.

We've been doing that for a while and went something you want to do, be our guest. But if you're an entrepreneur, Robert or myself, then knowing how to take advantage of the special retirement accounts only provided to entrepreneurs is a really smart thing to do. So you can actually contribute up to sixty nine thousand dollars to a solo four one k in the calendar year of twenty twenty four as an entrepreneur.

And at a twenty five percent effective tax rate that I pay, that is seventeen thousand two hundred fifty dollars in tax savings. Literally, I paid eighty six thousand dollars in taxes back on twenty twenty three income. And so if I wanted to theoretically ally now, I could contribute to sixty nine thousand and two thousand and twenty four to this account, and that seventeen thousand two fifty would offsets against that eighty six, right? Bringing that eighty six down to like seventy grand, right?

That's a lot of tax savings, if you ask me. And the best part is this is money that you're investing. It's not money you're spending on a appreciating asset like a car or something crazy like that.

This is money being invested into the stock market. Insane goes for the sepi ray, but there are some other stipulations that surround that. So be sure to consult with professional when IT comes to these would retirement accounts. So when to get yourself in trouble here by contributing too much to this account and not enough one or what I go with your income so difficult, consult the professional. My professionals are over at Carry dot com C A R R Y doc M. I paid to be one of their VIP clients, and it's only a couple hundred dollars a year, but Caroline sits down with me in a once a court virtual, and we get to go through all the strategies in the planning there. So Carry docomo is a really cool resource for people wanting to learn about these entrepreneur specific retirement accounts.

I love this break down. And I think it's very important because you're always talking to the audience in reminding them that we like active management. We'd like to see people keeping an eye on the ball.

And I think tax strategies are part of that in your personal growth towards financial freedom. And I love this, and there's just so many ways to do this. There's the sep array. There's a solar foro one k there's just so many different ways.

And just make sure you study up a again, like Austin said, so you make the right contributions, you get IT right and you really take advantage of these plans because they are there for the taking there, there for you to use and maximize your tax, you know, deductions each and every year. I'm really excited about that. And let's go on to our next point.

And it's one of my favorites, and I think it's overlooked too much. And that is point number five, the home office deduction. You can work from home on your job, your site user, and you might as well act like IT in.

So many people don't do that. So for someone who does work from home, you can write off a portion to be your at home expenses that directly tie to your day to day work. Think about the expenses that go into maintaining your home office in a simplified way.

To do this is to. The square footage of your home office and multiply that by five dollars. And that is the amount of money you can duct from your taxable income for that homeless expense. So what you would do is you could take up to three hundred square fee, and that would cap you at a fifteen hundred dollar per year deduction.

However, if you want to drill into the details, make sure you can sort with a professional, take a look at what you can do with other expenses, a portion of your internet office equipment expenses, memorializing that side hostel into another sea and migrating your cell phone over to the L. L. C. And having a business account so you can write off the portion of the cell phone bill as well. So just always keep an eye on these home office expenses because they can really add up to ten fifteen thousand dollars a year if you play right and you know what you can legally deduct based on your current situation in back .

to this idea of like being capped with the simplified calculation of fifty hundred hours a year. One, if you have a side out, you're just kind of doing IT from home where you work from home. I guess best way to go about IT, a super simple cuttings dry.

But again, if you have the autonomy to hire a professional cpa that can come in and really help you navigate this right to Robert ts point, you could write off thousands, if not more than ten thousand dollars, depending on how larger, what kind of Operation you have going on. But even if it's just the fifty one hundred dollars, I mean, again, at this effective tax rate of twenty five percent, I mean that's nearly four hundred dollars of tax savings. I can think of a ton of different things I can go spend four hundred dollars on to go build my business, to go enjoy a vacation like whatever is going on. Heck, invest in the roth I R A, right? Just make sure that you're taking advantage of these specific tax saving strategies no matter where you are as A W two employee aside hustler or a full time entrepreneurs.

Robert in myself, yeah, I think that's a great point to make, Austin. And I think one of the top things that i'd like to get out there is a message is so many people that are new to money in building wealth, maybe it's their first company. They got their site, also their w two job.

They always look at the IOS as the devil, the bagga, and actually that's just not the case. The reason wealthy people in the ult rich don't mind and actually enjoy the IOS rules is because they are there for us to use them to our advantage, because they want us investing our money. IT is the playbook for you to use. So don't look at the arrest in the tax man as a bad thing. Look at IT as a playbook for you to build wealth within the framework.

I love that perspective. robbert. In speaking of playbooks, I think this is the easiest play that anyone can do to save on taxes in the entire tax saving playbook out there, which is to adjust your federal withholdings at your employer.

Here's what's going on. Let's say that you are on salary. You're making an eighty and ninety hundred and hundred twenty thousand dollars a year. Well, every single time you get that paycheck, that direct deposit to your checking account, you're employer withholds some of your taxes right on your behalf so that whatever the taxman comes knocking, they just have that to give to the federal government.

Now the mistakes some people make is they allow their employer to without too much money during every single pass cycle, which means if you're someone who's getting a one thousand, two thousand, three thousand dollars a refund check in April every single year, too much of your money is being withheld in these accounts. So here's how to solve that. You go to your H.

R. department. You go to whoever you can talk to about your payroll at your employer and say, hey, I wanted bring my with holdings down by one hundred dollars a month, two hundred dollars a month, three hundred dollars a month, depending on how much of a refund you got during the prior year.

Now you get a two thousand dollar refund in everything stays the same during the calendar year of twenty twenty four years I did for twenty twenty three and you got a two thousand refund and twenty three, you trying to figure twenty four or well, that means your employer is probably still withholding that extra two thousand from you. You deserve that money, right? This isn't a loan you want to give to anybody that give this loan to the government every year.

You need to take that two thousand and invested in the Marks market that drop twenty five percent this year. Robert, imagine if someone had invested that money instead of letting IT sit idle with the government. So go talk to your payroll advisor. Go talk to the person in the human resources department about adJusting your withholdings every single pay period, allowing you to really utilize more of your hard earned money.

With tens of thousands of people each and every week following along and listening these episodes and hopeful ly taking notes and taking action, it's just game changing, these little nuggets that gives me goose bumps because you think about every single week we're putting value out there of things that most people may not know because they have an experienced to yet.

So I just love episodes like this because I feel like on the other of this episode as we end this year, so many people are going to have all of these tools to do things with their money they've never done before. And I just really, really excites me. And i'm so glad to be here.

I'm market with you, Robert, and I hope that that this episode was helpful for people that are trying to figure out, trying to scramble a little bit right to think. Steve mentioned that sixty percent of stocked donations happen in the month of december, right? That's people saying, hey, how do I bring my tax blam come this year? Got to go make a donation.

So you know these people that are listening right now, you're not at the time there's two more months where you can say, okay, what do I do? Some tax laws harvest thing i'm not contributed etin ate age, say, let me do some of that. Maybe I want to beef up the four when k contributions.

Maybe I want to try this federal withholding thing. You know, there's a bunch of different things you can do to really change the outcome. In April of twenty twenty five, you just got to take notes and take action. So with that being set of Robert, let's take a moment to hear from this episode sponsor. This episode of the rich habits podcast is brought to by nios investments. They just launched a new addition to their high income etf lineup that provides exposure to the two thousand small cap stocks that make up the rustle two thousand index while aiming to provide tax sufficient monthly income to their investors. Their etps may be especially interesting for folks looking to generate passive income inside of their investment portfolio.

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And don't forget, news just came out with B, T, C, I, which is an awesome etf that gives you straight up exposure to bitcoin while also providing what now seems to be a twenty seven percent yield on your with that monthly pay out, right? That distribution is paying just about a dollar. Twelve pressure are right now per month in at fifty dollars a share, which is where it's at at time of recording.

It's about twenty seven percent yellow, which is nuts. And that would bit coin at the seventy two, seventy three thousand dollar range. And we continue to be bullish, ed, and think it's going to go marched toward one hundred thousand over the next and nine to five months.

This BTC ietf is probably a good idea to learn more about I, Robert. Let's now job in to our first question. Our first question comes from fera d fair says high gostin and robbert.

I just found out i'm getting laid off from work in the coming to months, i've been thinking about becoming the state home mom, and this would actually give me the opportunity to state home for at least a year with my three children. While I won't be working, I do have an extra fifty thousand dollars that i'd like to use in some way or another to earn passive income. This money would be in addition to my emergency funds.

Please let me know if I should invest IT in etf because i'm no expert in investing and I do not plan to be a day trader. Thank you off for the advice and for all of the wonderful episode of the podcast you have published so far. So Robert, what i'm hearing here is that faa is getting laid off, but he knows it's coming.

Once use the business opportunity to stayed home, be a stayed home mom, which I love that idea. It's a really, really cool opportunity there. Hopefully, her partner is able to supply a little bit of money for the household on a month basis, while SHE stays at home with the kids.

S in my opinion, assuming SHE has the emergency already figured out and that it's call IT three to six months of expenses, SHE could use this money as a way to beef up the emergency fun, right? Because we're not really too share what's going to going on in the future when IT comes to employment. But if he does want to take on a little bit of risk, i'm not mad at the idea of allocating some of IT to the passive income etf S P Y I.

As we know, i've got one hundred thousand dollars of my own money sitting in S P Y, I. And IT pays just over a thousand dollars a month. So fairer.

Theoretically, ally could be making between four hundred fifty and five hundred fifty dollars a month by putting this inside of there. 我的 said though， that does absolutely come with the risk. The stock market goes up.

That goes down. I think S, P, Y, I came down about one percent today, went a little bit of a sell off. So just be prepared to see that when you invest your money. So fair. I like the idea of earning a little bit, but just be careful.

Yeah, I agree with you. I was thinking the same thing. S P, Y, I, Q, Q, Q, I but fair.

I just be careful because the timing of your question and this theory of what to do with this money while you're laid off is a little funky because we're going into the election and we don't know what gona happen. We assume some further volatility in the markets in the coming weeks or months spot. I do like the fact of having IT somewhat active.

You could look at a high yield savings account. We really like the one on public dot com. They have a great high iee cash account, also the S P Y I and Q Q Q I I like as well.

But again, I wouldn't put IT all in because at the end of the day, the last thing you want to do because it's so short term, is have the downturn that we had one in the market wipe out some of that fifty thousand dollars? Because if you are asking us this question over a five or ten years span, we'd be great. But when it's only a year, it's tough because you're trying to time the market. So just be careful, spread around a little bit, look at those phones, look at high yield cash accounts and keep IT safe and liquid d and you'll do just five.

And speaking of publi C2Com, Robert, you you told your mind me they're bord account right now. I think it's six and a half percent or something that could be a cool way to earn some passive income as welfare. So head over the public, check out what they have got to offer.

We highly recommend their platform is so, so easy. And we're wishing you all the best staying home with the kids. Now before we jump into our final question, Robert, i've got something interesting to share. Back of amErica just released a new report that says over eighty percent of multimillion a respondents aged forty three and Younger invest in or are looking to invest in fine artwork as a portion of their portfolios.

Yeah that definitely makes sense of because as we diversify with our ourselves, we both have been using masterworks are investing platform to diversify for what like almost five years now. Yes.

that's right. Both Robert I vest master works and even interviewed the founder in CEO company, ies, Scott lin, on the show a couple months ago. Now theyve hit over nine hundred and fifty thousand users in a billion dollars in capital raised. Because with masterworks, you don't need to be an art expert or spend millions. You just jump in and get .

started exactly in. The fact that master works has successfully exited twenty three painting to date with each returning a profit doesn't hurt either. Listeners can learn more for master works data front slash rich habits, which is also shown in the shows notes of this episode.

Again, that's master works dart forward slash rich habits. Master works start art forward slash rich habits. And as with investments, past performance is not indicative of future returns.

Investing involves risk. Important regulation aid disclosures can be found at master worker. Come slash CD.

Alright, let's jump into the final question now. Our next question comes from Keith. Keh says, hello guys, my name is Keith. My wife and I have been investing with Edward Jones for the past few years, as well as are four one case since listings to the podcast.

And after a little bit of my own research, i've started a van guard account and i'm investing now on my own, mostly in the S M. P. Five hundred with V O O.

Here's my question. Should we transfer all of the funds in our Edward Jones account into now my own vanguard account to manage on my own and continue investing in the S M. P.

Five hundred to avoid the fees that come with Edward Jones? What do you guys think? Thanks, Robert l. You to this question.

please. I think it's a great question, and you have to ask yourself a few things. What are your risk tolerance levels? You need to understand that first, so you can put together a plan that works for you and your wife because you want to to have a plan before you make this move.

Number two, yes, I like where your heads that award Jones fees are high. I think last I checked there, like one point three percent, anything under five hundred thousand dollars. So that's a pretty half ty toll to take on your gains.

But you also have to understand you have to be willing to put in the time and the knowledge to be able to manage IT on your own. A lot of people think you can just set IT and forget IT. We don't recommend that.

I like the fact you're starting out with the S M P five hundred. I would also look at the nas dec, possibly look at some bond strategies. You could look at some small cap, but just make sure that you understand before you migrate all that money away, that you're gna need to do the heavy lifting on your own, which I think you're probably fully capable.

Love, since you are following along the rich habits podcast, hopefully you ve joined the rich habits network, we'll give you some further help and knowledge base. But I love this. There's nothing wrong with having a financial adviser as long as they're earning your keep.

If they are going to charge you one one point three percent in these, they they Better be beating benchMarks by more than one point percent, which I don't know that, that where Jones does. So just keep that in mind. I love our your heads out and you can definitely test the water and maybe pull half of the money and see how you do. And if you outperform them, then you've answered your own question with you.

Robert. You know keep, if you are someone who doesn't like to pay, let's got two, three, four, five thousand dollars a year for someone to just buy the S N, P. Five hundred hundred behalf. I'm all four. You taking that and are diversifying IT into the index funds in any tips that we talk about.

The biggest thing to consider here is what type of accounts as Edward Jones have, are they managing your I R rys, right? You're old for one case, you rolled over, right? What are they managing for you? And just make sure that once you take over that management yourself, you continue to have a well versified long term view on investing, right?

You want to have the S M P five hundred, you want to have the nas deck, you want to have these big awesome funds and index funds and etf. We've talked about a lot here on the show, allowing you to turn higher over time and retire very wealthy one day. Now our last question comes from jay.

Jay says, hey guys, I love you doing on the show. I've got sixty five hundred dollars in credit card debt. The only debt I have my truck is paid off.

So here's my question, do I sell my truck and use that money to pay off my credit card debt? And the news, what's left to purchase truck? Or should I keep my truck and just pay off the credit card debt over time? Jay, I shoot you straight.

Man, no need to sell the truck. Sixty five hundred dollars in credit card, dad, it's manageable, right? That's money that you should not have in credit card debt.

So like, shame on you. But it's all good. It's manageable to find that extra income.

The sid housel work over time, do what you can over the next three, four, five, six months to really attack this credit card debt. Stop going out to eat. There's no vacations.

I don't go travel this winter time. I want you to lean in on the budget a little bit and really attack this credit card. Dad, I think you can do IT probably in three months depending on what your extra side income inside houssas can look like. But again, no reason to attract.

I agree, I would have higher j today and said, user truck, go pick up a big landscape trailer, come to my job site because my dumper didn't show up, and i'll pay three hundred dollars to get all the debris out of the job site and out to the dump, and you could have walk away with two hundred and fifty box for two hours work. So get aside also pay off the debt, keep the truck, because trucks are a great, great asset to have. As long as you're not, buy an eighty thousand dollars ck that you never are going to use IT for what it's therefore, and I think awesome is spot on, sixty five hundred dollars is easy to can tend with, easy to get to rid of and get yourself to a cash flow positive situation without the high interest. So jay, don't sell the truck.

But I will say j, if you have a robbin hood count or a public account, you've got seven thousand dollars and clipt do or you know four thousand dollars in the S M P, five hundred or whatever single stocks you got going on because you look Young in your instagram photo.

Sell that right? That's something you absolutely should get rid of because because you're not onna make that call IT thirty percent in the markets like you're paying right now in interest on this debt. So sell that bridge account money might have linger in around use that money to pay off the credit or debt, maybe even be dead free tomorrow.

who knows? I love you well. Thank you for stopping by the rich habits podcast each and every week. We appreciate all the five star reviews share with a friend.

You all have to have a friend, a cousin, and alcohol is always in high interested, or they're not working towards financial freedom. Share the podcast with them, help them out. IT could be the greatest present you ever give them.

And for those of you that have not joined the rich habits network yet, you have to check this out. I think our best work is in the rich habits network. We're crushing IT there with everyone that follows along in the community.

So we'd love to have you join. And don't forget, this episode was all about tax saving strategies for the year. Go implement them.

Go save on your taxes. No one likes to pay extra money to uncle sam. And if you know a neighbor, a friend, a cousin and uncle and and whatever, your parents send them this episode. So they also now know how to bring down a their tax bill, especially we donate stock dok com. Thanks, everyone, and have a great start to your week.