Wealth Enhancements Through Tax Mitigation

Key Takeaways

  • The vast majority of successful investors (84%) worry about reducing their taxes.
  • Just like compound interest, all the little tax savings things you can do will really add up over time.
  • Wealth managers work proactively to make sure you’re paying your fair share of taxes.

As far back as the 1930s, a New York State judge, The Honorable Learned Hand, observed that there were two tax systems in America: “One for the informed and one for the uninformed. Both of them legal.”

We take this issue very seriously because other than wealth preservation, nothing worries successful investors more than reducing their taxes. That hasn’t changed in the 30 years I’ve been in this business, and it’s backed up by research from Russ Allen Prince and David A. Geracioti, authors of the book Cultivating the Middle Class Millionaire. Prince and Geracioti found that most successful investors (84%) worry about reducing their taxes. Only one concern is cited more frequently–capital preservation–by 88 percent of investors.

Real-life example

Back in the early 1980s, we met with a 55-year-old gentleman who wanted to retire at 65. His house was paid off, but he had no savings, despite making about $250,000 a year. So we developed a special kind of retirement plan that allowed him to put away $100,000 a year over a ten-year period ending at age 65. What happened? Well, he reduced his taxes by $500,000 and he increased the value of his portfolio by $750,000, primarily due to his tax savings. Better yet, he was able to retire at age 65–not in his 70s as we originally thought–despite getting such a late start on his financial plan.

Chances are you can have the same successful outcome. There may be tax mitigation opportunities hidden away in the little things in life as well as tax code changes you could be taking advantage of. As Illinois Senator Everett Dirksen once quipped, “A billion here and a billion there and pretty soon you’re talking about real money.”

You just want to find ways to keep more of what you earn (and more of what your portfolio earns) over the long term. To do this you may seek out an accountant, a tax attorney or a wealth manager like our firm that works on the structure of your financial plan and is proactive about making certain you’re paying your fair share of taxes. That’s the informed side of this whole equation.


Call us anytime if you’d like help finding a professional or getting a free second opinion from us. Also, on June 10 and June 16 we’re hosting a seminar called “Taking Charge of Your Wealth: For Those Who Are Retired or About to Retire.” We’ll cover the five major concerns of successful investors, including tax mitigation. Until next time, enjoy. Gary
800-480-7913 |

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