SAN DIEGO — Tax is the most important driver of investment performance. Smart tax strategies can help arrange your financial affairs to actually help you pay less taxes legally and annually. Bill Harris, the former CEO of Paypal and CEO of Intuit, the makers of Turbo Tax, joins our Laura Cavanaugh to share tactical tips for maximizing your tax savings all year long. The founding CEO of Evergreen Money Corporation says using smart tax strategies can help you owe less taxes each year. Harris breaks down three key ways to allow taxpayers to minimize or totally eliminate their tax burden and what they owe.
“In San Diego, you face some of the highest taxes in the country,” said Harris. “California has the top tax rate of 13.3%. You put that together with federal taxes and you’re paying up to 55% of your earnings in taxes.”
Harris explains that a disciplined tax strategy can save you thousands of dollars in taxes. The financial expert first recommends taking money out of bank accounts and placing it in tax-exempt options like treasury bills or municipal bonds. Harris also encourages utilization of your 401K and IRA, which delays taxes on gains until retirement. Finally, Harris says to be careful about when you sell stocks.
“If you manage that properly, you can offset, defer or even eliminate all taxes on gains on your stock portfolio,” said Harris. “At the end of the day, it’s not what you earn that counts. It’s what you keep.”
Evergreen Money provides strategic advice for serious investors. Learn more at evergreen.money.
Sponsored by: Evergreen Money Corporation