The Old adage that if you have no plan you are planning to fail has more than anecdotal proof.
Of all things my clients say changed their hope factor of getting ahead it is the adoption of proactive steps to systematically remove themselves from victim hood. This infers that their responsibility level rose.
I am fortunate that upbringing and life experience has made it easy for me to remain thoughtful and understanding about the difficulties we all share as human beings and that extends to the commonality of being taxpayers. When born, we inherit what has come before and it takes some living to even scratch the surface of the burdens laid upon each and every one of us with our first breath. How we respond is crucial.
Without assigning any fault, some find it too heavy a burden to do anything about the circumstances surrounding them and voiced or not acquiesce to being victims of the “system” or society's ills. Others being more informed or just damn lucky fall into the truth of the matter and begin to take the reins of their ;life into their own hands and pursue a plan to improve their outcomes. It isn't easy but is key to lessening the effects of oppressive laws, policies and norms. A little rebellion can be a good thing and don't expect the system to approve of your new conscious efforts to climb a little further up the pile of dog poop.
A plan should be be based upon known and inspected barriers with the intention to best them and rise in stature. Some have it much worse than others facing all manner of prejudice and baked in miseries but yet somehow through sheer will alone manage to improve their lot. These stellar beings deserve a pat on the back. Whether their plans were formal, written and systematically followed or not is not in my purview but I highly suspect that some overarching concept kept them going in the right direction.
A plan is guided by purpose. Anyone railing against you for having or even seeking a purpose is an enemy. Probably one who lives in fear that anyone else bettering themselves likely will expose their own incompetence or criminality. Indeed, the powers that be aren't all the Senators and statesmen and billionaires but even the postal supervisor can be an asshole. like that. Demigods are strewn throughout the rungs of society from the pimps in slums to Davos Switzerland.
A plan has context to an area of activity. It could be a military movement, a market share battle for cell plans, a better way to recruit talent and even a life. In this simple presentation I give the outlines of some steps to consider in making a plan to end victim hood in the context of the tax law. This law is comprised of Title 26-Internal Revenue Code and other riles and regulations imposed. There are many tax breaks and carve outs. Some accessible and others unique to a very small group and even an individual. The US IRC is one hell of a read.
My top 10 items to consider in planning a better tax outcome:
- Avoid being an employee subject to tax withholding
- If #1 is unavoidable create a small business perhaps a hobby converted to a money making activity and file a Sch C using all available business deductions that might have some personal aspect benefit. There are many. Later with success convert it to a Sub S corp which brings additional protection and tax savings.
- Even if temporarily forced into remaining an employee, take advantage of any all tax advantaged retirement setups. IRAs, 401Ks, others for small business as opened in #2. Begin accumulating wealth by keeping your cash away from the US Treasury. If inflationary times continue, get cash converted into gold, silver, foreign denominated dividend paying stocks…I like staples. There are also some good ETF specializing in commodities which should hedge inflation too.
- Seek more and more understanding of the tax law which can include alignment with good advisors like me. No brag here, I am very good at helping clients legally pay less tax. Bloomberg offers some free IRC tools so take advantage at https://irc.bloombergtax.com/
- keep detailed accurate financial data on your activities and know down to the minute if you are in the right direction of more profit and lower taxation. Adopt this as a lifestyle.
- Stop being a mere consumer and create wealth
- include the acquisition of appreciating assets like real estate, precious metals, energy ownership like oil wells etc. Stocks and Bonds have what is called 3rd party risk so depend on no one to fulfill your plans not even family. It is YOUR game and if successful you can serve as their mentor to improvement displaying a proven path. Maybe you'll enjoy a few “I Told You Sos”.
- Put yourself first first and avoid the trap of others saying you are selfish or mean or something that helps explain away their own shortcomings. If you are driving the bus then staying conscious, eyes on the road, ignoring rowdy passengers and stay alive… it's highly recommended.
- READ a lot especially about how successful people became successful. Not all will apply but you never know what gem you'll glean from a good article or book. Apply learned items to yourself and plans.
- Include the goal grand or small, steps needed to accomplish it, the proposed or required time frames to complete projects, and the recognition that YOU ARE RESPONSIBLE FOR ALL. Avoid distraction and keep your eye on the prize.
- This is a bonus suggestion...Make others align with and work toward accomplishment of your plans. If someone is opposed, say sayonara. If someone helps you and supports your endeavors, reward and help them succeed too.
This is by no means all inclusive and may contain some thinking that isn't what you expect but my observation has been that blaming of others is common to most failures. Even poorly designed and executed plans done by a powerhouse personality can have success. Never fear being disliked. Instead conduct yourself professionally and stay the course you've set. If that course must be changed acknowledge that as part your problem solving management. Conditions can and do change, even IRS laws change.
NOW is the time with 2022 well behind, to make a plan or plans for paying less taxes in 2023. Waiting until the year is over is not a plan but negligent victim hood. When in prison it might be a good idea to plan ahead for your shower when the rush is over. It makes picking up the soap a lot less dangerous.
If you are a client, I will do all I can to help fashion your plans into successful doable actions. Keep in mind that though enemies may exist at every turn, the biggest enemy is your own complacency.
Best of luck.
Donn Marier
DM-Your Own CFO