Taxes – The great wealth destroyer

ABOUT THIS EPISODE

Taxes will never go away. So how can you minimize the impact of taxes on your wealth. Remember: Taxes are a thing but not the only thing. Listen as John explains why having the right mentality really helps you build a life that you desire.

Welcome to the build your life podgastwith John Brownie, build your life as a relaxed and unedited conversation withfinancial expert, John Browning John's the founder of Guardian Rock Wealthwith offices in Hawaii, Colorado and Illinois Johns. Also, the author of thebook build a life, not a portfolio, a guide to your financial future based onyour personal values, whath you can purchase on Amazon or stay around tothe end of today's show and I'll tell you how to get a Frea copy melld rightto your door. I Michael Delan your host for the next few minutes as we chatwith financial expert business owner and author John Browning Wei Dohn Brownie Howar, either thetoday Sir I'm doing great we've got. We got some raim here today, but we've goto even e got some a phole or fourtext going on and in Chicago and rain, whereI am and what's it like, where you are letter otks about forty three in alittle bit of rain,...

...so I would take H. I takes the polarthing if it bring snow with it. I haven't seen snow ind youhave by ears,letny snok yeah, like nine inches in Chicago last time by T E. I was talkingto my my sons were living living in our house up there and a d. They said itwas just. It was all it was wet Tup. You know hard to deal with that it I eywere complaining, of course, but when you want tit gets hom a so it's too hot,so aw kid SAS fi those guys, that's true, therethere's EA. I've alwaysheard that in Chicago. You have two seasons right. You have summer andconstruction and and I'm resonating that Wa John, because in Little Rocknear my house, they're recon reek theyre constructing an reconstructingthis one, major intersection and dude, I'm telling you they have the roaddestroyed. It went from a fore lane down to Onlana, it's just it drives.You madhe just makes you want to stay at home because they're destroyingeverything you know in order to rebuild it. But I want to talk today aboutgreat wealth. Destroyer: okay, t there,...

...as there are a number of things, butthe one in particular that I want to talk about that is probably worse thanthe road construction I'm dealing with is taxes. The Great Wealth Destroyer right talkto us today about taxes, because somebody said one time: taxes are athing but they're, not the only thing, but they're a big thing talk about howtaxes can distoy you wealth. Yes, if not manage correctly, they canhave a big negative impact on your wealth, and I also want to make sure that peopleunderstand that that onle think Texas are anything not an only thing to,because there are times when you do need te time when to take to take gainsand to actually pay those taxes, because it's all about balance right. We talkedabout this in the last episode episode and you get to far and I'V had peoplewho just Iki've got so much embeta gain.

I can't take any of these wat. It's notthat you have to take the entire gain all at the same time right you canspand it over years. You can there's just different ways to go about it andthat's part ofbout, a financial advisor does. Is it Hel? They help you withknowing when to take those gains and when and Wonen how to work with you orCPA or accountants, to minimize the impact of those ththere's, a lot ofmistakes that people make on this the most common one is. I don't want totake my profits, because I have to IHAVETO pay taxes on those profitsright. Well, that's he whole idea of investing is that you actually makeprofits. So that's probably that's actually a goodthing. I have to yeah that the people, but what happens if you never take thatprofit, then that position grows and grows and grows and begins to get your reportfolio unbalanced andwhen that happens, jerk gos to more...

...risk and I've had clients. I've experienceesI've watched THINC, I'm trying to get them to take some of the Games haven'tdone it and then the price on that particular portfolio instriment dropsand they end up losing much more than they would have paid in taxes wor. Ifthey would have taken just a little bit, they could have minimized that right.So that's a that's one. Mistake, that's often made the other mistake, and thisis really Commonan as well, especially with younger people is that they wantto lock all their investments away in retirement accounts which a lot ofinvestment advicert say: Yeah Yeah, that's ajack! The way you do when youwant to protect your assets on your growth against taxes, so you put it INA,attax and vaamiaged to retirement account or something like it, and Iagree right and again, this is not personal investment advice, as wealways say on the show, but it depends on you. We got to have a personalconversation to give you that advice. But, generally speaking, you need some of your portfolio becauseyou don't know, what's going to happen...

...in your life, you need some of yourportfolie. An a taxable account that you can access if you meed it withoutgetting a nother tax penalty, which you would get in most or many retirementaccounts, so having a taxable investment account, asprobably one of those good ideas again depends on your personal situation andyou manage that taxable account differently than you. Would your attaxadvantaged account in order to minimize the taxes right? These are the thingsthat a financial advisor does for you. Try Not to take. You know those shorterterm games and your taxable account, but put investments that may have a shorterterm gain or may haveinstruments in them. That would result in a in a a full taxation of the income.So this as something like that, keep those in your tax advantaged accountand put more of the other stops into...

...that taxable account. But right now onething: with rates being so low if you're keeping a bunch of CAST AndinCachon Your Emergency Fund, which I recommend for almost everyone- i Ave t say almost everyone, but Idon't hink. I've ever met anybody, but they didn't suggest having it a certainabout of cash and their rrnis Ye Fun, trying to remain compliant here, yeah,but you're losing money on that, because inflation is much higher thanthe interest rate that you're getting on you or just playing cash. So youwant to minimize that too. So you want to have that investment account. That'sBruing, you a at least a little bit more than inflation, so you're notactually losing money, so don't get too hung up on I'm. I don't want to pay any taxes,because taxes are a thing. Not The only thing. That's right, so two thoughts onthat number one. We do need to pay taxes and be happy about it, because Ireally do like driving on good roads.

So all the construction and demolitionthey're doing drives me baddy, but boy when it's done and I'm I happy andthose are my tax dollars at work. So that's okay! I like it. The other thingthat struck me, as you were talking about that John- is to keep our keepyour eyes fixed on the goal. The goal indbuilding a life ind a portfolio. I is not how little tax can I pay, but can Ibuild the life and the retirement that I'm really desiring right, so youkeeping your mind and your eyes fixed on what is the goal and knowing I'mgoing to have to navigate some barricades and some bomps and somepotholes along the way. But as long as I get to the goal of building a lifeenjoying my life doing what I want to do and having that retirement success exactly and the and the other thing isyou don't want to build the life that you want toretirement at the expense of living living your life today...

...and if it's all tied up in thoseretirement accounts, thit's kind of what's happening right, you're, notsaving for your goals in between now and then, when you can take it up, yeahvery much so very much so so so many options and things that people canchoose from so many competing voices that they can listen to. It getsconfusing. It causes us to just procrastinate and say you know what andthat's why. I would encourage people to reach Yoop to talk to John, becausehe's that calming voice who he understands all those pieces and howthey all fit together and they fit together differently for each person.We talked about that on a couple episodes ago, the different Treen, goodoptions and bad options, a good financial plan versus a great financialplan, and that's really depending on you, and so you need to just reach outto John Hade that conversation and let him help you understand more aboutnot just taxes being the great destroyer of wealth. There are someother things that are great destroyers...

...ar well too, that you might not bethinking about right now that we don't have time to talk about on this podcasttoday. But John has all the time in the world for you to reach out JohnBrowning Guardian Rock weltcom askhing for a copy of this book, because youneed to read that as well, but just have a conversation with him and seehow he can help. You mitigate some of those taxes because he's a master atthat, but also hopefully earn some gans that you can pay some of those taxes.So I can get a new road and be happier right. That's right, yeah, there's alot of good things at tag o know. We all complain about the government andeverything else be can think about our the folks in the military right, thankGod for them and the sacifices that they make and that's part of what ourtax dollars go for. So Texas are not all bad right. That's right! That'sright! Theyre! Yes, you're! Right! That's a good way to say it! So we'llleave it at that today, John, hopefully peoplel reach out, and you can havegreat discussions with them and help them to build a life and not just aportfullil thanks, buddy have a great week. All Right, you did! The SAM...

...money really is a big part of our livesand John Brownin can help you and your family learn how to keep money in theproper perspective, it's important, but it's only a tool that coan help. Youbuild the life that you want. If you like, John Amell, you frea copy of hisbook, build a life, not a portfolio, go to John's website, Guardian Rockwealthcom and Click. The contact o US link and send your request. John WillMella Copi his book right to your door. Absolutely free thanks for listening tobuilding your life, podcast with John Brownie be sure to subscribe to thispodcast. So each new episode will be sent to you automagically when it'sreleased have a terrific day.

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