Asked anonymously

What options are available for higher income families to reduce taxes?

We are a single income, married filing jointly family, with $300,000-400,000 in yearly income from one employer. Our 401(k) is maxed. We are looking for how to best save and reduce our taxes.

Report Question Report

  Leave Answer

Sign in to MoneyTips
By submitting you agree to our Terms of Service

  Answers  |  1

March 05, 2017

Hi anonymous,

Higher income is not indicative of higher taxes. What is your compound annual growth rate (CAGR) on the maxed out 401(k)? Is it meeting your lifestyle needs, etc? We have been inundated with new clients with these types of concerns.

There are only 3 ways to legally avoid paying taxes:

1. Have the assets buried with you.
2. Give the assets away to friends/family/charity.
3. Take an equivalent loss or greater to offset the gains.

All of our clients use #2 (Give them away). Certainly, there are many paid providers who advertise ways to save on taxes. How much are you willing to spend to find out? Always look at the bottom line.

You may contact us directly to discuss your situation in greater detail. No obligation.

It's not what you make; it's what you keep that determines your lifestyle.

$commenter.renderDisplayableName() | 09.22.20 @ 05:13