Usually, we’re trying to help you make more income, but today we’re trying to help you keep more of your income by lowering your adjusted gross income (AGI). Lee Phillips is a registered investment adviser who has written over 15 books, advised hundreds of thousands of people about how to keep more of their wealth, and taught continuing education for attorneys, accountants, and financial professionals.
The AGI is the magic number that you need to understand so that you can control it, and Lee breaks down for us the difference between above the line accounting, and below the line accounting. You can’t move the AGI until you understand how the tax code was written around it.
Taxes are paid by people who don’t understand them. One of the huge benefits of real estate is that it’s a giant tax shelter, and it’ll make you rich because you can save money on every dime that you make. Lee demonstrates how taxes are like compound interest in reverse, and why you want to take advantage of that.
It can be easy to get stuck by analysis paralysis, especially when you have all of these abbreviations coming at your head: SEP-IRA, 401K, HSA, HRA, 280-AG. If you need a CPA to help you figure out your above the line and below the line numbers, that’s totally fine. Investing in a CPA could save you hundreds or thousands of dollars every year.
Go out there and lower your AGI. I took a lot of notes today because there were so many great ideas coming at me about how to keep more of my money. If you’d like to work with Lee, reach out to him on his website.
- Why you need to understand the AGI so that you can use it for your benefit.
- How taxes are compound interest in reverse.
- The difference between an HRA and an HSA.
- How much should you put in your retirement accounts?
- What the 280-AG is and how it can impact your taxes.