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Need Money Management for High Income without Debt?
I'm seeking good ideas.
I'm in a debt relief program with about 2 years to no more unsecured debt, and about 13 to no debt at all. As this progresses, I'm realizing the tax implications with receiving a high income with no, for example, mortgage interest and other deductions except for charities. Also by the time this is over, I'll be 79 or 80, so an IRA isn't a possibility. How do people with large incomes and no debt manage not getting taxed to death? (Do they have to give it all away to keep the tax manageable?)
2 Answers
- 7 years agoFavorite Answer
Basically debt comes into play only when there is no proper planning and spending of the money. I have seen how much importance it keeps with regards to the monetary part taken into consideration which leads to the betterment of the overall finance management. I believe that expense contributes a major role in terms of the business management. So as to practically make it happen the tool that has been with me helping me save a handsome amount in the move is the expense reporting software from Replicon.
- JackLv 67 years ago
You didn't say how high an income.
Having mortgage interest or gifts to charity is a poor way to lower income taxes. Why pay $10K in mortgage interest just to get a $2800 reduction in taxes? You'd be better off just not having to pay interest.
The best way to reduce taxes for households with incomes below $250K is to use tax advantaged (usually retirement) accounts. If this is not possible for you, then other options are probably also not possible.
Other options would include real estate investing with active management, and the use of 1031 exchanges to defer taxes. Small business owners also enjoy tax advantages not available to employees.
