Broker Check

Understanding Taxes = Building Wealth (Real Client Stories).

February 03, 2023

Building Wealth Series Part I - Taxes.

Understanding Taxes = Building wealth.

Recent Prospect (now client) Story:

  • Married couple age 61/58 - Needed a full financial analysis.
  • Small business owner and Ohio public employee.
  • We addressed retirement income, insurance, investments, zero debt in retirement, and TAXES.

One important lesson they learned (and already implemented) is that paying fewer taxes = more wealth for them.

  1. We suggested they discuss with their CPA setting up an S Corp for the small business. Tax savings could be around 8K per year.   They called their CPA during our meeting.  CPA says, “sorry, we should have done this last year.”  Good thing they are good friends
  2. .As a Sole Proprietor business owner, you can have a SOLO 401K.  Contributions limits are $66,000 in 2023.  The client was putting in what he believed was the max, $22,500 (2022).  The client missed two things:
    • Catch-up contributions over age 50 - $7,500 for 2023.
    • As a Solo 401k, you contribute as the employee and the EMPLOYER! We added another 10K in employer contributions and catch-up (6,500-2022). Total - $16,500 more contributions. More contributions = less income = fewer taxes. 

Don't miss the small things that can make a BIG difference. 

Our job is to find the small things (you may be missing) that can make a BIG difference.  614-486-4614


Todd J. Gourno is an Investment Advisor Representative. Securities and advisory services offered through Cetera Advisors LLC, member FINRA/SIPC, a broker/dealer and a Investment Adviser. Cetera is under separate ownership from any other named entity.

The views depicted in this material are for information purposes only and are not necessarily those of Cetera Advisors LLC They should not be considered specific advice or recommendations for any individual. Neither Cetera Advisors LLC nor any of its representatives may give legal or tax advice.