The Easiest Way to Pay Less Tax!

Añadido: 2026-05-25

[00:00:00]The easiest way to pay less tax. This is so easy and I just hope that many of you guys can take advantage of it. That's why you watch your old buddy Josh on Heritage Wealth Channel Heritage Wealth Planning on Memorial Day. Yeah, Memorial actually today is May 25th. 29 years ago was the last time alcohol touched these beautiful beautiful lips.

[00:00:24]With my pearly yellows.

[00:00:27]Anyway, 29 years ago is crazy.

[00:00:30]Damn.

[00:00:32]Time flies when you're swinging friar. Anyway, so we're talking about a man, we'll call him we'll call him Richard. And Richard is crushing.

[00:00:41]Um he's got a bunch of money in T-bills and he's basically creating this as an annuity cuz he needs the income to pay for this other expense he has. And this other expense is not perpetual. At some point the other expense will go away, but he needs the income from that to pay for this expense.

[00:00:58]Keeps tangling.

[00:01:00]Um anyway, so so these we'll just say he's got a million bucks in T-bills paying 4% a year for simplicity. That's $40,000 a year. All right, so he's got to pay tax on that $40,000 as income. Just a fact.

[00:01:14]All right.

[00:01:16]So now he's also got a 401k that he that's worth we'll say another million bucks.

[00:01:24]That's invested pretty aggressively.

[00:01:27]All right, so he's got a million dollars in in TS and and T-bills outside of his IRA 401k, a million dollars in his 401k that's invested pretty aggressively.

[00:01:39]Now once this this thing he's basically got to pay for is gone, all right, and this could be 3 years, could be 5 years, we don't know. Could be tomorrow. But once that expense is gone, the best way to avoid income tax is to switch these accounts. So you take the TS the T the T-bill money and you put that all into VTI. And he's not doesn't need the income from it cuz he's just doesn't spend that much money.

[00:02:08]I'm telling you, man, a lot of men just don't spend that much money. It's just facts. So, anyway, so what you do is you take that T-bill, you put all into VTI, and you take your 401k and put it all into T-bills.

[00:02:20]All right? And and the I've done videos on this on my investment course and my retirement planning course, which is down the show notes. I don't ever promote it. I probably I should. I always forget to promote promote promote, but I just I I probably should. But, the the retirement planning course is somewhat dated now as a pre-Obamacare. Maybe I'll do it again. Investment planning course is still great. Um still a lot of great stuff the retirement planning course. I'm just telling you right now. Lots of great stuff you'll never hear any place else.

[00:02:45]It is I think I did it 2007 18 or 19.

[00:02:48]So, it's somewhat dated, but at the end of the day it's still a great course. Um and the investment planning course, that's just that's never goes. That's evergreen cuz smart just smart investment planning.

[00:03:01]Anyway, we talk asset location in both those courses. In this case, a perfect example that you're saying, "Okay, let's get rid of the income stream from the T-bills. All right? I don't need it anymore. You know, that my expenses done and I don't even need the money. So, now I'm going to put it in VTI. No capital gains on VTI, a little bit of dividend income, you probably but 1% or so. So, you got 1% of a million bucks is 10,000 bucks of dividend income.

[00:03:26]No capital gains cuz the way the Vanguard ETFs work and then whatever growth that happens to occur goes to his kids tax-free. Just a fact.

[00:03:34]It's just such a wonderful easy mechanism. It's just asset allocation.

[00:03:39]All right. So, now T-bills are now VTI.

[00:03:42]The 401k, which is pretty aggressive, which is all going to come out as ordinary income tax no matter what. I mean, it doesn't matter if it's invested in freaking Bitcoin, invested in San Diego Padres, invested in stocks, bonds, cash, it doesn't matter. It's all coming out taxes ordinary income. And when you die, you leave it to your kids, all taxes ordinary income as well. So, what we're doing is we're just switching these out. So, now everything in in the 401K is coming out as as a ordinary income, regardless. You'll get less growth on that, so it'll be less if increasing in RMDs because we have it all in T-bills or something like that or BND, the Vanguard Bond Index Fund, uh then it's not going to grow. It just won't. As such, we will we're kind of putting the kibosh on growth in that, so we're not going to have increasing RMDs and certainly not a bigger account to leave to our kids upon our demise. And then on the other hand, that VTI, which is now hopefully going to grow. I mean, over 15-20 years it should grow pretty nicely. If you had a we'll just say 7% a year rate of return, if it's a million bucks now, it's 2 million, 4 million bucks in 20 years, all tax-free to the heirs under current law.

[00:04:45]It's just a a the most easiest way to avoid taxes in terms of this regard, uh especially if you got the money. Now, the easiest way is just to give all the money away, I grant you, but yeah, we don't want to do that. Um but in this case, it's just just ass location. All right. Love your thoughts. Smash that like button. And Padre is swinging friar. This You know what they call him the swinging friar?

[00:05:07]Not because he's you know, swinging a baseball bat, because he likes to swing. He's like, "Hey ladies, I'm a swinging Oh, that's what I'm going to do. I'm going to dress up as a swinging friar." And everyone's like, "Swing." I said, "Okay, where's where's the ladies?" I'll be swinging.

[00:05:21]Just a swinging. John Anderson. That's a song about Charlotte. Actually, let me read you the lyrics on Just a Swinging from John Anderson. It's such a stupid song, but we love it here. There's a little girl in our neighborhood. Her name is Charlotte Johnson, and she's really looking good. I had to go see her, so I called on her phone. I walked over to her house, and this and this was going. Her brother was on the sofa eating chocolate pie. Her mom in the kitchen cutting chicken up to fry. Her daddy was in the backyard rolling up a garden hose. I went on the porch with Charlotte feeling love down in my toes and we were swinging.

[00:05:57]Yeah, just a swinging.

[00:06:00]So stupid.

[00:06:02]>> [laughter] >> Little Charlotte, she's as pretty as the angels when they sing. I can't believe I only had on the porch and this is a swing. Just a swinging.

[00:06:10]Oh my goodness.

[00:06:12]Anyway, that's it doesn't get stupider than that. But you know, I'm giving my wife a Charlotte and she's a pretty girl.

[00:06:20]All right, God bless. We'll see you.