10 Ways The RICH Avoid Paying Taxes (And YOU Can Too)

Would you like to learn more about tax strategies and talk to someone? Schedule a free consultation here: aba.link/8rx
Let's discuss 10 tax strategies that the rich use to optimize their finances and that you might want to consider for yourself.
Retirement savings aren't just about IRAs and 401(k)s. The rich often invest in defined benefit plans, allowing them to contribute significantly more-sometimes over $500,000 a year!
These strategies are about understanding and leveraging the incentives within the tax code to your advantage.
Throughout the video, I'll break down each of these strategies and more, helping you understand how you can legally reduce your tax burden and keep more of your hard-earned money.
Feel free to leave your questions and comments below. We love hearing from you and are here to help you on your financial journey.
🔔 Don't forget to subscribe for more insights on real estate investing and business strategies!
Show Notes:
0:00 Intro
2:57 Retirement Accounts
5:45 Tax Deferred Investments
8:45 Loss Harvesting
12:25 Real Estate
17:43 Charity
22:33 Trusts
25:18 Businesses
30:32 Tax-Free Bonds
32:59 Life Insurance
38:13 Tax Efficient Funds
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ABOUT TOBY MATHIS
Toby Mathis, Esq. is the best-selling author of Infinity Investing: How the Rich Get Richer And How You Can Do The Same. Toby is a tax attorney and founded Anderson Business Advisors, one of the most successful law, tax, and estate planning companies in the United States. Learn more at aba.link/tobyaba
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The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.
#richmindset #taxreduction #taxation

[@TobyMathis]

If you want to dive deeper into tax strategies, schedule a free consultation with my team today. Visit: aba.link/8rx

[@flsupraguy]

Out of all the "youtubers" out there Toby is the most genuine and educated! I LOVE your videos! Thank you for all that you do!

[@mississippiapple1078]

I can't believe how much he knows. It's scary

[@matthewellis3004]

Deep dive on oil and gas please🤝💪

[@bold2013]

Thanks. What are some examples of these oil and gas funds?

[@davidauton2889]

Doing a video on “tax bracket management” would be wonderful!

[@TobyMathis]

I'll keep that video idea in mind. Thanks for the suggestion

[@thehoopscoop]

This is an amazing video! Sending it to my friends.

[@johnnysmith4514]

As always gteat videos. Could u help out w how to set up whole life insurance. Thanks

[@angelocean365]

Thanks Toby great info!

[@MrStudmuffin505]

Love your videos sir. Charitable giving is something I have heard of, but not broken down to this level of detail. I hope to utilize all ten in the future

[@Narxist]

Wow! This is great information. Now that I have reached a high income, I started paying close attention to the amount going out in taxes. There is so much I need to learn. I thought all whole life policies were bad, so I never took time to learn about them. I also thought bonds underperformed, so I never considered tax-free munis. Lastly, I would like to know more about donations and foundations for tax avoidance. Thanks.

[@KingWillSkill]

One of the most important videos I've ever watched.

[@epboyd]

Short SPX box spreads (with portfolio margin) is better than SBLOCs - lower interest rate, and the interest paid is a capital loss.

[@TheNorthsider615]

i heard of loss harvest but can you do a deep dive into that?

[@TobyMathis]

I'll definitely consider recording this topic in an upcoming video!

[@nancylewis9853]

Really enjoyed learning about many of these strategies at your Tax and Asset Protection workshop in Dallas. Looking forward to attending the next one as well. The information is invaluable!

[@TobyMathis]

So happy you enjoyed the workshop! Can't wait to see you at the next one!

[@gracewalsh4908]

👍 love all your videos! 🇺🇸 Happy independece day!

[@malcolmscoins7581]

Really loving your channel but I'm 61 and have no knowledge yet just learning what to do help me please I'm about to come into a bit of cash dint want to waste it

[@johnvdk]

Hello Toby, thank you for again a very informative video. Regarding the life insurance banking, do you have any idea how we as non American can take advantage of this (Europe)? Thanks in advance Best regards, John

[@johndownes5813]

Excellent stuff!

[@Joseph-ux8xg]

Thank you Toby for this truly valuable information. What if you build single family rentals from the ground up. Is it better to sell or keep?

[@jamessullivan8300]

Great vid, many thanks!

[@CheapGodiva]

This information is so very useful. I wasn't aware that the dividends were taxed at a lower rate. I thought it was 40% for dividend taxation. I had already intended to use the depreciation of real estate once i start buying., I'll have to find some way to officially show up in the lower bracket to benefit from the dividend 23%.

[@daleybrennan9867]

I am a big fan of your videos. Thank you, Toby.

[@TobyMathis]

Glad you like them!

[@RaadYacu]

Interested in knowing more about Loss Harvesting and Real Estate protection for multi unit owner. Great video

[@TobyMathis]

Feel free to reach out to my team to learn more about real estate asset protection. aba.link/8rx

[@leroyjenkins5584]

I will tell you... I love your content big time. Long term fan. I hate number 3. I always feel like a loser no matter what. Ive failed at number 7 so many times but I need it. Number 8 is no good in my state. Number 4 I need more doors. I still have to write a bunch of covered calls and puts to make it. I really want to be more tax efficient though

[@kaneboy664]

I appreciate your great ideas and content. Looking forward to becoming a client someday. Bravo.

[@batterynow]

Great advise and ideas. most of them are new to me. Thank you

[@TobyMathis]

Glad it was helpful!

[@kristenreitzel6788]

I'm blown away with your knowledge! I have been benge watching you, and I feel so empowered. I'm beyond upset that I have t found you sooner, like when my parents' estate was being handled. I feel like I was screwed over big time with how it was set up and dispersed. Also on how to move forward with what I did receive, maybe I wouldn't be in the mess I'm in now. Thanks to you I've heard of most of the 10 you listed, a d eager to learn more !

[@mississippiapple1078]

Never heard of oil gas... what is that??

[@junedu2252]

Very useful information! Retirement accounts like defined benefit plans is the topic that I would like to know more about.

[@TobyMathis]

I'm glad you found the video helpful. Retirement planning is so important.

[@julienaudet9782]

I would like to learn more about donating real estate to charity that I own........

[@TobyMathis]

You should definitely reach out to my team about this. Visit aba.link/8rx

[@keithmachado-pp6fv]

Some states have Estate tax at much lower limits. MA is brutal.

[@Pr456gds]

What is Net Unrealized Appreciation in 401K?

[@melissaleak7241]

❤Love You Toby!❤❤❤❤❤Knowledge is Power Freedom and Quality of Liberty & Life!

[@Scuba-D]

Knowledge isnt crap if you cant apply it to the real world💯

[@luckytofu9617]

Which KZbin channel is the Toby in Canada?

[@willmallory9085]

Excellent topic! $$$

[@AJ-qz7xo]

Can you do a mix tax strategy with real estate and a trading account under the same LLC. Or RE and Private lending interest income

[@TobyMathis]

I would recommend setting up a free consultation to talk about some strategies and how they apply to your unique situation. Sign up here aba.link/8rx

[@DavidParent3044]

Do you think a General Contractor qualifies as a real estate professional ?

[@georgekraus9357]

1031 Exchange is the most commonly used by the ultra rich ...

[@TobyMathis]

The 1031 Exchange can be a powerful tool for real estate investors.

[@sethmiller5414]

good content

[@ElLeNoir..ELconomics]

What up Coach Toby!!

[@TobyMathis]

Welcome back =)

[@zoeystone8780]

thank you for this free education. it's really true that in the information age, ignorance is a choice. This information can help "the poor" become wealthy too; we have no more excuses if we don't act on such knowledge. Thank you again!

[@CheapGodiva]

The oil and gas interest in news to me

[@brucehill334]

Thank you very much Toby. What you’re doing is GREAT. We hope having more helpful people like you Toby. We thank you.

[@TobyMathis]

I appreciate the support

[@CookingwithZee]

OMG I love this video!!!

[@TobyMathis]

Your support means the world to me, thank you

[@DavidLua-w2o]

I would like to know more about setting up your own charities and combining that with a management company to manage all of my family affairs and future businesses.

[@TobyMathis]

I would recommend setting up a free consultation to talk about some strategies. Sign up here: aba.link/8rx

[@rcruz401]

I do fund mt PUA's in my whole life with money from my C Corp that i take out and put into my Heloc.( I do use credit cards for business expenses) That heloc i use to pay business real estate taxes and insurance. I then turn around and take policy loans and loan it to the business so it can pay off credit cards. The business then pays me back the loans on a monthly basis with the same interest as the credit cards would charge. Is this method beneficial?

[@ASHLEYRIGOSU]

All you have to do is pass away 😂😂

[@ricric8348]

I'm retired how to get around paying tax on interest income? Thanks sold home waiting to buy when market dips.

[@zoeystone8780]

please deep dive in Loss Harvesting for traders/investors ( short-term/long term) of various kinds of assets such as forex currencies, index futures, stocks, crypto, etc...can short term traders ( day traders, swing traders) also take advantage of Loss Harvesting?

[@NellySP]

@Toby - Hi. I had heard of all of these strategies but I was able to learn a little more on Loss Harvesting and Tax Free Bonds. I love your content and my favorite strategy that I am working really hard a this moment is to build a Real Estate portfolio.

[@TobyMathis]

Glad it was helpful!

[@magentasunshine7811]

I had no idea I could ask Vanguard for a margin loan! Thank you!

[@TobyMathis]

Happy to help!

[@justandegeneffe8456]

Awesome content

[@TobyMathis]

Thank you so much for your kind words!

[@malcolmscoins7581]

So what are tax deferred assets

[@TobyMathis]

Hey, you should check out this blog to get a better understanding. andersonadvisors.com/tax-free-vs-tax-deferred-tax-planning/

[@RealK2024]

Who are those tax harvesting loss companies? I'm interested in that option.

[@ericzuniga8495]

I'm a little fish ($500K in liquid assets). I make $120K and hope to sell a $1M house and retire in 1 year. I will probably take $800K from the house sale. My question is, "Which of these 10 make the most sense for me"? Which ones have the best benefit / cost ratio given my situation? Great video as always - keep 'em coming.

[@malcolmscoins7581]

Toby how much does it cost to have your help in all this

[@TobyMathis]

I would recommend setting up a free consultation with my team. aba.link/8rx

[@keithmachado-pp6fv]

Important on trusts to get the right assets into the trust but have other assets properly titled to avoid probate. My parents had a trust and the house and other assets were in trust but IRA’s go by beneficiary designation and my mom had my dad as primary and my sister and I as contingent but dad never claimed the account so when he passed it went to his estate and we had to go to probate even with the trust. He passed in 2020 at height of the pandemic and no courts were open. I did the research and filed for probate myself without a lawyer.

[@zoeystone8780]

Please deep dive in Charities: can a day trader be an employee of his/her own charity, but as charitable work do day trading or long term investing for his/her own charity, while truly giving the proceeds to various churches or other good causes like veterans, single moms, recovery centers?

[@TobyMathis]

Stay tuned! I'll have a video released this Friday about charities.

[@keithmachado-pp6fv]

Outstanding stuff. I have had a brokerage account for over 40 years and never paid $1 in capital gains (I do have some dividends reinvested) and I harvest losses every year. It will be the last money I touch after SS, pension and IRA so my heirs will get a step up in basis.

[@TobyMathis]

It's great to hear how you've managed your investments so wisely.

[@randylord5315]

If we make less than 50k/yr and have a LT Capital Gain of $2mil, do we owe any tax on the profits?

[@TobyMathis]

Yes - the long term gain is included in the calculation of the tax bracket. Depending on whether you are married filing jointly, a portion of the gain will be taxed at 0%, 15% or 20%. This can be offset, of course, by capital losses or ordinary losses.

[@robertg1556]

I don't get it. Bought a house for 90K, worth 315K and assumed it was paid off when you donated it and got a 120K write off. What happened to the other 95K?

[@xaldath4265]

I'm pretty sure that was the tax savings in his example, not the write-off amount.

[@sondersrn8061]

8 😁

[@1zcott]

"Let's dive in" please stop this

[@irinapoova555]

Could yu make detailed video on living trust please

[@TobyMathis]

Check out this video: kzbin.info/www/bejne/hqO8l5iYqqmtbqM

[@user-lh9zp5my3h]

I’m wealthy and haven’t paid a penny in taxes thanks to all that Trump & the Congressional Republicans have done to support us. We should all agree with Trump that the middle class should always pick up the bill in helping the poor and supporting us wealthy folks not pay taxes. Thank Republicans in helping me get richer and richer everyday, by handing the bill only to the middle class. ❤ Love these tax loopholes the Trump & Republicans created for us wealthy folk. 😂

[@nataliepapolis]

So who is paying taxes of which schools are built of which roads are built....oh right the poor smuck working for a wage and the taxes are sucked up by the government automatically, but the rich that use people to build their business and pay them a stipend get all the breaks, wow,

[@willmallory9085]

6:31 Unless you open a Roth Crypto IRA. 😊$$$

[@candeffect]

President Trump. 2024.

[@docwells5058]

You just said Obama and not former President Obama. Put some respect on his title

[@docwells5058]

Stop calling him President Trump. He is the former President 😂

[@mrsterling5306]

Once someone has ascended to that title, they retain it till their death.

[@docwells5058]

@mrsterling5306 I agree, but he should've said former President Trump. Yet, in the same video, he only says Obama and not President or former President

[@mrsterling5306]

Uh oh, I think I see where you’re going. I’m going to listen more closely to notice Toby’s personal views.

[@docwells5058]

@mrsterling5306 To say it once could be a slip up but he did it twice. So I'm like ok, what's up?

[@rcruz401]

Are you listening to this for business advice or political advice? I don't take relationship advice from Trump. People need to learn how to compartmentalize information and brush the rest off their shoulders.