How do I optimize taxes?
This post is part of the Financial Freedom Guide series
OK guys, I have to admit I'm a bit giddy with excitement writing this section. Enjoy! :)
A quick note to get us all on the same page: Yes, when I say tax optimization, I mean taking legal steps to minimize your tax burden. That means working within the tax system and acting according to its rules and incentives - whether those were well designed and intentional or not. Even when tax rules make infuriatingly little sense - and especially when there is limited rule of law - I do not advocate for tax evasion or fraud. Rather, I recommend voting with your feet.
This section will primarily focus on tax rules and tools available in the United States. If you are based elsewhere, you may find that the strategies outlined below work similarly in your country - just use this article for inspiration for your own research. If you would like to write a guest post synthesizing tax strategies available in your country, please hit me up in the comments or drop me a note.
That out of the way, let's get started:
Tax strategies and your financial journey
Playing the tax optimization game, you have different sets of tools available to you depending on where you are in your financial journey, namely if you are in:
If you plan ahead and play your cards right, you can combine the tools available to you in both phases to bring your tax rate down to as low as 0%!
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