The Fastest Way to Improve Your Returns

Which would you prefer, $559,000, or $24,000?

$559,000 is what a dollar would have been worth invested in stocks throughout the entire history of the U.S. stock market.

$24,000 is the exact same number as above, minus taxes (assuming you’re paying the highest tax rates).

The difference is incredible... And it’s all due to taxes. (The numbers are from the book Stocks for The Long Run 2nd Edition, by Jeremy Siegel.)

The numbers show that, not only do taxes take money out of your pocket now, they rob you of the power to “compound” your wealth.

So if you could simply defer your taxes (to let the compounding work for you), or even better if you could significantly reduce your tax burden (through smart financial planning), you will be dramatically better off.

This morning, I met with my “wealth manager,” – Will Olinger.

Yes, I have a wealth manager...

My specialty is the investment side of things – researching new investment ideas. That’s what I love to do.

The brutal reality is, tax planning is a far better use of your time than researching investments. Unfortunately for me, when it comes to the world of tax planning - trusts, avoiding probate, life insurance, etc. - I get bored quickly. I like to research investments, not IRS rule changes.

That’s where Will Olinger comes in. Fortunately, I’ve been dealing with the Koss-Olinger Financial Group for a long time. I actually started my investment career as an intern there, while studying Finance at the University of Florida. I’ve dealt with them ever since.

I plan on continuing doing business with them indefinitely as well. (If you’re a high net worth individual, and you’re looking for an honest wealth manager, you ought to get in touch with Will’s firm at 800-373-3302 or email[email protected])

Every few years, I get together with Will, and share with him where I am financially. He suggests ways to make the most of where we are. In particular, he helps us set things up so that when we’re no longer here, as much money as possible goes to our kids (or wherever we choose) rather than our government.

Most investors only focus on investment returns.

But the very best returns come from proper planning. Stuffing your 401k plan at work is a great example. If you can stuff $15,000 into it, you’ll save yourself from giving the government roughly $5,000 in taxes. That kind of “free money” tax planning is hard to beat.

Remember, one dollar turned into $559,000 without taxes in the stock market throughout its history. But when taxed at the maximum tax rates each year, that one dollar only turned into $24,000.

Study your investments all you want. But don’t forget to study what you can do to legally reduce your taxes too. It takes much less research... and yet it will make a much bigger difference in the long run.

Once again, if you’re a high net worth household, and you’re looking for a good wealth manager, consider mine – Will Olinger. What more can I tell you than I’ve been with him since the beginning, and I’ll be with him to the end...

Good investing,

Steve