š° Helping Solo Business Owners and High W-2 Earners Plan/Save on Taxes āļø Ex-Financial Advisor šØāš Free Course with 12 Tax Saving Strategiesā¬
San Diego, CA
Joined November 2018
- Tweets5.6K
- Following577
- Followers2.2K
- Likes36.1K
Ryan Odom retweeted
Paper ballots are the smartest, safest way to ensure your vote is secure against attacks by foreign actors. Russia canāt hack a piece of paper like they can a computer. We introduced the Secure Elections Act to ensure our elections are safeguarded. We must be ready.
Ryan Odom retweeted
I see this all the time with 7-figure S-Corp owners:
- $500kā$1M+ profit
- salary under $100k
- still using a SEP IRA
If you are doing this, then you are:
- most likely not hitting a reasonable salary and are at risk of penalties
- getting almost no QBID if you qualify (SSTB vs not)
- can barely put any into your retirement account due to a low salary
- only have the 25% profit share if using a SEP vs having the $24,500 employee side contribution (and potential $8,000 catch up)
- do not get mega bacdoor Roth ability
- lose out on backdoor Roth IRA being tax free
It is time to do the real planning!
Ryan Odom retweeted
The top 0.1% of income earners in California make 12% of the state's total income and pay 27% of total income taxes.
The bottom 50% of income earners make 12% of total income and pay 3% of total income taxes.
If the 0.1% leave, the revenue gap must be filled through higher taxes from everyone else or lower public spending.
Ryan Odom retweeted
Nothing makes me more bullish on autonomous vehicles than getting in an Uber and having a driver that wants to chit chat the whole time.
Ryan Odom retweeted
My largest account isnāt a 401(k) or IRA.
Itās my Taxable Brokerage.
Built wealth early so needed flexibility.
No age restrictions. No penalties. Full control.
Thatās what actually funds financial freedom.
Retirement accounts optimize taxes.
Taxable accounts optimize your life.
Both matter.
Most people underestimate the second.
Ryan Odom retweeted
A handful of things that are worth the money:
- Eight Sleep
- One $5000+ watch
- Blackout curtains
- Bamboo sheets
- Uber Black
- Home espresso machine
- 1:1 skill tutoring
- High-level masterminds
- Standing desk
- Herman Miller chair
- Specced out MacBook Pro
- Home sauna & cold plunge
- Second work phone
- AirPod Pros
- Flying your friends in
- Grass fed ribeyes
- 1:1 personal training
- The whole tab at group dinners
- Home mobility station
- The person behind youās coffee
- Flowers for your mom and girlfriend
- Carbon steel pans
- High-quality chefās knife
- Fresh socks every quarter
- Premium gym membership
- Luggage that doesnāt break
- Max speed WiFi
- Walking desk treadmill
- A+ talent team members
- Paid ads
- Muji pens & journals
- Maxxed out AI tools
- New running shoes often
- Sports massages
- The newest iPhone
- TSA PreCheck
- Weekly house cleaner
- Bedroom air purifier
- Personal meal prep chef
- Prescription blue light blocking glasses
- Executive assistant
- VIP tickets at music festivals
- Full bloodwork panels 3x per year
- Weekend getaways in dope Airbnbs
- Weekly date nights
- Tax strategist
Ryan Odom retweeted
This is a great speech. Worth watching the whole thing.
WATCH: Secretary Rubio Delivers Remarks to the Munich Security Conference in Munich, Germany. xitter.cf/i/broadcasts/1mnGeNNPqā¦
Ryan Odom retweeted
FLASHBACK: Obama on amnesty: āI believe such an indiscriminate approach will be unwise ā Illegal aliens will begin to think there will be no repercussions for breaking the law and it will encourage a surge of more illegal immigrants to come here illegallyā
Ryan Odom retweeted
We have reached a stage in our country where there are only two sides to every issue and every incident. Each side lives in protected echo chambers which are provided with a curated set of āfactsā and/or video footage from certain camera angles that are consistent with the preexisting views and conclusions of that side.
Individuals are āconvictedā of serious crimes in the headlines, by politicians appealing to their base, and ultimately in the minds of the public, or they are exonerated, before all of the facts are in and a detailed investigation has been completed.
This is not good for America. We need to go back to a world where we suspend judgment and await the conclusions of a detailed investigation before we convict or exonerate. Letās not forget that a man is presumed innocent until proven guilty.
Rushing to judgment helps no one and harms us all. It also greatly elevates the temperature, which keeps potential targets of law enforcement and those who enforce our laws on edge, massively increasing the risk to all.
We need to take a deep breath and reserve judgment before this gets even more out of control.
Ryan Odom retweeted
I have a good idea: letās take more money away from the people who create things like Google, Facebook, Stripe, Teslaā¦
ā¦ and give that money to the people who spent $18b on a āhigh speedā railroad without any tracks.
This is morally wrong and ends poorly for everyone.
Peter Thiel is leaving California if we pass a 1% tax on billionaires for 5 years to pay for healthcare for the working class facing steep Medicaid cuts.
I echo what FDR said with sarcasm of economic royalists when they threatened to leave, "I will miss them very much."
Readers added context they thought people might want to know
The proposed ballot proposition actually imposes a minimum of 5% (not 1% per post) one time tax on billionaires, even on unrealized gains.
oag.ca.gov/system/files/iā¦
Ryan Odom retweeted
California was supposed to be the place where you ālived and let liveā.
How, instead then, did it become the most oppressive, over regulated and overtaxed place in America while also being the worst on crime, housing and education of our kids?
Ryan Odom retweeted
Here are 3 things I've personally done to save 6-figures in taxes this year:
1 - Put my spare cash in tax-advantaged money market funds versus a high-yield savings accounts
I pay taxes at the highest marginal federal tax rate so almost half my HYSA earnings were going in taxes
So I instead invested most of it in either the Vanguard New York Muni Money Market Fund (VYFXX) or the Vanguard Treasury Fund (VUSXX) at different times based on what paid more net of taxes
This saved me ~$30K+ in taxes this year!
2 - Started direct indexing into the S&P 500 versus buying a single index fund
I was conflicted at the start of the year - I don't generally believe in trying to time the market, yet I was nervous I could be investing into all-time market highs
So I employed a direct indexing strategy: instead of buying an ETF, I used a tool to help me buy all 500 companies individually
The benefit of this approach is the direct indexing program can "harvest" losses as individual companies go down, even while the overall market is up
Same performance as an index fund, but with greater tax efficiency
This saved me ~$50K+ in taxes this year!
3 - Contributed almost all my self-employment income to a Roth IRA via the Mega Backdoor Roth IRA loophole
I make too much money to contribute to a Roth IRA directly
So I instead used the "Mega Backdoor Roth" loophole with my Solo 401k to fund my Roth IRA with almost the entirety of my self-employment income ($50K or so)
If I do this every year, I should end up with an 8-figure Roth IRA by the time I retire on which I will owe literally zero taxes
As an added bonus, I have started making alternative investment from my Roth IRA too with the hope of it growing and compounding faster
This will (hopefully) save me 7-figures over my lifetime!
---
Leave a comment below if you are curious to know about exactly how I set any of this up or what tools I used, and I can send it to you
Important disclosures: none of this is financial or investment advice, just thought it would be cool to share some of what I've been doing to find tax alpha in my personal account
Ryan Odom retweeted
My plan to pay $0 in lifetime capital gains tax
1 - $70K/year to my solo 401(k) that gets rolled to my Roth IRA every year. Aka a mega backdoor Roth. Every dollar I put in here avoids 15% long-term capital gains, 9.3% California, and 3.8% net investment income tax
2 - Add my wife to payroll and give her a salary for social media/marketing work. Then add her to my solo 401(k). Opens up another $70K/year that can be put into Roth IRAs - $140K/year between the two of us.
3 - $7K/year backdoor Roths for each of us. Same as above that will never owe a dollar of capital gains tax
4 - Direct indexing. Right now I send $5K/week to this instead of an index fund. This builds paper losses that can be used whenever I want. Example: $300K of losses means I can sell $300K of gains at age 35, 40, 45, 50, etc and owe $0 in capital gains tax on this. I can also do a portfolio line of credit so I never sell and when I die, a step up in basis happens. Aka never paid a dollar in capital gains tax
Fun stuff, we'll see how it plays out and what wrenches life throws into my plan. The fun part about a plan is the plan always changes