Tax Strategies with Drew Miles: Accumulated Money
As the saying goes, it takes money to make money. This is essentially the philosophy behind wealth accumulation. Over your lifetime, you accumulate wealth by reinvesting money earned through investments and continually building your portfolio. It’s the same principle behind a blackjack player’s strategy. You invest some money until you win and then you play with your winnings to win more. Except instead of gambling, you are investing based on your own goals and risk tolerance.
However, wealth accumulation goes beyond simple investment advice. It affects most aspects of your financial life including accounting, taxes, retirement planning, and estate planning. Because wealth accumulation can affect so many aspects of your financial life, it’s important to take a comprehensive approach to wealth accumulation.
Assemble Your Team
According to Drew Miles, a tax savings expert, the key to creating a holistic wealth accumulation plan is putting together a team of qualified individuals to help you manage the various aspects of your finances. A team of expert CPAs, tax attorneys, financial planners, and insurance professionals can help round out your financial capabilities. Having a team of experts on your side can help you build a strategy that you otherwise may have missed. They take your risk tolerance and financial goals into account to help tailor a plan for you.
Free Some Extra Cash
To begin a wealth accumulation plan, it’s best to free up some extra money to invest towards your goals. According to Drew Miles, a good place to start is by looking at your taxes. Your team can look at your income and returns to determine where you might be overspending. They can also look at any deductions you may be overlooking to help save you more of your own money.
Understand the Five Investment Types
To effectively create and grow wealth, it’s important to understand the five basic investment categories: cash and cash equivalents, bonds, equities, real estate, and tangible assets. Understanding how to invest in these five areas is the key to investing, growing, and protecting your wealth without taking large, uncalculated risks.
As you go through life and enter different financial stages, you will probably go through seasons of time when your ability to set aside money and continue your wealth building fluctuates. For instance, a fluctuation may occur if you have an emergency that requires more of your finances or if you lose a source of income. A comprehensive wealth accumulation plan will take those factors into account while making your long-term plan.
A long term wealth accumulation strategy is a great way to prepare for the future. People are retiring earlier and living longer than they ever have been. If you successfully create a plan that allows you to accumulate wealth throughout your lifetime, you will ensure that you don’t live longer than your money.
If you are interested in wealth accumulation planning, ask a professional like Drew Miles about how you can get started.
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