WealthChannel Academy

Tens of millions of Americans rely on Social Security checks for a substantial portion of their retirement income. Yet the outlook for this program is uncertain, due to shifting U.S. demographics. Is it true that Social Security is running out of cash? And what happens if it does?

One of the most important financial decisions of your life happens in your early 60s, when you need to decide when to start receiving Social Security benefit payments. You have lots of options, and the difference between them could add up to hundreds of thousands of dollars.

Social Security is a key component of a retirement plan for virtually every American. And yet there's a lot of confusion and bad information out there about how this benefit payment actually works -- and what you can do to maximize it.

Planning for retirement can feel impossible if you're not sure what exactly you're working towards. This episode will induce a couple of "aha moments" as a look at retirement from a different perspective dramatically simplifies the objective.

One of the first steps in planning for a worry-free retirement is figuring out your "endgame" -- what you'll be spending money on after you stop working. A big component of many retirement budgets is healthcare, so it's important to be realistic about what your health insurance and out-of-pocket costs will be.

The first step towards a worry-free retirement: figuring out what you'd like to spend each year once you're done working. This can be a simple and straightforward process, as long as investors avoid a couple of common mistakes.

The sad reality is that most Americans find retirement planning to be completely overwhelming -- and with good reason. The problem isn't that there's too little information out there -- it's that there's too much. Lots of folks feel like they need to understand a million different things to be successful. But that's just not the case. They need to understand 7 basic concepts. Understand those, and your odds of a worry-free retirement skyrocket.

The premise behind WealthChannel Academy is pretty basic: most Americans find investing and retirement planning to be incredibly complex and overwhelming. We're launching WealthChannel Academy to help investors achieve financial independence by radically simplifying retirement planning and investing.

A big announcement from Michael Johnston, the creator of Tax Efficient Investor.

While there are plenty of strategies available for W-2 employees, the U.S. tax code is really written to benefit business owners.  Jacob Turner, co-founder at Moment Private Wealth, joins Michael to discuss tax savings strategies available to many business owners.

The restricted property trust (RPT) is a tax strategy for business owners with predictable cash flows that can generate significant tax-advantaged holdings.  Rhett Grimes and Ken Crabb join Michael to discuss the ins and outs of this strategy.

College tuition and related expenses will be significant expenditures for most families. Fortunately, there are some significant tax advantages to incentivize savings. Brad Baldridge joins Michael to discuss the ins and outs of the 529 plan, including a discussion of “cycling” and other advanced techniques.

When used correctly, life insurance can be an incredibly powerful tool in a tax efficient investing strategy. When used incorrectly, it can be a big mistake that results in excessive fees and disappointing returns.  Wallis Tsai joins Michael to discuss the ugly side of the insurance industry, and how investors can get the insurance policy that is actually right for them.

High earners in high income states may have seen their tax bill increase significantly as a result of the SALT deduction caps introduced with the Tax Cuts & Job Act (TCJA). Amy Sandlin joins Michael to discuss the workarounds that several states have implemented, and the complexities around these solutions.

Delaware Statutory Trusts (DSTs) can be a powerful tax deferral tool for investors who are facing a significant capital gain event and are looking to diversify and take a more passive rule. Drew Reynolds of Realized joins Michael to walk through the DST process and explain the questions that investors should be asking about like kind exchanges.

Restricted stock units (RSUs) are an increasingly popular form of compensation, especially in the tech industry. Since RSU vesting is a taxable event, it's important for employees to understand the ramifications of this compensation. Isaac Presley joins Michael to discuss the basics of RSU taxation and several strategies that can be used by investors facing a vesting event.

Electing to be taxed as an S-Corp can be a smart tax move for some companies, and a bad one for others. Nate Yesner joins Michael to discuss the ins and outs of S Corp elections, including the tax ramifications and other considerations for business owners to evaluate.

The Inflation Reduction Act (IRA) introduced significant incentives for both individuals and companies to make investments that improve the energy efficiency of new and existing buildings.  Larry Pon joins Michael to discuss the various credits that are available for taxpayers who have invested in solar panels, electric appliances, and even energy efficient doors and windows.

State tax consequences often don't get the consideration they deserve, due to the sheer number of different frameworks that exist. Yet state income tax rates can have a major impact on investors' tax bills.  Manish Bhatt, Senior Policy Analyst with the Center for State Tax Policy at the Tax Foundation, joins Michael to discuss what makes a sound state tax policy and how poorly structured states can improve.

Cost segregation is one of the most straightforward ways for real estate developers and investors to accelerate depreciation and maximize the tax efficiency of their project.  Erik Oliver joins Michael to explain how cost segregation studies are completed and discuss other underutilized tax credits available to real estate investors.

Section 1202 contains one of the most substantial tax incentives out there, but many investors and founders are unaware that it even exists. Dan Mayo, leader of Withum's National Tax Services Group, joins Michael to discuss the ins and outs of Qualified Small Business Stock (QSBS).

For real estate developers, there can be significant advantages associated with how gains on their transactions are classified from a tax perspective. Gerry Reihsen joins Michael Johnston to discuss creative strategies for ensuring that real estate transactions generate capital gains and not ordinary income.

Real estate can offer significant tax efficiencies when added to a long-term portfolio. But there are lots of nuances that can create headaches if not handled properly.  Whitney Elkins-Hutten joins Michael to discuss five ways that real estate can generate tax efficiencies for investors.

Setting up a Roth IRA is a great retirement planning move. But many investors could get a lot more out of their Roth by venturing beyond the "big box" providers. Carrie Cook, CEO at Preferred Trust, joins Michael Johnston to discuss the opportunities that exist with self directed IRAs, and the specific restrictions around shares of a startup company.

The 1031 exchange is one of the most powerful tax savings opportunities available to U.S investors. But it's also one of the easiest to screw up. Marc Hershberg, Managing Partner and CEO at Topaz Capital Group, joins Michael Johnston to discuss the important milestones in a 1031 exchange and how investors can avoid running afoul of the regulations.

Just as individual investors can use the tax code to boost their returns, savvy real estate developers can maximize returns to their investors by identifying all credits and incentives available to them. Barrett Linburg joins Michael to discuss how his firm uses a number of different incentives in the Texas multifamily market to generate superior risk-adjusted returns while maintaining low risk profile.

Michael Johnston of Tax Efficient Investor answers some of the most commonly asked questions about tax efficient investing, include listener queries about Roth IRAs, 529 Plans, and more. This episode was originally recorded live on September 20, 2023.

Donor advised funds (DAFs) are gaining in popularity as a way for business owners to minimize their tax burden while also supporting meaningful causes. Kim Ledger and Joe Gianforte join Michael to discuss how High Net worth Investors can use DAFs most efficiently, including to minimize the tax impact from a business sale.

Custodial accounts can be a great way to get around estate taxes, especially in states with limits significantly below the federal threshold. UTMAs can offer some marginal short-term tax savings, but lack many of the advantages of 529s when it comes to saving for college. Alvin Carlos of District Capital Management joins Michael to discuss the benefits and drawbacks of opening a custodial account for your child.

For many investors, accumulating assets is relatively easy and straightforward. What can be a lot harder is the process of de-accumulation. David Graham joins Michael to discuss the tax arbitrage opportunities available to investors who strategically place asset classes, use ETFs instead of mutual funds, and harvest capital gains at opportune times.

There's a compelling case to be made for farmland as part of a long term portfolio. There are also some potentially significant tax advantages associated with this asset class. Josh Guggenheim, VP of Acquisitions at Gold Leaf Farming, joins Michael to discuss four tax strategies being used to maximize returns to investors.

In 2023, investors are able to put $66,000 into their 401(k) or 403(b) plans. But most contribute less than half of that, even if they have sufficient income. Kelley Long joins Michael to discuss the Mega Backdoor Roth, a strategy for making after tax contributions to a qualified plan and then immediately converting to a Roth account in a nontaxable event.

We've all come across tax savings strategies that seem too good to be true. Where should investors go from there? Andrew Gradman, a tax attorney in Southern California, joins Michael to discuss why it's important to cultivate a healthy sense of skepticism when dealing with tax professionals and tax strategies.

A self directed IRA (SDIRA) can provide high net worth investors with access to a number of alternative asset classes in tax-sheltered retirement accounts.   Kaaren Hall, founder and CEO of uDirect IRA Services, joins Michael to discuss the use cases she sees for investors and techniques to avoid the most common mistakes made with SDIRAs.

For investors holding highly appreciated company stock in their 401k plan, taking advantaged of Net Unrealized Appreciation rules can mean significant tax savings. Tyler Miller joins Michael to discuss the ins and outs of the NUA treatment and the importance of planning for tax efficient withdrawals before and during retirement.

Many high net worth investors are familiar with the tax savings potential associated with real estate. Oil and gas investments can unlock even more valuable tax benefits. Sarah Sullivan, CEO at SuGo Capital, joins Michael to discuss why oil and gas investments feature unique tax incentives and how high earners can benefit from significant write-offs in early years.

Starting a Roth IRA for your child might be one of the smartest investing moves a parent can make, but most of us fail to do so. Chris Carosa joins Michael to discuss the benefits of the Child IRA, including strategies for generating sufficient earned income to contribute and recommendations for getting started.

Puerto Rico's unique status as a U.S. territory with Commonwealth status has created a number of significant tax opportunities. Jose Torres, founder and managing partner at Monllor Capital Partners, joins Michael to discuss the various incentives in place for both individual investors moving to Puerto Rico and businesses that are established or expanding on the island.

Conservation easements have historically been a popular investment vehicle for high earners looking to generate offsets to taxable income. Recent changes to the tax code have curtailed use of conservation easements, but continued to incentivize the preservation of historic buildings. Steve Austin, co-founder and partner at American Revitalization Company, joins Michael to discuss how his firm is pursuing a unique strategy that incorporates historic preservation tax incentives, ESOPs, and 1042 exchanges.

By allowing investors to defer and eliminate large capital gains, Opportunity Zones may just be the greatest tax incentive ever created. Jimmy Atkinson joins the show to discuss how OZs can help High Net Worth investors who have experienced a large capital gain event. Jimmy also discuses the important factors to consider when evaluating potential OZ investments, and some of the common mistakes that investors can make.

For some investors, converting from a Traditional IRA to a Roth IRA can create significant tax efficiencies. But the calculation depends on a number of factors, and the answer isn't the same for everyone. Michael Johnston takes a deep dive into this topic, explaining the "levers" that determine whether an investors is better off doing a conversion or staying with their Traditional IRA.

Beyond the potential returns, real estate offers numerous ways for investors to enhance the tax efficiency of their portfolios. Andy Hagans joins Michael to discuss the three primary tax benefits of investing in real estate as an LP and provide a framework for completing diligence on potential investments.

401k plans are the workhorse of many retirement portfolios, allowing investors to accumulate significant wealth in a tax-protected account. Many entrepreneurs and small business owners are missing out on a massive wealth creation opportunity by failing to establish a Solo 401k. Andy Hagans joins Michael to discuss who is allowed to use a Solo 401k, run the numbers om creating $1 million in tax efficient wealth, and break down the process of setting up a Solo 401k from start to finish.

Health Savings Accounts (HSAs) are one of the most tax efficient accounts available today, boasting rare triple tax advantaged status. For some High Net Worth Investors, these accounts may be used as a "stealth" way to max out retirement savings. Andy Hagans joins Michael to discuss who can and should use HSAs, key considerations when setting up and administering an HSA, and common mistakes that can bite investors.

The Roth IRA is an incredibly tax efficient investment account, but most high earners are not allowed to make contributions directly. Fortunately, there’s a “back door” into the Roth IRA that can enable many High Net Worth investors to shift assets every year into this tax sheltered account. Andy Hagans joins Michael to discuss who should be doing a Backdoor Roth, the step-by-step process for executing this tax strategy, and tips for avoiding some of the more common mistakes.

A brand new podcast from WealthChannel. On the Tax Efficient Investor Podcast, we show you how to protect, grow, and transfer your wealth by implementing tax-advantaged investment strategies. Host Michael Johnston demystifies tax strategies that are favored by the most successful and sophisticated investors, including 1031 exchanges, IRA & 401k plans, HSA accounts, trusts, real estate, and more.