A Vital Idea for Investors of All Ages

By Andy Snyder, Founder, Manward Press

Alternative Income

Editor’s Note: Today’s article comes from Andy Snyder. You remember Andy. He’s the former Editor-in-Chief of The Oxford Club (Wealthy Retirement’s publisher).

Since leaving The Oxford Club to focus on his passion project Manward Press, we’ve kept close tabs on him.

Today he reveals a legal way to lower your taxable income while also helping your kids pay for college.

And we never thought we’d be saying this… but we have the government to thank for it.

But that’s not the only thing we have to thank Big Government for… In fact, one of Trump’s campaign promises could make you several thousand dollars.

For all the details, click here now.

– Rachel Gearhart, Managing Editor


We recently got a call from one of our economic heroes.

Stephen Moore is a famed Wall Street Journal columnist, CNN senior economic analyst and rabid advocate of all things that reduce taxes.

He called to tell us about his new project and his new website.

Using a host of metrics, Moore created an economic outlook for all 50 states. It was a fascinating exercise. Our conversation broached an array of topics ranging from taxes to unions and even pensions.

It reminded us that Moore is a good man to have in our Rolodex.

In the end, though, it was no surprise to hear Utah topped his list. It won mainly because of – surprise, surprise – its favorable tax rates.

The loser – New York – was at the bottom of the list (again, no surprise here) because of its less-than-favorable tax rates.

It was a fresh reminder that most folks fail to understand the absolutely destructive power of taxes.

It’s an especially vital idea for investors. It often means the difference between failure and liberating wealth.

Managed improperly, taxes can slash away more than a quarter of our profits.

We must do everything we can to keep Uncle Sam where he belongs… out of our pockets.

For our family, that’s where the kids come in.


Our Lil’ Write-Offs

Anybody who knows us knows our kids.

We’re one of those guys. Stand beside us for too long and we’re bound to tell you what they’re up to and show you some pictures.

Not only are they at the center of our life… but they’re a heck of a way to slash our taxes.

As we’ve discussed, one of the riskiest (and often dumbest) financial decisions today’s generation of youngsters must make is the decision to go to college… and how much to pay for it.

If they make poor decisions, they will be riddled with debt (several of our friends have kids with school debt that easily rivals a mortgage) and will earn a degree that’s virtually useless – like, gulp, puppetry or bowling management.

It’s one of the greatest threats to American kids.

We refuse to let our children get sucked into the trap. They will graduate from college – if that’s the route they choose – with zero debt.

They certainly won’t get a free ride – not from this cheapskate.

No, thanks to a little-understood strategy, their college is already covered.

Not only are we letting Father Time pay the majority of their tuition… but we’re slashing our tax burden as he does it.

Most serious investors have heard of 529 plans. But few realize their true power.

They are not just for young parents. Far from it.

They’re perfect for grandparents… aunts… uncles… anybody who wants to boost their own economic fate by lowering their taxes.

Washington Did Good?

Congress created the plans in 1996 as a way to spark interest in saving for college education.

Earnings generated through the plans are not subject to federal tax and, in most cases, are not subject to state tax when the money is used to pay for necessary college expenses (the list of qualified expenditures is actually quite expansive).

Right off the top, that could boost your profits by as much as 20%.

But in at least 34 states, the tale gets even better.

You can deduct 529 contributions from your state income tax each year. Because we live in Pennsylvania, we can remove as much as $28,000 worth of income… per beneficiary.

And what’s really powerful is the law allows us to transfer funds from one beneficiary to another without triggering a taxable event.

In other words, in many instances it makes sense for high-income earners to open their own 529 plans just for the annual deduction on their state income taxes.

They may never use the money, but it can easily be withdrawn or transferred to their children or grandchildren. (Many 529s, like Pennsylvania’s plan, also provide appealing inheritance and gift provisions as well.)

Another rather unknown benefit of the plans is that you can open an account in any state. You’re not locked into your home state’s plan.

We recommend looking at – again, no surprise – Utah’s plan. It allows savers to invest in a wide array of assets, including ultra-cheap Vanguard funds. Its most expensive option comes with an annual fee of just 0.38%.

The bottom line is that your kids, your grandkids… and even the neighbor’s kids are likely going to college. And it will be expensive.

Manage it poorly, and they could start their working lives overwhelmed with debt. It could ruin them.

Manage it right, however, and you can invest in their education and lower your tax burden along the way.

Our children have turned out to be our greatest gift… they’re also a great way to slash our taxes.

Our friend Mr. Moore would be proud.

Be well,

Andy

P.S. We don’t often pat Big Gov on the back, but there’s an exciting new program that’s allowing everyday folks to collect as much as $7,190. It’s all thanks to the revitalization of a key part of our economy… and a major campaign promise from President Trump. Click here to find out how you can get paid. (But hurry! You must get in before October 1…)