In this episode, Brett explores the importance of tax-wise investing and key strategies hair salon owners can leverage to minimize their lifetime tax bill.
In our last episode, I introduced some of the tools of the tax planning trade. These included tax-sheltered accounts for savings towards retirement, healthcare, and education, as well as some tax-efficient tools for charitable giving, emergency spending, and estate planning.
But it’s one thing to have the tools. It’s quite another to make the best use of them.
In other words, your tax planning techniques matter at least as much as the tools themselves.
They’re also much more enduring, especially if you can combine them into a unified strategy across your varied financial interests. Because tax breaks are going to come and go and are way beyond our control.
However, with a tailored, tax-wise strategy, it’s much easier to adjust as needed rather than having to start all over again whenever something seems to change. So, let’s dig into tax planning.
In the big picture, it’s not unlike a piece of artwork. How’s that for an analogy?
Your best tax planning efforts include meticulous attention to the details as well as to how each action contributes to your bigger picture.
We view effective tax planning as a way to reduce your lifetime tax bill or beyond, especially if you’re preparing for a tax-efficient wealth transfer to your heirs—let’s say through the sale of your salon.
Because in short, tax planning is best considered an ongoing campaign. It’s going to be staged on multiple fronts, and it makes sense to use the best of the tools described in our previous episode.
But for our salon owner clients, it begins with a tax-wise approach to investing. That’s what we’re going to cover in today’s episode.
[02:45] The importance of tax-wise investing.
[04:46] Choosing your investment holdings.
[06:14] How to minimize your capital gains tax liability if you utilize taxable investment accounts.
Looking for more tips on how to grow, scale, and ultimately sell your hair salon business? Check out our other Unchained From the Chair podcast episodes.