A licensed CPA talking about personal finance.
I write https://t.co/vyvJ476LiL for 18,000 readers
Not a financial/tax advice
10 subscribers
Aug 25 • 12 tweets • 3 min read
My co-worker recently retired at 50.
Here’s the exact tax free withdrawal strategy he's using to fund his early retirement:
The company he retired from had pretty great perks like a 100% 401(k) match on 6% of salaryand ESPP.
But here's the thing - most tax advantaged accounts lock up your money until retirement.
So, how can he use them to retire early?
Aug 23 • 14 tweets • 2 min read
Hiring your child can save you a lot in taxes.
But 99% of "gurus" won't tell you how to do it legit.
Here's how it actually works:
Why should you hire your child?
3 benefits: 1. Their salary is a business expense 2. Depending on the amount, your child could pay $0 in federal taxes 3. Ability to contribute to a Roth IRA
Aug 21 • 11 tweets • 2 min read
2 in 5 Americans will inherit money.
Sadly, most will just waste it by buying useless things.
Here's a smarter framework to follow:
First, make sure to bookmark the post above and send it to a friend.
Now, most inheritances are around the $50,000 mark.
So, what do you do with it?
A lot of it depends on your goals and circumstances, but here's what I would do...
Aug 20 • 12 tweets • 2 min read
"How would you invest $5,000?"
Most people get it completely wrong.
Here’s the exact step by step plan to maximize this money:
First and foremost, you should NOT invest any money that you will need within the next 3 years.
Keep this $5,000 as emergency funds or savings for big purchases (if applicable).
Otherwise, here's how to invest it:
Aug 19 • 10 tweets • 2 min read
"How do you rebalance your portfolio without triggering a massive tax bill?"
Most people do it the wrong way, especially if they are selling stocks or adjusting portfolio allocations.
Let me explain how to do it right:
1. Tax advantaged accounts
The first way to think about rebalancing is through tax advantageous accounts (like 401ks, traditional IRAs, Roth IRAs, HSAs, etc)
The idea is simple - you avoid creating any taxable events in these accounts.
Aug 17 • 14 tweets • 3 min read
IRS audits 500,000+ tax returns every year.
But how do they select who to audit? By using algorithms.
Here's how they decide (and how you can protect yourself):
First, make sure to bookmark the above post and share it with a friend (it will help them)
Let's get into it...
When you file your tax return, the IRS first checks that your SSN and name match their records.
Aug 16 • 12 tweets • 3 min read
Treasury bills are more tax efficient than savings accounts or CDs.
Yet 99% don't know much about them.
Here’s why they are the best place for your cash:
Treasury Bills (T-Bills) are short term debt securities backed by the U.S. government.
They come in maturities of 4, 8, 13, 17, 26 and 52 weeks.
T-Bills are sold at a discount and pay you their full face value at maturity. The difference is your interest.
Aug 14 • 11 tweets • 3 min read
Vanguard Money Market Fund pays 4.22% interest on your cash savings with state tax savings.
But 99% of people don't understand the risk or how they work.
Here's an in depth thread on MMFs:
Money Market Funds are mutual funds that try to keep their share price at $1.
The funds investment money in short term, low risk products like treasuries, bonds, and various governement obligations.
Aug 13 • 11 tweets • 2 min read
Everyone loves Roth IRAs for tax free growth and withdrawals.
But you can pay 0% tax on stock sales in a regular brokerage account with even more flexibility.
Here's how to take advantage of it:
Main benefits of Roth IRA:
1. Tax free growth 2. Tax free withdrawals of earnings after age 59½ (contributions can be withdrawn at any time) 3. Ease of rebalancing
But a brokerage account could achieve these things too.
Aug 12 • 15 tweets • 4 min read
"Renting is a huge waste of money!"
You've heard this before, but it's not true.
Here's the real math behind buying vs renting:
Analyzing buying vs renting comes down to a simple idea - recoverable vs non recoverable costs.
Every expense, whether you own or rent, falls into one of these two buckets.
Aug 10 • 11 tweets • 3 min read
Investing for 10 years (from 25 to 35) can be more beneficial than investing for 30 years (from 35 to 65)
Here's why waiting to invest could cost you $121,193:
John invested $300/mo from age 25 to 35.
His portfolio grew to $54,037 with an 8% annual growth rate. Total invested is $36,000.
He completely stopped investing at 35. He never invested a single dollar more.
Aug 9 • 11 tweets • 2 min read
HSAs are like a Roth IRA on steroids due to triple tax benefits.
And the new tax bill just made them even more accessible.
Here’s how to take full advantage:
HSA is one of the most powerful accounts.
This is because it offers the most benefits:
> tax deduction
> tax free growth
> tax free withdrawals for medical expenses
That's even better than Roth IRA if used strategically.
Aug 8 • 13 tweets • 2 min read
§72(t) is one of the most powerful sections in the tax code.
It allows you to pull money out of 401k/IRA at ANY age w/o the 10% early withdrawal penalty by creating a "SoSEPP"
Here's exactly how it works:
First, you shouldn't touch your 401k/IRAs before retiring.
But what if someone wants to retire at 50 and majority of their assets are in a 401k?
Withdrawing would come with a 10% penalty.
But there's a way...
Aug 7 • 14 tweets • 3 min read
Married couples can withdraw $128,200 from investments and pay $0 in federal income taxes in 2025.
This is like earning a $170,000/yr pre-tax salary.
Here's how it works:
The OBBBA increased the standard deduction for 2025 to $15,750 for single or $31,500 for married jointly.
So, the first $31,500 you earn from ANY income source is completely tax free from federal taxes (married)
Aug 3 • 12 tweets • 2 min read
"I'm dead..."
This could be the most important letter you leave behind for your kids, spouse or parents.
Without it, your loved ones could lose money, miss out on assets and experience unnecessary stress.
Here's what to include (and why it matters):
If you die tomorrow, will your family know what to do?
Where your accounts are? Which accounts do you own? Who to even contact?
This could be the most important letter you can write, yet everyone postpones...
Aug 1 • 13 tweets • 3 min read
Here are 30 tax tips that will save you money:
1. You can pay $0 in federal taxes on $100,000 of income during retirement if you structure your portfolio correctly.
(bookmark this thread)
2. Tax code favors business owners. It allows you to strategically lower your taxes (timing of expenses/revenue, bonus depreciation, etc)
3. Tax refund is not free money. It's a 0% loan you gave to the IRS, instead of investing or putting it in a HYSA
Jul 31 • 12 tweets • 3 min read
🚨BREAKING: A new $600 stimulus check might be coming...
It's part of the new proposal, the "American Worker Rebate Act of 2025"
Here's how it would work:
Sen. Hawley just proposed new stimulus checks funded by revenue raised from tariffs.
This is obviously just a proposal, but let me break down some key details.
Quick overview:
Jul 26 • 11 tweets • 2 min read
IRS just clarified which cars qualify for a new $10,000 car loan deduction.
Here’s how to check if yours makes the cut (and how it works):
Quick background:
Effective for 2025 through 2028, you may deduct interest paid on a loan used to purchase a qualified vehicle (lease payments don't qualify)
The maximum deduction is $10,000, and phases out if your gross income is over $100,000 ($200,000 jointly)
Jul 25 • 13 tweets • 2 min read
Retirees just got a new $12,000 tax break under OBBBA.
Peter and Sammy use it to:
• Convert $65K/year to Roth IRA
• Live on $80K/year
• Pay only $2,000 in federal tax
Here’s exactly how they do it:
With the new tax bill, seniors that are 65 or older can effectively recognize $46,700 of tax free income.
Due to:
> $31,500 standard deduction
> $3,200 additional standard deduction
> $12,000 senior deduction (<$150k MAGI)
Jul 24 • 13 tweets • 3 min read
Nvidia's CEO is now the 7h richest person in the world worth $148 BILLION.
And he's legally avoided paying over $5.5 BILLION in taxes using strategies 99% of people have never heard of.
Here's how he's doing it:
When a rich person passes away, they have to pay an estate tax.
It's basically a tax on transferring property, cash, stocks, etc to their heirs.
But with smart tax planning, you can minimize or even avoid it.
Jul 24 • 12 tweets • 2 min read
Being a real estate investor is one of the best ways to save on taxes.
With the OBBBA, bonus depreciation is now back to 100% in 2025.
Here’s how smart investors are leveraging this to cut their tax bills:
The new tax bill increases bonus depreciation from 40% to 100% for assets that are “placed in service” on or after Jan 19, 2025.
This means that investors can significantly reduce their tax bill by doing a cost segregation study.