You worked hard to build up the kind of nest egg you have today. That said, is your income actually going to work for you? The Tactical Wealth team is here to help you make the secure, stable investments you need to build your wealth and prepare for retirement.
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Here are a few wealth creation tips worth considering:
Connect your paycheck to an investment account
Now you can connect your paycheck to your investment account and start adding funds automatically through payroll. If you’re self-employed or are the fiduciary of your company’s retirement plan, you can add our strategic income fund to your plan’s investment options to get steady growth without paying any fees. Just set it, forget it, and enjoy the stable income you deserve.
Take advantage of ‘free money’ with a home equity loan
Take out a home equity loan and pay interest at 4 percent. Within 30 years, your loan’s investment matures to 5.75 percent. On a $500,000 home, that equates to an extra $8,750 per year or $730 per month.
Now, if you invest and get a loan through Tactical Wealth, that 4 percent rate goes down and you pocket the rest while increasing your monthly cash flow significantly. Then collect interest payments from us and pay smaller interest on your home loan. Did we mention you keep the rest?
Reduce taxable income by rearranging your investments
Even if you are happy with your overall portfolio performance, there are still ways you can gain more tax efficiency. Standard diversified portfolios typically spread investments across many asset classes such as stocks, bonds, real estate, and fixed income securities. A number of families, especially high net-worth families, have multiple brokerage accounts across trusts, joint, individual, and qualified retirement accounts.
Wanting to save on taxes without completely changing your investments? All you have to do is move the investment holdings to the right account. For example, if you own stocks and other securities that typically generate capital gains, you should move those to your individual or joint brokerage accounts since those will generate income at the most favorable tax rates.
Some folks lose sleep over capital losses. Believe it or not, capital losses can help your tax situation, so keep your stocks in individual or joint brokerage accounts. Move your investments that generate interest and dividends to a retirement account since those are taxed at your highest rates, but are not taxable while in the account.
Your overall portfolio holdings can remain the same and you don’t need to buy or sell holdings to move them to a different account. Contrary to popular belief, each account should not be diversified. Instead, each account should hold the assets that will put you in the most tax-efficient portfolio.
Tap into the power of compound interest
As a young professional, your biggest asset is time, not your bank account. Utilize such an asset by letting compound interest work for you. If your company offers a matching 401(k), make it a point to contribute as much as possible.
Let’s switch gears for a moment. Have you ever wanted to switch things in up in your career where you are the boss and others work for you? You can secure your financial future by managing your time asset effectively.
Check out the performance on a Tactical Wealth 30-year note once compounding interest sets in motion. You can expect to earn an average 14.5 percent annual return, which beats the performance of other top investment funds.
Maybe you’re wondering, “Why can’t I just look into any investment fund?” The difference of Tactical Wealth is that our fund is geared toward a steady and stable lower-risk investment. This means you won’t see the wild swings in your account and you won’t have to panic if the market crashes again.
Move forward with that investment property
Real estate is moving fast. But what happens when MLS listings are sold before you get an opportunity to see the property? You can get loan approval from Tactical Wealth in as little as 24 hours to make an all-cash offer on a property.
Our experienced team can qualify you for a loan before you even choose a property to purchase. The funding letter we provide will then give you the power to make an all-cash offer and stand out from other prospective buyers. Of course, once you have agreed to terms on an investment property, you have yet another source of sustainable income.
Complete those home improvement projects
How does finishing the basement or remodeling a bathroom contribute to your wealth-building efforts? It goes without saying that a number of home improvement projects will add to the property’s value and, in turn, bring a higher offer when the time comes to sell. However, with the new tax laws, home equity loans are not deductible.
Rather than delay your projects another year, why not get a loan through Tactical Wealth where interest paid counts as fully tax-deductible investment interest? You can use the loan proceeds for that remodel you’ve been wanting or any other purpose. This lowers your after-tax cost of borrowing by your effective tax rate for federal and state, while also allowing a deduction for the full amount of interest paid.
Tactical Wealth is proud to offer the best fixed income investments in the industry. Let us help you build your wealth and maintain financial peace of mind.