Tax-Free Wealth Book Review

If this is your first time here, welcome! If not, welcome back. For you first timers, here’s how I like to give people their ‘Ah-Ha’ Moments. I’ll read a few chapters of a book, pull out the nuggets, share them and this provide some perspective. I try to do four or five at a time. Enjoy! *Disclaimer at the bottom. Click HERE to buy on Amazon.

Let me start off by saying that this book does NOT teach you how to ‘cheat the system’. This is NOT a ‘get rich quick’ scheme. Tom Wheelwright is a CPA with an incredible resume and experience. The forward is by Robert Kiyosaki – who is a mastermind with money. He also wrote Rich Dad Poor Dad.
You’re going to pay taxes until you die… so you might as well lower them and keep more money in your pocket, or, invest it!

Tax Free-Wealth has shifted my mindset tremendously. It’s truly amazing that it has taken me this long to find a book like this. Every individual should be required to read Tax-Free Wealth from the age of 12 until they’re able to recite it from memory. The writing style and voice of Tom Wheelwright are soothing and educational. Never, at any point, does it feel like you’re being scolded for not knowing this information. Kind of a different feeling that typical traditional education.

If you’re like me, or 95% of the world, you go to your CPA, Tax accountant or use Quickbooks sometime between receiving your W-2/1099 and April 15th. We say to ourselves, ‘I hope I get money back! Please, I could really use it’. Did you know… That money was already yours?! You worked for that ‘money back’ through out the year and based on your W4 selection, the government took more money than they needed to. You basically gave the government a 0% interest loan, for the entire year. Sucks.. right? You’re probably thinking, ‘that’s not fair’. That brings us to Nugget #1.

“Include Tax Planning in your wealthy strategy”

Find a tax strategist, tax accountant, tax specialist or someone that has been working with taxes for a while. Interview them, understand their practice, how they partner with their clients, how they help their clients save money through out the year by changing their taxable income. This is a partnership that you’ll want to keep near and dear for the years to come. I recently found one, and prior to any major purchases or investments I make, I call and talk with her. She’s already helped me minimize the amount of taxable income I have. Tax-Free Wealth will help even greater!

(Once again, this isn’t about cheating the system or trying to expense a bunch of stuff.)

“The tax law is written primarily to reduce your taxes”

Uhh… WHO would have thought that to be the case? How can that be? That’s got to be a joke, right?! NOPE. “Of the 5,800 pages of tax law, 30 pages are devoted to raising your taxes.” That means, 99.5% of the entire tax code is written to help you save money on your taxes. If that doesn’t give you hope that you can decrease your taxable income, I don’t know what will. Most people pay between 30% and 50% of their income on taxes. This book will help get you in the mindset, coach you through the process of lowering your taxable income!

“Entrepreneurs and Investors Get All the Breaks

The B and I side of the quadrant pay LESS in taxes. Read that again! Business Owners and Investors pay LESS in taxes. WHY?
The government wants to continuously stimulate the economy and create jobs. Who creates jobs? That’s right, business owners. In the case of the quote, at the top. Entrepreneurs are typically business owners. The book does talk about forming an LLC or corporation, but I haven’t gotten that far yet. Real estate investing, making your business a family run business, are a few examples they cover here.

Understanding this quadrant and its tax implications are key. Each represent a different type of income potential and a different type of taxable income. For the remainder of the book and my posts, these areas will be hit on.

“You can deduct almost anything given the right circumstance”

WHAT? That can’t be possible. Now you’re just messing with me. Nope. “The key to making an expense deductible is to make it a business or investment expense. As long as the purpose of the expense is to produce more income, it can be deductible.” Business expenses are the best kind of deductions; BUT, that means you need to have some business. You CAN’T just start throwing out deductions if you don’t have a business and you’re not making money from it. Real Estate investing is #2 on the list. We will get more into that later on.

For now, this is enough information to get you excited. I’ll be back with another post, as I continue to read. Please Please Please, start small and start slow. Consult with a professional who has years of experience before you begin anything. Like mentioned previously, this isn’t a get rich program or scheme; this is a long, well planned out process that will help you over the years. You’re going to work until you’re 70 anyways… you might as well take advantage of decreasing your taxable incomes so you have more money!

*Disclaimer: I am not a licensed or certified tax specialists, financial planner, money manager or real estate broker. I am an entrepreneur, trying to help provide a different perspective or opinion of information that is already public. If you’d like to purchase the book, head over to Amazon. My referral code is attached.