Ross Cameron: A ROTH Retirement Plan is How Traders CAN (Legally) Pay ZERO in Taxes

Why do you as a trader need to trade with your Roth retirement account? Because you do not have to pay any taxes to the IRS.

This is an incredible subject that every trader needs to consider even before he get started with any trading. Taxes on profits - a type of capital gain are huge, can be up to 50% of your profits easily. On the other hands, when you lose, you may not be able to claim the loss in capital in your tax return. Literally, you may claim only $3000 as loss of income, which means that you may deduct this $3000 from your income from other sources such as your regular job(s). This is where the ROTH retirement plan comes to play.

Ross mentioned that the best thing to avoid taxes on your trading profits is to set up a ROTH retirement account. This type of retirement account is somewhere you store your saving after tax. The good thing about the trick is that you can do stock trading with this ROTH account and you do not have to pay a dime to IRS even after you withdraw cash from this amount when you are allowed to. There is some restriction as to when you can withdraw, but it is not strict at all.

Do not trade on your regular cash account. Open an ROTH account now. Most stock brokers can open and host your ROTH account for you. And if you have a regular retirement plan, you can concert it to a ROTH account.

Transcript

0:56
what I'll share with you first of all is
0:57
that as many of you know I turn an
0:59
account with less than $600 into more
1:01
than $10 million of verified and
1:03
independently audited trading profits
1:05
and when I did that naturally I had to
1:07
hire a pretty good accountant to file my
1:09
taxes now it's not really that it was
1:11
all that complicated but I want to make
1:13
sure I was doing everything the right
1:14
way and I had the money to afford it so
1:16
some of the things that I'm going to be
1:17
sharing with you came from high- Paid
1:19
accountants who know everything about
1:21
how to be as tax efficient as possible
1:24
so the first thing I learned and this is
1:26
the strategy I'll share with you it's
1:27
the first strategy it's not going to be
1:28
the most popular I'm going to sa the
1:30
most popular one for last but the first
1:32
strategy that was shared with me is my
1:34
accountant said Ross how do you feel
1:35
about moving to Puerto Rico and I said
1:37
well that's not going to work so well
1:39
cuz you know my family lives around here
1:41
but tell me more and he said well here's
1:44
the thing with living in Puerto Rico
1:46
there's no short-term capital gains tax
1:48
you would literally have zero income tax
1:51
on your trading profits and that means
1:52
if you make 100,000 you make a million
1:54
whatever it is you could spend that
1:56
right away and you don't pay any income
1:58
tax on it and I said well geez that mean
2:00
I I I'm no longer a US citizen I said no
2:03
it's not like that if you move to Puerto
2:04
Rico you're still a US resident because
2:07
Puerto Rico is part of the United States
2:09
but if you're a Puerto Rican resident
2:11
which means you live there for 6 months
2:14
and one day each year then you pay no
2:16
federal income tax and you're able to
2:18
benefit from all the tax savings that
2:20
Puerto Rican residents enjoy that's why
2:23
so many very wealthy people move to
2:26
Puerto Rico and spend 6 months and one
2:28
day there and they have to make sure
2:29
they document each one of those days
2:31
that they're there because if they ever
2:32
get audited they want to be able to
2:33
prove no no I'm really a Puerto Rican
2:36
resident so most of the people that are
2:38
down there for tax benefits are saving
2:41
so much money in tax that the savings
2:44
alone is enough to pay for the mortgage
2:46
of of a property of a house now that's
2:49
not going to be the typical Trader it
2:50
wasn't me when I was getting started
2:52
although it probably could be me today
2:55
the life change of moving to Puerto Rico
2:58
isn't something that makes that strategy
2:59
doable for me but an episode on how to
3:02
pay zero income tax on your trading
3:04
profits would be incomplete if we didn't
3:06
at least mention the option of moving to
3:09
Puerto Rico so if you move to Puerto
3:10
Rico you could live there and at any
3:12
time you can move back to uh you one of
3:14
the 50 states in the US and it's no big
3:16
deal you can just move you you switch
3:18
States just like you move from New York
3:20
to Massachusetts or from New York to
3:22
California so that's the first strategy
3:24
move to Puerto Rico some of you guys are
3:26
like sold I'm moving I want to live near
3:28
the beach and that's great but for the
3:29
rest of you let's talk about the second
3:31
strategy so the second strategy is to
3:34
take advantage of what are called tax
3:36
deferred retirement accounts which are
3:38
traditionally called individual
3:40
retirement accounts and these are the
3:42
abbreviation is the IRA okay so an IRA
3:47
is an account that uh anyone in the
3:49
United States can open in a lot of other
3:52
countries you have government sponsored
3:54
uh retirement savings accounts as well
3:56
that you can utilize to invest in the
3:58
market but I'll I'll speak specifically
4:01
to what I know which is being here in
4:02
the United States so in the US we have
4:04
the IRA now you can make contributions
4:08
to an IRA each year but there are limits
4:11
to how much you can contribute now the
4:14
cool thing about the IRA an individual
4:17
retirement account is all of the growth
4:20
inside that account however much that
4:22
account grows each year you don't pay
4:24
any income tax on it and you can
4:26
actively trade in an IRA now well bear
4:30
with me for a second this is really
4:31
incredible if you set up a business as a
4:35
a small business whatever you're a
4:36
plumber you're an electrician or you mol
4:38
Lawns or you plow all of the money that
4:41
you earn in that business while you can
4:44
do some things which we'll talk about a
4:45
little bit later in this episode to
4:47
create uh a retirement account for the
4:49
business most people won't do that and
4:52
most people are not going to be able to
4:54
save all of that money that they're
4:56
earning through a retirement account
4:58
they're just going to end up paying tax
5:00
on it but as a Trader every day that
5:03
you're trading you can sit down and you
5:05
could be trading just in a retirement
5:07
account which allows you to grow this
5:09
account at what is really an incredible
5:12
rate so here's the way it works when I
5:16
turn that $600 in the first year I
5:19
started with $583 in year one
5:22
$583 15 by the end of that first year
5:25
the account had grown to
5:28
$335,000 which was huge and out of that
5:32
I was allowed to make a maximum
5:34
contribution of
5:36
$6,000 to a traditional traditional
5:41
IRA now a traditional IRA and this is
5:44
probably the most common Ira in the
5:46
United States the cool thing about
5:48
traditional IRA and the reason that a
5:50
lot of people like it is that when you
5:51
make a contribution to a traditional IRA
5:54
the amount that you contribute comes off
5:56
of your total taxable income so let's
5:59
just say for instance your taxable
6:01
income was
6:03
$100,000 $100,000 you do a
6:07
$6,000 IRA contribution now your taxable
6:10
income is
6:11
$94,000 so it saves you a little bit of
6:13
tax but the problem with doing that is
6:16
that then when you eventually take a
6:20
distribution from your IRA which you can
6:23
start doing at 592 years old all of the
6:26
distributions are taxable and that's a
6:29
little bit of a problem because if
6:30
you've grown this account from 6,000 up
6:33
to 10 12 15 then up to maybe 50,000
6:36
100,000 200,000 up to a million then
6:38
you're going to pay income tax on a
6:40
million dollars when you're 59 and half
6:42
years old and you're taking out those
6:44
distributions now the theory behind this
6:46
is that by the time you're at retirement
6:48
age you'll probably be at a lower income
6:51
bracket but that's not always the case
6:54
sometimes by the time you're at
6:55
retirement age you've made so much in
6:57
your account and your cost of living has
6:59
gone up that you're still in a very high
7:01
tax bracket so in the US we have two
7:04
different types of IAS we have the
7:06
traditional IRA and we have the Roth IRA
7:09
so we have the traditional IRA here and
7:13
we have the Roth IRA here now the Roth
7:16
IRA has a um has a maximum income limit
7:20
of
7:22
$153,000 per year which means if you
7:24
make more than
7:26
$153,000 you're not allowed to
7:28
contribute to a Roth IR
7:30
why is that well a Roth IRA does
7:32
something kind of special a Roth IRA
7:35
allows you to grow the account totally
7:38
taxfree and when you take the profit out
7:42
at 59 and a half years old and you're
7:43
taking distributions those are also
7:46
completely
7:47
taxfree whoa okay so a Roth IRA is
7:51
definitely better than a traditional IRA
7:54
no question about it but wait shoot
7:57
there's a minimum there's a there's a
7:59
Max maximum income of
8:01
$153,000 clearly I made 335,000 in this
8:05
first year of trading that's right and
8:07
that's why we have something called the
8:10
backdoor conversion this makes no sense
8:12
I mean you guys I it goes without saying
8:14
that our tax codes incredibly
8:16
complicated but what we have in the
8:17
United States is the back door
8:19
conversion and this very silly um thing
8:23
that exists allows you to make a $6,000
8:27
contribution to a traditional IRA where
8:29
there are no income limits and then you
8:32
can convert a traditional IRA at any
8:35
time to a Roth IRA you just do a
8:38
conversion and they call it a backdoor
8:41
conversion because it allows you to get
8:43
around this maximum income or this the
8:45
maximum income of
8:47
$153,000 so when you do the conversion
8:51
remember how I said that $6,000 comes
8:53
off your taxable income well when you do
8:55
the conversion you have to pay income
8:57
tax on the amount you convert
9:00
okay no big deal so I paid income tax on
9:03
$6,000 and I converted it into a Roth
9:06
IRA and that gave me with year one
9:09
$6,000 in my Roth IRA $6,000 at year one
9:14
now in year two this was year one of the
9:16
small account in year two I produced uh
9:21
$498,000 of profit I contributed another
9:24
$6,000 to to a traditional and then
9:27
converted it to a Roth in year three I
9:29
made about
9:31
$365,000 and I did it again $6,000
9:35
contributed into a traditional converted
9:37
it into a Roth which left me with
9:40
$188,000 in a Roth IRA with $188,000 at
9:45
that point I decided to begin trading
9:47
with it because what my um accountant
9:49
said is he said Ross if you trade in the
9:51
Roth IRA you're not going to have any
9:53
income tax and here's the thing you're
9:55
making more money trading than you need
9:59
so if you're making more money than your
10:02
cost of living what do you do and for me
10:06
I I wasn't going to stop trading I
10:07
wasn't going to trade less but the
10:09
result was that when I was making half a
10:11
million dollars I was making more than
10:14
my cost of living so if my cost of
10:17
living and let's just say for the sake
10:18
of argument my cost of living is $10,000
10:20
a month so cost of living $10,000 a
10:23
month all right that means I need
10:26
$120,000 a year to cover my cost of
10:28
living so once I've made the first
10:31
$120,000 each year I'm good in terms of
10:34
taxable income now this $1 120,000 I'm
10:38
going to pay income tax on it but I'll
10:39
be able to spend it for my cost of
10:40
living so once I cross over $120,000 in
10:44
income to cover cost of living
10:46
everything from that point forward I can
10:48
start using my IRA for so that's what I
10:51
did and what I ended up doing was
10:53
turning an
10:54
$118,000 Roth IRA into over $6 million
11:00
now it sounds like a lot and it is but
11:02
for what it's worth um there's a fellow
11:05
um Peter Peter teal he was an early
11:07
investor in PayPal and early investor in
11:09
Facebook he took a $2,000 Roth IRA and
11:14
turned it into $5
11:18
billion this is insane5 billion he may
11:21
have the record set on the biggest Roth
11:24
IRA that's totally tax-free income
11:27
totally taxfree when he retired
11:29
and now it's allowed to keep growing and
11:31
growing and growing so obviously there's
11:34
been some criticism over how the Roth
11:36
IRA is used by some extremely wealthy
11:39
people to put away a lot of money
11:41
totally taxfree and certainly I use the
11:44
Roth IRA to put away money taxfree to
11:46
the tune of millions of dollars and you
11:48
can do it as well now you may say look I
11:51
got to First cover my cost of living
11:53
okay so this is what I would do if I
11:55
were you I would say all right you've
11:58
got your cost of living right right here
11:59
make the minimum amount you need for
12:02
cost of living and then trade in the
12:04
Roth IRA now what you could do is you
12:07
could have two accounts and you could
12:08
switch during the day let's say each day
12:11
you trade until you make your first $500
12:14
in a traditional account and then once
12:16
you've made 500 you switch the rest of
12:17
the day and trade in the Roth IRA or you
12:19
could trade just one day a week in the
12:20
Roth IRA Fridays whatever day it is it
12:23
doesn't matter how you do it but in a
12:25
way to me it's a no-brainer not to do it
12:28
as as long as you have as long as you
12:30
can put aside enough money just to start
12:33
the Roth IRA you could start trading in
12:35
it and so one of the things that I do is
12:37
I can actually trade in both of my
12:38
accounts at the same time I could switch
12:40
back and forth very easily I press the
12:42
buy button in my Roth I press the buy
12:43
button in my main account so I could
12:45
take basically the same trade into
12:47
accounts if I want I just have to press
12:48
the buy button twice and I'll do that
12:50
all the time now is it initially a
12:52
little more difficult to trade into
12:53
accounts yes but we're talking about a
12:56
huge tax savings and to me it's a Nob
12:59
brainer okay so the second strategy and
13:03
this is to me a no-brainer is to set up
13:06
create a Roth IRA create it for yourself
13:09
now the nice thing about a Roth IRA is
13:12
that there are no minimum distributions
13:15
you are not required to take
13:17
distributions you can pass the whole
13:18
account um in part of your estate
13:21
planning to someone else your your
13:23
children perhaps uh unlike a 401k now in
13:27
the United States these are the two sort
13:29
of uh tax deferred accounts that we have
13:32
IRAs and
13:34
401ks so let's talk about strategy
13:37
number three the third strategy is to
13:40
start trading in a business account now
13:43
this is where things get a little bit
13:44
more complicated but accountants love
13:46
this and the reason they love it and the
13:48
reason they'll encourage it is because
13:50
it can allow you to do some really
13:52
incredible things okay so let's say you
13:55
you're making a little bit of money each
13:57
year trading and you're you're doing
13:59
relatively well again doesn't matter
14:00
it's all relative doesn't matter if
14:01
you're making 50,000 a year you're
14:03
making 250,000 a year you're making
14:04
money let's just let's just call it
14:06
$100,000 a year in trading profits all
14:09
right so you've got $100,000 a year now
14:11
if you had that $100,000 a year in a
14:14
traditional taxable account you're going
14:16
to pay income tax on 100 Grand and
14:18
that's at short-term capital gains tax
14:20
rate which is the same as your income
14:22
bracket so you're going to pay as if you
14:24
have W2 wages at $100,000 now one of the
14:28
things that's nice
14:29
is that $100,000 of income from Trading
14:33
is not the same as $100,000 of income
14:36
from a W2 because trading income is not
14:39
considered earned income so you don't
14:42
have to play pay self-employment tax
14:44
which means you're not paying Medicare
14:45
or social security so you save a little
14:47
bit but you still would pay income tax
14:49
on it okay so let's say you've been
14:51
doing this for a couple years you're
14:53
making money consistently and you're
14:54
thinking all right uh how do I you know
14:57
Pay Less in tax so what you could do and
14:59
this is what a lot of people do is
15:00
they'll create a corporation and they'll
15:02
specifically create a corporation with s
15:05
status selection this means all of the
15:07
income tax will pass through to your
15:09
personal tax return it's not a C Corp
15:12
with that files its own tax return and
15:14
pays its own income tax it's an escorp
15:17
Now with an escorp you're going to be an
15:20
employee of the escorp and so you have
15:22
to take a W2 of what's called a
15:25
reasonable salary now you should have an
15:29
a tax attorney or an accountant give you
15:32
a recommendation of what the proper
15:34
reasonable salary would be relative to
15:36
the income that the business is
15:38
producing but let's just say the income
15:40
is the company is producing $100,000 a
15:43
year and let's just say you have some
15:45
expenses associated with the business so
15:48
what are some expenses associated with
15:50
it
15:51
laptop maybe your
15:54
desk maybe the percentage of home office
15:57
space that you're using
15:59
right because you've got how many square
16:01
feet how let's just say how many square
16:02
feet of your home office are you using
16:04
maybe your home office is 10% of the
16:06
square footage of your entire house well
16:08
10% of the utility bill 10% of the um of
16:13
of really all of the utility bills 10%
16:15
of the internet bill all of those can be
16:17
factored in for your uh expenses
16:19
associated with with the business so now
16:21
you take your percentage here you add
16:23
all those up you've got maybe some other
16:25
equipment you use for trading you've got
16:27
some dues You' you've got some
16:30
subscriptions different Services you've
16:32
got your continuing education services
16:34
right so education um courses things
16:37
like
16:38
that so you've got your courses whatever
16:40
it is so youve got all these different
16:41
things that you've got on your esort so
16:43
let's say this reduces these are
16:44
expenses and they total out to let's
16:47
just say $115,000 a year and there'll be
16:50
people that try to push the percentage
16:51
you've just got to make sure it's
16:52
reasonable and make sure you have an
16:54
accountant that reviews it and feels
16:55
good about it so you're taking let's say
16:57
$155,000 to now you've got your 100
16:59
Grand and you're taking $115,000 off the
17:03
top for expenses all right so you've got
17:06
your expenses now you've got $85,000
17:08
left let's say you pay yourself a salary
17:10
of
17:12
$50,000 so you take a W2 salary of
17:15
$50,000 now you can do something kind of
17:18
interesting here you can set up a solo
17:22
401K a solo 401K with the company is the
17:25
same as a 401k that you would have with
17:27
an employer except exep you're the only
17:29
employee and so you may decide that you
17:32
want to also pay out a percentage of
17:34
company profits as a match to the 401K
17:38
and this is what a lot of people will do
17:40
so let's actually change this number for
17:42
a second so let's change it to uh you're
17:45
going to do a $40,000 salary let's just
17:46
put it at that for a second okay so of
17:50
the $40,000 salary
17:53
$23,000 each year can go directly into a
17:57
solo 401k
17:59
so that's your solo 401k and remember
18:02
when you do a traditional 401K that's
18:04
going to reduce your um income down to
18:07
$7,000 so You' actually only be paying
18:09
income tax on your W2 on 17,000 because
18:12
of the 23,000 going into the 401K but
18:15
the company still has what is it $40,000
18:18
left in profit so the company can
18:20
actually do a uh a match of profit share
18:24
into the 401K and they can go up to
18:26
$69,000
18:28
per year total comp between your own
18:31
contributions and the company match
18:34
$69,000 a year could be going into a
18:37
401k now look you still need to make a
18:40
certain amount of money just to cover
18:41
your cost of living but one thing that
18:43
that I've learned over my years is that
18:47
the wealthiest people not only stay
18:49
wealthy but they get even wealthier by
18:52
being Frugal especially early in their
18:54
careers I have a neighbor who passed
18:57
away in his '90s
18:59
but he worked as a janitor and he worked
19:01
uh he worked at a um a gas station as a
19:03
auto mechanic for his whole life
19:05
basically he had those two jobs and he
19:07
ended up amassing a Fortune of over $8
19:10
million even though he never had a fancy
19:13
sixf figure salary or anything like that
19:15
he was Frugal a penny saved as a dollar
19:17
earned and he put that money away he put
19:19
it away and it grew and it grew and it
19:21
grew and it grew now a lot of times
19:23
people who are young and come into a
19:26
little bit of money they spend it very
19:28
quickly they want to keep up with
19:29
appearances keep up with the Joneses you
19:31
know the the Kardashian you know what I
19:33
mean they want to keep it keep up look
19:35
very wealthy and they spend all that
19:37
money and it's gone so the the less you
19:40
can live on the more you can put away
19:43
because the money that you need for your
19:45
cost of living that is it's that's
19:47
taxable you're going to pay income tax
19:49
on that so this is a strategy that uh
19:53
that a lot of people will use and is it
19:54
a little bit more complicated it is is
19:57
it going to be something you'll do if
19:59
you're making only 70,000 a year I don't
20:02
know 50,000 probably not 20,000 no over
20:06
100,000 well now it's just a cost
20:08
benefit analysis how much am I paying in
20:10
tax how much would it cost to have an
20:13
accountant set this up for me because
20:14
once it's set up once it's done and then
20:17
you just fund it each year and the nice
20:19
thing now is that you've got a solo 401k
20:22
and you can use that for investing and
20:23
you can invest it not just in the stock
20:25
market you can invest it in real estate
20:27
and in all sorts of things so if you are
20:30
a Trader and you have some degree of
20:32
success and you're trading in your
20:35
personal name it's really worth spending
20:37
a little bit of time getting some advice
20:39
from an accountant to figure out if it
20:41
would make more sense to trade in an
20:43
escorp now regardless of whether you're
20:46
trading in an escorp or you're trading
20:47
your personal name if you have not done
20:50
Mark tomarket election for your taxes
20:54
you could be subject to wash sales so a
20:57
wash sale is when you take a loss and 30
21:01
days late within 30 days you buy back a
21:03
position that is more or less similar or
21:05
the same in the older days what people
21:08
used to do is on December 30th or
21:10
whatever 31st they would sell all the
21:13
positions they were holding at a loss so
21:15
their statements would show these big
21:17
losses and then they would just buy back
21:18
the same position on January 1st so they
21:21
would book the loss and then they would
21:22
buy it back on January 1st and the IRS
21:24
was like no no no no no no no that's you
21:26
can't do that so that would be called a
21:28
wash sale to sell and then buy back the
21:30
problem is as a Trader we're often
21:32
buying and selling the same stock all
21:34
the time we're getting in we're getting
21:35
out we're getting in we're getting out
21:36
and so sometimes a Traders will get
21:38
subject to seeing a wash sale which
21:40
means you'll have some losses that
21:43
you're not allowed to write off and the
21:45
problem is in that tax year you have to
21:47
wait for the next tax year and the
21:49
problem is that's going to make your
21:50
income tax higher than you actually than
21:53
what you actually made so it's very
21:55
important to do Mark to Market status
21:59
election on your return and you have to
22:01
do it by January sorry April 15th of the
22:05
current tax year in order for it to work
22:08
for that tax year so you can't do it
22:10
like I can't do it right now for last
22:12
year it's too late you have to do it
22:15
before April 15th of the current tax
22:17
year in order for it to apply so that's
22:19
something that's really important now by
22:21
the way in this scenario right here this
22:23
$40,000 is a tax um deduction for the es
22:28
Corp so they deduct your payroll they
22:30
deduct the profit share and so in total
22:34
the es Corp has zero income because we
22:37
all Bal we balanced out to zero right
22:39
you you we have 40 40 15 so we balanced
22:42
out to zero so we actually are 5,000 so
22:44
let's just make it 20 whatever so you
22:46
balance out to zero so the business
22:49
actually produces no income and the only
22:51
income that you had was the $177,000 in
22:54
wages now again
22:56
$177,000 okay maybe that's a little
22:58
extreme that's not going to be enough to
23:00
live off of for everyone but depending
23:02
on where you're at maybe it is and if it
23:05
were then you're still saving
23:07
$69,000 each year in the 401K and you're
23:11
using the company to pay for some of
23:13
your business expenses and this is
23:14
something that a lot of Traders don't
23:16
even think of they're just trading from
23:17
their home office and they're like oh no
23:19
it doesn't you know it doesn't matter I
23:20
oh I didn't even think of that and you
23:22
know that's all fine and well but at the
23:25
end of the year how much are you paying
23:27
for that office space how much you
23:28
paying for your equipment for your
23:29
computers how many monitors do I have
23:31
here how many laptops do I have here
23:33
right all of this stuff is part of the
23:34
cost of running a business as a Trader
23:38
something I shared with all of my
23:39
students at Warrior trading is that I
23:40
had a goal early on in my career and
23:43
this was after some advice from some
23:44
really great accountants it was that I'm
23:47
going to focus on trading as much as I
23:49
can in my tax-free account and what I
23:52
want to do is I want to grow that
23:53
account as much as possible because I
23:55
know that if I grow it to 8 to 10 to 15
23:58
million I'll get to a point where that
24:01
money invested in the market or invested
24:04
in real estate invested in other things
24:06
has the potential to earn more each year
24:09
than I could ever make actively trading
24:12
now in my best year I made over5 million
24:15
actively trading so
24:17
realistically I would have to grow this
24:19
account to like $50 million for 10% to
24:22
be 5 million that isn't going to happen
24:24
anytime soon that might probably never
24:26
happen but I I think the point is there
24:29
are going to be some years that are
24:30
going to be really great like that year
24:32
was and then there'll be other years
24:33
that are a little slower where I might
24:34
make $500,000 that's totally within the
24:37
re realm of of reasonable that I could
24:39
have that type of flux between years
24:41
that are hot and years that are cold and
24:43
so on a year where I make
24:46
$500,000 well now $10 million that
24:49
produces 10% 12% return that's $12
24:52
million a year and it's growing taxfree
24:55
which allows that interest to continue
24:56
to compound and it gets bigger and
24:58
bigger and bigger and bigger so I really
25:00
think the sooner you start putting some
25:03
money into these tax deferred accounts
25:05
the better whether you're going to use a
25:07
solo 401K you're going to set up a
25:09
business you're just going to do a
25:11
typical Roth IRA or well if you want to
25:14
move to Puerto Rico move to Puerto Rico
25:16
but there are strategies that are right
25:18
in front of you that so many people are
25:20
utilizing and certainly the top 1% are
25:23
using them to pay almost nothing on
25:26
their trading profits I encourage you to
25:28
take a deeper look at the way you're
25:30
allocating what accounts you're trading
25:32
in and how much you're paying in tax and
25:34
as always reach out to a CPA and get
25:36
some really good advice because a good
25:38
CPA is worth their weight in gold I hope
25:41
you found this episode helpful I hope
25:42
you hit the thumbs up I hope you
25:43
subscribe to the channel and I'll see
25:44
you for the next upload real soon
25:48
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