Don’t Let Taxes Stop You

And don’t be driven by paying taxes in anything you do. So don’t take profits because I don’t want to pay the capital gains tax. Don’t, you know, do some kind of investing in a product because it’s a taxable product and I’m going to be, you know, I’m going to get big dividends and interest and I’m going to have to pay tax on it.

If you are pushed in a higher tax bracket, um, at that point, at that range, it may be worth it. I, I would be surprised if the net income that you keep, after all, taxes is not going to be higher than it was. So chances are it still would be worthwhile.

But we kind of get caught up in maybe a misinterpretation of how we would apply the additional income tax. And that kind of messes our mental calculations up. When I had my trust company, I was dealing mostly with high net worth people.

I never advertised. We never really tried to get business. We had a very good business there towards the end before we sold it to a bank.

And people would come, usually refer to somebody else. We never took on new clients. We never sought out new clients.

We weren’t in a position to do that. We didn’t want to grow our overhead. So we, you know, but we did take referrals.

And I used to always tell people, look, here’s, I have two rules. Before you decide or think you want to come with our firm. And I used to say, I’ve got two rules.

Number one, you need to understand, if you, if I’m managing your portfolio, you will pay taxes because I don’t do anything for the sake of trying to save you some taxes. So if at all costs, you don’t want to pay tax, you got the wrong guy. Don’t use me because you’re going to pay taxes, and you’re going to be mad at me.

If you want to make 30% when the market’s 30% off, and that’s what you want to do, then you got the wrong guy because I’m probably up 19, not 30. So you had to give all those things and a lot of people would walk away from that, but a lot of people didn’t.