Everyone wants to retire with financial freedom, but for many Americans that freedom is hard to come by. What many people lack is a successful tax strategy that allows for more than just a 401K. There are a few reasons why your tax strategy should be more diverse.
First, a 401K isn’t enough money. For years, employees could look forward to the financial stability that comes from a pension, but most employers have moved from establishing a permanent reimbursement plan to a plan where they donate, or meet, a specific percentage of income every month. The problem with this tax strategy comes because most employers don’t donate enough to your 401K to really allow you to use that savings plan as your only source of income.
Another problem with a 401K is that it is very easy to put off saving. Usually a company will match the amount of money an employee puts into their 401K, but it is not required to put in the full amount. If you are looking for an effective tax strategy for saving money, put in the full amount of money in your 401K. The money is often tax deductible until it is withdrawn from your account.
Finally, the amount of return that comes from a 401K doesn’t always offer the greatest return. It is the same way with any investment. If you put all your money in the stock market, you could lose money and end up with nothing. With a tax strategy that includes a varied portfolio you have a better chance of gaining more stability.
It is never too early to discuss your tax strategy with your tax professional. You can work together to establish a plan that will give you the financial stability in the future that you desire.

Karla Dennis

As seen in Forbes Magazine, Karla Dennis is an expert tax and business strategist. As an enrolled agent, Karla is licensed to represent taxpayers in all 50 states. She holds a Masters in Taxation and Business Development and is the author of two books, Tax Storm and Against the Odds.

Karla, CEO of consultancy firm Karla Dennis And Associates, Inc.™, has saved her clients thousands of dollars and has been featured in various media outlets such as Forbes, MSNBC, KTLA, Yahoo! Finance, and SmartMoney, marking her as the ultimate tax expert.

As of 2014, Karla became the new host on the “Mind Your Business” radio show, KTLK AM 1150, sharing her financial and business knowledge with the greater Orange County and Los Angeles areas. As a supporter of women’s rights and issues, Karla is part of the Women Network, an organization built to educate and mentor women. In addition, Karla is the radio host for Women Network Radio, a show that aims to uplift and empower women of all walks of life.