Tax Planning is a Business Decision
For many business owners, taxes are their largest single expense. Larger than qualified plan contributions, larger than their mortgage, sometimes even larger than the kids’ college education. If taxes take the biggest bite out of your working capital, your tax strategy may be as important as your go-to-market strategy.
The Reverse Tax Gap
According to the IRS, the “tax gap is the difference between the estimated ‘true’ tax liability for a given period and the amount of tax that is paid on time.” The amount collected by the IRS includes billions of dollars in taxes that were overpaid due to mistakes and misunderstandings of the tax laws. As tax professionals, we are concerned about both of these gaps.
Certainty vs. Control: A Crucial Distinction
Risk and return are two sides of the same coin. There simply is no prospect of meaningful, real return without exposure to some risk. Experienced investors understand this, and accept the reality that successful investing will require both patience and discipline. Although there is no way to predict or control the ups and downs of markets, there are four controllables that can have a profound impact on real returns.
A Stoic’s Guide to Investing
Stoicism, the ancient Hellenistic philosophy, is making a comeback these days. Warren Buffett, Jeff Bezos, and Mark Zuckerberg are among a large and growing number of super-wealthy people who have embraced the tenets of Stoicism. If you’re concerned about your investment portfolio, it might be a good idea for you to look into it as well.
