Unfortunately, the 401(k) plan only went up $500 to $23,500 for 2025, so you need to possibly find other alternative options to find ways to save money on your taxes. Those individuals who are over 50 years of age are allowed to contribute an additional $7,500, which equals out to $31,000. This must be completed by no later than 12/31/2025. You must work with a financial advisor to make sure that payments are made in a timely manner and paperwork is filed with the appropriate entities to avoid any issues at a later date which can cause tax issues later.
However, there are a number of people who constantly feel that this is a very slow way of putting money away for retirement, and they get frustrated because they don’t feel that it’s not getting any better for them. This is where thinking outside of the box comes in, and an old saying that comes to mind is that “you can’t make more dirt.” One of the things that people constantly are asking me about when it comes to what are “good investments,” and because I am not a certified financial advisor, not a licensed realtor, nor a wealth manager. However, I have always been one to lean towards real estate in one way or another, whether it’s a Real Estate Investment Trust, being a small real estate landlord, investing in a development company, etc.
Now with any investment there’s always a risk of losing what you’ve put into it, however having a good amount of research, a strong team of experts in your corner, and being active in your own desire to grow your own investments instead of just simply assuming that it’s going to be passive income that you don’t need to worry about.
Anyone who has “made it” will admit that they’re constantly reviewing what’s coming in as well as going back out. No one can be the expert in everything, which is why you have a team that’s put together with their own strengths they bring to the table with the goal of success. This is why if you’re looking for new clients, looking to expand your networking reach, or educating a completely brand new generation of people who didn’t realize they could afford to put something towards their retirement. This is where teams with their own wheelhouse help new clients, which will lead to further referrals because it’s all about helping each other.
If you need assistance to determine if you’re classifying your independent contractors properly or need to discuss other potential tax issues, feel free to contact a tax resolution associate with Bookkeeping-Results, LLC.
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