Description

If there's one thing we could imbibe from the lives of top investors, it is that we must plan our 
finances properly. We're joined by one such investor, Jonathon Evans, on this episode. As an 
experienced attorney at Anderson Business Advisors, he tells us the importance of proper planning 
to achieve financial security, reduce taxes, and protect assets. 

Jonathan advises us on the potential pitfalls and recommends structuring investments through 
limited liability companies (LLCs) to provide asset protection and separate personal and business 
assets. He emphasizes that owning investments through an LLC shields personal assets from 
potential legal claims and highlights the significance of selecting the right state and obtaining 
correct documentation. He also delves into tax planning strategies, highlighting the differences 
between earned income, passive income, and portfolio income. Jonathan tells us that not all types 
of income are taxed equally and mentions that the wealthy often select the most advantageous 
types of income to minimize taxes. 

Today's conversation teaches us how continuously investing in real estate and utilizing tax breaks 
can provide ongoing tax advantages. When properties are sold, the income can be reinvested into 
new properties through the same LLC, allowing for ongoing tax benefits. It also tells us how it's like 
using a 1031 exchange to defer taxes when reinvesting in similar properties, introduces the 
concept of legacy planning, and highlights the importance of creating a living trust to facilitate the 
transfer of assets to family members after death. 

Key Takeaways

1. Proper planning, including structuring investments through LLCs, is crucial for financial 
   security and asset protection.
2. Selecting the right state and obtaining correct documentation are important when setting 
   up LLCs.
3. Avoid common mistakes like grouping risky investments with others in the same LLC.
4. Seek expertise in legal, tax, and investment areas to maximize tax efficiency and protect 
   assets
5. Differentiate between earned income, passive income, and portfolio income for tax 
   planning.
6. Real estate investments offer tax advantages, such as cost segregation and rapid 
   depreciation.
7. Continuously investing in real estate and utilizing tax breaks provide ongoing tax 
   advantages.
8. Consider legacy planning and create a living trust for asset transfer and protection.
9. Understand the benefits and limitations of self-directed IRAs and solo 401(k)s for investing 
   through retirement accounts.
10. Consult a tax advisor for personalized guidance and recommendations.

"One of the first things that I recommend people do is they take a look at how you are actually 
going to own these investments. Are you planning on just buying them in your personal name? Are 
you going to be doing something else with them?" - Jonathan Evans

To learn more about Jonathan's Tax Workshop please visit: aba.link/Viking

Connect with Jonathon
LinkedIn - https://www.linkedin.com/in/jonathon-evans-17a51364

Connect with Viking Capital
Website - https://www.vikingcapllc.com