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The Money Cruncher, CPA @themoneycruncher.bsky.social · 25/04/2025

People often ask “How do you invest your 401k?” I do 100% into Vanguard Institutional 500 Index Trust ($VFFSX) It has a 0.01% expense ratio One of the best S&P 500 funds out there.

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 19/02/2025

Nvidia's CEO is avoiding $5 billion in taxes. How? By using sophisticated tax strategies 99% of people have never heard of. Here's how it works:

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 18/02/2025

11 ways to save on taxes: 1. Max retirement contributions 2. Mega Backdoor Roth 3. Roth IRA/Backdoor Roth 4. Optimize charitable donations (stock/DAF) 5. Tax Loss Harvest 6. Tax Gain Harvest 7. Roth Conversions 8. T-bills instead of HYSA 9. Maximize HSA 10. 529 plan 11. Buy real estate

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 17/02/2025

If you earn $150,000 W-2, you will pay $25,247 in federal taxes. If you contribute just $5,000 to a traditional 401(k), your federal taxes drop to $24,047. That’s $1,200 in deferred taxes. 401(k) is not a scam.

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 17/02/2025

How should you prioritize your money? Here’s a general rule of thumb: 1. Build emergency fund 2. Get a 401k/403b match 3. Pay off high interest debt (8%+) 4. ESPP 5. HSA 6. Roth IRA 7. Max out 401k/403b 8. Mega Backdoor Roth 9. Pay off medium debt (4-8%) or taxable brokerage

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 17/02/2025

The IRS received 23,589,000 tax returns for the week ending Feb 7, 2025. In the prior year, it received 25,553,000 tax returns. This is a drop of 7.7%, or ~1.9M tax returns. Fewer people are filing their 2024 tax returns vs 2023 so far.

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 13/02/2025

Growth of $5,000 since 2016: High yield savings account - $6,362 $VTI (Total US Market ETF) - $16,672 You must invest to protect your money from inflation & build wealth.

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 13/02/2025

How to make your child a millionaire: - Invest $200/mo in a 529 plan. - By age 18, they can have ~$90,000 to pay for college tax-free. - As soon as they have income (summer job), invest $550/mo until age 23 in a Roth IRA, then stop. - By age 65, they can have a $1M portfolio tax-free (8% return)

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 11/02/2025

My entire $250,000+ brokerage portfolio is invested in just 2 ETFs. $VTI (20.38% 1y, 0.03% expense ratio) and $VGT (21.36% 1y, 0.09% expense ratio) That's all I buy. Stop overcomplicating your investments. Keep it simple & watch the fees.

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 10/02/2025

Many people don't want to get rich slowly. Instead, they buy meme coins, day trade, or invest in penny stocks. In 99% of the cases, they realize that it’s a losing game. You can skip all that and just buy good ETFs instead (e.g. $VTI).

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 09/02/2025

If you contribute to a 401(k), you MUST know this: Vesting schedule. In simple terms, this means how long you need to work until the employer's match is truly yours (your contributions are always yours) You don't want to quit a job 10 days before you get "cliff" vested...

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 08/02/2025

I saw someone celebrating a $15,258 refund. But it’s nothing to celebrate. You gave the IRS a 0% interest loan for $15,258 throughout the year. That’s $680 you could’ve earned with a 4.5% HYSA instead in a year. Adjust your W-4.

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 08/02/2025

Tomorrow I’m sharing how to file your own taxes for under $20, regardless of how much money you made or how complex it is (rentals or business income), in my free newsletter. Link in bio.

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 07/02/2025

I ditched my savings account 1.5 years ago. I use Vanguard Money Market Funds instead. Their yields: • Treasury 4.26% $VUSXX (state/local tax exempt) • Muni 2.08% $VMSXX (federal tax exempt) • Federal 4.28% $VMFXX Fidelity/Schwab have their own MMFs.

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 06/02/2025

If you don't know where to invest, look at $VTI. $100 of it gets you: > Apple - $6.65 > Microsoft - $5.51 > Nvidia - $5.49 > Amazon - $3.65 > Meta - $2.24 And $76.46 worth of 3,604 other U.S. stocks with a 0.03% expense ratio.

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 04/02/2025

If you make $150,000 in W-2 in 2025 you will pay: • $25,247 fed tax • $11,475 payroll tax If you make $150,000 from long term capital gains/qdividends, you will pay: • $12,998 fed tax Almost 3 times less tax. The tax code favors investors.

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 03/02/2025

The national average savings account yield is 0.55%. Yet the 4 week Treasury Bills are paying ~4.32% and no state/local taxes. Buy from Treasury Direct. Or explore a Treasury ETF (i.e. $SGOV) or Treasury MMF (i.e $VUSXX) Don't let banks rip you off.

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 03/02/2025

For those of you with modest incomes: Long-term capital gains on stocks/ETFs can be taxed at 0%. This means that you can harvest (sell then re-buy) these stocks/ETFs to increase your cost basis & pay less federal taxes in the future. (might be subject to state tax)

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 01/02/2025

Big misconception about Roth IRAs: "I don't want ALL my money to be locked up until 59 ½" That's not true. You can always withdraw contributions (money you put in) at any time without penalty or taxes from a Roth IRA.

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 31/01/2025

4 ways to invest for your child: 1. 529 plan - tax-free growth and withdrawals for education 2. Roth IRA - if your child has earned income (good for business owners) 3. Brokerage - liquid & cheap funds (i.e $VTI 0.03% cost) 4. Trusts (for $$$$ net worth, avoid estate tax)

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 20/01/2025

I personally know someone who declined a promotion because the increase would’ve bumped him from the 12% tax bracket to 22%. FYI - going into the next marginal tax bracket only means the money in that specific range is taxed at that higher rate, not all of it

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 19/01/2025

Republicans on the House Budget Committee just revealed 45 potential tax law changes. I reviewed them all so that you don't have to. Here's everything you need to know:

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 18/01/2025

The goal is not to minimize taxes, but to maximize after-tax return. For example, a 0.01% HYSA gives almost no return after taxes, while a 4% HYSA, even after taxes, can still leave you with ~3%. The higher yield results in more money overall, despite paying more in tax.

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 17/01/2025

Big mistake beginners make with a Roth IRA: Not investing within the account. It happens more often than you might think:

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 13/01/2025

If you want to retire at 65, you need to save at least 15% of your salary starting at age 25 per Fidelity. That 15% should be used to: 1. Maximize your employer’s 401k match 2. Pay off any credit card debt 3. ESPP (if you have) 4. HSA 5. Roth IRA

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 12/01/2025

Congressman Buddy Carter just introduced a bill to abolish the IRS, repeal income, payroll, estate and gift taxes. I read through his 132 page proposal so you don't have to. Here's everything you must know:

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 07/01/2025

Just a reminder for 2025: Check where your 401(k) is invested. You need to choose a good fund with a low expense ratio. My 401(k) is in the Vanguard 500 Inst Index Tr (0.01% expense ratio), with great returns.

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 28/12/2024

6 worst financial mistakes: • Buying a nice car right out of college • Panic selling during a market drop • Buying too much house • Not investing earlier • Investing in something you don't understand • Getting into credit card debt What would you add?

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 28/12/2024

Creating an LLC is not some secret tax strategy. If you simply create an LLC for your own business, you’ve changed absolutely nothing about your taxes. $0 in tax savings (and $800 fee in California).

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 27/12/2024

Jensen Huang, the CEO of Nvidia, is avoiding $5 billion in taxes using irrevocable trusts, GRATs, and the "Buy, Borrow, Die" tax strategy. Here's how it works:

m.youtube.com

How Nvidia CEO Avoids Paying $5 Billion in Taxes

YouTube video by The Money Cruncher, CPA

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 27/12/2024

It's very easy to be broke: • Food delivery available at the fingertips • Buy Now Pay Later (Affirm) • Social media pressures But if you can resist the temptation and be smart with your money, your future self will thank you for it.

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 23/12/2024

2 easy ways to save money: 1. Think of expenses on an annual basis. $15/mo -> $180/yr subscription. 2. Cost per working hour If you make $20/hr, the $1,000 iPhone is ~55 after-tax hours of your working time. Is it worth the upgrade?

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 23/12/2024

Roth IRA is very powerful: • grows tax free • withdrawals are tax free • withdrawals don't impact IRMAA • withdrawals don't impact provisional income for SSBs • tax rate uncertainty protection Make sure you contribute. Use the Backdoor Roth if over the income limit.

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 22/12/2024

If you have an LLC or Corporation, pay attention... The DOJ filed an emergency appeal with the court regarding FinCEN's BOI report. Here's the latest update on the BOI due Jan 1, 2025:

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 21/12/2024

There’s still 115 days left to contribute to a Roth IRA for 2024. You don’t have to max it out. Just put as much as you can. Your future self will thank you.

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 20/12/2024

Every time you get paid, take a set amount ($5, $20, $100) or a percentage (10%, 20%), whatever you can afford, and put it in investments. Forget that money exists. You will retire much more comfortably.

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 18/12/2024

The ultra wealthy are crafty at avoiding taxes. Many use the "Buy, Borrow, Die" strategy. Here's how it actually works in practice:

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 17/12/2024

If you make $100,000 as a W-2 employee in 2024, you will pay: > FICA taxes ($7,650) > Federal taxes ($13,841) > Total $21,491 If you make $100,000 long term capital gains, you will pay: > Federal taxes ($5,756) Invest. Your. Money.

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 17/12/2024

Warren Buffett bought Coca-Cola stock in 1988. 36 years later, he is still holding the shares. Real wealth is built by waiting. Don’t rush the process. Buy quality stocks or ETFs and hold them for 30+ years.

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 16/12/2024

This “economist” predicted the S&P 500 to collapse almost 1 year ago. In reality, it’s up 27% YTD. Don’t pay attention to clickbait, just continue to invest for the long term.

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 15/12/2024

I researched 7 ways to park your cash savings to get a 4.5%+ yield. Don't let banks pay you 0-2%. Here's the list:

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 15/12/2024

🚨 Shocking statistic: 2,044 IRS employees have balances due totaling more than $12 million for one or more tax periods that are not on any installment agreement. Why does the IRS employ people who can't even pay their own taxes?

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 14/12/2024

Everyone always talks about tax write offs. But here’s the thing: Wasting 100% of your money on something you don’t actually need, after a ~30% savings in tax, means you still wasted 70%. Be mindful.

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 14/12/2024

"It’s just $10. It's not a big deal" I hear this very often. But $10/day is $3,650 in 1 year. If you invest this amount in a Roth IRA, it can grow to $400,000 in 30 years all tax-free. Small expenses add up. Every $ matters.

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 13/12/2024

$VOO and $VTI can be great funds for tax loss harvesting. When the stock market drops, you could sell one at a loss and buy back the other. Since both $VTI and $VOO track different indexes, they aren’t considered “substantially identical” for the wash sale rule.

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 13/12/2024

There’s still time for tax planning in 2024. Here are 15 tax moves you can make: m.youtube.com/watch?v=Gb0w...

m.youtube.com

15 Tax Strategies To Lower Taxes in 2024

YouTube video by The Money Cruncher, CPA

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 13/12/2024

Growth of $5,000 since 2015: Money Market Fund/HYSA - $5,934 $VTI (Total US ETF) - $16,749 You must invest to build wealth & protect your money against inflation.

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 12/12/2024

This is why some financial advisors get a bad reputation. I personally would be hesitant to invest in something with an expense ratio of 0.25% or higher.

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 12/12/2024

My current investment strategy: - Max out traditional 401(k) with 100% invested in the Vanguard S&P 500 fund - Max out Roth IRA with 100% invested in Vanguard Information Technology ETF ($VGT). - The rest goes to a brokerage in $VTI or $VGT. What’s your strategy?

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The Money Cruncher, CPA @themoneycruncher.bsky.social · 12/12/2024

I stopped using a savings account a long time ago. I only use Vanguard’s MMFs for my emergency/savings. Current rates (after expense ratios): • Federal 4.55% • Treasury 4.51% • Muni 2.00% Competitive rates and all in one place with my other investments.

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