Reduce the Drain of Debt and Taxes

It would be nice to live without the drain of debt and taxes.  However, these are often unavoidable. The key is to create options that will minimize the negative impact of them.  This often can be done by:

• Balancing proper savings and protection with debt elimination.
• Restructuring the terms of bad debt so that it creates less pressure on your cash flow.
• Creating assets that have little or no income tax liabilities.
• Using assets outside of your company-sponsored plans to create assets for retirement.
• Properly structuring the sale of your business to reduce its potential tax burden.
  

Having a cash flow “hierarchy” can help.  This will help you consider the pros and cons of protecting your income, becoming a better saver, maintaining proper liquidity, and managing debt and taxes.