What are some strategies to minimize the impact of taxes for high earners in a high-tax state?

My wife and I make $900,000 combined. We live in California, and pay a lot of taxes. Most of our income comes from our salaries and bonuses. We'd like to minimize the impact of taxes. What might be some good choices for us to consider? Tax-exempt bonds won't work, and tax-loss harvest has a marginal impact on our net income. Is real estate investing a good idea? What ideas should we consider?

Estate Planning, Investing, Bonds / Fixed Income, Real Estate, Taxes
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3 weeks ago

I’ve never written this on here, ever. I always give advice but in this situation I would be doing you a major disservice if I didn’t say it. May I beg you to please invest in a fee-only financial planner. It doesn’t have to be me.

Not an investment manager, not someone at the bank but a true planner that understands strategy not just insurance and investing. 

Estate, tax, savings strategies and more can potentially be maximized by working with the right person. 

I hate to be this way but with your income it’s worth the investment to find someone and have them guide you through all of this.

 I can tell you about mega back door roths, others will gladly tell you to maximize insurance policies, etc.

It would be frivolous for any of us to tell you about these strategies and then say good luck with that. These things can go wrong so fast and cost you big time. 

I wish you the best I just hope so badly that you consider looking. Napfa is a good resource and so is the XY Planning network. I’m in California and  I’m happy to help you find a fit. Yes I’m a planner that loves finding a great new client that loves working with me but I also love helping find people good planners if they need it. 

I wish you the best in your financial journey. 


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