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4 Life-Changing Tax Strategies – Secvolt

In this blog, we are going to talk about 4 remarkable tax approaches that can transform your life. In this blog, we will investigate techniques to lawfully bring down your tax bill, add to your savings, and expand your income. These techniques have the potential to significantly improve your financial position and raise your wealth in the long run. 

So, regardless of whether you are an entrepreneur, a retiree, or just somebody who wishes to retain more of their hard-earned money, this blog is for you. Let us begin!

Let’s begin by defining tax techniques. Identify their importance and how they contribute.

Tax Strategies And Their Importance  

Or

An Overview of Tax Strategies  

Tax tactics are the diverse methods and approaches employed to lawfully bring down the amount of taxes due to the government. This may incorporate taking advantage of deductions, credits, and other tax benefits, as well as arranging financial exchanges in an economically savvy manner. Tax strategies aim to legally reduce the amount of taxes paid, while still adhering to all relevant tax laws and regulations. A few models of tax strategies involve tax-loss harvesting, making the most of deductions and credits, and calculated retirement arranging.

Developing an effective tax strategy is beneficial as it can lessen the amount of taxes an individual or business needs to pay. This can be accomplished by taking advantage of the deductions, credits, and other tax incentives available, as well as organizing financial dealings in a way that decreases or delays taxes. Furthermore, having a good tax strategy can guarantee that an individual or business is following the tax regulations, which can keep them from facing punishments and fees. All in all, having a smart tax plan can help to save money and strengthen financial stability.

Here are some strategies that can assist you in organizing your tax policy.

Strategy 1 Maximizing Retirement Contributions

 

Strategy 1: Maximizing Retirement Contributions

Maximizing retirement contributions is a tax technique. Contributing as much as possible to a retirement account, such as a regular IRA, 401(k), or Roth IRA, to reduce your taxable income and perhaps obtain a tax deduction, might be part of this.

The following are the steps to put this plan into action:

  1. Investigate and comprehend the types of retirement accounts, as well as their contribution limitations and restrictions.
  1. Determine the right form of retirement account for your financial objectives and circumstances.
  1. Contribute the maximum amount permitted by law to your selected retirement account.
  1. Maintain detailed records of your donations for tax purposes.

The following are some of the risk associated with this strategy:

  • Not having enough funds to make the maximum contributions.
  • Unless certain requirements are satisfied, you will not be able to access your money until you reach retirement age.
  • Lack of an appropriate emergency fund.
Strategy 2 Maximizing Deductions through Charitable Giving
 
Strategy 2: Maximizing Deductions through Charitable Giving

A charitable donation is one tax approach for maximizing deductions. This is making philanthropic contributions to approved charity organizations to reduce your taxable income and hence your overall tax burden.

The following are the steps to put this plan into action:

  1. Find suitable philanthropic organizations that share your beliefs and causes.
  1. Keep detailed records of your gifts, including the organization’s name, the date of the donation, and the amount.
  1. Take advantage of any charity-giving matching schemes offered by your work.
  1. Instead of cash, consider donating valuable assets such as stocks or real estate.

The following are some of the risk associated with this strategy:

  • Documenting and substantiating the contribution correctly.
  • Assuring that the philanthropic gift does not exceed specific percentage limits.
  • Being aware of the ramifications of the alternative minimum tax.
Strategy 3: Utilizing Tax-Free Investment Options

 

Strategy 3: Utilizing Tax-Free Investment Options

Another tax method is to invest in tax-free securities. These are investment instruments that allow you to make revenue without having to pay taxes on them. Examples of tax-free investing opportunities include:

  • Municipal bonds
  • Roth IRA or Roth 401(k)
  • Health Savings Account (HSA)
  • Education Savings Accounts (ESA)

The following steps will be taken to put this approach into action:

  1. Investigate and uncover tax-free investment possibilities that correspond to your financial objectives and risk tolerance.
  1. Understand the donation limitations and qualifications for each choice.
  1. Consult with a financial counselor or a tax specialist to identify the best solutions for your unique circumstances.
  1. Contribute to the tax-free investing alternatives you’ve chosen.
  1. Keep precise records of your donations and investment returns for tax reasons.

The following are some of the risk associated with this strategy:

  • Investment opportunities are limited, and returns are lower when compared to taxable investments.
  • Contribution restrictions and conditions for many tax-free investing choices are strict.
  • Some investing choices, such as Roth IRA conversion, are complicated and lack flexibility.
Strategy 4: Taking Advantage of Tax Credits
 
Strategy 4: Taking Advantage of Tax Credits

Another tax option is to utilize tax credits. Tax credits are a dollar-for-dollar decrease in the amount of taxes owed. Tax credits are classified as either refundable or nonrefundable. Non-refundable tax credits can only lower your tax burden to zero, but refundable tax credits can result in a refund even if you owe no taxes. Tax credits include the following:

  • Child and dependent care credit
  • Earned income credit
  • Education credits (American Opportunity and Lifetime Learning)
  • Retirement savings contributions credit

The following are the steps to put this plan into action:

  1. Investigate and locate tax credits that apply to your financial condition.
  1. Collect all of the required documents and papers to claim the credit.
  1. When completing your taxes, fill out the proper forms and include all essential evidence.
  1. Maintain detailed records of the costs or acts that qualify you for the credit.
  1. Consult a tax professional or utilize tax software to ensure that you are taking advantage of all possible credits.

The following are some of the risk associated with this strategy:

  • Not being aware of the credit’s prerequisites and limits.
  • Inability to get the appropriate papers to claim the credit.
  • Certain credits are being phased out dependent on income.

The Bottom Line 

To gain control of your finances and accomplish your financial goals, you should budget, save, invest, and purchase adequate insurance coverage. Nevertheless, each individual’s financial situation is unique, so it’s always a good idea to consult a tax professional for individualized advice to ensure you’re making the right choice for your particular situation or not.

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Ashish Verma

Ashish Verma is the founder and CTO of Secvolt, with close to 10 years of experience in the IT industry. He has been the technical backbone of the company and has worked tirelessly to make the technical infrastructure robust. He is a passionate entrepreneur who generates solutions that have the potential to bring change.

In order to ease the client’s interaction with Secvolt, he has strived to develop the business’s technological foundation and establish a user-friendly platform. Ashish has also contributed substantially to smoothening the company’s administration and ensuring that there are no lacunae in the broad structure of the organization. 

Early Years

Coming from a middle-class family, he was aware of the problems that people faced while using technology. He sought to create something that was simple to use yet had a powerful effect. As he studied computer science, he became eager to offer a solution to real issues. He began his professional career at Amdocs, where he gained expertise in client management while catering to more than 20 clients. Later, he moved to Citicorp, where he had exposure to the investment industry. His time at Amdocs and Citi enabled him to produce high-standard, efficient, and scalable technical infrastructure.

He left corporate jobs for his startup because he was passionate about working on the concept of a smart city platform. He expanded the concept internationally and even collaborated with Global Dignity-Kuwait. Things didn’t work out for him the first time. He states, “My failures didn’t stop me from experimenting and trying new things.” He rose from the ashes like a phoenix and founded FewerClicks, an End to End IT solution company.

He worked on the creation of Solster Finance, a decentralized financial platform based on the Solana blockchain. He created this platform single-handedly which has helped the team raise a $1M investment and a revenue of more than $5M within 6 months of launching. 

He has previously worked on many blockchain technologies and cryptocurrency ventures, which include Decentralized Finance Applications (Defi), Decentralized Applications (Dapps), File Contracts (SIA, record-keeper), Smart Contracts (rust, solidity), and NFT Development. His experience and effective communication have helped many team members understand Secvolt effectively and the underlying technology it is powered by.

He possesses the ideal combination of strategic thinking and excellent business insight. He is responsible for formulating technical aspects of the company’s strategy to guarantee alignment with business objectives. With his drive to experiment with new technologies, he has helped Secvolt achieve a competitive edge. Being in charge, Ashish never holds back in encouraging the different departments to make profitable use of technology, helping to grow as an unstoppable team at Secvolt!

Hanif Shaikh

Hanif Shaikh is the founder and CMO of Secvolt, with over 8 years of experience in the industry. He plays a crucial role when it comes to the growth of Secvolt. Since the beginning, he has acted as a mentor for each and every employee of the company, and he makes an effort to be accessible to his staff anytime they need him. 

Hanif first entered the Blockchain and Crypto world in 2016, and nothing has stopped him since. He views blockchain as a transparent platform that provides authority and accountability back to the people. He consistently believes that “overcommunication is better than miscommunication.” He has lived by this motto with his staff, clients, and networks.

Early Years

Hailing from Gujrat, a state in India, he is following his dream to contribute to making this world a better place. In the process, he has struggled, made some mistakes, and learned lessons from those mistakes to achieve success in life. His entrepreneurial attitude dates back to his childhood when he learned from his father’s business and aspired to have it all. He came from a humble background and had ambitions to succeed in life.

He has developed two successful businesses from scratch, and in the process, he has inspired young people to start their own businesses. He was an integral part of the Quora Mumbai Meetups and helped it become a great success in a short period of time. Later, he began organizing meetups to raise awareness about blockchain, cryptocurrencies, and their applications. He also shared his knowledge of ICOs, highlighted reputable ICOs, and established a small cryptocurrency community on WhatsApp groups.

He chose to go on a Blockchain Tour in India in 2019 and met some fascinating people. Throughout his journey, he has been able to build an extensive and robust network that has aided Secvolt’s growth. Because of his expertise and understanding of the Crypto Industry, he has been featured on several news channels and has advised the youth on the subject.

He is in charge of the company’s marketing operations and is responsible for developing its marketing strategy and vision. He oversees a group of passionate marketing professionals and plans promotional strategies with the goal of making  Secvolt a global brand. 

He is a perfect blend of a practical attitude and innovative business acumen. He believes in the ability of individuals to perform exceptionally well when given an environment to experiment and explore their passions; a culture that he has built at Secvolt.

Divakar Choudhary

Divakar Choudhary is the founder and CEO of Secvolt who has been trading for more than six years now. He started the business in 2018 with the conviction that if anybody could dominate the market, it was him. He poured all of himself into the business and turned Secvolt into a market-beating machine.

Divakar developed the fundamental quant models that perform risk management and capture alpha using his skills from the previous organization and his time spent in the market. In order to make the system effective, he backtested risk mitigation algorithms and worked on them for more than 4 years to produce results.

Early Years

He began his crypto journey in 2013 after getting his first gaming Laptop and melded in with the Blockchain community like sunbeams on the ocean. He created many YouTube channels at the age of 15 and businesses by the time he was 17. Technology has always piqued Divakar’s interest. He endeavored and succeeded at freelancing in his effort to achieve financial independence. However, he soon realized that freelancing would always keep him in the rat race, and the only way out would be to build a machine yielding generational wealth.

Soon, he started trading using his own capital but suffered a loss in the market. He says, “95% of people lose money & the rest 5% make money from the loss of those 95%.” He then began working on an effective technique to be included in this 5% after losing part of his own assets during the early stages of trading. He began evaluating quant strategies using statistical models.

With his methodology, he once produced a 20% ROI in a single month. With the zeal of creating something exceptional, he borrowed money from friends and family and generated decent returns for them using primitive quant models. Month after month, the system’s efficiency and the competence of the man behind it allowed for excellent market returns.

In the beginning, Divakar worked on his laptop for over 18 hours. It took every ounce of his energy as he executed about 530+ deals daily for 4 years to create this company from the ground up. In 2021, he increased his volume by 827%, trading a total of $52 million and hitting a single account.

In his words-

“What does becoming “THAT” GUY mean to you? Who did you need when you were young? Be that person!”

He is a perfect example of someone who followed his passion and made a fortune from it! He dreamt of creating generational wealth as a youngster, envisioned it as an adult, and is now making it a reality with Secvolt!