Tax Myths You Must Ignore If You Want to Build Real Wealth

Myth #1: Maxing Out Your 401(k) Is the Best Move

Sure, it feels responsible. But here's what really happens:

• You defer taxes, not avoid them
• You lock up your money until 59½
• You're betting tax rates will be lower later (they probably won't be)

Better strategy:

Consider vehicles like Indexed Universal Life or PPLI that offer:

• Tax-free growth
• Tax-free access
• No market losses
• No forced distributions

The wealthy don't trap their money. They move it into flexible, tax-advantaged structures.

Myth #2: Your CPA Handles Everything

Most CPAs are excellent at filing returns — not building strategy.

If your CPA isn't proactively asking about entity structure, 280A deductions, 831(b) captives, or trust layering… They're not doing tax planning. They're doing paperwork.

Wealth builders need strategy — which comes from a team, not a technician.

Myth #3: Avoiding the IRS Audit Means Playing It Small

Many people avoid using powerful deductions or legal code sections because they're "worried about an audit."

But the tax code was written to be used. You think the Fortune 500 are afraid of 280A, 139, 1202, or 831(b)?

They use them. Strategically. Legally. And at scale.

The real risk is overpaying forever — not getting audited once.

What Real Wealth Builders Do

• They build a tax plan, not just file a return.
• They use leverage: other people's money, the right entities, and legal IRS code.
• They layer professionals — CPAs, attorneys, insurance strategists — around a coordinated mission.