Asset Protection with Jonathan Evans

If there’s one thing we could imbibe from the lives of top investors, it is that we must plan our  finances properly. We’re joined by one such investor, Jonathon Evans, on this episode. As an  experienced attorney at Anderson Business Advisors, he tells us the importance of proper planning  to achieve financial security, reduce taxes, and protect assets.  Jonathan advises us on the potential pitfalls and recommends structuring investments through  limited liability companies (LLCs) to provide asset protection and separate personal and business  assets. He emphasizes that owning investments through an LLC shields personal assets from  potential legal claims and highlights the significance of selecting the right state and obtaining  correct documentation. He also delves into tax planning strategies, highlighting the differences  between earned income, passive income, and portfolio income. Jonathan tells us that not all types  of income are taxed equally and mentions that the wealthy often select the most advantageous  types of income to minimize taxes.  Today’s conversation teaches us how continuously investing in real estate and utilizing tax breaks  can provide ongoing tax advantages. When properties are sold, the income can be reinvested into  new properties through the same LLC, allowing for ongoing tax benefits. It also tells us how it’s like  using a 1031 exchange to defer taxes when reinvesting in similar properties, introduces the  concept of legacy planning, and highlights the importance of creating a living trust to facilitate the  transfer of assets to family members after death.  Key Takeaways Proper planning, including structuring investments through LLCs, is crucial for financial  security and asset protection. Selecting the right state and obtaining correct documentation are important when setting  up LLCs. Avoid common mistakes like grouping risky investments with others in the same LLC. Seek expertise in legal, tax, and investment areas to maximize tax efficiency and protect  assets Differentiate between earned income, passive income, and portfolio income for tax  planning. Real estate investments offer tax advantages, such as cost segregation and rapid  depreciation. Continuously investing in real estate and utilizing tax breaks provide ongoing tax  advantages. Consider legacy planning and create a living trust for asset transfer and protection. Understand the benefits and limitations of self-directed IRAs and solo 401(k)s for investing  through retirement accounts. Consult a tax advisor for personalized guidance and recommendations. “One of the first things that I recommend people do is they take a look at how you are actually  going to own these investments. Are you planning on just buying them in your personal name? Are  you going to be doing something else with them?” - Jonathan Evans   To learn more about Jonathan's Tax Workshop please visit: aba.link/Viking   Connect with Jonathon LinkedIn - https://www.linkedin.com/in/jonathon-evans-17a51364 Connect with Viking Capital Website - https://www.vikingcapllc.com