In this interview, CPA‑lawyer and author Mark J. Kohler discusses how people should handle tax refunds and build wealth. He cites a TaxSlayer survey showing most refunds go toward debt payoff, savings, or personal treats, and advises a balanced approach. Kohler promotes using a portion of refunds to start side‑gig or freelance work, turning extra cash into additional income streams. He critiques reliance on traditional 401(k)s and encourages self‑directed retirement accounts, suggesting investments in familiar assets such as small businesses, rental property, raw land, or cryptocurrencies. The conversation touches on the Tax Cuts and Jobs Act, noting that about 80% of Americans may see increased refunds and urging creative tax planning. Finally, Kohler outlines a three‑step roadmap to financial freedom: eliminate consumer debt, automate modest savings, and invest in areas you understand, emphasizing excitement and control over one’s financial future.
Chapters
Here's a question. Did you get a tax refund? Well, what are you gonna do with it? Our guest this morning, Mark Kohler, is the author of the new book the Business Owner's Guide to Financial Freedom. What Wall street isn't telling you. And so Mark is also a lawyer and cpa. Thanks for being with us.
Thanks for having me. I appreciate it. It's an honor.
Oh, the honor is ours. Because if you're gonna tell us what Wall street isn't telling us.
Yeah.
You're welcome anytime.
That's right. Well, there's a lot.
Okay, well, let's start easy. What are people. Do you know? What are people doing with their refunds now?
Well, what's interesting, taxslayer out of Augusta. They do an annual American Tax IQ survey and they ask 2,000Americans where are they spending their money? And it was interesting. About 40% are paying off debt. Another 40, give or take, are saving. And then 20 are doing that. 20% or so are doing that. Treat yourself experience. And I think that's a good scatter plot of where people should maybe be spending their money. What I'm afraid of is someone just wholesale saying, oh, my refund's here. I'm going to go buy a big screen tv. Let's stay in that balance, pay a little debt off, you know, save and then. But spend a little bit on yourself. If you can find a balance, you're going to be better off and feel
better overall, I would imagine. How can people save their money? I mean, is there just kind of a general rule or do you have a couple of great tips?
You bet. Well, what I'd like to see more people doing is using some money to make more money. The gig economy is booming. Freelancing is becoming more and more common. And so instead of just putting money back into the Wall street machine, take some money, start a little something on the side, make a little extra money that can help you build more wealth, and it can really make a big difference down the road.
That's amazing. I like that. Freelancing a little. Yeah, okay. Yeah, get a little something on the side. This is perfect. What are options for investing? Let's say, what should people really be focusing on? I know the market's pretty volatile, but what should people focus on now?
You bet. Well, this is where maybe a corporate employee just thinks, oh, I'll just put every dime I can into my 401k. Or a business owner may say, well, I'm just going to reinvest all my profits. I think we need to break both those molds, let's try to take more control of our retirement accounts and do what's called self directing. Let's invest in what we know best. And so if you have an old IRA, an old 401k from a previous job, roll it into a self directed account. Buy what you know, invest in a small business, maybe invest in cryptocurrency. Maybe it's bitcoin or Ethereum or smart coin. Just do something that's maybe outside the box. Buy super bowl tickets and sell them next year. I don't know. Invest in what you know, I kind
of think that's the most fun advice I've ever heard for investing.
Wow, I like that. Invest in your eye is fun. That's a good one.
Well, investing in what you know, I mean that really is key. My sister, she's so smart, she's been a financial advisor for years and she talks and I'm just like, ah. But this is something that I think is attainable for all of us.
Yeah, it's crazy because this is what Wall street really doesn't want you to know. So many people are held captive to broker dealers and stockbrokers that really have to sell you what their products are. But why not buy a little rental property in your ira, buy some raw land and create some passive income. And there's a lot of good investment strategies out there that really work. And so invest in what you know, not just throw it in some mutual fund and just sit back and pray, you know?
Yeah. So when I was doing my taxes this year, I was talking to my cpa, he was also my uncle, a creative part of the family here. He was talking about new tax laws. How is that going to affect people? Are people really going to start seeing more money back? I didn't necessarily, but some might.
Yeah, some people might see or feel something in their paychecks already. A lot of people are going to see it when they go to file next year. The estimates are about 80% of Americans are going to see the some savings from the Tax Cuts and Jobs Act. And if you're creative, you can do some planning. Now be thinking again outside of the box. What are you doing to maybe maximize some extra income and write offs?
I love it. I love it. Okay, any more recommendations for people who are just kind of maybe haven't saved for retirement? Maybe are starting to.
You bet. I think it's a two step process. First, get out of consumer debt. There are so many people, just the burden of debt can be overwhelming. Credit card debt, get out of debt. And then number two, start saving a little something. Download a cool app on your phone that just forces you to save just a few dollars a week, have it out of sight, out of mind and start then third step, be thinking about where I can invest it that I might know more about and just get excited about investing.
This is great. I feel like this has been like the Idiot's Guide for Amity to save money this whole interview.
I wouldn't say that.
No, this has been great. And again, the book is called the Business Owner's Guide to Financial Freedom, what Wall street isn't telling you. Mark Coleman, thank you so much for being here. Thanks for having me invest in what you know. I hope that everyone takes that through.
