June 18, 2025 • 31 mins
Dr. Sherry Peel Jackson is a retired IRS agent, CPA, and Certified Fraud Examiner with over 35 years of experience in tax reduction and wealth building. Through her proprietary KPGSystem, Dr. Jackson has helped over 100,000 individuals and businesses Keep, Protect, and Grow their wealth.
As a trusted expert in financial security, Sherry empowers professionals to safeguard their earnings and create lasting wealth. She is the author of impactful books, including "How to Escape The Rat Race," and reaches an audience of over 44,000 followers on social media, where she shares her knowledge on achieving financial freedom and building a legacy.
Dr. Jackson’s speaking, books, and consulting work go beyond education, offering actionable strategies for financial success and long-term wealth creation. A sought-after guest, Dr. Jackson is dedicated to helping individuals and businesses unlock their financial potential and secure their future.
During the show we discussed:
- Identify common tax pitfalls that small business owners should be aware of.
- Understand what triggers an IRS audit and how to avoid becoming a target.
- Learn why the IRS often targets small business owners for audits.
- Explore ways to maximize income while minimizing tax liabilities.
- Discover the first step a small business owner should take to reduce taxes.
- Learn when groceries, travel, and meals can be written off legally.
- Understand the benefits of hiring your kids as a tax strategy.
- Use innovative strategies to build wealth while minimizing tax burdens.
- Legally reduce taxes as a small business owner without risking an audit or penalty.
- Having multiple income streams for tax reduction and wealth building.
- KPGSystem helps protect and grow earnings in today’s financial environment.
- Navigate complex tax laws effectively to safeguard business earnings.
- Implement key tax-saving strategies from the very beginning of a business.
Resources:
https://shop.sherrypeeljackson.com/
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Transcript
Episode Transcript
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(00:02):
(Transcribed by TurboScribe.ai. Go Unlimited to remove this message.) Welcome to the Business Credit and Financing Show.
Each week, we talk about the growth strategies
that matter most to entrepreneurs.
Listen in as we discuss the secrets to
getting credit and money to start and grow
your business.
And enjoy as we talk with seasoned business
owners, coaches, and industry leaders on a variety
(00:22):
of topics from advertising and marketing to the
nuts and bolts of running a highly successful
business.
And now, to introduce the host of our
show, financial expert and award-winning author, Ty
Crandall.
Hello, and thanks for joining us today.
I'm super excited you could be here because
today we're talking about keeping, protecting, and growing
your money.
(00:43):
I mean, we're gonna give you some of
the best hacks, tips you can get to
help you build wealth and really keep more
of your money, which is the most important
thing.
And to have this conversation with us today
is Dr. Sherry Peale-Jackson.
She's a retired IRS agent, CPA, and certified
fraud examiner with over 35 years of experience
in tax reduction and wealth building.
(01:04):
So through her proprietary KPG system, Dr. Jackson
has helped over 100,000 individuals and businesses
keep, protect, and grow their wealth.
Now, as a trusted expert in financial security,
Sherry also empowers professionals to safeguard their earnings
and create lasting wealth.
So she's actually the author of the impactful
books, including How to Escape the Rat Race
(01:26):
and reaches an audience of over 44,000
followers on her social media, where she shares
her knowledge on achieving financial freedom and building
a legacy.
Dr. Jackson's speaking books and consulting work go
beyond just education.
She's offering actionable strategies for financial success and
long-term wealth creation.
(01:46):
So a sought-after guest, Dr. Jackson is
dedicated to helping individuals and businesses unlock their
financial potential and secure their future.
Dr. Jackson, thanks for joining us today.
Hi, thank you for having me on the
show.
35 years, you have like a lot of
experience.
That's cool.
I don't know if I've met anybody in
my life with as much experience as what
you have at this time.
I do, I do.
(02:07):
I say everybody can't believe that I'm 62
years old, but yeah, I've been around.
I've been around with lots of funds.
I would have pegged you for like 20
years less than that, so I was like,
she's been doing this since she was five,
that's great.
Thank you.
So what do you think are some of
the common tax pitfalls that we see small
business owners should be aware of that they're
(02:28):
usually not?
Small business owners know what they know.
They do their business well and they love
their businesses, but they do not keep records.
When I was an IRS agent, that was
the downfall of all of the small businesses
that I audited.
I went in and they had numbers on
the tax return, but they could not verify
them.
I'm sure that they existed, but they just
don't keep records.
They'll drive along and their gas tickets will
(02:49):
fly out the window in the summer and
they just, that's the biggest downfall.
So it's interesting because I went through an
audit.
I had an account for a long time
and then people were like, you need this
account.
So I switched and then two years they
took care of my taxes.
I was audited both years and I went
back to my account.
I've been with them for like 30 years.
But what was interesting in going through that
audit process was not just that they wanted
documentation, it's that like I had to have
(03:10):
a receipt.
Then I had to show like the bank
account or credit card that every single transaction
came from and that was almost impossible for
me to do.
Like I was able to come up with
the receipts or the bank statements or the
credit card statements to show it, but to
be able to provide all of that and
both and link it together, it was an
(03:31):
insane process.
So dive into that a little bit more
and what kind of records should we really
be keeping and what should we be doing
that if we ever do go through an
audit, knock on wood, we won't, that easier
for us to navigate that process.
Okay, so a lot of the younger people
now that keep these apps on their phone,
I'm old school, I have file cabinets and
most of the small business owners are following
(03:53):
the Schedule C.
It has all the categories of expenses and
what I advise my clients to do is
make a folder for every category.
So you have a folder for advertising, you
have a folder for your auto, your gas,
your supplies, your rent, all these things and
keeping the receipts.
IRIS does not allow you to substantiate your
expenses with your debit card statement or credit
card statement.
(04:13):
If you went to Staples and you bought
a box of paper, for example, for your
printer, you have staples on your debit card
or your credit card but they don't count
that because you don't have a receipt.
It could have been anything.
It could have been something personal.
That's their stance on that.
So what I suggest people do is, yes,
it's good to have that record on the
debit card or credit card.
I like for you to pay for things
(04:33):
with the debit card or credit card.
However, keeping the receipts is key and the
receipts that they have these days, I don't
know who came up with the idea to
have this crazy erasable paper but if you
leave it in your car in the dash,
that ink is gonna go away, that erasable
ink.
So what I have my clients do is
maybe once a week, get all their receipts
and make a copy of them and staple
(04:56):
that original to the copy.
So if I bought a ream of paper,
for example, from Staples, I would take the
original receipt, make a copy of it, put
the original, staple it, and then say this
was paper for the office and they can't
dispute that.
Now I'm gonna tell you about the fastest
audit that I ever had.
They had what's called TCMP audits, Taxpayer Compliance
(05:18):
Measurement audits and that's when you audit every
number on the tax return.
Normal audits, you just pick a few areas
that they might be concerned about but a
TCMP, you audit every number and I went
out to a partnership, this was a partnership
tax return and looked at what they had
and what they did for me, I was
expecting to be out there three days because
(05:39):
it was a decent sized business.
I was out there four hours and I
was amazed and I told the people, I'm
gonna tell everybody about this, what they did
for every single number on the tax return,
they had a folder.
So let's use advertising, for example, their advertising
expense on their tax return was 3,792
and they had a folder that said advertising,
(06:00):
3,792.
When you open the folder, there were papers
on both sides.
One side had all the receipts and invoices
that equaled that amount and the other side
had a copy for me.
So all I had to do was take
my adding machine, add it up, look at
those receipts, gave them back the originals, which
weren't stapled in there and I kept the
folder.
So I know that that's meticulous and I
(06:23):
know that most small business owners can't do
that because they don't have an accountant or
somebody designated 100% of the time to
do that.
However, if they just make up folders every
year with the categories of the expense, not
by month, but by category.
And at the end of the year, they
know how much advertising was and they have
the receipts for it.
These days, everybody gets their invoices online.
(06:46):
Well, either put it in a folder like
I do that says advertising and I'll put
them over into that folder so that I
can copy them if I need to.
I honestly don't trust that the computer is
gonna be there for me and that's not
gonna be an excuse for anybody.
My computer broke down and all of my
expenses are in there.
So that's why I'm old school and I
keep receipts.
So I usually copy them at the end
of the year.
And then I have a folder that says
(07:07):
advertising.
I have a folder that says professional fees
and that's the easy way to do it.
So you have your debit and credit cards
and they're secondary, but you have your receipts.
So let me ask you a question.
There's apps that do this.
I think QuickBooks is one as well.
And then I'm a photo guy.
Cause I've had the problem where I put
all my receipts in folders and then like
you said, then they all went away.
(07:28):
And there's no way that I would take
a receipt, go back, scan it.
The time commitment of that would be substantial.
So I know what I would do and
what I wouldn't.
But what about a picture?
Is it okay?
Cause I found a good practice that when
I get the receipt, I just take a
picture, I put it into a folder, then
I send that to my accountant.
Would something like that be sufficient?
If it exists during the audit.
Now you have to remember that audits are
(07:49):
two and three years after the fact.
So if that hard drive blew up or
whatever, you don't have anything.
You might have some bank statements that you
can requisition from the bank, but you don't
have a receipt anymore, but it will work.
So yes, a lot of people do that
now.
There are apps that capture all of that
and even take it over to QuickBooks.
But your audience needs to know that QuickBooks
is still not enough.
(08:10):
In an audit, they can look at the
QuickBooks and it can help lead them to
the expenses that they want to examine.
But having a number on QuickBooks is not
enough.
That receipt, that's the root.
So you have to have that root.
So from your experience, what triggers a normal
IRS audit?
Oh, there's a, I have a, in my
book, how to stick it to the IRS,
I have a list.
(08:31):
It's called red flags that will cause an
audit.
If you have high travel and entertainment, now
entertainment is kind of out of the picture,
but high travel would trigger an audit.
First of all, let me go back.
Having a home-based business that you are
sole proprietor or disregard entity is one of
the major things because when they hire IRS
agents, they train them.
They cut their teeth on small businesses.
(08:51):
So they know mom and pop doesn't have
a high-powered attorney to come after you.
So they'll pick on a small business, a
Schedule C, and they'll pick maybe three or
four areas of that Schedule C to audit.
And you're to go out there and look
at all their bank statements, look at their
style of living, because if they're living in
a $950,000 house and they have $22
,000 net income on that tax return, there's
(09:12):
a problem, and I've had that.
So you look at all of that and
then you go out and say, okay, your
travel is high.
So they're gonna look at the travel.
One of the ones that had continuing education,
that's one of them.
They know that people put their children in
private schools.
And I had one where the continuing education
was the tuition for their two kids in
the private school.
So it's different things, but mostly small business
(09:35):
owners, and this is not right because the
corporations get away with a lot of things
because they have the high-powered attorneys and
the IRS doesn't wanna sick those agents on
the high-powered attorney.
So they go after the low-hanging fruit,
which is the small business owner.
And I don't want to discourage anybody from
having a small business.
I want everybody to have a small business
because that's how my system works.
Keep, protect, and grow only works well when
(09:56):
you have a small business, but be aware
of these things.
The round numbers on a tax return will
flag an audit.
They know that you did it yourself or
you just kind of estimate it.
Never use round numbers.
If everything's 100 or 50 or 25, then
they know you're guessing.
Another thing that causes a red flag may
be that you have some auto expenses.
(10:20):
People don't understand that you can't take the
mileage and the actual.
So it's a matter of, if you want
to do your own tax return, you really
need to study up and take some courses.
If you want an accountant or enrolled agent
or CPA to do it, make sure that
they know what they're doing because when I've
done audits and even now, one of the
things that I do for my clients, when
they come on board, I look at their
(10:41):
last three years tax returns and I found
thousands of dollars that they had to go
back and have that accountant amend the tax
return.
One of them had a huge NOL and
I said, hey, did you go back and
recover that?
Because you can go back three years and
carry forward an NOL and get the money
back.
So it varies, but I admonish all of
the small business owners to just be very
(11:02):
careful because that's who the IRS chooses.
And although they keep saying in Congress that
they're gonna audit people $400,000 and over,
well, $400,000 is decent for a small
business.
And then they don't do the million dollar
people as much, but they do the 400
,000 and lower people.
Oh, that's, I mean, really, really good advice.
And I really appreciate that because you gave
(11:22):
me a lot of insight on, and it
gave us all a lot of insight in
exactly what they're looking for, what could trigger
that.
Now, what do we do to maximize our
income but minimize tax liabilities?
Because, I mean, that's what we're all trying
to do, right?
We're all trying to legally pay as little
taxes as possible.
So what are your best, some of your
best tips to do that?
Well, that's why, Ty, I said, we need
to have a home-based business.
You can't do it as an employee.
Employees don't have any more deductions.
(11:44):
As a small business owner, you can write
off your cell phone, your internet, your computer,
and basically everything.
I tell people, write off everything but the
kitchen sink and don't be scared.
Internal Revenue Code Section 162 says that you
can write off all ordinary and necessary business
expenses.
Well, what is ordinary and necessary?
And I give the example, a woman in
1994 named Cindy Hess that wrote off a
(12:05):
breast enlargement, yes, she did, on her tax
return.
And the IRS had such a laugh and
they took her to the cleaners and took
that away.
She wanted to fight it and she took
it to tax court and she won.
Why did Cindy Hess win the right to
write off her breast enlargement?
Because Cindy Hess, better known as Chesty Love,
was a pole dancer and it was ordinary
and necessary for her to keep up with
(12:25):
the younger girls.
So they gave her, they had to give
her her deduction.
So ordinary and necessary means common, acceptable, helpful,
and appropriate.
Common, acceptable, helpful, and appropriate.
And I feel like we can make just
about any deduction that we wanna take, common,
helpful, acceptable, and appropriate.
For example, when I go out of town,
(12:46):
if I'm going, like I went to Orlando,
I said, okay, well, let me schedule, I
took my granddaughter, let me schedule a meeting
there.
I scheduled a seminar there and boom, everything
became tax deductible.
So being aware of your spending and making
as much as you're spending in your business
become a business expense, even if it's personal.
(13:06):
Going to the grocery store, when you have
your mileage, a lot of people don't understand
that for every two miles that you drive,
you're throwing a dollar out a window if
you're not keeping up with your mileage.
So if I go to a store like
Walmart and I'm making sure that I buy
paper or pens, that becomes a business expense.
A big thing that people can do if
they have children between the ages of like
(13:28):
eight and 18 is hire their children.
If you hire your children to work for
you, they can work for you without any
federal state income tax, social security, or Medicare
coming out.
And that is one of the largest deductions.
And for this year, I believe it's the
standard deduction for a single, which is maybe
close to $15,000.
So if someone has three children between the
(13:48):
ages of eight, let's say, and 18, they
can write those children off as employees.
Now, they do have to work and you
do have to pay them.
You do issue them a W-2, but
it has zeros on it and they're exempt
as far as the W-4.
So if your business is bringing in $300
,000, $400,000 a year and you have
children, there's no way you shouldn't be having
your children because you get that whole deduction,
(14:09):
yet the children don't have to file tax
returns.
Now, I've seen some sophisticated clients that pay
the children, let's say it's 15,000, they
pay the children, the children will go out
and buy equipment for the business, like some
kind of a small printer, and then lease
it to the company.
So that child has perpetual income coming in
(14:30):
and it's treated a little bit differently, but
that's still a way to teach your children
how to have money work for them instead
of always working for money.
Let me see, one of the other ones
I think of when you have a small
business that is incorporated, the corporation is separate
from the individual.
And there's something called the Augusta Rule, which
I've taken advantage of where the corporation can
(14:51):
lease your home, your personal home for 14
days out of the year without having to
pay tax on it.
So let's use an example.
Well, let me go back to the Augusta
Rule.
It came from the Masters Golf Tournament in
Augusta, Georgia where those people that live around
the golf course that have those million dollar
homes wanted to rent those out to large
golf clubs coming in from Australia, New Zealand,
(15:15):
and South Africa.
They wanted to rent those homes to these
people so that the whole golf club from
that country can live there.
And they didn't wanna pay tax on it.
So they lobbied Congress and got the Augusta
Rule.
And I looked it up, and Ty, those
homes go for like $14,000 a night.
So if it's 10 nights, it's rented out,
that's $140,000, they just got tax-free.
And we can do it too.
(15:35):
So your corporation can make a lease agreement
for 14 days.
So let's say if you have your board
members, you all have a monthly meeting, and
then you have two emergency meetings during the
year, that's 14 meetings.
And what you do is go out and
find out how much it would be to
rent a hotel meeting room or something like
that for eight hours.
It's gotta be eight hours.
And then that's what you use.
(15:56):
For example, if your home is in an
area where rents are high, like $1,000
for a meeting room, and that's not unusual.
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Then that's gonna yield you 14, well, if
it's $10,000, so it's gonna yield you
$14,000 in expenses for the whole year.
(16:41):
If it's $1,000 a month that you
can get now, if it's 500, of course
it'll be 7,000, but that's an extra
$7,000 that you wouldn't have.
So the corporation is paying your personal self.
Your personal self is getting $7,000 tax
free because you're going under your Augusta rule.
And then your corporation is getting a 7
,000 or $14,000 deduction.
So there are a lot of little strategies.
(17:02):
And what you have to do is you
have to see where the wealthy have lobbied
our Congress to get these little perks and
then see if we can take advantage of
them also.
So let me ask you a question.
If I hire my kids, which, if I
hire my kids, and they go to private
school, why couldn't I write off the private
school's continuing education expense?
You can't do it that way.
You can hire your children and pay them,
(17:23):
and they can pay for their private school.
So you can't write the school off because
school, if it's available free, then you can't
write it off.
If I go out and buy Armani suit
for $750,000, saying that I'm wearing this
to my meetings, I still can't write it
off because it's something that I can wear
out in the public.
When you hire your children, a great idea,
because my children never graced the hall of
a government school either.
(17:44):
Their first public school was Georgia State University.
What you can do is go ahead and
hire them, hire them, pay them a decent
salary.
You can't pay a 10-year-old $50
an hour.
You know what I mean?
And when you write their checks, put that
in their bank account, and then they can
pay their tuition with that.
They can do anything with that.
It's not, no, you're not getting an allowance.
(18:05):
You're going to work.
And I have a list of things that
the children can do to make money, even
infants.
I have one example, and it's not my
client, but the infant was being used for
photography for the business, and the infant was
paid.
They opened up the infant a bank account.
We just have to be very strategic about
how we wanna keep our money.
And you know that I call the IRS
(18:27):
the insidious representatives of Satan because they take
our money, and they do stuff with it
that we just don't want them to do.
So I would rather get it back.
So I help people, and it's fun for
me to help people get the money back
and make sure that that deduction is a
solid deduction, but they can take that, and
they can take it every year.
So meals, you mentioned this earlier.
Everybody believes that, you know, you go out
(18:47):
and you talk about work that it can
be classified as a business meal.
Is that really accurate?
And how would the IRS know if a
meal was, somebody just got some business for
that meal or didn't?
Well, they don't, but the thing that people
mess up on is they don't keep the
receipts documented correctly.
So if I go out with, let's say,
my friend Natalie, and she wants to know,
she wants to finally start a home-based
(19:08):
business.
So we're at Maggiano's, and we're talking about
it, and I'm strategizing, and that bill is
$110.
Well, I'm going to copy that receipt, of
course.
I'm gonna write down, had a discussion with
Natalie on this date, this is what we
discussed.
And then half that meal is deductible.
It is.
You have to write down who you talked
to, what you talked about, and then you
have the date.
So what I've done is I've created an
(19:31):
Excel spreadsheet with mileage and meals on it
also.
So that trip to Maggiano's, I've taken that
mileage, and also on the edge of it,
I put the meal, and then I put
the discussion that we had about the four
different ways that she can make money with
her career.
What about travel?
Same question.
Like, go on a vacation, but, well, I'll
give you an example.
I could go to Park City, Utah with
(19:51):
my kids every year.
But man, I have a ton of business
connections in Park City, and every time I
am out there, I'm legitimately meeting with people,
if not 70% of the time, while
my kids are off doing what kids do.
So like, how does something like that work?
What and how much, or how does it
work to be able to write off travel
like that if you're maybe on a vacation,
but you're also doing work while you're there?
(20:13):
Yes, so in that case, your airfare is
deductible, and the cost of a room that
would house you.
For example, if you go get a suite,
and it's $700 a night, but your room
would have been $400 a night, you get
to deduct $400 a night instead of the
$700, because your family is in there.
Now, if your children work for you, and
(20:35):
they're doing things at your seminar, if they're
passing out fly, or whatever they're doing, then
their airfare is included.
Your wife's, everybody that works for you, their
airfare is included.
So these are strategies that aren't well-known,
but if that's one of your employees, how
many clients do I have that take their
employees on these conferences and stuff?
The employees is tax-deductible.
(20:55):
If the child gets up there and has
to present, or your teenagers, when your children
get to the age where they can start
absorbing what you're doing, and you wanna groom
them to take over the business, or even
have their own business, they can be part
of the program.
Their airfare, and now that suite would be
tax-deductible.
One of the other things I see you
talk a lot about is having multiple income
(21:17):
streams, and how that can actually help you
create wealth, but also reduce taxes.
Can you talk a little bit more about
that?
Yeah, I'm the queen of having multiple income
streams.
It's like, you can't depend on one stream
of income.
We saw that in 2008, when the stock
market went down 777.68 points in one
day, and Americans lost $10.2 trillion in
their savings.
(21:38):
That was a fiasco, and so we can't
let that happen again.
So, and I'm very hard-line, I guess,
because when you get older, you get hard
-line.
It's like, I don't believe in entertaining ourselves.
We don't have time for that.
I call the TV the electronic income reducer,
and the electronic intellect reducer, because that's what
it does.
And if you're not making at least $10
,000 a month anyway, you shouldn't be watching
TV.
So, I'm hard-line with my clients.
(21:59):
What we do is make sure that they're
utilizing their time efficiently.
Yes, entertain yourself.
Most of my clients have nine to five
jobs.
Come home, decompress, eat your dinner, spend some
time with your family.
But instead of sitting in front of a
TV, and then watching it, and then let
it watch you, go work on your home
-based business.
So, they have the income stream from their
job.
They have an income stream from some viable
(22:22):
business that they've started.
Also, real estate.
I ask my clients, hey, do you have
extra room, or do you have a basement?
For example, I have a basement.
I refinanced, I made it a whole apartment,
bathroom, kitchen, everything.
And now the lady in the basement is
paying my mortgage plus.
So, that's another stream of income.
I don't have to pay my mortgage because
she's paying it.
Then you go out and say, okay, just
like we talked about with Jason, real estate.
(22:43):
See if you can go out and learn
the strategies.
I have strategies, I don't know.
I'm sure you've talked about cashflow banking or
infinite banking using the Section 7702.
Go out and get, I got three of
those policies.
Go get that, get some more real estate,
and then have the tenants paying for that.
So, it's a matter of sitting down, figuring
out where the client has time, where they
(23:05):
can free up time, and then how they
wanna utilize that time as opposed to wasting
that time.
And then you can have your job income,
or you can have two businesses.
I have one couple that she's writing a
book and producing a business.
So, she's gonna have that book income.
And book income is great because I have
10 books and people buy on the website
(23:26):
all the time.
So, there's always little, what I call grocery
money or gas money coming in.
That's a whole nother stream of income.
So, I do believe that we don't have
to run ourselves in the ground in order
to have multiple streams of income.
We just have to be strategically thinking about
it, and we have to make sure that
we're not wasting our time.
One of the exercises that I take my
clients through is an exercise that I got
(23:46):
from a life coach, and it's questions to
design your future.
Now, there are eight questions, but the first
three are, what do you want?
Why do you want it?
In other words, why is it important to
you?
And the third one is key.
What are you willing to give up to
get it?
So, are you willing to give up that
nightly soap opera show in order for you
to sit down and build this business?
Or would you just rather stay in a
(24:07):
comfort zone?
I tell people life begins at the end
of your comfort zone.
I love it.
KPG system, how does it help people protect
and grow their earnings in today's financial landscape?
Yeah, so keeping, of course, we talk about
not overspending, not spending on conspicuous consumption.
There's no reason anybody should be paying $120
for some gym shoes when they cost maybe
(24:28):
about $7 to make.
So, getting your spending in order, not getting
those lattes every day, not eating out.
I used to eat out to the point
where my American Express was $30,000 in
food.
That's crazy, but you learn.
And so, keeping your expenses has a lot
to do with that.
Protecting, making sure that you have assurance.
I have a stairstep to wealth, and it
starts out with insurance, which we all should
(24:50):
have life insurance, your car insurance, just in
case there's some kind of a catastrophe.
But then assurance is six months in expenses.
So, if you've got $3,000, your expenses
are $3,000, then you gotta save somewhere
$18,000 liquid because the thing that happened
in 2008 or the things that happened in
2020, you gotta have some money somewhere.
So, a lot of people don't, I hear,
(25:12):
don't even have $500 or $1,000 set
aside.
That's mandatory.
So, then you go up to the protection
of what you have.
It's not just about what you have, but
it's about what you keep.
Making sure that you use entities, LLCs, partnership,
limited partnerships.
I have business trusts, family trusts, private interest
family foundations.
(25:32):
Why don't the Rockefellers and the Rothschilds and
the Kennedys, why don't they get sued?
Why is it that they have perpetual wealth
for generations?
What are they doing that we're not doing?
Find out what they're doing and do it.
They're using private interest foundations.
They're using family trust.
They're using limited family partnerships and business trust.
This is where I lead my clients so
(25:53):
that their assets will be protected.
Because if Rockefeller said, John D.
Rockefeller, I believe it was, it said, own
nothing, control everything.
Well, if you don't own it, then you
can't be sued for it.
I'm sure, Ty, you know that this is
the Sunni United States of America.
We have 5% of the world's population,
but we have 70% of the world's
lawyers.
There are more lawyers in Jacksonville, Florida than
the whole of Japan.
(26:14):
And all they're doing is suing people.
Although they're running around, chasing ambulances.
And when you have a business and it's
growing, people are looking at you.
So you must protect that.
Using even smaller businesses.
You don't necessarily have to have your businesses
set up where you live.
I only have one business here in Georgia.
The rest of them are down south other
places for anonymity reasons and for asset protection
(26:36):
reasons.
So these are the things that I teach.
People don't know what they don't know.
And so that's why we'll get you if
you're not protected.
And then growing, of course.
We talked about the multiple streams of income
and then growing to the point where you
have a legacy.
Thinking long-term.
What will my family have?
What can I help my children with?
So a lot of times people, I'm not
a stock market person.
(26:56):
I don't have any IRAs, stocks, bonds, 401ks.
I'm a hard asset person.
Silver, gold, and real estate.
So something that I can hold in my
hand and something I can put my bare
feet on.
So I'm into the real estate.
I have some real estate here.
My home, I have other real estate here
in Georgia and then in Costa Rica because
I believe in a plan B.
And I have two pieces, one, two, three.
Three pieces of property in Costa Rica so
(27:16):
that I can build a legacy.
That's gonna be income generating as soon as
I get past all these permits and stuff.
But that's the KPG system.
Keep what you earn, protect it from outsiders,
protect it from the IRS, and then grow
it.
Making sure you have multiple streams of income
and then taking that income, turning it into
assets that will perpetually bring money into your
(27:37):
family.
I've taken my granddaughter to Costa Rica with
me two times.
She's going again in May.
She knows that she has property in Costa
Rica.
That changes their mindsets, Ty.
It changes their mindset.
It changes the way they move.
And as she gets into her teen years
pretty soon, her mindset will be different than
a typical teenager because she knows that she
has some backup.
And that's what the wealthy do.
(27:58):
That's what the Rockefellers and all of them,
our president, all of them do that.
We just need to do it as just
ordinary people.
Dr. Jackson, phenomenal tips today.
And we just scratched the surface.
Where can everybody go that's watching and listening
to be able to get more insight about
the KPG system, to learn how to keep,
to protect, to grow their wealth?
Where should they go to be able to
learn more?
Well, my website is being rebuilt, but they
(28:18):
can go to sherrypeeljackson.com.
They can see some books and some things
that I have on there right now as
the website is going.
But I have a basic financial survival book
and workbook.
It's my first little book and workbook.
And if they go to my LinkedIn, which
is Sherry Peel Jackson, and type in tax,
then I will send them that free book
and workbook so that they can at least
(28:38):
look at some of the concepts of the
keep, keeping your money.
And I may have a little bit about
protecting it, but more about the basics.
How do people stop the bleeding?
I mean, if you're getting paid and then
everything's going out, something's wrong.
There are ways to amend that.
And then once you mend it and have
the money coming in, then you have some
breathing room to think about, okay, how can
I grow?
What business can I start that's gonna be
(29:00):
viable and profitable?
And then after the business has started, then
let's grow this.
Let's not just go out and buy seven
flat screen TVs or a Mercedes Benz because
I want a Mercedes Benz, but let's learn
delayed gratification like my dad taught me.
Wait on that.
Drive what we call the beater until it
runs out.
And every time you get a used car
(29:21):
and you drive it until it dies, you
take five years off your retirement because you
don't have a car now.
I love it.
Thanks again for joining us today and thanks
again for the exceptional tips.
You're welcome.
And thank you, Ty, for having me on.
All right, so listen, if you're watching this,
a couple actions to take.
And first of all, I mean, wow.
Really powerful advice, right?
I don't know.
I mean, I took so many notes here.
It was hard to list.
(29:41):
I was taking so many notes.
The biggest note that I have in bold
is the strategy to be able to write
off breast implants.
I'm just saying that.
I think that's the only place you're gonna
learn that kind of tip.
Sure.
Listen, I mean, such exceptional stuff.
She's written some of the best selling books
I've ever seen on PAX strategy.
So do a couple of things right now.
(Transcribed by TurboScribe.ai. Go Unlimited to remove this message.) Welcome to the Business Credit and Financing Show.
Each week, we talk about the growth strategies
that matter most to entrepreneurs.
Listen in as we discuss the secrets to
getting credit and money to start and grow
your business.
And enjoy as we talk with seasoned business
owners, coaches, and industry leaders on a variety
(00:22):
of topics from advertising and marketing to the
nuts and bolts of running a highly successful
business.
And now, to introduce the host of our
show, financial expert and award-winning author, Ty
Crandall.
Hello, and thanks for joining us today.
I'm super excited you could be here because
today we're talking about keeping, protecting, and growing
your money.
(00:43):
I mean, we're gonna give you some of
the best hacks, tips you can get to
help you build wealth and really keep more
of your money, which is the most important
thing.
And to have this conversation with us today
is Dr. Sherry Peale-Jackson.
She's a retired IRS agent, CPA, and certified
fraud examiner with over 35 years of experience
in tax reduction and wealth building.
(01:04):
So through her proprietary KPG system, Dr. Jackson
has helped over 100,000 individuals and businesses
keep, protect, and grow their wealth.
Now, as a trusted expert in financial security,
Sherry also empowers professionals to safeguard their earnings
and create lasting wealth.
So she's actually the author of the impactful
books, including How to Escape the Rat Race
(01:26):
and reaches an audience of over 44,000
followers on her social media, where she shares
her knowledge on achieving financial freedom and building
a legacy.
Dr. Jackson's speaking books and consulting work go
beyond just education.
She's offering actionable strategies for financial success and
long-term wealth creation.
(01:46):
So a sought-after guest, Dr. Jackson is
dedicated to helping individuals and businesses unlock their
financial potential and secure their future.
Dr. Jackson, thanks for joining us today.
Hi, thank you for having me on the
show.
35 years, you have like a lot of
experience.
That's cool.
I don't know if I've met anybody in
my life with as much experience as what
you have at this time.
I do, I do.
(02:07):
I say everybody can't believe that I'm 62
years old, but yeah, I've been around.
I've been around with lots of funds.
I would have pegged you for like 20
years less than that, so I was like,
she's been doing this since she was five,
that's great.
Thank you.
So what do you think are some of
the common tax pitfalls that we see small
business owners should be aware of that they're
(02:28):
usually not?
Small business owners know what they know.
They do their business well and they love
their businesses, but they do not keep records.
When I was an IRS agent, that was
the downfall of all of the small businesses
that I audited.
I went in and they had numbers on
the tax return, but they could not verify
them.
I'm sure that they existed, but they just
don't keep records.
They'll drive along and their gas tickets will
(02:49):
fly out the window in the summer and
they just, that's the biggest downfall.
So it's interesting because I went through an
audit.
I had an account for a long time
and then people were like, you need this
account.
So I switched and then two years they
took care of my taxes.
I was audited both years and I went
back to my account.
I've been with them for like 30 years.
But what was interesting in going through that
audit process was not just that they wanted
documentation, it's that like I had to have
(03:10):
a receipt.
Then I had to show like the bank
account or credit card that every single transaction
came from and that was almost impossible for
me to do.
Like I was able to come up with
the receipts or the bank statements or the
credit card statements to show it, but to
be able to provide all of that and
both and link it together, it was an
(03:31):
insane process.
So dive into that a little bit more
and what kind of records should we really
be keeping and what should we be doing
that if we ever do go through an
audit, knock on wood, we won't, that easier
for us to navigate that process.
Okay, so a lot of the younger people
now that keep these apps on their phone,
I'm old school, I have file cabinets and
most of the small business owners are following
(03:53):
the Schedule C.
It has all the categories of expenses and
what I advise my clients to do is
make a folder for every category.
So you have a folder for advertising, you
have a folder for your auto, your gas,
your supplies, your rent, all these things and
keeping the receipts.
IRIS does not allow you to substantiate your
expenses with your debit card statement or credit
card statement.
(04:13):
If you went to Staples and you bought
a box of paper, for example, for your
printer, you have staples on your debit card
or your credit card but they don't count
that because you don't have a receipt.
It could have been anything.
It could have been something personal.
That's their stance on that.
So what I suggest people do is, yes,
it's good to have that record on the
debit card or credit card.
I like for you to pay for things
(04:33):
with the debit card or credit card.
However, keeping the receipts is key and the
receipts that they have these days, I don't
know who came up with the idea to
have this crazy erasable paper but if you
leave it in your car in the dash,
that ink is gonna go away, that erasable
ink.
So what I have my clients do is
maybe once a week, get all their receipts
and make a copy of them and staple
(04:56):
that original to the copy.
So if I bought a ream of paper,
for example, from Staples, I would take the
original receipt, make a copy of it, put
the original, staple it, and then say this
was paper for the office and they can't
dispute that.
Now I'm gonna tell you about the fastest
audit that I ever had.
They had what's called TCMP audits, Taxpayer Compliance
(05:18):
Measurement audits and that's when you audit every
number on the tax return.
Normal audits, you just pick a few areas
that they might be concerned about but a
TCMP, you audit every number and I went
out to a partnership, this was a partnership
tax return and looked at what they had
and what they did for me, I was
expecting to be out there three days because
(05:39):
it was a decent sized business.
I was out there four hours and I
was amazed and I told the people, I'm
gonna tell everybody about this, what they did
for every single number on the tax return,
they had a folder.
So let's use advertising, for example, their advertising
expense on their tax return was 3,792
and they had a folder that said advertising,
(06:00):
3,792.
When you open the folder, there were papers
on both sides.
One side had all the receipts and invoices
that equaled that amount and the other side
had a copy for me.
So all I had to do was take
my adding machine, add it up, look at
those receipts, gave them back the originals, which
weren't stapled in there and I kept the
folder.
So I know that that's meticulous and I
(06:23):
know that most small business owners can't do
that because they don't have an accountant or
somebody designated 100% of the time to
do that.
However, if they just make up folders every
year with the categories of the expense, not
by month, but by category.
And at the end of the year, they
know how much advertising was and they have
the receipts for it.
These days, everybody gets their invoices online.
(06:46):
Well, either put it in a folder like
I do that says advertising and I'll put
them over into that folder so that I
can copy them if I need to.
I honestly don't trust that the computer is
gonna be there for me and that's not
gonna be an excuse for anybody.
My computer broke down and all of my
expenses are in there.
So that's why I'm old school and I
keep receipts.
So I usually copy them at the end
of the year.
And then I have a folder that says
(07:07):
advertising.
I have a folder that says professional fees
and that's the easy way to do it.
So you have your debit and credit cards
and they're secondary, but you have your receipts.
So let me ask you a question.
There's apps that do this.
I think QuickBooks is one as well.
And then I'm a photo guy.
Cause I've had the problem where I put
all my receipts in folders and then like
you said, then they all went away.
(07:28):
And there's no way that I would take
a receipt, go back, scan it.
The time commitment of that would be substantial.
So I know what I would do and
what I wouldn't.
But what about a picture?
Is it okay?
Cause I found a good practice that when
I get the receipt, I just take a
picture, I put it into a folder, then
I send that to my accountant.
Would something like that be sufficient?
If it exists during the audit.
Now you have to remember that audits are
(07:49):
two and three years after the fact.
So if that hard drive blew up or
whatever, you don't have anything.
You might have some bank statements that you
can requisition from the bank, but you don't
have a receipt anymore, but it will work.
So yes, a lot of people do that
now.
There are apps that capture all of that
and even take it over to QuickBooks.
But your audience needs to know that QuickBooks
is still not enough.
(08:10):
In an audit, they can look at the
QuickBooks and it can help lead them to
the expenses that they want to examine.
But having a number on QuickBooks is not
enough.
That receipt, that's the root.
So you have to have that root.
So from your experience, what triggers a normal
IRS audit?
Oh, there's a, I have a, in my
book, how to stick it to the IRS,
I have a list.
(08:31):
It's called red flags that will cause an
audit.
If you have high travel and entertainment, now
entertainment is kind of out of the picture,
but high travel would trigger an audit.
First of all, let me go back.
Having a home-based business that you are
sole proprietor or disregard entity is one of
the major things because when they hire IRS
agents, they train them.
They cut their teeth on small businesses.
(08:51):
So they know mom and pop doesn't have
a high-powered attorney to come after you.
So they'll pick on a small business, a
Schedule C, and they'll pick maybe three or
four areas of that Schedule C to audit.
And you're to go out there and look
at all their bank statements, look at their
style of living, because if they're living in
a $950,000 house and they have $22
,000 net income on that tax return, there's
(09:12):
a problem, and I've had that.
So you look at all of that and
then you go out and say, okay, your
travel is high.
So they're gonna look at the travel.
One of the ones that had continuing education,
that's one of them.
They know that people put their children in
private schools.
And I had one where the continuing education
was the tuition for their two kids in
the private school.
So it's different things, but mostly small business
(09:35):
owners, and this is not right because the
corporations get away with a lot of things
because they have the high-powered attorneys and
the IRS doesn't wanna sick those agents on
the high-powered attorney.
So they go after the low-hanging fruit,
which is the small business owner.
And I don't want to discourage anybody from
having a small business.
I want everybody to have a small business
because that's how my system works.
Keep, protect, and grow only works well when
(09:56):
you have a small business, but be aware
of these things.
The round numbers on a tax return will
flag an audit.
They know that you did it yourself or
you just kind of estimate it.
Never use round numbers.
If everything's 100 or 50 or 25, then
they know you're guessing.
Another thing that causes a red flag may
be that you have some auto expenses.
(10:20):
People don't understand that you can't take the
mileage and the actual.
So it's a matter of, if you want
to do your own tax return, you really
need to study up and take some courses.
If you want an accountant or enrolled agent
or CPA to do it, make sure that
they know what they're doing because when I've
done audits and even now, one of the
things that I do for my clients, when
they come on board, I look at their
(10:41):
last three years tax returns and I found
thousands of dollars that they had to go
back and have that accountant amend the tax
return.
One of them had a huge NOL and
I said, hey, did you go back and
recover that?
Because you can go back three years and
carry forward an NOL and get the money
back.
So it varies, but I admonish all of
the small business owners to just be very
(11:02):
careful because that's who the IRS chooses.
And although they keep saying in Congress that
they're gonna audit people $400,000 and over,
well, $400,000 is decent for a small
business.
And then they don't do the million dollar
people as much, but they do the 400
,000 and lower people.
Oh, that's, I mean, really, really good advice.
And I really appreciate that because you gave
(11:22):
me a lot of insight on, and it
gave us all a lot of insight in
exactly what they're looking for, what could trigger
that.
Now, what do we do to maximize our
income but minimize tax liabilities?
Because, I mean, that's what we're all trying
to do, right?
We're all trying to legally pay as little
taxes as possible.
So what are your best, some of your
best tips to do that?
Well, that's why, Ty, I said, we need
to have a home-based business.
You can't do it as an employee.
Employees don't have any more deductions.
(11:44):
As a small business owner, you can write
off your cell phone, your internet, your computer,
and basically everything.
I tell people, write off everything but the
kitchen sink and don't be scared.
Internal Revenue Code Section 162 says that you
can write off all ordinary and necessary business
expenses.
Well, what is ordinary and necessary?
And I give the example, a woman in
1994 named Cindy Hess that wrote off a
(12:05):
breast enlargement, yes, she did, on her tax
return.
And the IRS had such a laugh and
they took her to the cleaners and took
that away.
She wanted to fight it and she took
it to tax court and she won.
Why did Cindy Hess win the right to
write off her breast enlargement?
Because Cindy Hess, better known as Chesty Love,
was a pole dancer and it was ordinary
and necessary for her to keep up with
(12:25):
the younger girls.
So they gave her, they had to give
her her deduction.
So ordinary and necessary means common, acceptable, helpful,
and appropriate.
Common, acceptable, helpful, and appropriate.
And I feel like we can make just
about any deduction that we wanna take, common,
helpful, acceptable, and appropriate.
For example, when I go out of town,
(12:46):
if I'm going, like I went to Orlando,
I said, okay, well, let me schedule, I
took my granddaughter, let me schedule a meeting
there.
I scheduled a seminar there and boom, everything
became tax deductible.
So being aware of your spending and making
as much as you're spending in your business
become a business expense, even if it's personal.
(13:06):
Going to the grocery store, when you have
your mileage, a lot of people don't understand
that for every two miles that you drive,
you're throwing a dollar out a window if
you're not keeping up with your mileage.
So if I go to a store like
Walmart and I'm making sure that I buy
paper or pens, that becomes a business expense.
A big thing that people can do if
they have children between the ages of like
(13:28):
eight and 18 is hire their children.
If you hire your children to work for
you, they can work for you without any
federal state income tax, social security, or Medicare
coming out.
And that is one of the largest deductions.
And for this year, I believe it's the
standard deduction for a single, which is maybe
close to $15,000.
So if someone has three children between the
(13:48):
ages of eight, let's say, and 18, they
can write those children off as employees.
Now, they do have to work and you
do have to pay them.
You do issue them a W-2, but
it has zeros on it and they're exempt
as far as the W-4.
So if your business is bringing in $300
,000, $400,000 a year and you have
children, there's no way you shouldn't be having
your children because you get that whole deduction,
(14:09):
yet the children don't have to file tax
returns.
Now, I've seen some sophisticated clients that pay
the children, let's say it's 15,000, they
pay the children, the children will go out
and buy equipment for the business, like some
kind of a small printer, and then lease
it to the company.
So that child has perpetual income coming in
(14:30):
and it's treated a little bit differently, but
that's still a way to teach your children
how to have money work for them instead
of always working for money.
Let me see, one of the other ones
I think of when you have a small
business that is incorporated, the corporation is separate
from the individual.
And there's something called the Augusta Rule, which
I've taken advantage of where the corporation can
(14:51):
lease your home, your personal home for 14
days out of the year without having to
pay tax on it.
So let's use an example.
Well, let me go back to the Augusta
Rule.
It came from the Masters Golf Tournament in
Augusta, Georgia where those people that live around
the golf course that have those million dollar
homes wanted to rent those out to large
golf clubs coming in from Australia, New Zealand,
(15:15):
and South Africa.
They wanted to rent those homes to these
people so that the whole golf club from
that country can live there.
And they didn't wanna pay tax on it.
So they lobbied Congress and got the Augusta
Rule.
And I looked it up, and Ty, those
homes go for like $14,000 a night.
So if it's 10 nights, it's rented out,
that's $140,000, they just got tax-free.
And we can do it too.
(15:35):
So your corporation can make a lease agreement
for 14 days.
So let's say if you have your board
members, you all have a monthly meeting, and
then you have two emergency meetings during the
year, that's 14 meetings.
And what you do is go out and
find out how much it would be to
rent a hotel meeting room or something like
that for eight hours.
It's gotta be eight hours.
And then that's what you use.
(15:56):
For example, if your home is in an
area where rents are high, like $1,000
for a meeting room, and that's not unusual.
And now a quick break to hear from
our sponsor.
Hey, it's Ty Crandall with Credit Suite.
Many of our subscribers want to get the
most money to grow their business at the
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(16:18):
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Then that's gonna yield you 14, well, if
it's $10,000, so it's gonna yield you
$14,000 in expenses for the whole year.
(16:41):
If it's $1,000 a month that you
can get now, if it's 500, of course
it'll be 7,000, but that's an extra
$7,000 that you wouldn't have.
So the corporation is paying your personal self.
Your personal self is getting $7,000 tax
free because you're going under your Augusta rule.
And then your corporation is getting a 7
,000 or $14,000 deduction.
So there are a lot of little strategies.
(17:02):
And what you have to do is you
have to see where the wealthy have lobbied
our Congress to get these little perks and
then see if we can take advantage of
them also.
So let me ask you a question.
If I hire my kids, which, if I
hire my kids, and they go to private
school, why couldn't I write off the private
school's continuing education expense?
You can't do it that way.
You can hire your children and pay them,
(17:23):
and they can pay for their private school.
So you can't write the school off because
school, if it's available free, then you can't
write it off.
If I go out and buy Armani suit
for $750,000, saying that I'm wearing this
to my meetings, I still can't write it
off because it's something that I can wear
out in the public.
When you hire your children, a great idea,
because my children never graced the hall of
a government school either.
(17:44):
Their first public school was Georgia State University.
What you can do is go ahead and
hire them, hire them, pay them a decent
salary.
You can't pay a 10-year-old $50
an hour.
You know what I mean?
And when you write their checks, put that
in their bank account, and then they can
pay their tuition with that.
They can do anything with that.
It's not, no, you're not getting an allowance.
(18:05):
You're going to work.
And I have a list of things that
the children can do to make money, even
infants.
I have one example, and it's not my
client, but the infant was being used for
photography for the business, and the infant was
paid.
They opened up the infant a bank account.
We just have to be very strategic about
how we wanna keep our money.
And you know that I call the IRS
(18:27):
the insidious representatives of Satan because they take
our money, and they do stuff with it
that we just don't want them to do.
So I would rather get it back.
So I help people, and it's fun for
me to help people get the money back
and make sure that that deduction is a
solid deduction, but they can take that, and
they can take it every year.
So meals, you mentioned this earlier.
Everybody believes that, you know, you go out
(18:47):
and you talk about work that it can
be classified as a business meal.
Is that really accurate?
And how would the IRS know if a
meal was, somebody just got some business for
that meal or didn't?
Well, they don't, but the thing that people
mess up on is they don't keep the
receipts documented correctly.
So if I go out with, let's say,
my friend Natalie, and she wants to know,
she wants to finally start a home-based
(19:08):
business.
So we're at Maggiano's, and we're talking about
it, and I'm strategizing, and that bill is
$110.
Well, I'm going to copy that receipt, of
course.
I'm gonna write down, had a discussion with
Natalie on this date, this is what we
discussed.
And then half that meal is deductible.
It is.
You have to write down who you talked
to, what you talked about, and then you
have the date.
So what I've done is I've created an
(19:31):
Excel spreadsheet with mileage and meals on it
also.
So that trip to Maggiano's, I've taken that
mileage, and also on the edge of it,
I put the meal, and then I put
the discussion that we had about the four
different ways that she can make money with
her career.
What about travel?
Same question.
Like, go on a vacation, but, well, I'll
give you an example.
I could go to Park City, Utah with
(19:51):
my kids every year.
But man, I have a ton of business
connections in Park City, and every time I
am out there, I'm legitimately meeting with people,
if not 70% of the time, while
my kids are off doing what kids do.
So like, how does something like that work?
What and how much, or how does it
work to be able to write off travel
like that if you're maybe on a vacation,
but you're also doing work while you're there?
(20:13):
Yes, so in that case, your airfare is
deductible, and the cost of a room that
would house you.
For example, if you go get a suite,
and it's $700 a night, but your room
would have been $400 a night, you get
to deduct $400 a night instead of the
$700, because your family is in there.
Now, if your children work for you, and
(20:35):
they're doing things at your seminar, if they're
passing out fly, or whatever they're doing, then
their airfare is included.
Your wife's, everybody that works for you, their
airfare is included.
So these are strategies that aren't well-known,
but if that's one of your employees, how
many clients do I have that take their
employees on these conferences and stuff?
The employees is tax-deductible.
(20:55):
If the child gets up there and has
to present, or your teenagers, when your children
get to the age where they can start
absorbing what you're doing, and you wanna groom
them to take over the business, or even
have their own business, they can be part
of the program.
Their airfare, and now that suite would be
tax-deductible.
One of the other things I see you
talk a lot about is having multiple income
(21:17):
streams, and how that can actually help you
create wealth, but also reduce taxes.
Can you talk a little bit more about
that?
Yeah, I'm the queen of having multiple income
streams.
It's like, you can't depend on one stream
of income.
We saw that in 2008, when the stock
market went down 777.68 points in one
day, and Americans lost $10.2 trillion in
their savings.
(21:38):
That was a fiasco, and so we can't
let that happen again.
So, and I'm very hard-line, I guess,
because when you get older, you get hard
-line.
It's like, I don't believe in entertaining ourselves.
We don't have time for that.
I call the TV the electronic income reducer,
and the electronic intellect reducer, because that's what
it does.
And if you're not making at least $10
,000 a month anyway, you shouldn't be watching
TV.
So, I'm hard-line with my clients.
(21:59):
What we do is make sure that they're
utilizing their time efficiently.
Yes, entertain yourself.
Most of my clients have nine to five
jobs.
Come home, decompress, eat your dinner, spend some
time with your family.
But instead of sitting in front of a
TV, and then watching it, and then let
it watch you, go work on your home
-based business.
So, they have the income stream from their
job.
They have an income stream from some viable
(22:22):
business that they've started.
Also, real estate.
I ask my clients, hey, do you have
extra room, or do you have a basement?
For example, I have a basement.
I refinanced, I made it a whole apartment,
bathroom, kitchen, everything.
And now the lady in the basement is
paying my mortgage plus.
So, that's another stream of income.
I don't have to pay my mortgage because
she's paying it.
Then you go out and say, okay, just
like we talked about with Jason, real estate.
(22:43):
See if you can go out and learn
the strategies.
I have strategies, I don't know.
I'm sure you've talked about cashflow banking or
infinite banking using the Section 7702.
Go out and get, I got three of
those policies.
Go get that, get some more real estate,
and then have the tenants paying for that.
So, it's a matter of sitting down, figuring
out where the client has time, where they
(23:05):
can free up time, and then how they
wanna utilize that time as opposed to wasting
that time.
And then you can have your job income,
or you can have two businesses.
I have one couple that she's writing a
book and producing a business.
So, she's gonna have that book income.
And book income is great because I have
10 books and people buy on the website
(23:26):
all the time.
So, there's always little, what I call grocery
money or gas money coming in.
That's a whole nother stream of income.
So, I do believe that we don't have
to run ourselves in the ground in order
to have multiple streams of income.
We just have to be strategically thinking about
it, and we have to make sure that
we're not wasting our time.
One of the exercises that I take my
clients through is an exercise that I got
(23:46):
from a life coach, and it's questions to
design your future.
Now, there are eight questions, but the first
three are, what do you want?
Why do you want it?
In other words, why is it important to
you?
And the third one is key.
What are you willing to give up to
get it?
So, are you willing to give up that
nightly soap opera show in order for you
to sit down and build this business?
Or would you just rather stay in a
(24:07):
comfort zone?
I tell people life begins at the end
of your comfort zone.
I love it.
KPG system, how does it help people protect
and grow their earnings in today's financial landscape?
Yeah, so keeping, of course, we talk about
not overspending, not spending on conspicuous consumption.
There's no reason anybody should be paying $120
for some gym shoes when they cost maybe
(24:28):
about $7 to make.
So, getting your spending in order, not getting
those lattes every day, not eating out.
I used to eat out to the point
where my American Express was $30,000 in
food.
That's crazy, but you learn.
And so, keeping your expenses has a lot
to do with that.
Protecting, making sure that you have assurance.
I have a stairstep to wealth, and it
starts out with insurance, which we all should
(24:50):
have life insurance, your car insurance, just in
case there's some kind of a catastrophe.
But then assurance is six months in expenses.
So, if you've got $3,000, your expenses
are $3,000, then you gotta save somewhere
$18,000 liquid because the thing that happened
in 2008 or the things that happened in
2020, you gotta have some money somewhere.
So, a lot of people don't, I hear,
(25:12):
don't even have $500 or $1,000 set
aside.
That's mandatory.
So, then you go up to the protection
of what you have.
It's not just about what you have, but
it's about what you keep.
Making sure that you use entities, LLCs, partnership,
limited partnerships.
I have business trusts, family trusts, private interest
family foundations.
(25:32):
Why don't the Rockefellers and the Rothschilds and
the Kennedys, why don't they get sued?
Why is it that they have perpetual wealth
for generations?
What are they doing that we're not doing?
Find out what they're doing and do it.
They're using private interest foundations.
They're using family trust.
They're using limited family partnerships and business trust.
This is where I lead my clients so
(25:53):
that their assets will be protected.
Because if Rockefeller said, John D.
Rockefeller, I believe it was, it said, own
nothing, control everything.
Well, if you don't own it, then you
can't be sued for it.
I'm sure, Ty, you know that this is
the Sunni United States of America.
We have 5% of the world's population,
but we have 70% of the world's
lawyers.
There are more lawyers in Jacksonville, Florida than
the whole of Japan.
(26:14):
And all they're doing is suing people.
Although they're running around, chasing ambulances.
And when you have a business and it's
growing, people are looking at you.
So you must protect that.
Using even smaller businesses.
You don't necessarily have to have your businesses
set up where you live.
I only have one business here in Georgia.
The rest of them are down south other
places for anonymity reasons and for asset protection
(26:36):
reasons.
So these are the things that I teach.
People don't know what they don't know.
And so that's why we'll get you if
you're not protected.
And then growing, of course.
We talked about the multiple streams of income
and then growing to the point where you
have a legacy.
Thinking long-term.
What will my family have?
What can I help my children with?
So a lot of times people, I'm not
a stock market person.
(26:56):
I don't have any IRAs, stocks, bonds, 401ks.
I'm a hard asset person.
Silver, gold, and real estate.
So something that I can hold in my
hand and something I can put my bare
feet on.
So I'm into the real estate.
I have some real estate here.
My home, I have other real estate here
in Georgia and then in Costa Rica because
I believe in a plan B.
And I have two pieces, one, two, three.
Three pieces of property in Costa Rica so
(27:16):
that I can build a legacy.
That's gonna be income generating as soon as
I get past all these permits and stuff.
But that's the KPG system.
Keep what you earn, protect it from outsiders,
protect it from the IRS, and then grow
it.
Making sure you have multiple streams of income
and then taking that income, turning it into
assets that will perpetually bring money into your
(27:37):
family.
I've taken my granddaughter to Costa Rica with
me two times.
She's going again in May.
She knows that she has property in Costa
Rica.
That changes their mindsets, Ty.
It changes their mindset.
It changes the way they move.
And as she gets into her teen years
pretty soon, her mindset will be different than
a typical teenager because she knows that she
has some backup.
And that's what the wealthy do.
(27:58):
That's what the Rockefellers and all of them,
our president, all of them do that.
We just need to do it as just
ordinary people.
Dr. Jackson, phenomenal tips today.
And we just scratched the surface.
Where can everybody go that's watching and listening
to be able to get more insight about
the KPG system, to learn how to keep,
to protect, to grow their wealth?
Where should they go to be able to
learn more?
Well, my website is being rebuilt, but they
(28:18):
can go to sherrypeeljackson.com.
They can see some books and some things
that I have on there right now as
the website is going.
But I have a basic financial survival book
and workbook.
It's my first little book and workbook.
And if they go to my LinkedIn, which
is Sherry Peel Jackson, and type in tax,
then I will send them that free book
and workbook so that they can at least
(28:38):
look at some of the concepts of the
keep, keeping your money.
And I may have a little bit about
protecting it, but more about the basics.
How do people stop the bleeding?
I mean, if you're getting paid and then
everything's going out, something's wrong.
There are ways to amend that.
And then once you mend it and have
the money coming in, then you have some
breathing room to think about, okay, how can
I grow?
What business can I start that's gonna be
(29:00):
viable and profitable?
And then after the business has started, then
let's grow this.
Let's not just go out and buy seven
flat screen TVs or a Mercedes Benz because
I want a Mercedes Benz, but let's learn
delayed gratification like my dad taught me.
Wait on that.
Drive what we call the beater until it
runs out.
And every time you get a used car
(29:21):
and you drive it until it dies, you
take five years off your retirement because you
don't have a car now.
I love it.
Thanks again for joining us today and thanks
again for the exceptional tips.
You're welcome.
And thank you, Ty, for having me on.
All right, so listen, if you're watching this,
a couple actions to take.
And first of all, I mean, wow.
Really powerful advice, right?
I don't know.
I mean, I took so many notes here.
It was hard to list.
(29:41):
I was taking so many notes.
The biggest note that I have in bold
is the strategy to be able to write
off breast implants.
I'm just saying that.
I think that's the only place you're gonna
learn that kind of tip.
Sure.
Listen, I mean, such exceptional stuff.
She's written some of the best selling books
I've ever seen on PAX strategy.
So do a couple of things right now.
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