The Advice That Changed My Perspective on Wealth : Ray DeWitt
We´ve all heard a piece of financial wisdom that sounds almost too simple:
Buy low. Sell high.
But the longer I’ve worked with investors and entrepreneurs, the more I’ve realized that the real lesson behind those words is not about timing markets.
It is about understanding how wealth is built and preserved over time.
Because there is another part of that equation that often gets overlooked.
Taxes.
The Hidden Force That Erodes Wealth
Many investors spend years learning how to grow their money, yet far fewer spend time learning how to protect what they have already built.
Taxes and inflation are two forces that quietly erode wealth year after year. Even successful investments can lose a significant portion of their value once taxes are applied.
It is common for investors to focus heavily on returns without realizing how much of those gains may ultimately go to the IRS.
That is why one phrase I often repeat is:
“Pay yourself, not the IRS“.
The goal is not avoiding taxes altogether. Taxes are a normal part of economic activity. The real objective is understanding how different investment structures and planning strategies can influence the outcome.
Why Tax Strategy Matters
When investors sell appreciated assets such as real estate or businesses, they often face substantial tax consequences.
Capital gains taxes, depreciation recapture, and other tax obligations can significantly reduce the amount of capital that remains available to reinvest.
Without thoughtful planning, years of growth can be partially lost in a single transaction.
This is why many experienced investors begin thinking about tax strategy long before they sell an asset.
Planning ahead allows them to explore structures that may help defer taxes, preserve capital, and potentially reposition their portfolio.
The Role of Real Estate and Structured Investments
Real estate has historically played an important role in wealth building for many investors. In addition to potential income and appreciation, it offers unique tax considerations.
One example is the 1031 exchange, which allows eligible real estate investors to defer capital gains taxes when reinvesting proceeds into another qualifying property.
For some investors, this strategy opens the door to exploring different types of real estate exposure, including professionally managed structures such as Delaware Statutory Trusts (DSTs).
These structures can allow investors to maintain real estate exposure while shifting away from the day-to-day responsibilities of property management.
For investors who have spent years dealing with the realities of owning rental properties, the idea of stepping away from toilets, tenants, and trash can be appealing.
Thinking Beyond a Single Transaction
The most successful investors I have met rarely view decisions in isolation.
Instead of focusing on a single purchase or sale, they think in terms of long-term strategy.
They ask questions such as:
How will taxes affect this decision?
How will this investment fit into the broader portfolio?
What happens when it is eventually sold?
Does this move support income, growth, or legacy goals?
These questions shift the conversation from short-term gains to long-term outcomes.
A Different Perspective on Wealth
The simple advice to “buy low and sell high” may still hold value, but the deeper lesson is about understanding the full picture of wealth.
Markets move. Opportunities appear and disappear. But the principles that guide thoughtful investors tend to remain consistent.
Clarity. Discipline. And an awareness of how taxes, inflation, and structure affect the final result.
Final Thoughts
Many investors spend years building wealth through real estate, businesses, and other opportunities. What often matters just as much is how that wealth is managed when the time comes to transition or reinvest.
Understanding tax-aware strategies, real estate structures, and alternative investment approaches can help investors make more informed decisions about their next step.
If you are approaching a liquidity event, evaluating a real estate sale, or simply want to better understand tax-aware investment strategies, I am always happy to be a resource.
You can schedule a free consultation here:https://www.1031dstgroup.com/free-consultation and Download our free eBooks!
Or call me directly at +1 (801) 815-6619.
I am based in Salt Lake City, Utah, with an office in Dallas, Texas. We work with investors across all 50 states, helping individuals explore tax-advantaged real estate and private market strategies that may align with their financial goals.
Disclosure:
This content is provided for educational purposes only and should not be construed as investment, legal, tax, or accounting advice. Investors should consult their financial professional regarding their specific circumstances before making any investment decision.
Portions of the written content in this article were assisted by artificial intelligence (AI) technology tools and reviewed by 1031 DST Group for quality and compliance. A 1031 exchange may not be suitable for all investors and may involve risks, including the potential for loss of principal. Always consult with a qualified tax advisor or financial professional. Some investments such as Alternative investments and DSTs involve significant risks and may be illiquid, speculative, and suitable only for accredited investors*.
*Accredited investors are defined under SEC Rule 506 of Regulation D. Generally, an investor is deemed accredited if their net worth is greater than $1,000,000 exclusive of their primary residence and/or their annual income exceeds $200,000 for the current and past two years. Click here to learn more.
Ray DeWitt is a Registered Representative of Realta Equities, Inc. and an Investment Advisory Representative of Realta Investment Advisors, Inc. Investment Advisory Services are offered through Realta Investment Advisors Inc., an SEC registered investment advisor. Securities are offered through Realta Equities, Inc., Member FINRA/SIPC. Neither Realta Equities, Inc. nor Realta Investment Advisors Inc. is affiliated with C-Suite Network Or 1031 DST Group. Realta Wealth is the trade name for the Realta Wealth Companies. The Realta Wealth Companies are Realta Equities, Inc., Realta Investment Advisors, Inc., and Realta Insurance Services, which consist of several affiliated insurance agencies.