Group 1 - The wealthy utilize various tax loopholes to minimize taxes and maximize wealth [1] - One strategy employed is "tax-loss harvesting," where investments are sold at a loss to offset gains, thus reducing tax liability [2][3] - Wealthy individuals can carry forward net operating losses from businesses to future tax years, lowering taxable income when advantageous [4] Group 2 - High-income earners often place gains from investments into tax-advantaged accounts, such as retirement accounts, to reduce tax burdens [5] - The ultra-wealthy may invest in private placement insurance policies that allow for tax-free growth and borrowing against the policy [6] - Wealthy individuals frequently take small salaries to minimize tax payments, as higher earnings lead to increased tax brackets [7]