Dr. Sherry Peel Jackson: How Do You Keep What You Earn?

Are you tired of watching your hard-earned money slip through your fingers due to taxes, unnecessary expenses, or poor financial planning? Dr. Sherry Peel Jackson, a retired IRS agent, certified fraud examiner, and CPA, has made it her mission to teach individuals and small business owners how to keep, protect, and grow their wealth.

In a recent podcast episode, she shares practical, actionable strategies to help you retain more of your income and build a lasting legacy for your family. With her unique perspective from years inside the IRS—playfully dubbed the “Insidious Representatives of Satan”—Dr. Jackson offers a roadmap to financial empowerment that’s both relatable and transformative.

The Core Challenge: Keeping More of Your Income

For many, earning a good income isn’t the issue; the real struggle is holding onto it. Dr. Jackson emphasizes that “it’s not about what you make, it’s about what you can keep.” The tax code, she explains, is designed to favor businesses, yet most individuals and small business owners are unaware of how to leverage it. Add to that the trap of conspicuous consumption—think $2,800 purses or endless cable TV subscriptions—and it’s easy to see why so many feel “broke, busted, and disgusted.” Her approach is simple but powerful: control expenses, protect your assets, and grow your wealth strategically.

Strategies to Keep What You Earn

Cut Unnecessary Expenses

Dr. Jackson’s first step to keeping what you earn is mastering your expenses. She shares practical tips that resonate with anyone looking to save without sacrificing quality of life. For example, she advises against grocery shopping on an empty stomach, a habit that once cost her an extra $20 on junk food. “Every time I used to go to the grocery store hungry, I’d spend extra $20 on food that I didn’t need,” she recalls. Other suggestions include ditching cable TV, which she calls an “electronic income reducer,” and shopping at thrift stores, where she once scored $700 worth of clothes for just $70. These small changes add up, freeing up funds to invest in your future.

Leverage the Tax Code with a Home-Based Business

One of Dr. Jackson’s most eye-opening insights is the power of starting a home-based business to reduce your tax burden. The tax code, particularly Internal Revenue Code Section 162, allows deductions for “ordinary and necessary” business expenses. She recounts the story of Cindy Hess, a pole dancer who successfully deducted a breast enlargement as a business expense because it was deemed necessary for her profession. While not everyone needs such unconventional deductions, Dr. Jackson stresses that everyday expenses—like mileage, utilities, or even a portion of your rent—can be deductible when tied to a legitimate home-based business. “If you have a home-based business, you can write off everything but the kitchen sink,” she says.

Protecting Your Wealth

To truly keep what you earn, protecting your wealth from unexpected losses or excessive taxation is critical. Dr. Jackson highlights the importance of insurance to safeguard against lawsuits or catastrophes, especially for business owners. With the U.S. hosting 70% of the world’s lawsuits, having business, home, and car insurance is non-negotiable. Equally critical is “assurance”—maintaining at least six months’ worth of liquid savings. This cushion provides peace of mind and time to recover from unexpected setbacks. For small business owners, shielding wealth also means minimizing tax liabilities through strategies like forming a corporation to separate personal and business assets or using the Augusta Rule to rent your home tax-free for up to 14 days a year.

Growing Your Wealth for a Legacy

Once you’ve mastered keeping and protecting your income, the next step is growth. Dr. Jackson encourages investing in tangible assets like gold, silver, and real estate, which she’s used to build wealth since gold was just $313 an ounce. She also advises thinking globally, noting that opportunities in places like Croatia or Costa Rica can diversify and strengthen your portfolio. Her annual exercise, “Questions to Design Your Future,” helps clarify goals by asking: What do I want? Why do I want it? And what am I willing to give up to get it? This introspective process ensures your financial decisions align with your long-term vision.

Real-Life Applications: From Deductions to Family Foundations

Dr. Jackson’s strategies aren’t just theoretical—they’re practical and accessible. For parents, she suggests employing children aged 6 to 18 in the business, allowing tax-free payments up to the standard deduction (around $15,000). These funds can be used for tuition or even to purchase equipment that generates rental income. For those looking to build generational wealth, she points to trusts and private family foundations, which offer tax advantages unavailable to individuals or corporations. By modeling the strategies of the wealthy, like the Rockefeller or Kennedy foundations, you can create a legacy that endures.

Why This Matters for Everyone

Dr. Jackson’s advice is inclusive, catering to individuals, small business owners, and families across income levels. Whether you’re a W-2 employee struggling with taxes or an entrepreneur aiming to scale, her principles apply. By focusing on actionable steps—like starting a home-based business or rethinking spending habits—she empowers a diverse audience to take control of their finances. Her global perspective also resonates with those looking beyond their local economy, encouraging investment in international markets.

Key Takeaways and Next Steps

Dr. Sherry Peel Jackson’s insights boil down to three pillars: keep what you earn by controlling expenses and leveraging tax deductions; protect your wealth with insurance, assurance, and smart business structures; and grow your income through strategic investments and global thinking. To start, consider small changes like shopping smarter or exploring a home-based business. For deeper guidance, check out resources like the IRS Small Business Tax Center or consult a tax professional familiar with business deductions.

Ready to keep more of what you earn? Reflect on Dr. Jackson’s question: What are you willing to give up to achieve your financial goals? Share your thoughts in the comments or explore her strategies by starting a home-based business today.