Startling statistic: the average person spends 30 to 45 percent of their gross income on taxes, 25 percent on housing and utilities, 20 percent on food and 10 percent on transportation.

This means that high-income earners have between 5 to 10 percent of their gross income left for everything else such as retirements, education for kids, loans, insurance, entertainment gifts etc. Don't you find this alarming? No wonder Americans have a hard time getting ahead of the inflation curve…

1. Hire your kids and shift income, tax-free:

How would you like to deduct the equivalent of your kid's weddings, college costs, cars and books? There are a number of ways, but one of the best ways high-income individuals can accomplish this is by hiring their kids in their business.

Wages paid to your children under 18 in a non-corporate business are exempt from social security and federal unemployment tax. Even better...