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Yep, and going after small business S-corps, yep, it stinks to be on the hit list. I can see it, I can see it,. but taxation keeps kicking my ass back.
Then you need to learn how to take some of that yearly income, and move it into wealth. Learn how to better use your wealth, to create wealth, and stop using your income to plan your retirement.
One of the best books written on the subject, "Richest Man in Babylon", its an oldie, talks about using wealth to create income, and not work. (ignores any tax consequences)
Then the next book I would recommend, Rich Dads Plan for Financial Success, Robert T Kiyosaki, which teaches about cash flow, taxes and different types of ways people earn income, and why some are destined to be poor, while others are destined to never have to work.
Then you need to learn how to take some of that yearly income, and move it into wealth. Learn how to better use your wealth, to create wealth, and stop using your income to plan your retirement.
One of the best books written on the subject, "Richest Man in Babylon", its an oldie, talks about using wealth to create income, and not work. (ignores any tax consequences)
Then the next book I would recommend, Rich Dads Plan for Financial Success, Robert T Kiyosaki, which teaches about cash flow, taxes and different types of ways people earn income, and why some are destined to be poor, while others are destined to never have to work.
Thank you. I heard of Richest Man in Babylon but somehow missed Rich Dads Plan for financial success even though I did read Rich Man Poor Man and Cash Flow quadrant. Both excellent and attribute both for having a better understanding of money and starting a business.
I moved out of the E into the S which produce good income. I now have employees but I don't think that qualifies me as being a B quadrant and doing a little in the I quadrant. Obviously I have a lot more to learn, I got my butt kicked this tax season and although I was thinking about hiring another employee but decided against it. I will be reading them both.
Then you need to learn how to take some of that yearly income, and move it into wealth. Learn how to better use your wealth, to create wealth, and stop using your income to plan your retirement.
What is really eye opening is, as I said, I come from being poor, then to middle class, then to business owner and with each step I view money in a very different mindset. I can see how the poor are staying poor and how the middle class can not get out, I know how Obama is hurting people trying to get out.
Thank you. I heard of Richest Man in Babylon but somehow missed Rich Dads Plan for financial success even though I did read Rich Man Poor Man and Cash Flow quadrant. Both excellent and attribute both for having a better understanding of money and starting a business.
Then the only other book you need to pick up is Rich Dads Guide to Investing.
The Rich Dads Plan for Financial Success, is all 3 of those books listed, so if you read the other 2 already, no need to rebuy it.
Then the only other book you need to pick up is Rich Dads Guide to Investing.
The Rich Dads Plan for Financial Success, is all 3 of those books listed, so if you read the other 2 already, no need to rebuy it.
ok, I see that with all 3 books. His books are very good and just picked the Guide to Investing and The Richest Man in Babylon. Anyone else interested. It does help.
Ok so Obama is going after "income" which is middle class. The rich have assets (wealth) but they still have to produce income to live on. But because they have assets they are wealthy, but they do things to protect their wealth from taxation (legally).
You know, as I was learning and my income went up I felt like damn, I am learning the rules but Obama is changing those rules. But I was wrong, he is not going after the wealthy, he is going after income producing middle class and income producing upper class using the poor and also using the middle class against themselves.
Man, I got to stop thinking middle class because I am getting killed.
What is really eye opening is, as I said, I come from being poor, then to middle class, then to business owner and with each step I view money in a very different mindset. I can see how the poor are staying poor and how the middle class can not get out, I know how Obama is hurting people trying to get out.
So you are saying use income to invest in assets that in turn produces wealth instead of investing in something that produces income (like dividends). What you are saying is going against the nature of my middle class mindset but at the same time I understand. So I have to ask, (don't laugh) but what about income to live on. Feeling a little moronic right now but what the hey.
Ahh see, thats the beauty after about 10 years of doing it.. You can have money to also live, without paying taxes..
here, lets do a nice round $1M transaction to show you how it works.
You buy a $1M property for about $100K down, borrow $900K, that pays you about $80,000 a year in income. But because you financed most of that property, you give every single dime to the bank, meaning you make no profit from it, and becuase you make no profit, you pay no taxes.
It would take about 15 years to pay this property off, so lets assume you held it out for 15 years just to make the figures even.. By that time, the income on the property grows to about $100K a year, meaning the property has grown from $1M, to about $1.5M.. (round figure just to give you the idea)..
You now turned $100K, into $1.5M, and didnt pay a dime in taxes on the profit, thus far..
Now in 15 years, when teh property is paid for, and you start to get $100K a year in income, you have to determine, do you want to then start paying taxes on the $100K a year income, well I say hell no.. So you go to the bank and borrow $1M from the bank, you roll $750,000 into a $7.5M property, thus growing your wealth from $100K, to $9M (i.e. the original $1.5M property + $7.5M new one), you also pocketed $250,000, which you use to help live off of, (and since its borrowed money, its not taxed), or you sell the property for $1.5M,, putting the $1M, into a $10M property tax free, and then you just grew your livable assets from the $100K you put down on the property, to $500K, the difference between what you sold the property for, and what you put into a new property, and the tax liability is about $150K on it. If you dont need the money, you can roll the $1.5M into a $15M property, and you just turned $100K, into $15M, without paying a dime in taxes..
15 years ago I was homeless, didnt even have a place to sleep, 10 years ago, I literally "retired" in my early 30's.. While I do "work", I dont receive income, and I spend every single dime of my "profits".. Last year I had to spend $50K before the end of the year, so my company went out and spent $50K on a computer system.. I've got a beast, and its now a tax write off..
Ok, obviously onto your question, well how the hell do I live.. Well I've got a home in Ohio, 1 in PA, 1 in Florida, 1 in Illinois, and 3 of them are paid for by borrowing against the assets I've paid down.. Remember, borrowed money isnt taxed..
So while I continue to grow my debt, I do so by growing my assets 10x as fast.
Of course the next and final part of the equation, is estate managment.. One would think that fine, the government will nail me when I die, but of course, thats not true either..
I simply begin to slowly turn over ownership of corporations with "net worth", to my children, and make sure that their newly obtained ownership is below the taxed threshold.. And as they grow and become majority shareholders, these trusts buy up the other trusts that my kids dont own, (of course at a loss, for example, it will buy up that $1M property from me at $999,999.99 thus giving me $1M tax free and cash in the bank), and no taxes owed, while allowing my kids to acquire all of the assets and income, and still not pay taxes.
Of course one might think about management headaches of owning so many properties, but finally, you need to look at who the tenants are. They are major corporations, USPS, McDonalds, Walgreens etc, corporations that will sign 30 year contracts, manage the buildings, manage the properties, pay the property taxes, etc.. All you do is sit back and allow them to send the checks right to the mortgage company, thereby paying down your debt for you, and you obtain wealth.
Ok so Obama is going after "income" which is middle class. The rich have assets (wealth) but they still have to produce income to live on. But because they have assets they are wealthy, but they do things to protect their wealth from taxation (legally).
You know, as I was learning and my income went up I felt like damn, I am learning the rules but Obama is changing those rules. But I was wrong, he is not going after the wealthy, he is going after income producing middle class and income producing upper class using the poor and also using the middle class against themselves.
Yes, he's pitting the poor against the middle class.
The wealthy are just BAU and are literally out of the picture.
Those CEOs with high salaries are at the upper limit of middle class.
$250K salary does not make you wealthy or rich. That's income and if it were gone you'd join the masses of the unemployed.
Obama is not going after the wealthy, he never was. And that's why you have the Buffets and Gates behind him and lauding him on "tax the rich" policies.
People with wealth, not income, wouldnt have any tax incentive to put money inito an IRA, because they already have no income, thus they dont pay taxes. An IRA is only for people with income, so it does absolutely nothing to those who have large portfolios.
Quote:
Originally Posted by HistorianDude
It's always funny to see somebody almost get it, yet still be so wrapped up in their partisan frothing that they don't even notice that they have just destroyed any reasonable excuse for their outrage.
We'll ignore your ignorance regarding taxes on interest, dividends and capital gains, since I would imagine you don't have any.
After reading your two "discuss" this issue, History, you elude you have an MBA, I suggest you get your money back because pg has cleaned your clock.
If I was in the position to do any investing or wanted financial advice I would hire you.
After reading your two "discuss" this issue, History, you elude you have an MBA, I suggest you get your money back because pg has cleaned your clock.
I can honestly say it is difficult to take seriously being dissed by somebody who does not know the difference between the words "allude" and "elude."
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