| |
The Two Biggest Thieves In Regards To Wealth Building
By Drew Miles
The two biggest wealth thieves a person will encounter are tax deductions and lawsuits. Taxes work against you by chipping away at your wealth. These include federal income taxes (deducting up to 39% of your income), state taxes (deducting up to 9.6%), and self employment or social security (over 15.5 %.). The average American is paying 42-55% in taxes. Ironically, the wealthiest people in the U.S. are paying only single digits taxes. Rest assured, because there is something you can do about this, and it won't cost you the $500/hr that these wealthy people are paying for tax tips from their specialists.
Next, lawsuits are the other evil. This is not the slow reduction of your wealth as with taxes. It is the sudden confiscation of the money you worked hard to build. You can literally fall from the top of the totem pole to the bottom of the barrel overnight. I believe there are no winners in lawsuits because even "winning" a lawsuit takes up time and money that will set you back. Once again, you can protect yourself by learning how to structure yourself properly. You can "bullet-proof" your assets. You can even avoid lawsuits all together.
Crucial to understanding these strategies is differentiating the concepts of asset and liability. Ask yourself the following: Is a real estate investment an asset or a liability? You may be thinking, "It generates income and provides equity; therefore, it has to be an asset.
However, the answer is more complex. You must look at how you hold title to that property. If you own it incorrectly and are not properly structured, you could be putting yourself at risk. If you have your home, your car, your bank accounts all lumped together, someone can take them all away in one sweep. Therefore, you must learn how entity structure.
About the Author
During my years of law school, I completed an internship with a New York Supreme Court Justice and second legal internship with a law firm and also began investing in real estate. Immediately upon graduating law school and passing the bar exam, I opened my own law practice. From 1988 to 2001, I practiced with my partner under the name Miles and Gillard, where I concentrated in the area of real estate and business law.
Drew Miles
Find Out More:
http://www.pfbs.com
Article Source: http://www.simplysearch4it.com/article/24758.html
| If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/24758.html" as shown above and make it hyperlinked. |
| Some other articles by Drew Miles | Smart Yearend Planning-Corporate Formalities
There are three main areas we need to keep in mind as the year ends:
1. Taxes
2. Corporate formalities
3. Planning for next year
The power of documentation—shifting the burden ...
Entity Structuring
Entity structuring is the use of limited partnerships, limited liabilities, and corporations. These can help you accomplish three things:
1. Bullet-proofing your assets so that the bad guys are worse of if they try ...
Smart Yearend Planning - Tax Deductions
There are three main areas we need to keep in mind as the year ends:
1. Taxes
2. Corporate formalities
3. Planning for next year
Revisit the idea ...
Take Waste Out Of Your Spending
Buyer Beware:
The ability to save money has nothing to do with income. Take waste out of your spending and you'll drive the haste out of your life. Continue to learn "the rules," as they're ...
Repairing Your Credit Report
Fixing your credit report and repairing your credit are two distinct processes and problems. If your credit is bad, you can implement some of the strategies below to ...
A Love/Hate Relationship: How your credit score can open and slam doors for you
There are many ways to get ahead financially: attend seminars where you cut up your credit cards with hundreds of other people, participate in debt consolidation services that help you take ...
|
|
| |
|
|
|
