One of the ways I was able to invest in real estate over the past decade was due in part to reducing my Taxes by becoming a Real Estate Professional. Had I NOT, I would NOT have had the capital to invest.
At the time, I was a high-income wage earner residing in the highest income tax state in the union, California. Taxes could have exceeded 50% (e.g. Federal, State, Local Income Taxes, SDI/FICA, etc) of my income. Earned income is the highest taxed income. Without becoming a real estate professional, my ability to build capital would have been impossible.
Unfortunately, very few people take advantage of the tax code which essentially is becoming a partner with the Government and taking advantage of the tax incentives. Then they wonder why they are unable to save and invest. It’s impossile when 50% goes out just to pay taxes.
If you are a high-income wage earner, a 401k or any of that other stuff is NOT going to put a dent in reducing your...
Gena interviews her friend and mentor Carl Johnston along with Edward Goldkuhl who is an estate attorney. Edward has been an estate planning attorney for twenty years. He talks about how there are opportunities for people to save on taxes and direct their affairs after they pass away. He details how probate works in California.
Recent tax reform in California has brought about a substantial increase of up to twenty million dollars that can be given away tax-free. This is an excellent time to take advantage of trusts and all of the benefits that come with them. It’s likely that this opportunity will not last very long due to government regulation and these changes seem to be unpopular.
Probate is expensive in California, and this is due to specific attorney fees are required by law. This is one reason why trusts are useful because trusts do not die, trusts agreements always specify who inherits the trust.
It’s difficult to find good lawyers; he suggests asking around...
Patrick is the President and CEO of Paradigm Life which he started in 2007. He has a background in economics, financial advising, and marketing. His company has grown and now has an excellent team of financial advisors. He has found running the company to be very rewarding because he has been able to empower people and help them in their financial lives. They work with people of all net worth to improve their financial cash flow. Their goal is financial freedom for their clients, so they prefer not to focus on the idea of retirement.
Society has this belief that debt is bad, however, if you understand economics, then you know that the entire worlds financial system is based on debt. Banks lend out the majority of what they have on deposit. Central banks should not have as much power as they do there are a lot of unintended consequences from that system.
They have a financial product which is a type of insurance policy. You own a part of the insurance company and receive a...
David writes the Morgan Report a newsletter that discusses the resource sector. They specialize in mining equities, and they look at ETF’s and futures. He has a particular focus on silver and gold. They analyze companies to assess their sensitivity to price changes in the underlying commodities.
He talks about how he got into the cellular market in the 1980’s, and while it was a high risk, it also came with high rewards. Likewise, with the newsletter, they try to assess the risks involved in different investment opportunities to suit everyone’s requirements. In this sector, some companies steadily become better and better while many don’t.
He expects to see steady improvement in the precious metals space, and there are several reasons for this, but the biggest one is the debt problem that central banks have created. You can’t get out of debt by creating more debt, and this is a proven recipe for disaster. If the bankers don’t do some sort of...
As an investor, you want to pay close attention to the Bond Market. So I was able to spend time with Marilyn Cohen who manages Envision Capital Management a firm that oversees $400 million in both municipal and corporate bonds.
She has been in the bond market since 1979 and has seen a lot of interest rate cycles. Bonds are still a mystery to most people, while most understand stocks, very few understand bonds. She points out that the bond markets are bigger and more global than the equity markets. In my opinion, the Bond Market allows one to see the future. If one understands Bonds, they Understand Money, if they Understand Money, they understand Taxes. This is the basis of Financial Literacy and why I spend time on this in the Financial Freedom Formula course.
States and counties issue municipal bonds which are how they fund schools and roads. Bondholders are the investors, but taxpayers are ultimately on the hook for what actions government takes. Marilyn also shared the...
Garrett Sutton, who is my Asset Protection Attorney, heads up Corporate Direct. They help protect investors wealth by using different asset protection strategies such as LLC’s, etc.
He says, “Many corporate structures fail to protect because people don’t maintain them by paying the fees and staying on top of filing requirements. You have to maintain these structures, or you become vulnerable.”
They discuss different corporate strategies and how they vary from state to state. Some U.S. states have lower fees and better safeguards. Wyoming is excellent for Real Estate and Nevada is good for “C” corporations.
Insurance is always your first line of defense followed by a suitable corporate structure. Umbrella insurance policies will often provide additional protection from lawsuits. As the predator will get that first before going after the assets.
There are benefits with “C” corps. One example is the Tax Code now is lower and under...
Here is the new IRS TAX Withholding Calculator. This is best suited for anyone who earns Wages/W2 Income and you want to verify that your withholdings are sufficient going forward. You can access the calculator on the IRS website via this link.
If the event you need to increase your withholdings, you can do what our students are doing to mitigate the impact and start the 7 Day Free trial via the link below:
The IRS has done an exemplary job in providing us with the calculator early in the year so we can plan accordingly. In summary, here are the options if your withholdings are insufficient:
Those who earn their income on the right side of the quadrant (e.g. business owner and/or investor) most likely won't find the...
Jerry discusses Energold Drilling Group they provide drilling services in 24 countries and have over 270 rigs. They drill for oil and gas, geotechnical, mining, and water. They are the biggest drilling company in Mexico, and they also drill in Africa and Asia. They have been in business since the late 1990’s. They have diversified away from just mining in 2012. Overall this diversification has helped them avoid problems in the latest downturn in oil & gas. Their company provides the tools and experience to develop resources.
They perform directional drilling for cable companies for infrastructures like fiber optics and communications.
He discusses China’s “One Belt One Road” which is a five-year policy on infrastructure upgrades. China plans to grow the related countries in the Silk Road trade around the China-Russia border. This will be done through massive infrastructure upgrades including new highways, bridges, power lines and other related...
Back in the earlier part of this decade, when I had achieved Financial freedom (e.g. Passive Income Exceeded my Expenses) I created another goal which is the goal of Infinite Wealth.
I have witnessed people confusing investing in assets for buying a JOB. I learned early when one practices the rules contained in the Infinite Wealth Formula, it can prevent many mistakes and accelerate the journey. Remember, your most valuable asset is time.
The Infinite Wealth Formula is very easy to follow and consist of these three (3) easy steps.
Jeremy is a real estate investor he left the corporate sector in 2007. That is when he moved out of the stock markets and into cash flow investments. Back then it wasn’t easy to find opportunities in real estate since most investments were private. To help investors, he co-founded FIBI (For Investors By Investors) a non-profit organization to network with like-minded investors. Since 2007, they have grown and now have several chapters throughout Southern California. Their core foundation is not in selling anything but simply focusing on educating in various aspects of real estate.
He studies the markets and keeps up to date on economic data. He feels that there will be decent GDP growth in the first two quarters of the year but that this may taper off toward the end of the year. The second half of the year may result in profits going back into corporations pockets and optimism may wane. The US Treasury yield curve may flatten before the next recession. However, the amount of...