If you've not already addressed it, the first order of business to accumulate wealth is to eliminate debt. But once you've done this, you're ready for the advanced stuff.
However you earn or grow your money, the most significant resource-drain is taxes. More than you likely comprehend. If you take a dollar and double it every year, at the end of twenty years this will be worth more than $1.04 million dollars. If you take that SAME dollar, TAX it first at 30%, THEN double it for twenty years ... would you like to take a guess? $28,449. Yes, $28,449. And this is only taxing the increased earned amount. Most people don't observe that degree of diminishment, because they continue to earn new dollars that go into the pool; but those are the numbers.
So, as you may be beginning to see, taxes is a far greater wealth-drain than most comprehend. And therefore non-taxed wealth growth is a strong strategy to pursue. At Chinnici Capital, we have financial vehicles that will grow wealth, both tax and risk free; with some of our vehicles earning up to 30% per year, tax-free.
While those programs won't work for every single person, they will work for almost every single person: Generally speaking, any place where you have the ability to deduct business taxes, from multi-national to home-based business, you will have the ability to grow your wealth at up to 30%, again, tax-free. Common situations that will work positively include anyone with the following:
- Any businesses/individual leasing of equipment or automobiles
- Any mortgage
- Schedule C (or Corporate Form 1120) business income
- Any purchase at all that is financed over time.
- Anyone who desires to grow and pass on estate value, tax-free.
These will all commonly work.
If you desire to investigate this possibility, give us a call or an email contact.
I personally believe you can't effectively grow wealth without avoiding taxes. And let me convey an unasked question: avoiding taxes is not illegal. To quote the IRS themselves, "Tax evasion is illegal; tax avoidance is recommended." Where there is a legal tax obligation, you are compelled to pay it. Where there is an avoidable tax obligation, you are recommended to do so -- by the IRS. Contrary to most peoples mis-belief, the IRS is not looking to take every dollar in your pocket, only that which is due to them. But, as you saw from this example, without avoiding taxes, it is most every dollar. Contact us for help.