Table of Contents
Foreword
There are two parts to making a whole lot of money. The first is earning it and the other is keeping it. The hard part is keeping it. In this book, Loopholes of the Rich, you are going to legally learn how to make more, keep a whole lot more, and pay less tax. One of the things I teach is The best thing you can do for the poor is not be one of them.
What you want to do is build a financial fortress around yourself, your family, and your businesses. Do what the rich do by having a plan and a path. You need an effortless strategy that is easy to understand. This book takes you through it step-by-step-by-step. Diane gives you not only a wealth creation system, but a wealth preservation and protection system that is invincible, unstoppable, and resolute, and works for you now and works for the future. What you want to do is create a residual, philanthropic future income that makes your church, temple, mosque, or charity of your choice infinitely better off than they were before you came. So now you have lasting value, because you knew the Loopholes of the Rich.
You deserve to know this information, and now Diane has written it in such an easy-to-understand way that you can make it, keep it, and have it grow. As John Wesley said, You want to earn all you can, save all you can, invest all you can, and let me add protect all you can, so then you can give all you can.
Mark Victor Hansen
Co-creator, #1 New York Times best-selling
series Chicken Soup for the Soul
Co-author, The One Minute Millionaire
Introduction
THE RULES HAVE CHANGED
Are You Living Your Dream ... or Your Nightmare?
Are you one of the millions today who keep working harder and harder and receive less and less in return for their effort? Just where does that money seem to go? And, even more frightening, where does all your time go? Many today are waking up to the realization that they have somehow gotten old, and their lives so far have only been about strivingwith nothing to show for all the years of work.
Where Did It All Go Wrong?
The biggest expenses for the average American are interest and taxes. Both of these expenses put your money in someone elses pocket. The interest that you pay on your home mortgage, car loan, credit cards, and the like is income to someone else. The taxes you pay go to support the government without much input from you. In other words, the typical middle-class wage earner works to pay other people. And, worse yet, the average American seemingly has no say in how the money is spent. No wonder you feel out of control sometimes!
The middle-class dream has become a nightmare. You cant work harder at your job and expect to get ahead. And, even worse, you might not know this until its too late. You might find out that you have no future just as youre ready to retire and enjoy your golden years. Thats when you find out the pension you hoped for is gone. Thats when you find out your house costs you more in property tax and insurance than you can afford. And, too late, you find out you now have outdated skills for the job market. This is one nightmare that doesnt end when you wake up. You dont even know youre in the nightmare until you wake up and find out you have no money and no future.
The good news is that there still is a dream possible for you. And that future is possible no matter where you are today. It doesnt matter where you live. It doesnt matter how much money you have now. It doesnt matter how much debt you have. But the way to realize the dream, and end the nightmare, is not the way your parents taught you.
The plan of your parentswork hard, save your money, and collect your retirementwas effective for them, but it doesnt work now. Loopholes of the Rich was written to provide the information you need to operate in todays world. In this book you will learn the new rules that the wealthy play by. And you will learn how you can play by the same rules.
What Does It Mean to Be Average?
Five years ago, it was estimated that the average 50-year-old American had a net worth of zero. Consider what that means. It means that someone has worked for 25 or more years and has been able to accumulate nothing. Of course, thats an average; so for everyone who has assets that exceed their debt, there is someone who owes more than they own. At 50 years of age, they have another 15 years or so to work. A lot has to change if they want to recover from where they are now. They have to reverse the effects of 25 years of work in just 15 more years of work.
Last year, a new study was done. Its now estimated that an average 50-year-old American has a net worth of minus $7,000! Its going the wrong way!
The conventional wisdom for the average person just doesnt work anymore. If you arent average, or dont want to get those average results (owing more than you own), then it means that youre ready to learn the secrets of tax-advantaged wealth building that the rich know.
How to Improve the Odds
Avoid being average by creating balance between financial education and proper financial action. No one person can have all of the answers. A team makes you stronger. Your team should encourage and move you in the right direction. This book will tell you how to find, evaluate, and work with the right team. With their help and advice, you can succeed!
How to Put More Money in Your Pocket Today
Taxes are the single biggest expense for the average American today. One small change in the amount of tax that you pay can create a huge change in how you and your family live your lives. This book will tell you what small changes make the biggest impact.
Even better, youll learn strategies that can help you save taxes today! But it takes more than just learning about them. You need to also put the ideas into action. Loopholes of the Rich will show you how to do that as you build a team that supports your goals. But, first, we start with the basics of loopholes.
Loopholes Are Government Incentives
Loopholes are government incentives to promote public policy. They arent something shady or shifty. In fact, the government wants you to take advantage of the legal tax loopholes that the tax law provides. So where are the loopholes? Youll find most of the loopholes in the two areas that most support the economybusinesses and real estate investing. Businesses, and particularly small businesses, provide stimulus to the economy. A growing business employs people, hires consultants, invests in equipment, and just generally kick-starts a struggling economy. In fact, look at recent tax legislation. Does it seem like the tax cuts are unfair? They are! Thats because the government wants to create a change in the economy and knows that the best way to do that is by creating opportunities for businesses to grow.
Real estate loopholes are another important part of public policy. Real estate investors provide housing for people who dont currently own their own homes. The government has tried to provide that same kind of housing (called public housing), and the result is decaying tenements where no one wants to live. In fact, while property values have generally appreciated (when taking the long-range view), public housing values have generally gone down. The government therefore provides the loopholes in order to encourage real estate investors.
