This will be one in a series of post regarding the strategy
for generational wealth. There are
multiple strategies for this result, some are riskier than others. A true generational wealth plan in my
strategy should have a spending period that offsets total tax liability,
converts what you are spending to investments or a safe vehicle that can grow,
give you access to this money after a seasoning period or at some point in the
future without having a taxable event, provide cash flows that sustain wealthy
lifestyle for your life cycle, provide cash flow for your offspring during
their life cycle, and provide a lump sum payout to a third, fourth and fifth
generation as well as a re-visitation of the cycle you initiated. Generational
wealth is not a new concept.
The need for capitalization is a standard among anyone
starting a business or acquiring a business, or expanding an existing
business. Chances are; most business
owners will retire from their business not as well off as they began and most
have businesses that are not designed to operate if they are not working in the
business. Most small business models are
designed with the owner as the central figure in the operation. That is a scary thought because it is hard to
wear all those hats and get truly wealthy.
You might have huge lump sums of cash or continual cash flow over the
business life cycle, but so many people that have successfully generated cash
flow do not have long term stability and find themselves without cash before
retirement or having to come out of the retirement that was the result of the
payoff. This false since of security has
set a lot of people up for monetary failure because of the financial
instability and a self-destructive strategy.
Most, if not all individual’s desire wealth, a wealthy
retirement, and security of their current lifestyle as they age as well as
security for those they leave behind. So
how do you go about attaining such a thing as security for yourself and off-spring? Many people might perceive such a thing as
financial security as an illusion. Of
course the major reason is because it has eluded so many and even when some
have found security they have lost it. Financial
security for many is perceived as something that is attainable by individuals
and corporations that are already wealthy, but not for themselves; not for
their organizations. Many have bought
into vehicles that just don’t cut the muster, so to speak. Many have been deceived for so long and have
been taught so wrong that even if I showed them a way to generational wealth
that can be used right now today and used by their family in the future, then
they would not move forward with a since of urgency that the subject
deserves. Many would rather trick
themselves into believing that they are safe when they are not. The adage goes, “you can lead a horse to
water, but you can’t make him drink”; to elaborate, “even if they are thirsty
and about to die”.
Most individuals have a financial blueprint that will
self-destruct long before they figure out that they have been bamboozled. Most financial plans associated with big
corporations are setup to benefit the company more than the employees they
pilfer for deposits into 401K’s, IRA’s, and Pensions. Most of these vehicles have taxable when
money is disbursed. These vehicles have
a low threshold for tax avoidance approximately $6,000 X 25% or $12,000 X 25%
if married filing joint. These vehicles
defer taxes to future periods and that means that you will pay a higher tax
rate, after all, taxes are increasing not decreasing. Many who are invested in these vehicles need
to go to the next step by investigating how to avoid a taxable event and move
out of these vehicles. I am pretty much
a self-proclaimed expert in this area because I don’t know of many that are
versed and as experienced as my organization is regarding the steps taken to
disburse and move money out of these vehicles into other investments that
provide a better hedge for your money and basically has the ability to put you
in an arbitrage position by leveraging your cash. Make sure you follow these series for more
information on this subject as we provide information on the subjects of tax
avoidance and reveal strategies that work.
Contact me at 888-753-2521 or email questions at chet@thecontroller.net .
