Quiet Wealth: An Asset Protection Strategy
.Quiet Wealth: An Asset Protection Strategy
Time is Money: An Asset Protection Strategy
Diversified Investments
I’ve never worn a watch. I flatter myself that’s because of a high school Latin teacher/lacrosse coach named Thurber who, when asked why he didn’t, responded that “a man who wears a watch worries too much about time.”
That quote has always stuck with me. Its philosophical brevity is almost Hellenic.
My real reason for going watch-less is simpler, however. I have a hard enough time keeping track of my keys, wallet, eyeglasses and anything else I need during my daily journey to worry about a watch as well.
Quiet Wealth: An Asset Protection Strategy
Time is Money: An Asset Protection Strategy
Diversified Investments
I’ve never worn a watch. I flatter myself that’s because of a high school Latin teacher/lacrosse coach named Thurber who, when asked why he didn’t, responded that “a man who wears a watch worries too much about time.”
That quote has always stuck with me. Its philosophical brevity is almost Hellenic.
My real reason for going watch-less is simpler, however. I have a hard enough time keeping track of my keys, wallet, eyeglasses and anything else I need during my daily journey to worry about a watch as well.
In fact, I’m pretty sure the only watch I ever owned was one that had belonged to my grandfather, that my Dad gave me when I was about 5 — what was he thinking? — that I promptly dropped and broke.
My relationship with timepieces, in other words, is Thurberesque in another way entirely.
But there are people for whom watches are an asset protection strategy
Last week in Lausanne, Switzerland, auction house Phillips sold 164 watches by makers such as Rolex, Patek Phillippe, Longines and Piaget. All were from the 20th century, the oldest from the ‘20s, but many made as recently as the 1990s.
The sale prices impressed me for two reasons. First, who knew that someone would deem a simple wristwatch to be worth almost $5 million? Apparently someone does. A 1927 Patek Philippe Stainless Steel Model 130 fetched that much. There were several $1 million-plus items as well, and dozens made it into six figures.
The second thing that struck me about the auction results was that in almost every case, the sale price significantly exceeded the pre-auction estimate, sometimes significantly.
The lucky seller of the 1927 Patek Philippe doubled his or her hoped-for gains, whilst the prior owner of a 1969 Piaget Montre-Manchette 9850 in 18-carat yellow gold got five times what Phillips thought he or she would.
I’m no expert on watches, but clearly, there’s more to these things than telling the time.
The values reflected in the Phillips auction derive from a combination of outstanding craftsmanship, rarity, and an artistic je ne sais quoi that watch aficionados must surely understand.
The 1931 Longines Lindbergh Hour Angle in silver, to the right, is clearly a gorgeous example of human creativity.
Quiet Wealth: An Asset Protection Strategy
My colleagues and I often refer to items like these watches as “quiet wealth” — an asset protection strategy quite unlike conventional stocks, bonds, metals and other financial instruments.
Quiet wealth is largely synonymous with collectibles, such as stamps, coins, fine wines, historical artifacts and similar rarities. But they can also include such little-known items as comic books (a Jeff Opdyke favorite) and vintage guitars (my personal weakness).
What they all have in common is that (a) significant numbers of people out there value them intrinsically, i.e. for what they are, where they came from, who owned them previously, and so on, and (b) in most cases, they aren’t making any more of them.
A 2015 Rolex may be worth a lot more than its sale price to a collector someday, but that will be largely because there will be so few of them around.
Quiet wealth collectibles tend not to be correlated with traditional financial assets. That means their prices move independently of the financial markets.
For example, indices of rare collectible stamps have never lost value — even when the global economy tanked in 2008. The growth in the market value of many forms of quiet wealth may speed up or slow down, but it almost never reverses.
Some Caveats
Quiet wealth like collectible watches are an ideal way to store and grow wealth. They’re also an effective asset protection strategy. But as with everything, you have to be aware of the taxman’s interest. Here are some important things to know in this regard:
With the exception of some bullion coins, collectibles like watches cannot form part of any tax-deferred retirement planning vehicles, such as an Individual Retirement Account (IRA) or private placement annuity.
If you bequeath any quiet wealth assets to your heirs, the IRS will levy inheritance tax on the items’ fair market value at the time of inheritance, even if they are not sold.
If you give quiet wealth assets to someone as a gift, you will pay gift tax on the difference between your original purchase price (less any costs associated with acquiring and maintaining the asset, such as auction fees and storage) and their fair market value at the time of your gift.
The annual gift tax exclusion of $14,000 applies, however, so any assets under that value gifted are tax-free.
Appraisal of quiet wealth assets is critical, both for insurance and when calculating capital gains for tax purposes. The IRS actually has an “art advisory panel,” whose determinations are binding on the IRS but not on the asset’s owner — so if they are wrong about what an asset will fetch on the market, you will save tax on the difference.
The Icing on Top
Despite these tax-related cautions, one of the most attractive things about quiet wealth like the Lausanne watches is that they aren’t reportable to the IRS if they’re stored in a non-bank institution, which makes collectibles such an effective asset protection strategy.
For example, you could take your newly-acquired 1948 Patek Philippe 518 in rare 18-carat pink gold down to Vienna, put it in a private storage facility like Das Safe, and nobody need know about it.
People used to buy fine Swiss watches because of their security and reliability. It seems they still do.
Of course, there are many more forms of quiet wealth, which is why The Sovereign Society will soon launch a new service based on growing and protecting your wealth through collectibles. Stay tuned for more details.
Kind regards, Ted Baumann Offshore and Asset Protection Editor
5 Important Lessons From Squirrels For A Better Life
.·5 Important Lessons From Squirrels For A Better Life
Raymond Marlborough Sep 15, 2021
Love them or loathe them, these furry acrobats have lessons to teach.
Squirrels divide opinion, you either love their acrobatics and furry antics or are tearing your hair out as they evade your latest defenses to devour all the seed that you have left out for the birds.
While I was living in England our house backed onto a wood which had a lively squirrel population in addition to birds of all types, foxes and even deer on occasion. My wife and I got to observe squirrel behavior up close and were also trying and failing mostly in stopping them getting to the seeds that we left out for the birds.
·5 Important Lessons From Squirrels For A Better Life
Raymond Marlborough Sep 15, 2021
Love them or loathe them, these furry acrobats have lessons to teach.
Squirrels divide opinion, you either love their acrobatics and furry antics or are tearing your hair out as they evade your latest defenses to devour all the seed that you have left out for the birds.
While I was living in England our house backed onto a wood which had a lively squirrel population in addition to birds of all types, foxes and even deer on occasion. My wife and I got to observe squirrel behavior up close and were also trying and failing mostly in stopping them getting to the seeds that we left out for the birds.
We learnt a lot from the squirrels that could be lessons for our, in theory anyway, more evolved species. Here are our top 5 lessons:
Always Be Curious And On The Lookout For Opportunity
Squirrels in our garden were always exploring, looking under every leaf and rustling through the plants in the garden on the lookout for opportunity, they would sit on a tree branch opposite our window and look in at us, curious about what we were doing.
Often in this exploring they would find something, a fallen nut or piece of fruit that we had thrown from the window, and when they did find it they would grab it wholeheartedly and rush to a safe spot, devouring everything they could and discarding what was not for them.
How often do we look at an opportunity from the outside and analyse it and second guess before we embrace it? We spend so much time looking at it that it has often passed by before we truly commit to it. We should act more like squirrels (of course taking safety into account) and dive into an opportunity, but also not be afraid to discard it if it is not what we needed.
Don’t Stop At The First Sign Of Difficulty, Persevere
Squirrels really want nuts and seeds and are very motivated to get them and there is a whole industry designing and building bird feeders that are squirrel proof and people are always trying to find new ways to keep their birdseed away from hungry squirrels and mostly, failing.
From watching the squirrels in my garden, I think that the clear reason for this is in addition to their intelligence, squirrels have a remarkable sense of perseverance. Once they have identified something that they want they will devote themselves to working out a way to get it.
They will try one approach and fail and then sit on a nearby branch for a few minutes with their eyes locked on their prize and then try a different approach and then another and another until they achieve their goal, or they discover that it is truly impossible to reach and even then, they will occasionally revisit the problem to see if anything has changed.
I know that in my life I have seen something that I want to achieve given it a try and failed and then decided that it obviously wasn’t for me. But how many things that are truly worthwhile are attained easily on the first try?
If we have a goal that we truly believe in then we have to keep trying, this is not blind trying just rushing in and doing any old thing, but after failing sit back for a moment, think through why the approach didn’t work and look for an alternative strategy and then after truly exhausting all strategies you can declare the goal unattainable, but just like the squirrel we should come back every so often to see if something has changed to make our goal available.
Practice Your Skills To Keep Them Sharp
To continue reading, please go to the original article here:
https://medium.com/writers-blokke/5-important-lessons-from-squirrels-for-a-better-life-a0596671bbf9
Post RV Tips & Suggestions
.Post RV Tips & Suggestions
From OOMF By Just Da Truth (Repost From Our Archives)
While there are numerous ways to prepare for the RV I feel this will assist you in preparation for that most awesome day. When you see RV in big letters on your favorite currency forum, , or when you hear me scream hallelujah from wherever you are in the world…that is when you will know that glorious day has arrived. But will you be ready?
Prepare: I realize many of you have done your research on how to invest, donate, and spend your money (Lord knows we have had plenty of time to do that, LOL) but time should also be allocated to how you are going to receive your investment. Preparation is not a huge task and I believe it is essential.
Post RV Tips & Suggestions
From OOMF By Just Da Truth (Repost From Our Archives)
While there are numerous ways to prepare for the RV I feel this will assist you in preparation for that most awesome day. When you see RV in big letters on your favorite currency forum, , or when you hear me scream hallelujah from wherever you are in the world…that is when you will know that glorious day has arrived. But will you be ready?
Prepare: I realize many of you have done your research on how to invest, donate, and spend your money (Lord knows we have had plenty of time to do that, LOL) but time should also be allocated to how you are going to receive your investment. Preparation is not a huge task and I believe it is essential.
Many of us have our dinar stuffed in the sock drawer, safe deposit box at the bank, or maybe even locked in the pages of your Bible but when that day arrives for you to exchange your currency there are a few things you should consider. Here are some simple steps and advice…
Give thanks: First and foremost hit your knees!
Keep Quiet: On the day you discover your investment has RV’d your first reaction is to scream with excitement and to tell the world. Think of your safety and your family’s safety first. Handle your affairs as quiet as possible.
Even though this event trumps all events you could ever post on Facebook and Twitter…it is better not to tell anyone about this particular event.
Identification: If you decide to use a bank or your currency trader at time of exchange both are going to ask for 1 to 3 different forms of identification.
Make sure your id’s are current. You will likely use your driver’s license, passport, credit cards, student ID, work ID, and/or a utility bill.
Banking: If you are dealing with small banks, go straight to the VP or upper management. If your bank has a foreign currency exchange department immediately ask for the VP or President of the department.
With larger national banks, go to their Private Banking or equivalent division for customers with great wealth. I think you get the point I am trying to make…
If the new exchange rate is considerably higher and you have several dinars to exchange you will be dealing with a high amount of cash in exchange. This step will only move the process along and further protect your asset.
They may have more options when it comes to banking, and have a better grasp of the disclosure and security procedures in the bank.
It would also be beneficial, if you know your banker, to have his/her name and phone number ready in case there is a technical challenge wiring the funds.
If not, have the banks phone number and address readily available…go ahead and log into your contacts in the cell phone.
Also, research your own bank options, banking fees, bank account features, return rates, FDIC insurance, NCUA insurance, etc.
If you are utilizing the services of a currency trader make sure you have all the needed account numbers that the exchange office will require in order to wire funds to your bank of choice. So you will need your bank name, bank account, routing number, and wire transfer numbers. Also add the phone number and address into your cell phone for quick access.
Contingency Plan: Lets say you plan to go to your local bank to cash in your dinar. You find out there is something you are not too familiar with or maybe…they do not offer a currency exchange service.
If they are going to ship your Dinar out-of-state (out of your sight) for 3 or 4 days, the cash in spread is too high, etc etc. What do you do?
Do some calling around before you leave to see what services your institution offers. Ask about the rates and if there will be a delay for the money to be deposited into your account.
Take a preventive measure today by writing down a list of banks near your home, next major city, or an adjacent state that you can contact if a problem with your initial bank arises.
Depositing your Cash: Regardless of the method you use to exchange your dinar into dollars you will likely deposit a large sum of cash into a bank account. If you are in the United States banks are required to report to the IRS any single deposit exceeding $9,999.99. This is to identify potential criminals dealing in fraud, theft, or even terrorism.
Furthermore, funds deposited in the amount of $10,000 or more can be “frozen”by the bank or by the bank on behalf of the IRS if the deposit appears“suspicious”. These frozen funds can by tied up to 10 days or until you can provide valid proof where these funds originated.
There are suggestions on how to avoid your bank account from being frozen but none will guarantee you will not wait to have access to your funds. Banks can hold wired funds, checks and cashier checks until funds are honored by the issuing institution. Much like a second party check each bank has a “clearing”period based on different transaction types.
Prior to making the deposit (especially if it is a large deposit) talk with the manager and explain the situation as an investment payout. You may need validation of some kind such as a written statement. This may avoid the IRS from being directly involved and shorten the time frame you will have access to your entire deposited funds.
Please discuss this with your banker, attorney, and/or CPA for further clarification and understanding.
“Walking” out with your money: If you were cashing a check for a few thousand dollars it is likely the banker would place your bills in a zipper bag and let you walk out the door.
However, if you ask to walk out with lets say a few hundred thousand dollars be prepared to wait.
Banks refrain from having large bulks of cash on hand for security purposes and most transactions are electronic.
However if you desire to have “cash” be prepared to make a request anywhere from 24 to 72 hours prior to your withdrawal in order for the bank to make arrangements.
Trusts, LLC, and Other Legal Entities: There are many ways to suggest how to set up your financial portfolio. Some have suggested to set up a trust(s), some have suggested establishing a LLC. Some just plan on cashing in as a single person.
However you decide to set up your arrangement make sure all of the legal documents are close by so that you can refer to them, if need be.
If you desire to open a bank account under a Trust, LLC, etc. these documents will be required. See bank accounts above.
Be careful of online offers and Dinar forums offering trust advice or assistance. Do you research…you don’t know who these people are..Don’t send anyone funds prior to a thorough investigation. Call the Better Business Bureau for advice.
Wills: I realize this sounds morbid but it is essential. I hate to say it but here is a scenario…you cash in and deposit $1 million in your bank account. On the way out of the bank you do your best impression of the Snoopy dance.
Not watching where you are going you come face to face with a large RV…not revaluation but a recreational vehicle! Your RV came twice that day…first to make you wealthy and the second time to meet your maker. So what happens to your $1 million?
This is why it is essential to draw up a will. Even a simple notarized will is better than nothing. Easy wills are found at places like Office Depot…some are free online as well.
Tax: The ugliest three letters ever made up. But it is something we all will deal with. Don’t try to avoid it as you will find yourself regretting you ever did. Its better to place a certain percentage aside allocated just for taxes and never touch it!
These percentages have been quoted all across the spectrum but whatever you decide to allocate..remind yourself not to spend it till you decide to send that check to Uncle Sam.
My advice would be to look up the phone numbers of local CPA’s, CPA/Tax Attorney’s and have their numbers available to make appointments with them post RV.
Get their advice and reconcile their thoughts. Once you pick someone you are comfortable with he/she can walk you through the needed forms and steps.
Of course, choosing a CPA or a Tax Attorney is not that simple…so keep your ears open for a well-qualified person to handle your taxes.
I understand some are saying their are methods to avoid paying taxes on currency exchange. Listen! Be Smart! Get the advice of a tax professional and don’t end up owing money or perhaps be under investigation.
Don’t be fooled…the IRS follows every transaction at banks so just be cautious and pay your taxes.
Post RV Investments: The only advice I can give you here is to… get advice.
Seek the services of a financial consultant, go to the library, Google everything that comes to mind. I will admit that just about any financial advisor that exists would likely roll of out of his chair in laughter if he heard about this investment pre-RV but I would also place a handsome bet that he or she would want your business when you are in search of advice post-RV.
Do your due diligence before you spend money. Don’t be afraid to get second opinions and ask around.
This kind of blessing will likely never happen like this again so be wise.
Also..Be wary of fellow dinar investors asking you to partner with them in an investment. Just because they are a fellow investor doesn’t mean they have your best interest at heart. Be Smart!
Donations/Tithe: I think it is imperative we should all give back, pass it forward, and donate. But do your homework and give your money to honest charities. It’s shameful to think that people make up fraudulent organizations and never spend donations instead they line their greedy pockets. Give to organizations that are close to your heart.
Tithe to your church. The tax man is going to take a chunk of your wealth you might as well offset the tax man by giving those funds to something meaningful and worthwhile.
Document Everything; This can’t be emphasized enough. If you are fortunate to gain a large sum of wealth remind yourself to treat your accounts appropriately and be careful not to let others mishandle your money.
You may have more money than you ever had before but that doesn’t mean you will always have it. Keep records, bank statements, receipts, contracts, agreements, etc.
If you hire a financial advisor be actively involved with your account and have understanding of what your advisor is doing with your money. Also, be aware of all of the fees advisors charge for their services.
After all how many times have you heard of celebrities discovering they are broke because they trusted someone else with their money?
Debt: When the RV occurs you will have been blessed with a sudden amount of wealth. No matter how small or large the sum of your return find it in yourself to reduce your personal debt.
Pay off the mortgage, pay off the credit cards, pay off the installment loans, pay off the student loans, pay it all off. Stop being a slave to debt and avoid at all costs reentering into a lifestyle of owing a creditor.
Pay yourself: There is nothing wrong with spending money on yourself. Take a vacation, buy a car, pay off some bills, go to the mall. Withdraw some “fun”money but take the rest and let the interest and dividends accrue.
Remember to buy smart: Many of us have lived modestly most of our lives and with a sudden amount of cash in the bank your buying potential could be endless. But remember to be smart when making purchases.
Sure you can afford a 10,000 sf house but remember the taxes, utilities, and cost to maintain the home. Sure you can afford a Ferrari, Lamborghini, and a Porsche but remember the maintenance cost associated with these high end cars. Enjoy your wealth…learn to keep it.
Loose Lips, Sinks Ships: Its sad but true…the minute you have money in your bank account will be happy. But if friends and family that are non-dinar investors hear of your recent influx of wealth they are going to want a piece of your pie.
I am sure you are going to want to help your friends and family but do it under your own will and not because of their solicitation. Be quiet and serve your fortune to those with gratitude and need.
Safety: Lets just be honest. There are some cruel people in this world and they will do anything they can to harm you or your family in order to obtain a portion of your wealth.
This refers back to being quiet. Fly under the radar. Live as normal as you can. Enjoy your life but be aware of your surroundings and the people you invite into your life.
Enjoy your life: Money does not buy happiness. Some of the richest people in history were the most miserable. Let the happiness in your life result from living your life right, spending your wealth of time with your family, and being debt free.
Now that you are rich avoid falling into the temptation the desire to become wealthier.
Don’t let money be a driving force in your life. It is perfectly fine to invest and protect your wealth just don’t allow it to consume your life.
These are just a few tips and suggestions. This is my soul my opinion and I am not a financial consultant, CPA, lawyer, and in no capacity have the power to give financial or legal advice however I am a concerned investor that wants all of us to be informed.
Brain Meets Money
.Brain Meets Money
Richard Quinn February 20, 2020
HOW OFTEN DO you think about money? Hey, you just did. Seriously, we think about money every day and sometimes every hour. Some studies say we ponder financial matters even more often than the old standby: sex.
We’ve been thinking about the stuff for a long time. Money goes back about 3,000 years. Paper currency can be traced to China in 700 BC. They didn’t fool around: Their currency stated that all counterfeiters would be decapitated. I’m guessing counterfeiting was rare.
Today, it costs two cents to manufacture a penny and almost eight cents to make a nickel. Result? Each year, we taxpayers lose about $85.4 million on the production of pennies and $33.5 million on nickels.
Brain Meets Money
Richard Quinn February 20, 2020
HOW OFTEN DO you think about money? Hey, you just did. Seriously, we think about money every day and sometimes every hour. Some studies say we ponder financial matters even more often than the old standby: sex.
We’ve been thinking about the stuff for a long time. Money goes back about 3,000 years. Paper currency can be traced to China in 700 BC. They didn’t fool around: Their currency stated that all counterfeiters would be decapitated. I’m guessing counterfeiting was rare.
Today, it costs two cents to manufacture a penny and almost eight cents to make a nickel. Result? Each year, we taxpayers lose about $85.4 million on the production of pennies and $33.5 million on nickels.
Gee, at that rate, those of us on Social Security could receive a $2-a-year raise if they made cheaper money. Who needs pennies anyway? Money is no more than a piece of metal or paper—basically worthless, except you can get stuff for it because the people who sell you stuff can get other stuff with the money you give them.
Does money make us happy? Benjamin Franklin didn’t think so. “Money never made a man happy yet, nor will it. The more a man has, the more he wants. Instead of filling a vacuum, it makes one.”
The evidence suggests Ben was right, but try telling that to addicted lottery players. I recall a TV show depicting the impact of winning the lottery on people. Instead of making the winners happy, it often messes up their lives, mostly because they’re ill-prepared to handle the money and because they thought spending would make them happy.
One winner stands out in my memory. He bought several pieces of used heavy construction equipment just to have. He didn’t know the tax withholding on his winnings wouldn’t cover all of the tax he owed. He eventually lost all of his prize possessions and a great deal more to the IRS.
Another family lived in a trailer and, instead of moving, expanded it, bought each child their own ATV and gave each an allowance of $1,000 a month. The kids were ostracized at school and had to leave.
“The conviction of the rich that the poor are happier is no more foolish than the conviction of the poor that the rich are,” offered Mark Twain. Indeed, if you Google the subject of happiness and money, you will find assessments from every point of view. But none concludes that money buys permanent happiness, only fleeting pleasure perhaps.
On the other hand, money can relieve stress—or create it. If you don’t have enough to pay the bills, more money will help. But if you have plenty of money, the fear of losing some may be stressful.
To continue reading, please go to the original article here:
Decades-Old Investment Wisdom From Albert Einstein
.Decades-Old Investment Wisdom From Albert Einstein
Notes From The Field By Simon Black
March 3, 2020 Bahia Beach, Puerto Rico
Albert Einstein is rumored to have said that “Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.”
These days interest rates are near zero. The average savings account currently pays .09% interest per year, according to the FDIC. So over the course of a decade, saving $100 with compound interest would give you a grand total of $109.37.
But at the same time, the opposite force is working against us. Inflation currently stands around 2.5%. And that compounds too. What $100 can buy now will cost $102.50 next year. After ten years, assuming inflation stays the same, it will cost $128. So just by saving $100 for ten years, you’ve lost $18.63 of real value.
Decades-Old Investment Wisdom From Albert Einstein
Notes From The Field By Simon Black
March 3, 2020 Bahia Beach, Puerto Rico
Albert Einstein is rumored to have said that “Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.”
These days interest rates are near zero. The average savings account currently pays .09% interest per year, according to the FDIC. So over the course of a decade, saving $100 with compound interest would give you a grand total of $109.37.
But at the same time, the opposite force is working against us. Inflation currently stands around 2.5%. And that compounds too. What $100 can buy now will cost $102.50 next year. After ten years, assuming inflation stays the same, it will cost $128. So just by saving $100 for ten years, you’ve lost $18.63 of real value.
That’s why these days, you have to invest to make money. Luckily stocks, real estate and pretty much every asset class is close to all time highs right now.
But last week's “coronavirus drop” is a good reminder that it’s not going to last forever.
If you have substantial unrealized capital gains, and you’re looking for an exit strategy, there is one available right now. It allows you to compound your current gains for almost six years before paying capital gains tax.
I’m talking about Opportunity Zones. These were created by Trump’s tax reform law to reward investors who fund projects in distressed areas.
One of the major benefits of investing in an Opportunity Zone is the chance to compound your gains BEFORE you pay taxes on them.
For instance, if you bought $100,000 worth of stocks that are now worth $200,000 you have $100,000 worth of capital gains. At current tax rates, you could owe as much as $23,800.
But by investing those $100,000 of gains in an Opportunity Zone, you can defer paying those taxes until 2026. That means the $23,800 that would have gone to taxes instead grows from the new investment.
Let’s say that the new investment increases in value by 10% each year. When the time comes to pay the capital gains taxes on the original investment, you will have earned an EXTRA $18,363 just from deferring taxes.
In addition, after holding the Opportunity Zone investment for several years, you’ll finally pay tax on your original capital gain, but at a discounted rate. (Technically they call this a ‘step-up in basis’, so instead of being taxed on $100,000 you are taxed on a gain of $90,000.)
This can save you even more money.
But there is yet another major tax benefit of Opportunity Zones.
If you keep your funds in the Opportunity Zone for ten years, you’ll NEVER pay tax on the capital gains from your Opportunity Zone investment.
So to continue our example, say that after ten years, your $100,000 Opportunity Zone investment has compounded into $259,374-- a total capital gain of $159,374. Your total capital gains tax bill will be ZERO.
Remember, ALL capital gains are eliminated on Opportunity Zone investments held for at least 10 years. So if you invest in the next Facebook and turn $100,000 into $100 million you still owe ZERO capital gains taxes on that $99,900,000 gain.
But like most good things, this won’t last forever.
And some of the benefits have already expired.
For instance, you could have had a 15% step-up in basis on your original capital gains (i.e. only paid tax on $85,000 instead of $100,000).
But you had to hold the Opportunity Zone investment for seven years. And with the deadline to pay the original capital gains set at the end of 2026, it is too late to hold the investment for seven years.
But you can still get the discount of 10% by holding for five years, as long as you get into an Opportunity Zone by the end of 2021.
It’s worth looking into. And a good place to start is our new in-depth article: Opportunity Zones: Ultimate Guide and My Personal Experience.
To your freedom & prosperity, Simon Black, Founder, SovereignMan.com
The 9 Biggest Money Secrets Most Rich People Won’t Tell You
.The 9 Biggest Money Secrets Most Rich People Won’t Tell You
By The Penny Hoarder Staff Updated May 6, 2022
Life would be a whole lot easier if someone would just Venmo us $1 million, but unfortunately the chance of that happening is, well, probably zero. (Venmo doesn’t allow transactions that large anyway.)
But even though our chances of becoming a millionaire are slim, we can still manage our money like one. No, we’re not going to tell you how to buy hundreds of shares of Apple stock. Or how to pick out the perfect yacht.
These are simple money moves any normal, non-millionaire person can make today. Each secret can get you closer to achieving your big goals.
The 9 Biggest Money Secrets Most Rich People Won’t Tell You
By The Penny Hoarder Staff Updated May 6, 2022
Life would be a whole lot easier if someone would just Venmo us $1 million, but unfortunately the chance of that happening is, well, probably zero. (Venmo doesn’t allow transactions that large anyway.)
But even though our chances of becoming a millionaire are slim, we can still manage our money like one. No, we’re not going to tell you how to buy hundreds of shares of Apple stock. Or how to pick out the perfect yacht.
These are simple money moves any normal, non-millionaire person can make today. Each secret can get you closer to achieving your big goals.
Take a look:
1. You Can Invest in Fine Art (Even if You’re Not a Millionaire)
You might be thinking you need at least a few more zeros in your checking account before you can even start thinking about investing in art. Warhol? Monet? Banksy? Yeah right. You just managed to finally put away $1,000. Those guys are way out of your league, right?
Wrong. You could still get started with what you’ve got. Seriously.
A company called Masterworks is helping us average folk invest in multimillion-dollar paintings — traditionally one of the most lucrative investment options that’s only available to the super rich. But you don’t need hundreds of thousands of dollars to buy a masterpiece outright; with Masterworks, you can buy shares, instead.
Here’s why it’s a good option: Fine art is super valuable, so it can potentially earn you more money than the stock market. Over the long term, the stock market will earn you an average annual return of 7%, but Masterworks lets you invest in art that’s historically seen a 10% to 25% price appreciation.
This is a long-term strategy, so patience pays off here — literally. But once your piece of art sells, you get your cut of the profits.
It takes less than a minute to request an invitation, and you could become a Masterworks member by the end of the day.
2. You Can Get Free Stock From This Company
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When Money Is Tight, These 7 Resources Will Help Nearly Everyone
.When Money Is Tight, These 7 Resources Will Help Nearly Everyone
By The Penny Hoarder Staff May 13, 2022
When you log into your bank account, how do your savings look? Probably not as good as you’d like. It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
We’re not judging — we don’t roll like that. We’re here to help. We just don’t want you to have to sell those Elvis-Presley-signed velvet pants you inherited just to pay some lousy plumbing bill. Those pants are sweet.
When Money Is Tight, These 7 Resources Will Help Nearly Everyone
By The Penny Hoarder Staff May 13, 2022
When you log into your bank account, how do your savings look? Probably not as good as you’d like. It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
We’re not judging — we don’t roll like that. We’re here to help. We just don’t want you to have to sell those Elvis-Presley-signed velvet pants you inherited just to pay some lousy plumbing bill. Those pants are sweet.
Try these tips to get the ball rolling, and start building up your savings so you can breathe a little easier.
1. Ask for Some Help — You Deserve It
If you’re really in a bind, start with 2-1-1, a confidential service offered through United Way that’ll help you find the resources you need to find affordable housing, make rent or pay utilities. It’s there for people like you.
To use the service, head to 211.org and enter your location. It’ll show you services in your community and give you a number to call. It’s a clearinghouse for help with food, housing, utilities and employment. If you’ve never asked for help before, that means you don’t know what kind of help is out there.
You can also look into applying for a grant. Take, for example, Modest Needs grants, which are designed for workers just about the poverty line who are ineligible for most other forms of social assistance.
2. Ask This Company to Pay Your Credit Card Bill
No, like… the whole bill. All of it.
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Where Do Millionaires Keep Their Money?
.Where Do Millionaires Keep Their Money?
Rosemary Carlson Sat, May 14, 2022
Where do millionaires keep their money? High net worth individuals put money into different classifications of financial and real assets, including stocks, mutual funds, retirement accounts and real estate. Most of the 20.27 million millionaires in the U.S. did not inherit their money; only about 20% inherited their money. More than two-thirds of all millionaires are entrepreneurs. Here are some of the places the genuinely rich keep their money.
Whether you're a millionaire or not, a financial advisor can help you take significant steps toward achieving your goals.
Where Do Millionaires Keep Their Money?
Rosemary Carlson Sat, May 14, 2022
Where do millionaires keep their money? High net worth individuals put money into different classifications of financial and real assets, including stocks, mutual funds, retirement accounts and real estate. Most of the 20.27 million millionaires in the U.S. did not inherit their money; only about 20% inherited their money. More than two-thirds of all millionaires are entrepreneurs. Here are some of the places the genuinely rich keep their money.
Whether you're a millionaire or not, a financial advisor can help you take significant steps toward achieving your goals.
Cash and Cash Equivalents
Many, and perhaps most, millionaires are frugal. If they spent their money, they would not have any to increase wealth. They spend on necessities and some luxuries, but they save and expect their entire families to do the same. Many millionaires keep a lot of their money in cash or highly liquid cash equivalents. They establish an emergency account before ever starting to invest. Millionaires bank differently than the rest of us. Any bank accounts they have are handled by a private banker who probably also manages their wealth. There is no standing in line at the teller's window.
Studies indicate that millionaires may have, on average, as much as 25% of their money in cash. This is to offset any market downturns and to have cash available as insurance for their portfolio. Cash equivalents, financial instruments that are almost as liquid as cash. are popular investments for millionaires. Examples of cash equivalents are money market mutual funds, certificates of deposit, commercial paper and Treasury bills.
Some millionaires keep their cash in Treasury bills that they keep rolling over and reinvesting. They liquidate them when they need the cash. Treasury bills are short-term notes issued by the U.S government to raise money. Treasury bills are usually purchased at a discount. When you sell them, the difference between the face value and selling price is your profit. Warren Buffett, CEO of Berkshire Hathaway, has a portfolio full of money market accounts and Treasury bills.
Millionaires also have zero-balance accounts with private banks. They leave their money in cash and cash equivalents and they write checks on their zero-balance account. At the end of the business day, the private bank, as custodian of their various accounts, sells off enough liquid assets to settle up for that day. Millionaires don't worry about FDIC insurance. Their money is held in their name and not the name of the custodial private bank.
Other millionaires have safe deposit boxes full of cash denominated in many different currencies. These safe deposit boxes are located all over the world and each currency is held in a country where transactions are conducted using that currency.
Real Estate
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https://finance.yahoo.com/news/where-millionaires-keep-money-070638027.html
Protecting Your Home Against Burglary
.Protecting Your Home Against Burglary
Burglary and home invasions are some of the most prevalent crimes in the US. With a break-in happening every 26 seconds, you can see why home security is an important area to consider. The difference between a home invasion and burglary is if there are homeowners inside the residence during the break-in. A burglary occurs when no one is home and becomes a home invasion if someone is present during the crime.
You’ll be happy to know that burglary rates in the US have been steadily falling over the past decade, but that still resulted in 314 burglaries per 100,000 people in 2020.
Protecting Your Home Against Burglary
Burglary and home invasions are some of the most prevalent crimes in the US. With a break-in happening every 26 seconds, you can see why home security is an important area to consider. The difference between a home invasion and burglary is if there are homeowners inside the residence during the break-in. A burglary occurs when no one is home and becomes a home invasion if someone is present during the crime.
You’ll be happy to know that burglary rates in the US have been steadily falling over the past decade, but that still resulted in 314 burglaries per 100,000 people in 2020.
Grim statistics aside, there are many methods to prevent this from happening to you and your family. In this article, we’ll discuss some of the necessary and more effective means of home security, as well as cost-effective options to keep your home the safe place it should be.
Top 10 Reasons You Should Have A Home Security System
Deters burglary and property crime before it happens. Homes that do not have security systems are 300 times more likely to be targeted than homes with security systems.
Protects your pets while you’re out of the house. While it’s not overly common for burglars to harm pets during a break-in, it’s not unheard of. Even if your pets are unharmed physically, the fear they can experience during a burglary is still traumatic.
Reduces home insurance rates. It shouldn’t be a surprise that if homes without security systems are 300 times more likely to be broken into, insurance companies are willing to give breaks to homeowners with security systems. Less chance of a break-in, theft, or property damage means that your insurance company is less likely to have to pay out to cover losses.
Increases personal safety in the case of a home invasion. If you or other household members are at home at the time of a break-in, a security system can give advance notice allowing occupants to hide or protect themselves from harm. Allowing advance notice could increase your chances of avoiding that outcome.
Increases your home’s value. It can be a significant attractor for potential home buyers to know that there is an existing security system ready for them. While there’s a balance when you’re selling your home between wanting to provide that sense of security without making it seem like your house is in a dangerous neighborhood, overall, a modern security system increases your home value. Be sure to talk with your realtor about this if you’re selling your home — they’ll have insight into what your market would respond to best.
Helps you to have peace of mind while you’re on vacation. Monitored security systems aren’t just great for protecting against theft but also for making sure that you don’t come home from vacation to find that your dishwasher flooded your kitchen or that there’s been a gas leak. Most home security companies allow you to customize the level of monitoring you pay for. Usually, you might not have your system monitored by an actual person on the other end, but while you’re away on vacation, it can be a great way to ensure peace of mind. Some home security companies even contract out security guards to perform a home safety check if requested.
Helps you keep track of your kids. Smart locks and home camera systems can also go a long way to giving you peace of mind concerning the whereabouts and safety of your kids. If they’re at the age where they can stay home alone or come and go when you’re not there, having that checkpoint can be a huge relief.
Allows remote access to your home. Smart home locks aren’t just convenient because you can program them to do things like automatically unlocking when you’re walking up to the door (no more dropping groceries because you’re fumbling with keys), they can also allow access to your home when you’re not there. Say you forgot to drop off plants to be watered by a friend while you’re away. You can remotely unlock the doors for them to pop in and grab your plants and then safely lock up again when they’re gone. Easy peasy!
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https://www.inspectionsupport.com/resources/protecting-your-home-against-burglary/
12 Money Rules You Need To Live By
.12 Money Rules You Need To Live By
Have you ever thought of putting rules on your money? It is a pretty interesting concept.
We tend to have rules for every other area of our life…how much to eat, how much we should watch TV, limiting the amount of social media, amount of time to brush our teeth, etc. Then, that love hate relationship comes up with rules. We love rules because they provide structure and guidance when we need it the most.
We hate rules because rules are meant to be broken. The golden rules are the ones that should be so ingrained in our lives that we don’t think differently.
Do you have a list of money rules? Maybe a few in your head? But, probably not on an actual list.
The bottom line is having a list of money rules to live by will life changing and make things easier.
12 Money Rules You Need To Live By
Have you ever thought of putting rules on your money? It is a pretty interesting concept.
We tend to have rules for every other area of our life…how much to eat, how much we should watch TV, limiting the amount of social media, amount of time to brush our teeth, etc. Then, that love hate relationship comes up with rules. We love rules because they provide structure and guidance when we need it the most.
We hate rules because rules are meant to be broken. The golden rules are the ones that should be so ingrained in our lives that we don’t think differently.
Do you have a list of money rules? Maybe a few in your head? But, probably not on an actual list.
The bottom line is having a list of money rules to live by will life changing and make things easier.
These financial rules of thumb will make your life easier. Guaranteed. More than likely, you hope to manage your money well and have extra left over each month. Not that I want to burst your bubble, but does that truly happen every month? Be honest.
Learning how to manage money is a skill that must be learned. And unfortunately, for a good majority of us, that skill comes from the school of hard knocks. Money management and personal finance principles aren’t “important” subjects to be taught in schools.
Today, we are going to start out with a simple list of money rules.
A list to remember. There are more than 7 rules of money. Not a list of 30+ rules of money. A simple list of 12 money rules that you can actually memorize. Money rules that will help us enjoy life and reach financial independence. There is good reason to have financial rules guiding our path.
Why Is Personal Finance Important?
Personal finance is not just for those that find it interesting.
Everyone needs to know the basics of personal finance principles to become wise with their money.
The best part is you need to know the minimum financial rules to be successful. You don’t need a CFP, a financial advisor, or have a degree in accounting and finance. You must be willing to learn a few things to be successful.
That is all.
Specifically, here are personal finance guidelines:
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13 Top Tips To Prevent Identity Theft
.13 Top Tips To Prevent Identity Theft
Protecting your sensitive personal information from thieves is getting harder than ever, thanks to a combination of the growth and sophistication of organized crime, and the lack of initiative on the part of banks and legislators to do anything meaningful to combat it.
Ways To Beat Identity Theft
What follows is a list of the most basic things you can do to prevent your identity from being stolen. While some of them are pretty obvious, its best to take nothing for granted:
13 Top Tips To Prevent Identity Theft
Protecting your sensitive personal information from thieves is getting harder than ever, thanks to a combination of the growth and sophistication of organized crime, and the lack of initiative on the part of banks and legislators to do anything meaningful to combat it.
Ways To Beat Identity Theft
What follows is a list of the most basic things you can do to prevent your identity from being stolen. While some of them are pretty obvious, its best to take nothing for granted:
Invest in a good paper shredder. Some, like the Fellowes Powershred are less than 100 dollars.
Watch out for so-called "shoulder surfers". Often people will try to get a glimpse of you entering your PIN number into an ATM machine or checkout card reader. Be wary even of the most harmless looking person.
Watch out for the store clerk double swiping your debit card in two places.
Use your credit card. Instead of using a bank debit card, which is likely not insured, use your credit card instead - and pay off the balance each month on time. You see unlike bank debit cards, you are only liable for the first $50 dollars.
Watch what you carry. Never carry certain pieces of ID, such as your Social Security Card it you can help it. https://www.youtube.com/watch?v=bC8pjXn-sWM
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