The first message in this series showed how spending beyond ones means is the biggest risk to everyone’s wealth. This is a complex issue because of the hidden indoctrination to spend, which we are crushed with daily.
This second message in the series looks at how taxes are the biggest expense category of all. Most millionaires have learned how to avoid and reduce (legally, of course) taxes. This is because year in and year out, before we even make a penny, our fat cat bureaucrats and politicians have already figured out how to plunder the bulk of our efforts and grab huge chunks of it. They pre-spend our hard earned money before we even start.
For example, if you live in the United States and pay average income tax, you work from January through May for the Federal taxman. But can you then start to work for yourself and your family? (Only after you take care of the state, city, county and other taxmen who continually clip away your pocketbook as well.) Perhaps sometime after July you might actually begin working for yourself. The deal is loaded against becoming a millionaire. The more you earn, the higher taxes grow. Just making more is not the answer. High earners in the U.S. , for example, are too often earmarked for audits, which have only one goal.
If you live outside the United States you will not be happy to know the U.S. has one of the lowest tax rates in the western world! If you live in other countries such as England, Japan, Germany, etc. this problem is even worse!
See below how business abroad can reduce tax.
There are several tax benefits for those who live abroad.
US citizens who live outside the US gain $80,000 of earned income tax free. If they have an overseas business with a genuine overseas partner they can defer US tax on the profits of that business almost forever…even not have to report…all well within the law.
Citizens of other countries find it even easier. Living aboard means they avoid tax in their home nation all together.
This problem of tax goes beyond Stanley ‘s book because there is the hidden tax created by the fall of the US dollar. This is creating global inflation! US inflation comes because all of America , the people and the government overspend. Our nation is deeply in debt. This borrowed spending (over eight trillion dollars worth to date) creates demand without production. Extra demand over supply creates inflation and this causes the US dollar to fall. Since all currencies use the dollar as a reserve, this creates global currency instability.
Just about anywhere we are, our currency is losing its purchasing power. This means to get ahead we have to earn more from our savings than the rate of the hidden inflationary tax.
The chart below shows how much dollar holders have already lost!
This inflation problem has just begun! As the 60 million baby boomers in Americans grow and retire; Social Security, Medicare and Medicaid demands will soar. The inflation problem with grow.
Regretfully this insidious spending is actually strangling the entire economy of the world!
These problems are omens of ill winds ahead. If the “The Millionaire Next Door” and “Millionaire Woman Next Door” are correct, most people will not become financially secure.
If the dollar’s fall destabilizes the US dollar, billions in savings and millions will be wiped out. If so, and if savings continue to drop faster than investment needs, we could see a great contraction with deflation, massive unemployment and a free fall of the U.S. Dollar. This crash could make the last great depression look like a Sunday picnic.
You do not have to be alarmed by any of these facts in this book and/or the greenback’s plight. The solution, which I am about to share is so simple, anyone can act and can prepare for this disaster and, believe it or not, AND have fun in the process.
You do not have to participate in this great economic tragedy. You do not have to be among those who suffer. There are many simple, safe steps you can take right now, to make your finances safe and secure. These steps can even make you a millionaire and/or make sure you remain rich!
All you have to do is learn how to have the habits of millionaires and take the economic steps they take. Let me tell you why big problems can mean big profits, but first let me explain why no one from the government or big business has been around to tell you how to gain the habits that can bring you success, true security, freedom and even millions.
There are three common denominators of wealth.
* Common Denominator of Wealth #1: Live beneath your means.
This was yesterday’s message. Live in low cost ways.
* Common Denominator of Wealth #2: Choose the “right occupation” with a global view.
The number one “right occupation” is your own business. This is one of the most important steps to becoming a millionaire. “The Millionaire Woman Next Door” is clear about this fact. A majority of millionaires are self-employed. Long before this book was written Merri and I have been encouraging our readers to have their own business and to expand and add an international element to the business whenever possible.
We are among the leaders in helping people create their own global businesses because we have had our own international business, which we have run from our homes for nearly 40 years. We have over 22,000 clients in 82 countries, are super cultivators of wealth. We meet every definition of wealth described in the book. We know having an international business can be lucrative and bring real wealth. So we try to help others attain such good fortune and permanent results through our courses.
An international business, even run from your home, is the safest, most profitable way to security, independence, and freedom because the concept is in tune with the times. Today’s technology allows everyone to market a business globally even when his own economy might be depressed. Technology makes it possible to always take business where opportunity is best!
This winter we have two courses that can help you live full or part time in low costs environments and start diversify your earnings and investments into multi-currencies.
The first course this March is “International Business and Investing Made EZ”. This course looks at all kinds of international businesses in 11 lucrative divisions, marketing, consulting, professions (accounting, medical, legal etc.), franchising, manufacturing, tourism, real estate, import-export, education, publishing and “lateral thinking”.
You can learn more about the course, International Business and Investing Made EZ at https://www.garyascott.com/catalog/IBEZec/
The next is our Import-Export Expedition this April 2007.
We will visit many markets such Otavalo, the largest native market in South America.
We are not suddenly jumping on the international bandwagon. I was among the very first to recommend overseas investing and business nearly 40 years ago when most thought the idea was crazy. Merri and I have been investing in international business all these years so our courses are not like anything else you will ever attend.
Second, we are totally independent. We are not controlled by any organization nor do we have any hidden agenda. We are not investment advisors, brokers or managers. We have nothing to sell but our contacts and experience. We do not sell anything at our courses.
Third, in 38 years of global investing I have established enormous experience and contacts we share.
Our import-export experience is substantial and has ranged from ideas to goods.
For example you’ll learn about success from selling used tires and worn out shoes from the U.S. to Africa ! This course is based on our experience, which started thirty eight years ago when I became an international businessman in Hong Kong .
In another session, Merri shares how she imported British, “Lord of the Manor” titles to American business people. These are real titles and because of a fluke she spotted she was able to start this business on a shoestring. She created all her marketing materials on a photocopier yet made a fortune. The business became so popular that it was immortalized by Gary Trudeau in his comic strip, Doonesbury, when B.D. Zonker became Lord Zonker.
See more details about this Import-Export Expedition at www.garyascott.com/catalog/ecuador-export-tour
Merri, and I operate our global business from our home (I’m writing this letter from my office in our penthouse in Ecuador .) We have been involved in overseas publishing, consulting and finance globally, real estate (in Hong Kong, Fiji, the Caribbean, Europe and England), import-export (minerals, art objects, books, tapes and courses), tourism, franchising (I helped open the first McDonald’s in Hong Kong clear back in the 70s) and manufacturing, marketing and several other lateral ideas (such as the Lord of the Manor business). This course is not pie in the sky theory. The knowledge you gain comes from years of experience and our global network.
We have made and saved millions in our business. We have designed the course to make international business so easy even my Mom, a retired 76-year old grandmother, can participate. (I showed her how to turn her doll collecting hobby into a real international business by creating antique doll coloring books which she can take to her doll shows. This can add zest in her life and turn her hobby into a tax-deductible expense.) Yet the course is so comprehensive that even sophisticated businessmen will gain from this course!
How to Have Income Mobility
If you have no clear idea of a business you want, these courses help you learn how to choose. Many professionals look for new beginnings, turning hobbies to profits. One lesson shows how golfing, fishing and horse riding and other hobbies can be successful businesses.
The contacts you receive are worth ten times the cost of the course. Merri and I have spent twenty years developing contacts with businessmen, bankers, accountants, attorneys, marketing experts, business consultants and agents all over the world. They can help you, large or small, full or part time.
You gain valuable contacts and knowledge about timely and fulfilling opportunities for the decade ahead. Whether you want to make millions, or slowly increase your income and add excitement and adventure or to reduce tax or live abroad. These courses help you get involved in something you love and to turn after tax costs into tax-deductible expenses.
Whether you have a successful business, want a part time business for change or for increased financial security, these courses can be of enormous value to you.
The courses also cover legal structures, such as trusts, overseas business companies (IBCs) and limited partnerships for tax efficiency and asset protection.
One chapter in The Millionaire Next Door is entitled Frugal, Frugal, Frugal. Merri and I agree and believe in getting value for every dollar we spend. To increase our wealth and have fun we have purchased our own hotel that represents your thinking and lifestyle. This hotel lets us learn in peace and quiet, enjoy natural beauty and be immersed in some aspect of the unfolding global marketplace.
The key to successful business and investing is timing! These courses help you stay up-to-date on the latest business opportunities and marketing techniques, legal changes, etc.
There has never been a time when economic dangers of overspending and taxation were greater in the world, but neither has opportunity been so outstanding! Diversification is essential today to our economic well being.
Learning how to have your own international business and how to invest abroad, you can become and remain “The Millionaire Next Door”! This is Merri’s and my utmost goal.
Three destructive fundamentals, overspending, tax and inflation will overwhelm most investors and ruin their wealth. Simple but profound, these problems destroy most investors. Odds are these forces are trying to wreak their destruction on you!
We’ll see the third common denominators of wealth in tomorrow’s message.
Until then make all your occupations bring you wealth.
P.S. If you cannot attend one of our courses in person this February or March 2007 you can enroll in the emailed “International Business Made EZ” correspondence course and this fee can be deducted from any future courses you attend. Details are at www.garyascott.com/catalog/international-business-made-ez