Have you ever wondered how and why rich people get richer and richer and poor people get poorer and poorer? The well-known fact is that there is no coincidence in the result among those people. First of all, what differentiates those people to become successful in financial literacy is the amount of knowledge. Rich people know how to create wealth, not only that, they know how to protect their wealth. On the other hand, poor people don't really know how to create money, nor protect their money. This is the truth and matter. So I would like to introduce one of the chapters of a book written by Tony Robbins, MONEY MASTER THE MONEY. I found this book when I came into the financial industry and it became one of my favorite books.
Chapter 5.5 talks about how you achieve to have wealth, the secret of the ultra wealthy. This is something you can utilize to accumulate your money in investment without paying any tax. This is an unbelievable fact that not many people know about this. I hope you are convinced that ignorance is not blessed anymore after reading this article. This content was also introduced on NEW YORK TIMES, February 9, 2011, "It's viewed as an insider's secret for the affuluent: a legal way to invest...all without paying taxes on the gains".
Here is the point, what is the secret of rich people. To start with, I want to throw this question. Do you know the reason why a billionaire buy many life insurances? Once you become a multi-millionaire or billionaire, you shouldn't be worried about leaving money to your kids because you would have enough money to create a legend in the future for your family. what is missing many people are not aware of? Besides individual buys, the biggest buys of life insurance are banks and large corporations, from Wal-Mart, Bank of America and Wells Fargo. For an example, Wells Fargo 's balance sheet show $18,7 billions of its Tier 1 capital deposited in life insurance cash value(as of May 27, 2014). The bottom line, they don't really care much of death benefit. What they really care about having a life insurance is a place to park their cash in an IRS- sectioned vehicle that allows them to grow their investments tax-free. It is designed like Roth IRA in terms of tax treatment. That means you can take your money tax-free in the distribution phase. This a type of life insurance serves you while you are alive called "RICH MAN's ROTH".
This rich man's ROTH can be accessed by anyone, any individual and also a corporation. the benefits of this type of life insurance are amazing.
-Unlimited deposits amounts (With no income limitation)
-No tax on growth of your investment
-No tax when you access
-Any money left over for your heirs cannot be taxed.
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Where can you find any other investment and giving you benefits like this? This is the detail of how exactly this type of life insurance works.
https://www.successfinancialfreedom.com/2016/09/12/what-rich-people-use-to-maximize-interest-and-protect-their-assets/
<Recommended Book>
MONEY Master the Game: 7 Simple Steps to Financial Freedom
