Use Tax and Build Wealth

How do we use the Tax you have to pay to fund a tax deduction and build wealth?

First, let’s update what the markets have been doing.

In my last article, I pinpointed that we should start seeing the benefits of “Trump’s big Tax cuts”. As it takes 3 -6 months after he announced the cut’s in November to show up in the economy. Since we had just entered the earnings season in which first-quarter earnings were announced I was eager to see my prediction come true.

When Tax reforms in the U.S.A. have not been addressed for ten years and the fact that they dropped the corporate taxes from 35% to 20% you had to know that there would be a significant boost to corporate earnings.

If you recall I mentioned one of these benefits would be that strong earnings would allow companies to expand by buying other companies and building market share. So I was pleased to see that the first quarter produced $28 Billion of mergers and acquisitions.

With the Nasdaq leading the way up 10.78% for the year we are well on our way to once again achieving another 20% return for the year. Remember the Nasdaq has averaged over 21% for the last 5 years. This means your money doubles in 3.6 years because of the compounding involved.

Last weekend we got another boost from the fact that U.S.A. and China have dropped their Tariffs and avoided a trade war.

The good news is that the record-breaking earnings we just had will continue all year long which should mean that momentum will pick up and compound as people on the sidelines or in the wrong investments will start switching over to get the higher returns that they are missing. Corporate savings will compound and dividend yields will increase and jobs will be created.

Now the question to you is, how are your investments doing? Have your investments made 10.78% so far this year? If not what are you waiting for? Or are you going to miss out again and then complain at the end of the year?

But did you know rates of return are not the only way to create wealth? When you add strategies to the mix, You increase the chances of you creating wealth you can spend while you alive rather than giving half of the estate away in taxes at death.

By proper Tax planning, you can add significantly to your wealth at no cost to you and at no risk.

The easiest way to show you this is by drawing three circles

Global Demographics Group - Demographic Trend Forecasting - Tax Planning

In the first circle draw a line down the centre and in the left half write “yours”.
In the other half write “theirs or Taxes” whichever one makes you upset more.

So when we look at your half that’s your money we do not, I repeat we do not use this that’s your money and we are not taking money out of your pocket to achieve your goals.

So when you look at their half you may say that “I am not in the 50% tax bracket” But you are only talking about income tax. When you add up all the hidden or indirect taxes we pay and there are over 800 of them you will see they do indeed take half your money.

Those Taxes include HST, CIGARETTES AND LIQUOR TAXES, PROPERTY TAXES AND CAPITAL GAINS TAXES and many more that you can see on my website under the article “How much taxes we pay. This should make you mad.

On the second circle, we added another line from the centre of the line to the edge of the circle, creating a slice of the pie on their side. This is where we use strategies to reduce your taxes and reinvest the savings to create your wealth.

Again I repeat we are not touching your money we are touching theirs. There is no risk to you because you’re paying the taxes now anyway, so why not use their money so that you get to keep more of your own money?

So you can change this, all you have to do is change what you doing. The only one holding you back is you.

By using legal tax strategies you are allowed to lower your taxes.

Now look at the third circle and you can see your money has now increased and their money has been reduced. So the total cost for this is being funded by CRA, not you.

So now you know what to do for yourself, 

Again I want to remind readers that I no longer sell Insurance or investment products; I only advise as a consultant, which I am allowed to do as I spent 35 years in the Financial service industry.

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