Wealth Building Information


Your Wealth Cycle Foundation


The four main steps in building a wealth cycle foundation are:

Pay yourself first
Understand the legal entities available to you and the tax implications of each
Determine whether to be an active or passive investor and using the appropriate strategies
Develop and commit to your money rules

PAYING YOURSELF FIRST

Paying yourself first is a money rule. Can you imagine how much you would be worth if, from an early age, you had been conditioned to pay yourself first by depositing a portion of your earnings in a wealth account? Even if you only put in $1 per week, today you would probably be sitting pretty.

LEGAL ENTITIES / TAX IMPLICATIONS

In the United States, a number of legal structures, vehicles or entities may be used to hold and protect your wealth. These structures are separate and distinct from the taxpayers who form and/or own them. When you create any of these entities, it is assigned its own Employee Identification Number (EIN) number, which is separate from your social security number. Your legal entities are also taxed separately from you personally.

The legal protections and responsibilities differ for each of these vehicles, as do the tax implications. How you structure your investments, what legal entities you use, can have enormous tax and legal consequences.

Legal business entities are advantageous because they can:

Protect your personal assets
Protect you from being held personally liable for legal obligations
Keep your finance and financial dealings private and
Maximize your tax savings.

If you're operating a business and you want that business to be treated as your asset and/or you're continuing to grow that asset, the legal entity you select can:

Protect the entity (i.e., your business)
Protect your assets (i.e., your home and intellectual property such as trademarks, copyrights, patents and trade secrets).

The goal of asset protection is to minimize your risks and to help grow and maintain your asset base. The right legal entity will provide you with those benefits.

Under our U.S. tax laws, different structures exist for employees and corporations. Employees are taxed on the amounts they earn. Usually, taxes are withheld from employees' paychecks. Under the corporate tax structure, corporations deduct appropriate business deductions and pay taxes on whatever is left. Discuss with a tax professional to determine what deductions you may be entitled to.

ACTIVE OR PASSIVE INVESTING

Before you decide on the investment strategies you plan to follow, determine whether you want to be an active or passive investor. Active investors get directly involved in the investment. They may become general partners or take a role in the management of a business or particular venture. In contrast, a passive investor essentially only puts up money, sits back, lets others do the work and waits for profits to roll in.

YOUR MONEY RULES

We all have money rules, everyone of us! They dictate how we use credit cards, balance our checkbooks, pay off our lifestyle debt or pay ourselves first. They determine how we handle money, think about wealth and run our finances. Most of us didn't set our own money, we simply inherited or adopted them from others. Usually we integrated them without questioning because they came to us from people we loved and respected and because talking about money was taboo. If the concept of money rules is new to you, you may not have the requisite knowledge to make some of your rules non-negotiable at this time. However, you soon will if you continue to educate yourself on each of the investment strategies you're considering. If you stay focused on your goals and are flexible, your money rules will clearly evolve.

Loral Langemeier, M.A. CPPC, empowers her clients to build wealth and achieve financial success. Combining her down-to-business candor with the personal accountability she has emerged as one of the most exciting business and motivational speakers. She is the author of the soon to be published book, Guerrilla Wealth, part of the best selling Jay Conrad Levinson Guerrilla Marketing series. For additional information: www.liveoutloud.com.


MORE RESOURCES:
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news


FinalCall.com News

Conference focuses on Black economics and wealth-building
FinalCall.com News
Jade Arrindell in attendance from Brooklyn noted the information presented on long-term wealth-building strategies, insurance options, aggressive stock market options, ways to build generational wealth, entrepreneurship as a means for creating freedom ...



The Philadelphia Tribune

All-Black National Convention focuses on wealth-building
The Philadelphia Tribune
In its third year, the Convention included classes, panel discussions and speeches centered on entrepreneurship, technology and wealth-building strategies for the Black family. “Not understanding the power of money cripples us, we must, as a mandate, ...



Montgomery Newspapers

Philadelphia Metropolitan Board of Realist hosts Community Wealth Building Day in Mt. Airy
Montgomery Newspapers
MT. AIRY — While Northwest Philadelphia families often have a reputation for living in their own homes, some in Mt. Airy, Germantown and West Oak Lane are no longer homeowners. Some local residents desire to put down permanent roots but cannot seem ...



SmallCapPower (press release)

Wealth-Building Stock Ideas from Gordon Pape
SmallCapPower (press release)
Canadian author Gordon Pape talks about the impact U.S. President Donald Trump is having on North American stocks and offers up three Canadian wealth-building stock ideas. In this interview with SmallCapPower at the MoneyShow Toronto, Canadian ...



Money Morning

Gold Prices Are Reminding Us of the Metal's Wealth-Building Potential Again
Money Morning
But investors are finally getting a reminder of gold's wealth-building potential. In the past week, gold has demonstrated its safe haven properties, rising with the U.S. dollar as Italian budget issues became a serious concern. What's more, gold stocks ...

and more »


Vail Daily News

Ask a Realtor: Working up to your dream home is a step-by-step journey (column)
Vail Daily News
You will love having your own home someday, and you will realize it is almost always the first step for everyone for wealth building for their family. The process, or journey, however, usually involves buying something smaller and more affordable as ...



CNBC

Mark Cuban: 'If you use a credit card, you don't want to be rich'
CNBC
Self-made billionaire Mark Cuban has advice for those looking to build wealth: Don't use credit cards. "Cut up your credit cards. If you use a credit card, you don't want to be rich," the "Shark Tank" star wrote on his blog in 2008. "The first step to ...



Richmond Free Press

City moves homeless shelter from Downtown
Richmond Free Press
The Conrad Center, which currently houses job development programs operated by the city Office of Community Wealth Building, was chosen because it has suitable restrooms, reliable heat and enough sleeping space to accommodate 150 to 175 persons, ...



Forbes

Wealth Advisor Returns With New Book To Help Business Leaders Make Future-Focused Financial Decisions
Forbes
Zdenek has been selected to appear in lists of the nation's top-financial advisors and is often quoted in the media about wealth building and wealth management topics. He is a graduate from Rutgers College and from Rutgers Graduate School of Business.



Forbes

6 Wealth Building Alternatives Without Buying Stocks
Forbes
While there are many ways to build wealth, one of the most common wealth-building platforms you hear about is the stock market. But, considering we are at near-record highs, investing in the stock market may feel risky. A lot of experts are predicting ...


Google News

home | site map
© 2007