Japanese Woodblock Prints – Collecting Ukiyo-e Art
As a result of their greed, approximately 3 millions homes are in foreclosure and 1.4million jobs have been lost on Main Street driven by the sub prime mortgage meltdown. In fact, the average American has a mortgage debt of $84,900, car and tuition loans of $14,400, home-equity loans of $10,060, and credit card debt of $8,565 for a total of $117,925. And yet, the average household savings is only $392. Today, many people are struggling to afford health care coverage, and are only one serious medical illness away from bankruptcy. They are sweating over their pensions and feel the pain every stop at the gas station, grocery store, and mortgage payment. Whether it is health insurance, finances, or jobs, the Middle Class is fighting to keep from drowning in debt hoping things will get better and praying for a solution! The problem is that we are in uncharted territory here without a compass or map.
How did we ever get into this mess in the first place, and more importantly, how can we get out?
The path to financial and personal freedom can be a rocky one at best. However the good news is that there is a way to get there. Let me explain. Building wealth is a huge responsibility. If done right, it is a tremendous achievement. However, you cant get there without a plan, and to do that, you need to seek out information where you can get training on wealth creation. The following scenario illustrates why so many Americans are struggling financially in the greatest country in the world. If you recall the hit movie “The Firm” with Tom Cruise, one of the characters “Sonny” an American citizen who lives in the Cayman Islands, earns $17 million dollars annually. And yet, Sonny only pays 4% of his income to the IRS. However back in the real world, an average upper middle class American family earning $150,000 pays approximately 31% in taxes (income/capital gains, and AMT)! Why such a huge discrepancy in marginal tax rates? The reality is that Sonny can afford to pay his tax attorneys $800-$1000 per hour, (which is tax deductible) to create sophisticated legal strategies to reduce his taxable income, whereas most American families cannot. In fact, to quote John Grisham, the author of The Firm, also a tax attorney, “It’s a game. We teach the rich how to play it so they can stay rich, and the IRS keeps changing the rules. So we keep getting richer teaching the rich how to play the new game.” It’s now time for you to learn how to level the playing field and eliminate the burden of paying high taxes! However before Frazetta Girls run, you must learn how to walk.”But how?” you ask.
Keep reading, and as you discover the lessons learned from this financial crises, you will learn that change is good!
First, you need to understand how the US Tax System works. Since there are 68,000 pages and 2.8 million words of legalese in the tax code, you simply don’t have enough time. However, there is a better way. But before we get to that, a little history lesson might help explain how things got so convoluted. In 1943 the Income Tax Act was passed and made it possible for the government to get paid before any employee. Forty-three years later, the 1986 Tax Reform Act brought in more sweeping changes. It penalized licensed professionals whereby they could no longer take advantage of loopholes that corporations or business owners use to reduce their taxes. This resulted in the Savings and Loan Crash, and caused trillions of dollars of American real estate to drop in value by 25-30% within a few months. If you take a look at the current economic conditions, we are now in the middle of a Financial Storm! Most American families are trying desperately to keep from drowning in debt, paying excessive taxes on what they earn, save, invest and spend. To put this in context, we have become modern day slaves on the plantation. And, in order to escape from being an indentured servant, you need to learn how to maximize your earnings. To do that, you need a sound strategy to legally reduce your taxes. You also need to diversify your investments as US currency is losing its value. And how exactly can you do that? Did you know that the Fine Art Market is one of the safest investments in history in addition to being one of the best tax advantaged vehicles there is? Is it any wonder why the Rich and Famous have been leveraging the Art Market to reduce taxes and create wealth for generations? They understand the Golden Rule-principles of less risk and more patience.