A lesson in what the super-rich know about minimizing taxes and maximizing income

2021-04-13

People don’t like to talk about taxes or being separated from their money, especially because of the country’s complex tax system. So, how do the rich get richer? Learn a lesson from the super-rich about minimizing taxes and maximizing income and infinity investing. In this episode, Toby Mathis of Anderson Advisors talks to Mike Consol, Editor of Real Assets Adviser – one of seven titles published by Institutional Real Estate, Inc. (IREI). Mike is responsible for the magazine’s editorial content and production and has...

In this episode, Toby Mathis of Anderson Advisors talks to Mike Consol, Editor of Real Assets Adviser – one of seven titles published by Institutional Real Estate, Inc. (IREI).

Mike is responsible for the magazine’s editorial content and production and has been a professional journalist since 1983. He has spent his entire career working for business publications. Mike joined IREI in 2012 as editor of Institutional Real Estate Americas. Prior to IREI, he spent 17 years with American City Business Journals (ACBJ), the nation’s largest publisher of metropolitan business journals with 40 weekly newspapers.

Highlights/Topics:

How does the tax code system work in the United States where the rich get richer and the people of average means stay right where they are? There is a misunderstanding of what assets and liabilities are, and people end up buying more liabilities than assets.
Assets put money in your pockets. Every year, does it increase what’s in your bank account that you can buy groceries with, or does it take it away, like does it cost you money? If you use that analysis, you won’t be misled.
Tax Code Highlights: Incentivizes investing in specific types of assets and punishes you if all you have is ordinary income.
Social Security: Regressive taxes hurt the poor worse than they hurt the rich. The 15.3% tax is embedded in all earned income. Make other types of income that are not subject to that regressive tax. That’s your unearned, passive, and portfolio income.
Things written in the tax code are specific to an individual company or industry and given extremely gracious treatment. Sometimes, investments are not made based on fact and reason, but tax efficiency or tax break.
Cheat by Copying: What do rich people do? Diversification, which involves rents, royalties, dividends, interest, and short-term capital gains on sale of options.
Zero Corporate Tax: Don’t tax corporations but people. When the United States lowered its corporate tax, other countries followed. It created tremendous worldwide growth, but pushed wealth into the hands of very few people.
What is infinity investing? Changes the way you think of your net worth. How many days can you survive without working? Consider passive income sources so you never have to work again.

Resources:

Mike Consol

https://aba.link/mike

Institutional Real Estate, Inc. (IREI)

https://irei.com/

Real Assets Adviser

https://irei.com/real-assets-adviser/

A lesson in what the super-rich know about minimizing taxes and maximizing income

https://irei.com/video-and-podcast/lesson-super-rich-know-minimizing-taxes-maximizing-income/

Paycheck Protection Program (PPP)

https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program

U.S. Code: Title 26