Is Tax-Free Wealth Possible?
The quality of the questions we ask ourselves determines the quality of our lives. So, I think it’s important to ask ourselves, is tax-free wealth possible? A couple of years ago, I watched a presentation from Tom Wheelwright, founder of Wealth Ability and author of Tax-Free Wealth. If you haven’t read it, put it on your reading list. This is one of the best books on taxes for wealth builders.
In his presentation, Tom asked of the audience this same question. And then he said, “How would you feel if you could make more money every year and legally pay less taxes every year or almost pay no taxes?”
At that moment, I was thinking this guy had to be joking. There was no way I could make more money and legally pay less in taxes. Then I paused and thought, “How is it possible?” It is this question that holds the key to life.
The Roadmap to Tax-Free Wealth
Once you begin to ask yourself how something is possible, you learn. It’s the same with tax-free wealth, and once you know how the game is played, you can make more money and pay less in taxes. Apart from Tom’s book, the next best thing is the tax code itself — a document that is available to you. How incredible is that, that the country you live in puts out a publication that shares the exact roadmap to make more and pay less. The tax code is a gift.
Looking at is from this perspective, taxes can become fun. I never believed I would say that, and I promise I’m not ill. But looking at your taxes, and the tax code, through the lens of what’s possible opens up a whole new world to you. And get this — they’re not loopholes. You’re not exploiting flaws in the system. These are written rules of what the government wants you to do, for which they give you tax breaks and deductions. And you can do this every single year.
A Lawful Universe
You may be asking yourself how this is possible, and it’s because our universe operates within laws. There are unknown laws, and there are known laws that don’t necessarily revolve around money. However, money is something we use to show value, and it operates within our laws.
The tax code is an example of these laws. As a business owner, for example, the government has incentives for you to do certain things. First and foremost, there are incentives for starting a business in the first place. It’s a difficult task that takes time, energy, resources, and stress. There’s a lot that logistically goes into business ownership. Because of it’s difficulty, the government uses tax incentives to encourage more budding entrepreneurs to start their businesses.
The government is not in the business of creating products or services for the marketplace. However, businesses are needed to stimulate the economy, so the government incentivizes people who are willing to take on the risk. So, you get to keep more of the money you make because you’re helping the economy and filling a need in the marketplace.
After the Tax Incentives
The tax-free wealth strategy doesn’t stop at these incentives, however. Once you’ve made your money, the capital needs somewhere to go. A strategy that I often advocate for is infinite banking, where you can warehouse your wealth in mutual life insurance policies. In fact, these life insurance companies have been the bedrock of societies for decades, if not hundreds of years.
Life insurance stabilizes communities. Imagine a scenario with me — there’s atypical family, with a breadwinner. This person has children and a spouse, and all the costs that come with life. This person is bringing in most of the household income, which support’s the family’s lifestyle.
Then one day, this person passes away. If they had life insurance, the family now receives a death benefit so they can continue to support their lifestyle. This stability can help the spouse retain the house, find a new job, or make new arrangements. Without it, the family could lose the house and be unable to adjust.
So there’s massive value to society by positioning capital in a life insurance policy, and you receive tax favorable treatment by doing so.
The Third Step
So not only does the government want you to start a business and keep more of your money. They want you to put it in society-supporting institutions, and you then get to benefit from tax-free growth and other tax advantages.
Now, say you really want to multiply that money. You must put that money somewhere that the marketplace wants, and that society can benefit from. Real Estate is a great example of an extremely tax-advantaged asset. The government doesn’t want to be in the housing business. So, guess what? They reward real estate entrepreneurs for taking care of that.
The same goes for energy. The government doesn’t want to be in the oil-drilling business or the green energy business. If you can invest in companies and pool your capital there, you can multiply your money and receive tax benefits.
The Tax-Free Game
If you want to live a tax-free life, or as close as possible, you must play the game. If the way you earn and use your money continues to deliver value to society, you can continue to benefit from the tax code.
Many people don’t know this. They often operate under the assumption that people exploit loopholes in the code yet have never actually read the tax code. These are clearly defined tax benefits that the government wants you to take, if you choose to. And unfortunately, they don’t teach this in school. So do your research, and study, and ask yourself constantly, “How is this possible?” You’ll find more answers than you’d think.
Live your Freedom, Live Your Legacy, On Your Own Terms,
M.C. Laubscher is a husband, dad, podcaster & Cashflow Specialist. He helps business owners and investors create, recover, warehouse & multiply cashflow. You can learn more about exclusive cash flow strategies in M.C.’s new video series at https://www.yourownbankingsystem.com/