I now teach others through financial seminars in... I now teach others through financial seminars in the hope that I may share my knowledge with themWhenever I do my talks, I remind people that financial IQ is made up of knowledge from four broad areas of expertiseWhat I call financial literacyA vital skill if you want to build an empireThe more money you are responsible for, the more accuracy is required, or the house comes tumbling downThis is the left brain side, or the detailsFinancial literacy is the ability to read and understand financial statementsThis ability allows you to identify the strengths and weaknesses of any businessWhat I call the science of money making moneyThis involves strategies and formulasThis is the right brain side, or the creative side3 is understanding marketsThe science of supply and demandThere is a
mulberry leather need to know the "technical" aspects of the market, which is emotion driven; the Tickle Me Elmo doll during Christmas 1996 is a case of a technical or emotion-driven marketThe other market factor is the "fundamental" or the economic sense of an investmentDoes an investment make sense or does it not make sense based on the current market conditions
Many people think the concepts of investing and understanding the market are too complex for kidsThey fail to see that kids know those subjects intuitivelyFor those not familiar with the Elmo doll, it was a Sesame Street character that was highly touted to the kids just before ChristmasMost all kids wanted one, and put it at the top of their Christmas listMany parents wondered if the company intentionally held the product off the market,
black chanel quilted bag while continuing to advertise it for ChristmasA panic set in due to high demand and lack of supplyHaving no dolls to buy in the stores, scalpers saw an opportunity to make a small fortune from desperate parentsThe unlucky parents who did not find a doll were forced to buy another toy for ChristmasThe incredible popularity of the Tickle Me Elmo doll made no sense to me, but it serves as an excellent example of supply and demand economicsThe same thing goes on in the stock, bond, real estate and baseball-card marketsFor instance, utilizing a corporation wrapped around the technical skills of accounting, investing and markets can aid explosive growthAn individual with the knowledge of the tax advantages and protection provided by a corporation can get rich so much faster than someone
balenciaga blue who is an employee or a small-business sole proprietorIt's like the difference between someone walking and someone flyingThe difference is profound when it comes to long-term wealthTax advantages: A corporation can do so many things that an individual cannotLike pay for expenses before it pays taxesThat is a whole area of expertise that is so exciting, but not necessary to get into unless you have sizable assets or a business
Employees earn and get taxed and they try to live on what is leftA corporation earns, spends everything it can, and is taxed on anything that is leftIt's one of the biggest legal tax loopholes that the rich useThey're easy to set up and are not expensive if you own investments that are producing good cash flowFor example; by owning your own corporation -
black gucci bags vacations are board meetings in HawaiiCar payments, insurance, repairs are company expensesHealth club membership is a company expenseMost restaurant meals are partial expensesAnd on and on - but do it legally with pre-tax dollarsProtection from lawsuitsWe live in a litigious societyEverybody wants a piece of your actionThe rich hide much of their wealth using vehicles such as corporations and trusts to protect their assets from creditorsWhen someone sues a wealthy individual they are often met with layers of legal protection, and often find that the wealthy person actually owns nothingThey control everything, but own nothingThe poor and middle class try to own everything and lose it to the government or to fellow citizens who like to sue the richThey learned it from the Robin Hood
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