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Making Money is Not Enough

De Trump University Asset Protection 101″:

Wh y M a k i n g M o n e y I s
N o t E n o u g h
The Closely Guarded Secret of the We a l t h y
When I set out to write this book, some people believed it would
only appeal to a small percentage of the population since it
dealt with protecting wealth rather than creating wealth. The idea that
wealth protection is only important for an exclusive group is actually a
common misconception that keeps our nation’s wealth out of the hands
of many and in the hands of a select few. What most people fail to realize
is that the protection of wealth goes hand in hand with the creation of
wealth. In fact, wealth protection is an essential step for anyone seeking
to create and build lasting wealth. Wealthy families know this. They
understand asset protection is the primary tool for safeguarding their
assets so that they can continue to become wealthier. This book is not
only for those who have already built a sizable fi nancial portfolio but
also for those seeking to do so.
The topic of asset protection is amazing, cunning, baffl ing, powerful,
and tricky. For some, it means nothing more than making sure that they
hold on to the money they currently possess. For others, it’s an area reserved
only for those “rare” individuals who might fi nd themselves on the receiving
end of a lawsuit. Others believe (mistakenly) that it’s something
someone else needs to worry about. The truth is that asset protection is the
closely guarded secret of the wealthy that enables them to build and grow
their wealth on an ongoing basis. This book shows you how to tap into the
fi nancial secrets that the wealthy (and their advisors, like me) know about.
Asset protection is the foundation of all wealth building; you must understand
it if you are ever to join the ranks of the fi nancial elite.
Key to Financial Independence
Most people think that the key to fi nancial independence is to simply
increase their income. While this is important, making more money,
in and of itself, will not make you wealthy. The only way to become
wealthy is to continually increase the gap between the amount of
money that comes in and the amount that goes out. That’s it.
When I was growing up, my dad was a successful real estate investor,
developer, and entrepreneur. One of his business endeavors was to travel
the country teaching people to build wealth through the vehicle of real
estate. I remember telling my dad that someday I wanted to make a lot
of money like him. I still remember his response. He said, “Son, making
money is important, but building wealth is more important.” I wasn’t sure
what he meant at the time, but as I worked with literally thousands of
clients over the years, his words began to make a lot of sense. I’ve seen far
too many people who have made a lot of money but weren’t able to keep
enough to ever become wealthy. Even if they did keep a sizeable portion
of their money, they often lost it all through taxes, lawsuits, and other
misfortunes. You see, regardless of how much income you generate,
you’ll never become a millionaire unless you accumulate a million dollars
worth of assets over and above your liabilities. Simply put, you have to
keep more of what you make . That’s what asset protection is all about.
Government Sponsored Attack on Wealth
Most people don’t recognize the threats to their keeping their money.
In fact, they rely on others for their protection rather than taking
control of their assets. Many people even look to the government for
protection—like sheep hoping the wolf will protect them. My practice
and businesses are dedicated to helping individuals identify the
potential threats to their wealth and then formulating and implementing
a plan for protecting their hard-earned assets. This book explains
what you’re up against in your quest to become (or stay) wealthy.
While the masses lean on the government for their protection,
the wealthy understand that the government has a very sophisticated
strategy for extracting wealth from its citizens. State and federal
governments, along with other sources, are attempting to place what
I refer to as a LID on wealth. LID is an acronym for the three major
threats to wealth: (1) Lawsuits, (2) Income taxes, and (3) Death taxes.
To become wealthy, you must blow this LID off your business and
personal fi nancial situation.
This book helps you create a security system to protect your assets.
It’s organized around three key topics:
1. Tax reduction.
2. Protection from lawsuits.
3. Estate and retirement planning.
Let’s take a brief look at each of these.
Tax Reduction: Legal Ways to Downsize Uncle Sam
The biggest ongoing threat to your wealth is the income tax. At the
asset protection and tax seminars that I conduct throughout the country,
I often ask, “What is the single biggest expense that you incur each
and every year?” Surprisingly enough, few people realize that the biggest
expense, even bigger than their mortgage in most instances, comes
in the form of taxes. Even worse, most people fail to realize that there
is actually something they can do to avoid many of the taxes they pay.
If you plan on becoming (or staying) wealthy, you must learn to legally
combat your tax bill.
As an attorney who specializes in tax reduction, I hear people complain
about their taxes all the time. I always ask them the same question:
W hat are you doing about it? The blank look on the faces of these people
shows me that they believe that tax reduction is an oxymoron.
Many people don’t believe it’s possible. For the rich, however, tax
reduction is a daily reality that enables them to spend before-tax dollars
while others pay for items with after-tax dollars. If you don’t
understand what I mean by that, keep reading.
The simple fact is that nobody cares about reducing your taxes
more than you do. Since that’s the case, you must learn how to do it—
and it will make a tremendous difference in your fi nancial life. The
strategies in this book enable you to follow in their steps to install your
very own asset security system against taxes, as well as lawsuits and
death taxes.
Protection from Lawsuits: Escaping Lawsuit Hell
When it comes to lawsuits, most people have heard horror stories of
individuals who have been sued for ridiculous things, things that are
often out of their control. A cover story in Newsweek magazine
described our situation as “Lawsuit Hell.” Studies show that a new
lawsuit is fi led in this country every 30 seconds on average. In the short
time that it’s taken you to read this chapter, several lawsuits have
already been fi led somewhere against somebody. Lives have been
changed, forever. Financial pictures have been altered, irrevocably.
Entire family futures have been put in jeopardy. The worst part is that
these lawsuits often could have been avoided with a few simple preventative
measures. You will learn more about this in later chapters.
Estate and Retirement Planning: Avoiding the Wealth Death Penalty
Wealth death penalty refers to the estate taxes imposed on those who
build up appreciable amounts of wealth. If you die leaving no assets for
your heirs and benefi ciaries, the government is not concerned. However,
if you actually accumulate some wealth to pass on to your loved
ones, the government feels the need to penalize you. While this may
not make sense, this is exactly how the system works. The government
does this through the implementation of death taxes.
Most people spend more time planning their vacations than they
do their estates. Studies have indicated that the average person will
spend over 90 thousand hours working to accumulate wealth (40 hours
a week times 50 weeks a year for 45 years of their working lives), but
less than 3 hours learning how to preserve that wealth. Most people
fail to plan their estates—and their families unexpectedly discover that
the wealth their loved one spent a lifetime building is largely consumed
by estate taxes, fees, and other expenses. Many of these situations could
have been avoided by implementing simple estate plans using the tools
you will be learning as you read this book. Wealthy families in this
country take estate planning seriously because they know how bad
government intervention can be. You must adopt this mentality.
Unlocking Einstein’s Most Powerful Force Retirement is the light at
the end of the tunnel that makes some of the dark times of our working
lives more tolerable. Unfortunately, a large majority of workers will
never experience the type of retirement that they dream of.
Why is this? Primarily because they don’t understand what Albert
Einstein called the most powerful force on earth: compounding growth .
Today most people have access to something even more powerful,
tax-sheltered compound growth , through their company-sponsored or
self-established retirement plans. With this type of millionaire- making
mechanism available, it would seem like a no-brainer that most of us
would invest in it. But in practice, few people have any sort of savings
plan to provide for themselves and their families when their working
days are over. To make things worse, people live much longer today
than in previous decades. You can see the type of crisis that awaits our
society if people don’t begin to make a change.
The chapters in this book on retirement planning will get you
well on your way to building wealth through the power of tax- sheltered
compounding growth. You will see how to personally take control over
your retirement plans to turbo-charge the power of your pensions and
reap enormous returns.
Asset-Sheltering Legal Entities of the Rich
Most people don’t realize that there are legal entities they could be
using right now which would:
1. Reduce their tax liability by 30 percent, 40 percent, even 50
per cent .
2. Avoid liability associated with frivolous lawsuits .
3. Pass on literally millions of dollars to their heirs estate tax-free.
4. Build wealth faster by keeping more of their profi ts .
Implementing an Asset Security System is the process of blending
various legal entities in a way that maximizes the advantages of each
entity while minimizing any potential disadvantages. My practice uses a
customized approach that is different from other types of asset protection
programs because it is not a one-size-fi ts-all plan. This book helps
you design a plan that fi ts your individual situation. It is the key component
in helping you effectively manage your personal fi nancial situation
and begin keeping more of your hard-earned assets to build wealth.


Part I. Tax Secrets Of The Wealthy.

Chapter One. Why Making Money is Not Enough: The Closely Guarded Secret of the Wealthy.

Why Making Money is NOT Enough.

The Government Sponsored Attack on Wealth.

Tax Reduction: Legal Ways to Downsize Uncle Sam.

Escaping Lawsuit Hell.

Estate Planning: Avoiding the “Wealth Death Penalty”.

Retirement Planning: Unlocking Einstein’s Most Powerful Force on Earth.

Asset-Sheltering Legal Entities of the Rich.

Chapter Two. Cracking the Tax Code: How Understanding Different Types of Taxes, Income, and Taxpayers Can Significantly Reduce and Even Eliminate Taxes.

Types of Taxes: Understanding What Youâ ™re Up Against.

Types of Income: What You Don’t Know Can Hurt You.

Different Types of Income: Mean Different Taxes!

Types of Taxpayers: Making Change(s) Means Making Money.

Chapter Three. Outrageously Powerful Tax Deductions You Can Take–Without Owning Your Own Business.

Above the Line Deductions.

Itemized Deductions.

Phenomenal Philanthropy Strategy.

Tax Credits: Dollar for Dollar Deductions.

Other Personal Tax Planning Strategies.

Chapter Four. The Greatest Tax Shelter In the World: Owning Your Own Business.

Having Your Cake And Eating It Too With Tax-Free Fringe Benefits.

Retirement Plan Power.

Minor Deductions Mean Major Savings.

Income Shifting for Tax Savings.

Real Estate Riches.

Paying Zero Percent Capital Gains.

The Secret of Cost Segregation.

Let’s Get Fiscal.

Planning Ahead For Year-End Planning.

Section 179 Depreciation “Magic”.

Part II. Lawsuit Protection Secrets of the Wealthy.

Chapter Five. What Are the Odds of Your Being Sued?

Who Is Zeroing In On Your Wealth?

Could Your Assets Really Be In Someone’s Sights?

Are You Allowing Yourself To Be A Target?

How Open To Attack Are You?

What A Exemptions And How Can They Help Guard Your Assets?

If They Can’t Find It, They Can’t Take It!

Feeling Lucky Plaintiff? Well Are Ya?

Chapter Six. Business Entities That Will Legally Keep Your Assets Invisible, Untouchable And Out Of Reach.

What On Earth Is A “Business Entity”?

Which Entity Is The “Best?”

Sole Proprietorships- A Plaintiff’s Best Friend, Your Worst Enemy!

Partnerships- Dealin’ With The Devil!

Corporations- Protect Yourself With The Big Boys’ Toys.

Control Your Business Taxation with “S Corporations”.

With Limited Partnerships You Can Be In Control!

Solving The General Partner Conundrum.

Limited Liability Companies- There’s A New Kid In Town.

Exemptions- Let Uncle Sam Protect Your Assets For You!

If You’re Going To Be Liable, Let Someone Else Pay For It.

Putting The Entity Puzzle Together.

Chapter Seven. Creating a Legal M.E.S.S. (Multiple Entity Structuring Strategy): An Extreme Makeover For Your Assets.

Is Your Home Safe At The B.A.S.E. Level?

Truly Turn Your Home Into A Castle

Our Financial Shelter Is Our Tax Shelter!

Down Home!!

Using Debt To Your Advantage.

Never Put All Your Eggs Into One Basket.

First B.A.S.E.- Keep Real Estate Separate!

Second B.A.S.E.- Protect Your 21st Century Goldmine.

Third B.A.S.E.- Separate Your Trade From The Tools Of The Trade.

Home B.A.S.E.- Separate The Money-Making Assets From Money Losers.

Charging Orders.

Limiting Charging Orders With Limited Partnerships.

Charging Orders And Limited Liability Companies.

Charging Orders And Corporations.

Own Nothing, But Control Everything.

Chapter Eight. How The Rich Avoid Mines That Can Pierce Your Armor.

The Corporate Wealth “Maintenance” Plan.

Piercing the Corporate Veil.

Fraudulent Transfers-Don’t Commit FRAUD!

Insurance Is A Last Resort!

When You Need It, It’s Already Too Late!

Part III. Estate & Retirement Planning Secrets Of The Wealthy.

Chapter Nine. Estate Plan of the Rich: How to Overcome the Government’s Efforts to Redistribute Your Family’s Wealth With The Estate Planning Process.

Your Money, Your Choice.

Estate Planning: The Answers Are In The Questions .

The Pitfalls of Not Having A Plan.

Footsteps To Follow: The Estate Planning Process.

Step 1: Documentation.

Step 2: Analysis.

Step 3: Formulation.

Step 4: Implementation.

Step 5: Review and Revision.

Chapter Ten. How the Rich TRUST Themselves to Keep Wealth in the Family and Away from the Government.

There’s Hell, and then there’s Probate!!

Save A Seat For The Tax Man At Your Funeral.

Tools of The Trade For Estate Planning.

You Will Go To Probate.

Life Insurance Lowdown.

It’s All A Matter of Trust.

The Indispensable Estate Planning Tool.

Phenomenal Philanthropy.

Gifting: This Is NOT Your Usual Present!

Other Vital Estate Planning Tools.

Some Final Thoughts On Estate Planning.

Chapter Eleven. What the Rich Know that Others Don’t About Getting (and Staying) Wealthy.

The Amazing Miracle of Compounding.

Don’t Tell Me, SHOW Me The Money.

I’ve Got It Covered!

You’re On Your Own!

Golden Years or Golden Arches.

It’s All Up To YOU!

Failing To Plan Is Planning To Fail!!

Individual Retirement Accounts-Something For Everyone.

Qualified Plans-Safe And Sound.

Quasi-Qualified Plans.

Qualified Annuity Plan.

Tax-Deferred Annuity.

Nonqualified Plans-Proceed With Caution.

Begin Your Retirement Plan Today!

Chapter Twelve. What the Rich And Powerful Won’t Tell You About Retirement Plans.

Safeguarding Your Nest Egg.

Don’t Forget About The Tax Benefits!

What Can An IRA Own?

Breaking Out Of The Retirement Plan Trap.

The Best Kept Secret Of The Wealthy Revealed

Partnering Up With OPM (Other People’s Money).

Part IV. Applying The Secrets Of The Wealthy.

Chapter Thirteen. Asset Protection Planning in Action:How the Rich Put it All Together.

Chapter Fourteen. The Asset Protection Team: Counter-Attack Specialists that Handle the Dirty Work.

Your “Master Mind” Team.

Finding a Good Attorney.

Finding a Good Tax Advisor.

Chapter Fifteen. A Call To Action.

Part V. Asset Protection Resources Of The Rich.

List Of Deductions: Government Subsidies Traditionally Reserved For The Rich.

Checklists: Tips, Tactics and Strategies for Advanced Asset Protection.

Glossary: Terms that the Wealthy Know that You Must Learn.

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