TBT: Rich Dad Advisor, Tom Wheelwright on Tax-Free Wealth

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Dec 6, 2024

Tom Wheelwright, a leading tax and wealth expert and bestselling author of Tax-Free Wealth, shares his insights on navigating the tax landscape. He discusses how understanding tax laws can transform them into opportunities for wealth creation. Tom emphasizes the advantages of depreciation for real estate investors, suggesting strategies to optimize tax benefits. He explores the limitations of using 401ks and IRAs for real estate, urging direct investments for better control. His engaging approach demystifies complex tax strategies, making them accessible and actionable.

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INSIGHT

Tax Law as an Instruction Guide

The tax law is an instruction guide on how to reduce taxes, not a tool for the government to take your money.
Use tax incentives to your advantage to build wealth.

INSIGHT

Three Types of Income

Ordinary income is earned through active work, portfolio income is from investments, and passive income is from businesses you're not actively involved in.
Real estate investors can utilize passive income and losses strategically to offset other income.

INSIGHT

The Magic of Depreciation and Leverage

Depreciation lets you deduct the cost of an appreciating asset, amplified by leverage.
Use debt strategically to maximize depreciation benefits and reduce taxable income.

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Tax-free wealth

How to Build Massive Wealth by Permanently Lowering Your Taxes

Tom Wheelwright

This book, now in its third edition, provides strategic approaches to minimizing tax liabilities and accumulating wealth. Tom Wheelwright updates his work to include the latest tax reforms and strategies, emphasizing proactive tax planning and dispelling common misconceptions about taxes. The book covers topics such as tax deductions, credits, and incentives, and explores various avenues for individuals and businesses to legally minimize their tax burdens, leading to increased profitability and financial freedom. It includes practical examples, case studies, and actionable strategies for achieving tax-free wealth and securing a brighter financial future.

Rich Dad Poor Dad

What the Rich Teach Their Kids about Money - That the Poor and the Middle Class Do Not

C.P.A. Sharon L. Lechter

Robert Kiyosaki

The book tells the story of Robert Kiyosaki's two fathers: his 'poor dad,' a highly educated but fiscally poor man, and his 'rich dad,' the father of his best friend who was a successful entrepreneur. It emphasizes the importance of financial education, distinguishing between assets and liabilities, and building wealth through investing in assets such as real estate and businesses. Kiyosaki argues that a good education and a secure job are not guarantees for financial success and provides practical lessons on how to make money work for you rather than working for money[1][3][5].

The millionaire next door

William D. Danko

Thomas J. Stanley

The book challenges the common perception that millionaires live in affluent neighborhoods and instead shows that many wealthy individuals live modestly in middle-class and blue-collar areas. The authors identify seven common traits among these millionaires, including being dedicated to a vision, making appropriate career decisions, valuing financial security over social standing, and efficiently spending time and money. The book also distinguishes between 'Under Accumulators of Wealth' (UAWs) and 'Prodigious Accumulators of Wealth' (PAWs), emphasizing the differences in their spending and saving habits.