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Chapter Fourteen
The advice from my financial advisors is valuable because they know
trusts, wills, and insurance far better than I ever will. They are also closer
to the market and more up-to-date with any changes in the laws and
how that might affect the markets. There is much more to investing than
simply buying and selling.
I also give my money to other investors to invest for me. In other
words, I partner with other Level-4 and Level-5 investors in their
investments. These are individuals I personally know and trust. If they
choose to invest in an area I know nothing about, such as low-income
housing or large office buildings, I may choose to give my money to them
because I know they are good at what they do and I trust their knowledge.
Why You Should Get Started Quickly
One of the main reasons I recommend that people find their own
financial Fast Track quickly and take getting rich seriously is because, in
America and most of the world, there are two sets of rules: one for the
rich, and one for everyone else. Many laws are written against people
stuck in the financial Rat Race. In the world of business and investing,
I find it shocking how little the middle class knows when it comes
to where its tax dollars are going. Although tax dollars are going to
many worthwhile causes, many of the larger tax breaks, incentives, and
payments are going to the rich. And the middle class pays for them.
For example, insufficient low-income housing in America is a
huge problem and a political hot potato. To help solve this problem,
cities, states, and the federal government offer substantial tax credits,
tax breaks, and subsidized rents to people who finance and build
low-income housing. Just by knowing the laws, financiers and builders
become wealthier by having taxpayers subsidize their investments in
low-income housing.
Why It’s Unfair
Not only do most people on the left side of the CASHFLOW
Quadrant pay more in personal income tax, but they are also often
unable to participate in tax-advantaged investments. This may be
another reason why the rich get richer.
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