The Wealth Code 2.0: How the Rich Stay Rich in Good Times and Bad
A thoroughly revised and expanded update to the book that critics are calling the first true investing book for the "new normal"
You entrusted your financial security to the “experts,” and now you’re wondering what it’ll take to recover from the economic crisis and get back on your feet. In this updated and expanded edition of his critically-acclaimed guide to staying rich in good times and bad, financial planner and investment strategist Jason Vanclef delivers more straight answers and solid solutions—and he takes a well-earned poke or two at Wall Street in the process. According to Vanclef, True Asset Class Diversification is the best way to build the solid financial foundation you need for a secure future. And he puts his money where his mouth is with a comprehensive, easy-to-understand and use plan for maximizing your investments—not just cutting your losses.
- Learn the unvarnished truth about "tried and true" Wall Street practices and why stocks and bonds are not the answer—and which investment vehicles are
- Find out how to diversify into oil/gas, equipment, ,notes, real estate, bullion and rare coins the way the super-rich do—information that Wall Street doesn’t want you to have
- Get priceless advice on whether or not to pay off your home or pay cash for a car and how to build your wealth more efficiently
- Discover the pitfalls of insurance and Variable/Fixed/Index Fixed annuities that agents will never tell you about
- Get the lowdown on advanced income tax reduction strategies, discounted Roth IRA conversions, and asset protection techniques that will help protect your hard earned wealth.
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AFTER-TAX funds, unlike the 401(k) funds which are all pre-tax and eventually the tax piper will have to be paid (see Table 8.10). Table 8.10 401Condo Total Return Summary $100,000 FMV condo × 3% appreciation for 10 Years $134,391 Condo Equity = $134,391 − $67,000 (mortgage balance after 10 years of payments) $ 67,391 Condo Depreciation per year = $100,000 (purchase price) ÷ 27.5 year rate $ 3,636 Taxable Rental Income = $12,000 (rents received) − $3,636 (depreciation offset) $ 9,658 Income
previously enjoyed. Life settlement notes can be used the same way, sticking to the first rule for any investment slice, that being total invested cannot be more than 10 percent of investable net worth. And of course using a smaller allocation of five percent or less is potentially even more prudent. For instance with an investable net worth of $1M and the size for your individual legs on your financial table being no more than five percent, than the most you can put into the life settlement
a 1099R for the full fair market value (FMV) from the IRA custodian for $1M (see Figure C.3). Figure C.3 Full FMV Assets Assuming no other measures are implemented, in his combined 40 percent federal/state tax rate, Dave will owe a tax debt of $400,000 of income tax. $1,000,000 × 40 percent combined Federal and State = $400,000 If Dave does NOT convert to Roth, and his IRA doubles in value in 10 years, then his tax debt will have grown to 40 percent of $2M, or $800,000. Additionally,
investment using after-tax funds and use the corresponding tax deduction to offset the conversion income of a Roth IRA rollover. IDCs are typically 70 percent to 100 percent of the invested amount. For instance a client with established suitability has a CD with $50,000 in it and he feels this money would be appropriate in an oil/gas drilling partnership with a corresponding 90 percent IDC deduction. He makes the investment and during the same year converts $45,000 of a separate IRA account to a