30 Dec How the Wealthy stay that way – and the Average Person never gets there
Do you ever wonder why some families have generational wealth? Here it comes….they almost NEVER sell appreciating assets. If there’s one thing for certain that the Rothschilds of the world know that you and I need to learn, it is that TAXES are the biggest disrupters of wealth in the history of mankind. When the U.S. Government adopted the income tax law in 1913 – they instituted the greatest transfer of wealth in the history of civilization. And we just carry along our daily lives accepting the fate that the government will get a piece of every dollar we earn without fail.
Then here comes Uncle Sam not too long ago and says, “we have a solution to help called a ‘qualified retirement plan’.” We will let you put away money for your retirement and DEFER those nasty taxes into the future. Into a future, by the way, with uncertain tax rates and with rules about when you are able to take distributions – and when you have to for that matter. And we just get in line like a bunch of lemmings, “oh gee Mr. government, thank you so much for helping me retire!”.
All the while our savior the govt. pumps cash into the economy like it’s peanuts and every dollar you earn loses half it’s value in a decade. The U.S. national debt is north of 20 Trillion dollars. Guess how much money is sitting in tax qualified plans??? About 20 Trillion dollars. So when that bill comes in, where do you think they are going to get the money? Is the government going to seize assets from billionaires? Hah! Good one. No, they will do what they have always done…take it from the working class.
So along comes Bitcoin and the crypto world. You’re seeing this revolution of people gaining value in an asset class that is outperforming every other asset in the world economy. And the first thing we want to do when it performs well is SELL??? Come on folks! Wake up and smell the coffee in 2021. NEVER SELL. I know, I know….if nobody sells then there aren’t buyers/sellers. Y’all, someone will always sell, it is a market. And the more market cap, the more liquid it will become.
I’m talking to the Average Joe or Average Jane that has been living under the influence of the governments and elites of the world all of your life (some young, some old) – and I’m telling you to break free from the mold. Learn a lesson today from the wealthy few. Build up those assets, let them grow. Never touch them. When it’s time to buy a car, or house or start a business – borrow against the asset and pay back over time. Never pay the taxes and never lose the compounding of that asset.
I’m currently building a house, about $300,000 purchase. Imagine if I had that in BTC and sold it to buy the house? I’d probably pay six figures in capital gains! What I’d rather do is continue to build up my BTC until I can borrow against it and pay off my loan. Leave some wealth to my grandkids and leave the IRS and the banks in the dust! Happy HODLing!