Money: How Wealthy People Live Like Kings Paying Zero Taxes
It sounds like it should be illegal, but it isn’t…
Almost all of us aspire to improve our lot in life.
For many of us, this means we’d like to build a nest egg big enough to allow us to stop working at some point before we die.
FIRE (Financial Independence, Retire Early) adherents take it a big step further, trying to reach this “work-optional” status in their 50s, 40s, or even 30s.
One of the biggest hurdles, if you don’t start out wealthy, is that the more you earn, the higher your taxes, even as a fraction of income, due to our tax code’s progressive nature — the more you earn, the higher your tax bracket.
If You’re Already Wealthy You Have a Way to Sidestep Taxes
Back in the 1990s, University of Southern California law professor Edward McCaffery reportedly said about building wealth, “Once you’re already rich, it’s simple, it’s easy. It’s just buy, borrow, die.”
Buy, Borrow, Die.
In essence, it’s a dead-simple three-step tax-avoidance strategy (note that per the IRS, tax avoidance is legal, while tax evasion is not). This method takes advantage of how the Internal Revenue Code is written to…
