ArrudaWakenings is my reaction and response to my most recent realization of how things really work. Wealth is generated through the use of credit and the power of compounding interest. Generational wealth is attainable through the use of manipulating and taking advantage of the vast Legal and tax systems. Through the use of a trust, LLC’s, corporations and Indexed Universal Life insurance policies one can live nearly tax free by living the corporate lifestyle, sheltering assets while deferring taxes. This is how the rich maintain and grow their wealth.
It was truly a rude awakening for me after all these years of not understanding money and credit. It blew me away to see how easy it would have been to have gained real wealth in my lifetime. Now, with understanding of the way life really works, I feel like it is my obligation and now it is my opportunity to gain wealth for my family and future generations.
This is what I have learned so far:
Creating and Living the corporate lifestyle encompasses creating the corporate structure, usually a revokable or non-revokable trust depending on several details and controls, Usually a revokable trust to start and LLC’s to protect assets. By putting all personal property inside the trust with explicit instructions for disbursement should there be a loss such as death should occur to one of the beneficiaries, the trust isolates and protects those assets. In the end the trust will determine how those assets will be distributed avoiding taxes and probate.
A trust is a mechanism to acquire assets and distribute the wealth from them to its benefactors. The trust can also own all the assets and the LLC companies that may be created under it.
An LLC or limited liability company is a protection mechanism used to protect individual or private assets or investments from being sued against by outside parties. It is also the first step to creating a recognized Legitimate business.
Another advantage of a trust is in the case of a death. Without a trust a property must go through probate. Probate can be costly process that gives all creditors and anyone who wants to take a shot at it a chance to request payment from the deceased assets. If the property belongs to the LLC and the trust owns the LLC, there is no probate. The trust dictates the succession of ownership for the properties.
For example if you were to sign your house the over to an LLC and having the trust own it, You don’t own anything therefore you don’t pay anything.
The proper use of a self-perpetuating trust is to create an indexed life insurance policies for the primary and insurance policies for each of the beneficiaries of the trust and make the trust the beneficiary of those life insurance policies. The primary policy will have a small payout but as an indexed funded policy it will gain compounding interest and act as a personal bank for all beneficiaries to borrow against. As people die, the insurance policy funds the trust and that self-perpetuates the ongoing generational wealth. When the trust is well funded it can make the payments on the policies from the trust funds and write it all off in taxes.
By creating an EIN (tax ID) and separate checking and savings and lines of credit accounts for that entity (LLC) you can then use that entity for everything. Creating a living trust with an indexed universal life insurance policy for each of the benefactors and the trust as the beneficiary of those life insurance policies perpetuates the trust fund.
When I realized this is how the rich perpetuate their wealth over generations writing off all the expenses before finally having to pay taxes on what’s left , I knew I had no other option than to learn and spread this knowledge.
The key is knowledge and having the discipline and means by which to live within that entity as a beneficiary.
It was truly a rude awakening for me after all these years of not understanding money and credit. It blew me away to see how easy it would have been to have gained real wealth in my lifetime. Now, with understanding of the way life really works, I feel like it is my obligation and now it is my opportunity to gain wealth for my family and future generations.
This is what I have learned so far:
Creating and Living the corporate lifestyle encompasses creating the corporate structure, usually a revokable or non-revokable trust depending on several details and controls, Usually a revokable trust to start and LLC’s to protect assets. By putting all personal property inside the trust with explicit instructions for disbursement should there be a loss such as death should occur to one of the beneficiaries, the trust isolates and protects those assets. In the end the trust will determine how those assets will be distributed avoiding taxes and probate.
A trust is a mechanism to acquire assets and distribute the wealth from them to its benefactors. The trust can also own all the assets and the LLC companies that may be created under it.
An LLC or limited liability company is a protection mechanism used to protect individual or private assets or investments from being sued against by outside parties. It is also the first step to creating a recognized Legitimate business.
Another advantage of a trust is in the case of a death. Without a trust a property must go through probate. Probate can be costly process that gives all creditors and anyone who wants to take a shot at it a chance to request payment from the deceased assets. If the property belongs to the LLC and the trust owns the LLC, there is no probate. The trust dictates the succession of ownership for the properties.
For example if you were to sign your house the over to an LLC and having the trust own it, You don’t own anything therefore you don’t pay anything.
The proper use of a self-perpetuating trust is to create an indexed life insurance policies for the primary and insurance policies for each of the beneficiaries of the trust and make the trust the beneficiary of those life insurance policies. The primary policy will have a small payout but as an indexed funded policy it will gain compounding interest and act as a personal bank for all beneficiaries to borrow against. As people die, the insurance policy funds the trust and that self-perpetuates the ongoing generational wealth. When the trust is well funded it can make the payments on the policies from the trust funds and write it all off in taxes.
By creating an EIN (tax ID) and separate checking and savings and lines of credit accounts for that entity (LLC) you can then use that entity for everything. Creating a living trust with an indexed universal life insurance policy for each of the benefactors and the trust as the beneficiary of those life insurance policies perpetuates the trust fund.
When I realized this is how the rich perpetuate their wealth over generations writing off all the expenses before finally having to pay taxes on what’s left , I knew I had no other option than to learn and spread this knowledge.
The key is knowledge and having the discipline and means by which to live within that entity as a beneficiary.