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In this video, I want to talk to you about the tax strategies of the ultra wealthy,

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and as someone who is ultra wealthy, I find it ironic that the vast majority of videos that I see on

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YouTube are made by people who are not ultra wealthy talking about how the ultra wealthy do things

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when they have no transparency with those actions. Actually, our is...

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Welcome to the game where we talk about how to get more customers, how to make more

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customers, how to keep them longer, and the many failures and lessons we have learned

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along the way. I hope you enjoy and subscribe. So, I have gone through probably 750,000

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dollars on different tax advisors, different tax strategies to try and figure out at least the US

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system to, you know, minimize tax drag. And the conclusions that I have are somewhat simple,

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and I want to share this with you so I can hopefully help you avoid a lot of the headaches and pain

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that I had to go through in this process. And for context, in the last three years, I've spent

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18 million dollars paid 18 million dollars in taxes to the US government. And so, and happily done so,

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Uncle Sam. But what I want to do is rather than talk about the little anybody hacks, I want to

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shift your perspective around them because as I looked into many, many, many of these things that

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are touted as tax strategies, most of the times they are just tiny little babies that do not make

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a significant difference. And so, if I can shift your perspective around this and get you to think

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the way the ultra wealthy think about taxes, then I think that'll make a bigger difference in your

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life than anything else will. Alright, so right off the bat, the first thing is where you live is

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going to make the biggest initial difference. And so, first off, in the US at a state level,

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where you live is going to, you know, you can have a zero tax state versus, you know,

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California's a 15 or 16 percent tax state, plus all the other taxes they tack on everything else you

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do. And so, you know, the first and obvious thing to do is you can live into living a lower tax

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state. Now, the second level of this is what country you live in. And so, if you are a US resident,

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you suffer from global taxation, meaning it doesn't matter where you live, they're going to tax you.

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And so, there's only two ways to get around federal tax. The first is to live in Puerto Rico

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six months of the year, and export services from Puerto Rico. If that is you, you can do that,

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it's a four percent federal tax rate. So, you can have zero percent state, four percent federal,

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and live there. It's 100 percent legit. It is legal to do that. The other way to do it is to

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expatriate, meaning you stop becoming a US resident, you renounce your citizenship as a US citizen,

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and then you come back basically as an alien. And the way that you do that is you can become a

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citizen by investment. You spend a million dollars in investment into the US, and then you get

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basically a golden visa, which means you pay for it. And again, though, you have to be here less than,

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you know, six months of the year. Otherwise, you then become a US tax resident, again, even if you're

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not a US citizen. And so, the big conclusion here is, in the beginning, you know, get out of the

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states that are, you know, the high tax states move to a state that is lower tax. But what I want to

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do is shift your perspective around this overall, big picture, because if you look at how your wealth

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will compound, and again, this is why I said this is tax advantage of the ultra wealthy,

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the vast majority of your net worth is going to come from growth, not the contributions.

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Okay. And so, if you plug your money into, or which you're, which your retirement calculator,

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you can google one. They're all over the place. You'll be able to see that the vast majority

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of your net worth over time is going to come from the growth of the assets that are in it,

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not from the contributions. Okay. And it comes mostly from starting early. And so, that is why I'm

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such a big proponent of living on absolutely nothing for as long as you mean possible, so that you can,

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so you can start using the compounding interest of time to your advantage. And for perspective,

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for everyone who's listening to this, don't think right now I can only put $500 a month aside,

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it's not going to make a big difference. The thing is, is that $500 a month when you are 20,

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will make a bigger difference than $5,000 a month when you are 45. All right. So think about that

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for perspective. All right. The dollars now count 10 times more than the dollars in 10 years,

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and so forth. Okay. So, that's number one. The second thing that the ultra wealthy do in terms

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of tax considerations is that they think differently about how they buy. So for example, if I buy

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something that's worth $100 for $30, I instantly tripled my money except I didn't pay tax on that

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tripling, right? Because the value of what I've purchased is worth three times more than what I paid for

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but the beauty of this is that I get that gain without having to pay taxes on it and then it continues

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to grow and compound again without taxation. And so the vast majority of ultra wealthy people

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understand this and they structure their life and their investments in that way, which leads me

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to the third thing, which is how slash if you sell. So the only reason that the tax rate is going

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to matter to you is if you pay capital gains and that means that you've chosen to sell,

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but there are a lot of strategies around buying and holding. You look at Warren Buffett. He's held,

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he's held C's candy for 30 something years or 40 something years. Same thing with Coca-Cola,

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right? Same thing with Geico. He continues to buy things and hold them because he realizes that

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the tax treatment is going to be so efficient if you buy correctly. And so the goal is to think

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from the perspective of not I'm going to buy and try and flip this. I'm going to hold this for

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five years or this company looks good for this month. Do I think that this thing is going to last

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for a very long time? And if so, I will get disproportionate returns by buying safe and buying

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something that's going to be here in 30 years, then trying to buy something sexy now.

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And so if you can understand that, then you buy things to hold them for the long term,

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because the biggest shift in perspective, the ultra wealthy have versus the not wealthy,

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is that they think in longer time horizons. They think about generational wealth. They don't think

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about what I'm going to pay for this month, how can I buy a car or whatever, right? And so,

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the fancy stuff that leads naturally to the fancy stuff, which is like, well, if I'm buying all

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these things, how am I going to live my life later? Good question. Well, the cool thing about how the

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US tax code works is that loans are never treated as income, but they are spendable money that you

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can consume and use. And so, for example, if I continue to plow all of my money into assets that

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earn while I sleep, which is the definition of wealth that I gave you on my other videos,

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if they continue to grow and they are growing tax-free, then the growth that is tax-free,

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I can realize by taking loans against those things and I can use those loans to live my life.

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And as long as the loans that I'm taking are less than the growth of my assets,

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then I can use all of that growth, continue to let it compound tax-free for the rest of my life

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and live off the loans in one idea that they can rectify my account.

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Most of the nation wrote quick, if you are a business owner that has a big old business and wants

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to get to a much bigger business, going to $50, $100 million plus, we would love to talk to you.

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And if you like that, we would like to hear more about it. Go to acquisition.com and you can

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plan anywhere on the page and talk to one of our team and see if we can help you get there.

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And so these are the strategies that the people who are ultra wealthy.

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The things when they talk about conservation easements, which is basically you've donated land

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and you get the full value, even though you didn't pay the full value. It's a BB, right? You're

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not going to be able to put your entire income against that. You know, captive insurance.

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I've got a friend of mine who is like, dude, do this thing with me. It's going to sit and for me

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it was going to save like $250,000 a year, which honestly doesn't make a big dent for me.

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And it wasn't really worth the hassle. So I was like, I don't know, this was a little fishy.

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I guess what happened? The IRS ended up flipping their ruling on it, saw people taking advantage of it,

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and then they back charge people with interest and fees, right? And so the thing is that

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the US tax code is not fair because the government can change the rules whenever they want. They

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can say, you know what, we changed this rule this year and we're going to back text people three

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years. They can do that because they have complete control or something we can do about it, right?

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And so I like to think about it, just like I think about content on any kind of platform,

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is that I just have to align within the rules that exist. And long term, if I don't sell anything,

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I'm not going to get taxed on it. And so the idea long term is, live for less than I, you know,

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for as low as I possibly can, if you like island living, then by all means go and live on an island,

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if you if you so choose. For me, I've chosen not to do the Puerto Rico thing because the difference

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in net worth for me makes no difference in my life. Because the difference between having

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$100 million and $180 million to me makes no difference. And so I got into this game because I

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wanted to have use money to have freedom to do X, Y and Z, right? To live where I wanted to live,

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to do what I wanted to do with whom I wanted to do it, right? And so if that is the goal of what

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the money is going to afford me, I can't put the money above the freedom. And so if I have to

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remain prisoner of an island for six months of the year in order to get my my increased my a better

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income tax rate, right? Then it seems like it's putting the cart before the horse for me. It's I'm

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I'm relinquishing the original objective I had and making the path or the vehicle the objective

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rather than realizing that money in it itself has no value. It only has value so far as it allows

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me to do things that I want to do. And so if I'm not if I'm forgetting that which many of us do

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because the game is so enticing, then I think that that is what makes that more recent one. A lot of

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people end up rationalizing. No, you know, I love island living, but I'll tell you what the reason

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that they give you that four percent is because it's not that sick. And so that is so for me,

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I think the easy thing, me living in Texas versus California, the the the the living lifestyle is the

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same for me, but I but I pay less to fewer taxes. Worth it. Makes sense to me. Living in Puerto Rico,

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I'm relinquishing a lot of freedoms there and I have to be there six plus months of the year. And

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for me, that's very difficult with outages and and basically those stores that are interesting and

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not a lot to do. I'm not going to give up the half of my life literally so that I can get half

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more money on my net worth because as much as people are like, well, that 40 percent is going to

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compound. Well, so is the other 60. And so again, I think it makes sense if you are if you are

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smaller and you're starting out and you're trying to develop your net worth, but I can tell you

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right now the vast majority of your worth is going to come from the growth and none of that has to

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be taxed. And so if you play the game the right way, which is the way the ultra wealthy play,

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they're not trying to think about all these little hacks and codes that you see on the internet here.

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It's really about making sure that you understand the big rocks correctly, which is

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buy low, immediately get value on your money for buying for less than what something's worth.

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When you sell it or don't sell it at all, you can continue to take loans against the increased

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value of the assets and you can live off this for this your life if you so choose.

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And so these are the tax strategies of the ultra wealthy from some of you actually.

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This is ultra wealthy. I hope you found value in this video. Click subscribe and I'll see you in the next

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bit. Bye.