Video from All favorites #940

Here is exactly how I would shelter 30% of my income legally. I'm Tyler, I'm a former financial advisor and portfolio manager. Now I make financial content for free so that you don't have to pay for it. Number one, I would start by creating a private family foundation. Yeah, it's going to be a headache and it's going to require a lot of regulatory and legal oversight. But if I've got millions of bucks, not a problem. Number two, I would put 30% of my adjusted gross income into said foundation annually. 100% tax free. So 10 million bucks in the foundation, there's a $4 million tax break. Number three, next I would hire my two kids to run the foundation and pay them each $200,000 a year from the foundation's tax exempt assets. Number four, so what's the catch? Each year I'd have to pay out 5% of the foundation's assets to charity. Number five, but guess what? Now instead of giving my money to the government in the form of taxes, I've effectively created my own family government. I can distribute that money to my own friends who run charities and I can and will benefit directly and indirectly with future influence. Number six, and because I only have to pay out 5% annually and the foundation's assets are projected to grow at 7-8% annually, the foundation's value will continue to grow, allowing me and my family to continue to use those assets to benefit myself, my family, and my friends forever. And if that doesn't make you question why the rich and famous have private foundations, I don't know what will.