Protecting wealth requires a very proactive approach

Posted on June 15, 2010 by Bill Faiferlick

Bill Faiferlick Protecting Wealth“Building wealth is useless if you cannot protect it from the government and other people who want to take it away from you” - Asset Protection, Donald Trump

Making money is the easy part; the hard part is turning it into something more.

When I think of the word internal it conjures up images of internal organs, the lining of a colon, valves and arteries that bring blood to the heart, not the Internal Revenue Service. Unlike our internal organs, there is nothing internal about the Internal Revenue Service or its duties. It is an outside governmental agency with an objective to force compliance through many means including intimidation, technical memorandums or determination letters -their opinions do not necessarily have the rule of law to support its findings.

The Service makes determinations based on their interpretation. For taxpayers who are in disagreement, it means they must be willing to spend untold dollars and years in the court system so in most cases, it’s simply prudent to comply. In those rare instances where a person does choose to fight the Service and wins, I can only imagine the personal and financial sacrifices that were required along the way.

There are no natural laws where the government is concerned. Unlike the government, no successful individual or private business would continue to support a failing enterprise indefinitely. Instead they would determine which parts could be saved, reinvented or discontinued.

This is the same way nature has always worked. In Washington State, scientists have now seen how man is compromising nature with the eradication of the wolf. They provided a natural balance. The carnivores prey on and remove the weaker animals allowing only the healthy animals to propagate and continue the species. They selectively kill the animals that jeopardize the herd’s health. Their absence is resulting in significant adverse environmental effects which we are just now beginning to be fully understood.

By removing carnivores from the natural cycle and relying on hunters who indiscriminately hunt and who cannot determine at the end of their rifle whether they are removing healthy animals or stragglers, this form of animal control is assuring one thing: the long-term overall decline of the heard. It assures that the herd is weaker, more susceptible to disease and less able to cope and adapt to winter and other natural conditions. The unforeseen consequence is that due to the explosion of the herds’ sizes, they are devastating the underbrush due to over feeding which exposes the soil to unnecessary erosion along with its ensuing cascading effects.

When we consider the financial effects of enacted US legislation especially in recent years, unless individuals are willing to let the government determine how much of one’s independent wealth we will be allowed to retain, we are financially doomed.

If we are willing to permit a governmental agency to indiscriminately determine what we are monetarily entitled to, the government is acting as the gatekeeper in parceling out wealth. I believe individuals must be willing to take the necessary action to protect what they have and will acquire. The founding immigrants of this country overthrew their handlers when taxes became too burdensome.

When any government is preoccupied with taxing the smallest percentage of its citizens which is comprised of less than five percent of the U.S. population and ignore that 48 percent of those who file tax returns do not pay any federal taxes because their incomes fall below the economic thresholds, there is something inherently wrong with the system and the mentality of those in power. Our government is ignoring the fact that more than fifty million Americans are disenfranchised due to financial hardship as a result of their earning capacity. Our government chooses not to focus attention and resources on how to raise the standard of living for almost one half of its tax filing citizens which would dramatically raise the tax revenue base across this country. The top 1% of earners paid 37% of taxes paid, while the next wealthiest bracket accounting for the next 2-5% of income earners account for another 20%. So about 57% of taxes are paid by the top 5%. The government in its limited vision continues to increase the burden on less than five percent of its population who already account for 57 percent of all federal taxes collected.

All this is leading up to the fact that we, as individuals, must take it upon ourselves to protect what we have labored to earn because we are guaranteed that the government will not.

Unfortunately, this has and always been the case, “Knowing about and how to aptly apply the strategies to maintain wealth can be more elusive than creating wealth!”