Wealth Building DNA

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Top 10 Strategies for Building A Legacy

Top 10 strategies Legacy Wealth Building uses in our secret treasure chest of tax planning

FROM A FAMILY LEGACY OF ONE HUNDRED MILLION DOLLAR PLAN

 

  1. The Four I’s™  Inflation, Interest, Income Taxes, Insurance
  2. Active business entity vs. passive business entity
  3. Beating the 4 I’s
  4. Recapturing the 65% of your income that’s currently going out in taxes and interest paid to financial institutes
  5. Setting your salary – what’s the big deal with this?
  6. Up streaming income
  7. What happens when your P&L says you have the cash but your bank account says otherwise
  8. Multiple corporation strategies
  9. Growing  100% of your money in tax advantaged environments
  10. Getting the right professionals to support your financial goals and objectives

Coming soon… The answers to each of the top 10!

To your wealth & success now,

Gabby Huguenin

Powerful Retirement Plan For Small Business Owners

Solo K is A.O.K for Small Business Owners Seeking Lower Taxes and Retirement Contributions.

If you missed out on the millions of bucks sent to the big corps in Uncle Sam’s stimulus program, don’t fret, you still have some options (Although, they don’t involve big financial handouts).

The Solo (k) commonly referred to as Solo K is a retirement plan set up for small business owners. Small business owners drive this economy, (in spite of what the lobbyists in DC would have us believe). As a small business owner, your tax liabilities are the most threatening thing to your financial well being right after the economy. Learning how to reduce your tax liability should be a part of every small business owner’s wealth building strategy. Knowledge is power. Let me re-phrase that, knowledge is money! Continue reading →

Top 3 Tax Problems That Doctors Have

Admit it. You Don’t Have a Practice – You Have a Job

Many of my tax reduction clients are high-income professionals including doctors, lawyers and even accountants. These are people with unique financial and tax-reduction problems. Having a respectable income isn’t the problem for most of them.

The three primary problems doctors, lawyers, and other professionals have in common are as follows:

1. Working too many hours.

2. No time left for financial planning.

3. Paying too much in taxes and being too tired to enjoy what’s left of their income.

Breaking exhausting cycles like this is not simple. It’s not really difficult but it’s going to take a commitment. Here are a couple of things you can do to shift from having a job to having a business. If you have a true business model that’s working, you can take time off and the business will continue to create wealth for you and your family. If you have a job, you are obligated to be there and you don’t get paid when you are not.

Which do you have? Does your practice allow you to leave without a big dip in income? Does your practice grow without consuming more of your time? If you said “no” to either of those last two questions, you don’t have a business or a practice, you have a job.

There’s nothing wrong with having a job as long as you are aware of that. But a practice that keeps you in the “job” mode is difficult to grow without more of your time. And that takes you back to problem number one. Trying to grow your business, when it’s really a job, means you’ll work too many hours and never get a commensurate reward.

Tax Deductions for Small Business – With all that time spent on the practice, you might have some good revenue coming in but too many doctors, dentists, or lawyers have little time left to do their own financial planning. So, they give it to their spouse, their bookkeeper, or their accountant. And, it’s likely that none of these people are specifically trained in tax-lowering strategies.

So, the money comes in, everyone does the best they can with it and the money goes out. Unfortunately the amount of money going out to Uncle Sam is usually much more than it should be in these situations.

So, my recommendation for anyone facing the endless cycle of work more, spend more, work more is this. Find someone who can help you design a strategy to break this cycle. There are two types of professionals that may be able to help you.

We are not on this planet to figure it all out on our own.

It’s okay to ask for a little help.

GET HELP – First, get a business/marketing consultant to help you find the leverage points in your business. Where is there more profit, less effort, and continuity in your business? Where are the opportunities for exponential growth in your business? Who EXACTLY are your best customers and how can you give them better service in return for greater profits? To turn your job into a business you want to know what your clients are looking for and then give it to them.

Take time this week to work ON your business not IN your business.

Second, get a tax-planning specialist on your team. That person will show you how to utilize legal entities that will protect your hard-earned money and make it work much harder for you. Notice, I said, your MONEY will be working harder, not YOU! Tax planning is beyond checking off the list of business deductions and putting numbers in the right columns. Any accounting person can do that for you.

A true tax specialist will have the ability to help you create a wealth-building plan that will solve the miserable cycle of working too many hours, no financial planning, paying too much in taxes, and being exhausted!

Finally, if you do nothing at all with what you just read, at least do this. Take time this week to work ON your business not IN your business.

That higher perspective will change everything.

 

Have a prosperous day!

Gabby Huguenin

How do your beliefs affect your tax bill?

What are your beliefs about taxes?

Strange question but think about it. Business tax deductions, asset protection, and high net worth tax planning strategies are easy to deal with compared to…. YOUR BELIEFS!

What are beliefs? A state or habit of mind in which trust or confidence is placed in some person or thing. The very fiber of our beliefs drive our results through the words we speak, the words we hear, the actions we take, the habits we create, and the rules that are inflicted upon us.

At times the belief systems we create will generate success, at other times they will produce failure. It is like a mathematical equation, there is a formula and each time it will result in the same answers.

Consider the story of a king crab fisherman in Alaska. The new crew member saw the stillness of the ocean, and the sudden ferocity that created great instability. Concerned about the catch, he asked the Captain why they did not place a lid on the barrels containing the crab.

The captain responded to crewman by saying: it’s simple, when one crab attempts to crawl out of the barrel and back into the sea the other crabs pull it back down. There is no escape.

Beliefs can impact us the exact same way. As a child you may have been taught that “money doesn’t grow on trees” or “we can’t afford that” or “keep dreaming, but it’s never going to happen.” These beliefs can propel and underpin all of our thinking and the barriers we place every day on our success.

Why mindset is critical for building wealth

YOU WON’T ATTRACT SUCCESS WITHOUT THIS!

You can’t go from rags to riches on the same path you’ve been following! We can talk about money, wealth, riches, and security until we turn blue in the face. You can take notes until your carpal tunnel gets the best of you.  None of it matters UNLESS you make a shift in your thinking.

Without a Mindset for Success – Zig Ziggler, famous sales trainer and motivational speaker calls it, Stinkin’ Thinkin’. To achieve greater success you need more financial education tools, a clear understanding of goal setting, a wealth building strategy, and a little tune up from the neck up.

What the most successful (and wealthiest individuals in the world) understand that most others do not, is that the secret of their success is not in there education, the database, or their endless energy (although these are all very important). Their success comes from the way they view their world. It comes from their mindset.

Your thinking process, your perspective, your psychology = Your  Mindset

The way you think about wealth, your attitude to achieve it, is what we call The Millionaire Mindset. If you are already a millionaire then we could call it your Multi-Millionaire Mindset! It’s one of the most compelling laws of the universe and quantum physics is digging up more and more proof every day that our minds are all we need to succeed. Of course I want to help you reduce your taxes, build profitable businesses, and create long-term wealth strategies. But I can’t.

I can’t do anything to help you unless you are willing to take control of that gray matter between your ears. It’s all up to you. Not some of it, not most of it, but ALL of it!

It’s hard for many to believe but we do control our own thoughts. Nobody else controls them no matter what they do. Unless of course, we give our minds permission to believe another person’s words. When a teacher says you are no good at math, a coach says you are too small or a spouse says you are too this or that, the choice is yours whether to believe them or not.

If you’re ready to take greater control of your life and are ready to start building a Mindset for Success, then print the following graphic out and post it on your refrigerator and anywhere else you can to keep this message front of mind.

It takes practice but you can make conscious decisions about what to do with your thoughts. Notice the word CONSCIOUS! Those who don’t reflect on their own thinking are often easily lead through life and find it difficult to choose their own path. Building financial freedom takes effort. Building financial freedom takes practice. And most important of all, building financial freedom takes a Mindset for Success. I write a lot about this in my upcoming book because it is truly the foundation for everything related to wealth.

You can learn more about building a Mindset for Success in any of our coaching programs. The more you learn, the more you earn! Don’t let no Stinkin’ Thinkin’ get in the way of your dreams!

Have a prosperous day!

Gabby

Building Wealth Is About Building Plans

Wealth Building is Wealth PLANNING!

Your children will learn a lot about money when they finish college and get into the real work world. But I believe that as a parent, your job is to start when they are young, teaching them about money, business and the principles of wealth.

The earlier you start the better. That leads me to a major point I want to make about the “P” word. PLANNING!

It’s not enough to get your kids through school with straight A’s. That’s nice but although their grades are important, most schools are not teaching anything about financial or business planning. We are continually amazed in our wealth coaching programs how little information adults have, let alone their offspring, about the importance and power of PLANNING.

In fact, for the rest of this post, I’m going to put the word PLANNNING in all caps in hopes that you’ll notice how passionate I am about this!

“It doesn’t matter if you’re a wealthy doctor, dentist, or lawyer…”

It doesn’t matter if you’re a wealthy doctor, dentist, or lawyer, your income has little to do with your long-term wealth. Unfortunately, I’ve run into a lot of broke doctors, dentists and lawyers who had plenty of income but way too much outgo. Their lack of PLANNING created an endless cycle of working harder and creating more stress versus working smarter and finding more peace.

Your wealth is a result of your PLANNING not your income. Here are a few things to teach your children about PLANNING (some of this might work for parents as well).

1.       LIVE like this is your last day on earth but PLAN like you’re going to live forever. In other words, enjoy this moment, let go of worry and be present to the joys of life all around you. And of course, that’s much easier to do when you’re PLANNING process gets those little worries out of your head and onto paper.

It’s easier to relax about money when you’ve automated your savings, you pay yourself first, your investing takes place automatically, the important things are insured and you have a clear understanding of where your money is going. This is part of the “First things first” philosophy that allows us to enjoy the day because our minds aren’t cluttered with unfinished business.

2.       Teach the positive and negative power of interest. We love earning interest and we hate paying it. Watch your child’s horror when you teach her that that brand new $30,000 car will really cost her $40,000 if she finances it. Watch her amazement when you show her the power of compounding interest. Show her how quickly she will double her money by teaching her the simple formula of the rule of 72. Divide 72 by the interest rate being earned on the investment to determine the number of years the investment will need to grow in order to double in value.

For example, if she’s making eight percent on her mutual fund you set up for her, then the $2000 she makes over the summer working at McDonald’s turns into $4000 in nine years. Now that might seem like an eternity to a teenager but putting this on paper in front of your children now is a powerful motivator for teaching them the power of PLANNING!

3.       Model the concept of Delayed Gratification. Teaching your children how a “cooling off period” before making a major purchase is in itself, a money maker! Teaching your child how to be aware of their purchasing process will save them from a lot of financial stress in the future.

Teach them to practice wealth building skills such as  – Research, Negotiation, and Saying No. Teach your children that the marketing campaigns bombarding them every minute of every day are based on hard core research. Big business has studied all the ways to play on the emotions of fear, greed and vanity to get us to buy things we don’t really need.

4.       Start PLANNING today! Keep it simple. Sit with your kids and write down three things they want to have, do or know in the coming year. That’s a plan! Now, tie in the financial components and you’ve got a good start on some highly beneficial long-term PLANNING!

I’m not saying that any of this is easy to teach or to practice but at the same time, they’re not really that hard! It doesn’t really matter if you have kids or not, these principles are powerful PLANNING principles that any of us can start using today!

And by the way, when you’re ready to start developing a solid long-term wealth plan for YOUR life, give me a call.

Have a prosperous day!

Gabby Huguenin

Don’t Be Dumb… S.M.A.R.T. Goals Build Wealth!

I spend a lot of time helping very wealthy people keep more of their hard earned money and…

even though I spend endless hours talking about reducing tax liability, creating asset protection strategies, and finding ways to reduce taxes from double digits down to single digits, none of that really matters unless my client has clear goals. The one thing that separates successful people from everyone else is that the wealthy ones are clear about what they want. So, here’s a little tool you can use to begin your legacy wealth building journey.

S.M.A.R.T Goals.

Setting goals is a powerful way to bring your dreams into the real world. Without a vision of where you want to be, how will you know when you get there? In my new Legacy Wealth Building workbook, I give you 60-plus pages of ways to visualize your dream and get there. One of the most important aspects of achieving your dreams is committing them to paper (sign up for the book now, it’s FREE).

But sometimes sitting down and writing out a goal can be difficult. To make it a little easier and more likely to come true, use this simple formula that’s been around for a long time. It’s called a S.M.A.R.T. Goal.

It’s a simple acronym that helps you remember all of the elements needed to create realistic and meaningful goals. Print this little graphic out and sit down with your family and/or business partners and discuss your goals within the context of a proven formula. It’s not any more complicated than that!

Have a prosperous day!

Gabby

The Importance Of Building A Foundation

Think about this! We all say, “I want to be Rich!”

But does that mean I have to be greedy to get there? Is there an inherent conflict of interest between wanting higher levels of success and being satisfied with what I already have?

According to the famous author Dr. Wayne W. Dyer, in his book the Power of Intention, you CAN have success and still be respectful to the well being of others and the planet. Sure, we want to find all the tax deductions we can. Of course, we want to use aggressive business tactics and formulate asset protection strategies that keep the bad guys at bay. And yes, we want to keep our tax rates low. But Dr. Dyer says and I quote, “Let go of your need to have more.”

Here’s a wealth building tip that I think Dr. Dyer would approve of. Go ahead and create great wealth for you and your family and then use it to do good. Create that wealth in respectful and kind ways and be willing to share what you’ve created and what you’ve learned. Create a legacy of wealth for others to learn and prosper from.

When you come from a place of peace and calm as you pursue your dreams you don’t NEED anything. And, in a strange way, that makes it so much easier for prosperity to find you.

Dr. Dyer says, “When you stop needing more of everything, more of what you desire seems to arrive in your life.” Wealth building is not about getting more, it’s about appreciating and caring for what you may already have.

By the way, I know you don’t really NEED to pay more than your fair share of taxes either! Let me know if I can be of assistance!

Have a prosperous day!

Gabby

How Much Creativity is Allowed in Tax Planning?

Creative Tax Planning –

How is it Possible and How Will it Help me?

To some of us, the word creative smacks of illegal or certainly circumventing what is the right thing to do. There is another way to approach both this world and the world of taxes.

It is by focusing on using every single tax deduction permitted by the IRS in as defined and all encompassing way as possible. It is about a true connoisseur of  tax coding and regulations being let loose within your company structure to explore every last nook-and-cranny for you.

Then showing you exactly what you have been missing, and just how much money will be pouring back into your pocket and bank account.

“Tax codes and rules are meant for everyone, not just the rich and powerful.”

Creative Tax Planning is therefore a skill set that is definitely real and definitely works. Luckily for us, there are quite a few of these stellar folk out there who specialize in tax planning techniques for all walks of life, and focus on saving all of us as much money as they can.

Making your money work for you is another side-benefit, and a big one, when utilizing this way of thinking. It means that you get to use your money first, pay your bills first, invest first, replace equipment, offices, whatever you need for your company and pay your taxes last. Quite a concept.

This is how multi-millionaires such as Bill Gates continue to remain in the single digit tax paying brackets. It is not that they are doing anything they should not. Nor is that they are employing people 24/7 trying to find as many tax loopholes as possible. Rather it is that they do work with amazing wealth teams that are focused on utilizing every single deduction that the IRS allows for each and every situation.

There is no reason why you cannot benefit in the same way. Those tax codes and rules are meant for everyone, not just the rich and powerful. There is also no reason why you can not utilize the same forward thinking and create your own reduced tax liability and tax planning techniques.

All you have to do is find your own tax planning specialist. You may want them to be part of your own wealth building team. Perhaps have a coach or mentor, heading up your team and working on your behalf using well thought out strategies to build and protect your wealth. For you and generations to come.

Need help?

Call me at 208-263-7202.
Gabby

A Lawyer Who Represents Himself Has a Fool For a Client

We love lawyers. We hate lawyers.

But when you need a good one, it’s probably not you! To protect your assets and secure your business you must build a wealth team around you.

Being successful in business requires the ability to create leverage. And that means finding coaches, mentors and advisors who know more than you do.

The people that know how to capitalize on the skills of others are the ones happily reaping the benefits of the financial advice received, or creative tax planning now implemented, or are sleeping well at night.

They are the ones that know that their assets have been protected for their lifetime (and beyond). They are the ones who have sought out the best coaches, who are masters at creating wealth and who know that there is more than one recipe available to create a perfect dish.

“The more you learn the more you earn.”

Wealth building specialists are not hard to find, just hard to duplicate! They, like doctors or lawyers, have dedicated their lives to learning everything there is to know about making your money work for you. They keep up-to-date with all the latest tax code changes, create dedicated wealth building courses, and operate solely on wealth building principles that are proven to work. It is like they possess wealth building DNA!

Why would you jeopardize your future by not creating the right knowledge base for your own situation?  There are some basic rules that apply to us all. Maintaining accurate “books,” filing your taxes, etc. These are “no-brainers.”  However, it takes more than the basics to create and maintain a healthy and thriving business presence.

Looking for that coach or mentor or advisor that will provide you with everything you need to succeed is as necessary as an oven is to a chef. You simply can’t do without it and experience any level of success!

At Legacy Wealth Building, LLC we work to create leverage teams. Teams that bring more expertise and a professional perspective to any long-term wealth building strategy.

There are two big threats to your financial future.

1. The economy

2. Taxes

While all of us are concerned about the economy, there’s not much one individual can do about it. So stop worrying about number one and focus on the second one, taxes. Taxes are the single biggest threat to your financial future that you can actually do something about.

We don’t give legal or financial advice on this blog because we are all about education. The more you learn the more you earn. And the more you earn, the more you need to know how taxes are cutting into your legacy.

If you want to reduce your taxes in 2011 please give me a call!

Have a prosperous day!

Gabby

208-263-7202

7 Different Ways To Look At Setting Goals

Let’s get right to it.

Forget those New Year Resolutions! Let’s focus on goals and revising those goals every day, not once a year.

And… one more thing, let’s go from Goal Setting to GOLD Setting! We’re talking about our financial health here. Wealth building doesn’t happen by itself. Creating financial freedom requires thought AND action.

I’m all about cutting taxes and reducing your tax liability but before we get to that, you have to know where you’re going!

Here are a few different ways to look at your goals than you might have heard from other goal setting experts!

1.       Embrace the Man/Woman in the Mirror! – Literally, check the face in the mirror. Do you like what you see? Not just your looks but your smile? It’s tough to reach your financial goals if you don’t like the person in the mirror. If the person looking back at you isn’t everything you thought she/he should be, this is the perfect time to get a picture going of who she can be!

2.       Enthuse it or Lose it! – If your enthusiasm has faltered and your goals are not that exciting to you, then change them or turn up the heat. A little passion goes a long ways. Look back on those successful times in your life and make a list of the “Success factors” that were taking place when you were enthusiastic about what you were doing and achieving. Which of those factors can you apply to today’s situation? How can you re-ignite the passion that has helped you overcome obstacles and achieve goals in the past? Turn up the heat!

3.       Tune up Your Internal Combustion Engine! – All success starts from within. I believe it’s so important to have a coach, a mentor, an inspirational person to push and nurture you but more importantly you’ve got to allow yourself the quiet time once in a while to go within and take note of where you and your heart are at. Quite time is refueling time. Schedule it.

4.       Go Extra Miles With Extra Smiles! – Give that little extra. Push just a little more. Add another 10% and you’ll be amazed at how your goals can turn to gold much faster. While competitors quit at 100% you can pass them at 110%. Add a few smiles to your effort and you’re goals become a lot more fun.

5.       Walk Then Run! – Go after your goals in bite sized chunks. You don’t have to do it all today. But… consider this: Read one book a week and you’ve read more books than most Americans do in a decade. Learn one new skill each week and you are miles ahead of everyone else. Break down your goals into little steps that are easily achievable and be consistent with it.

6.       Acknowledge the Pain! – Marines believe that no pain means no gain. Maybe. If there is pain, listen to it. If there is no pain and life is totally satisfying then your motivation to change might be small. You don’t have to have pain to create gain but getting out of your comfort zone may be a helpful way for you to start making the changes you need to get closer to the goal, I mean gold!

7.       Axe the Tax! – Simply put, don’t pay too much in taxes when you don’t have to!

Call me if you want to lower your taxes in 2011! Learn more about our coaching plans and let us help you achieve your GOLD!

208-263-7202

Thanks!
Gabby

12 Tax Deductions For Small Business Owners

More Money Saving, Tax Saving Ideas for Small Business Owners!

The list continues! Check with your tax advisor in your unique situations but ALL of the following should be reviewed by you and/or your wealth team! Here are a few more write offs:

1.    Fees we Hate! Service for processing credit cards is deductible!

2.    Pens and Paper – Office Supplies! Those little things add up.

3.    Bad Debts. As opposed to good debts? The only good in any debt might be its deductibility. If that debt was included in previous income, it may be deductible.

4.    Professional Fees – Even if you felt like you got amateur advice, professional fees are usually deductible. Lawyers, accountants, and other consulting fees are write offs.

5.    Office Equipment – Computers, iPads, cameras, fax machines, as long as it’s part of doing your biz, deductible it iz! You may be able to take it this year or depreciate it.

6.    Furniture – Just like office equipment. Write it off.

7.    Repairs and Maintenance – Keeping that office in tip-top-shape costs money! Deduct it and get some of it back.

8.    Interestingly Enough, Interest is Still Deductible! Mortgage, finance charges, payment plan interest, and other interest may reduce that taxable income! Now, do you despise your credit card company a little less for that 22% interest rate?

9.    Insurance For Sure – Premiums you pay for liability, credit, workers’ comp, malpractice and others is deductible.

10.  Software Anywhere – Whether you got it from the box or downloaded it, generally, software is deductible. Future software apps are evolving to online service products that you don’t need to download and those fees are likely deductible as well.

11. License to Kill – Well, James Bond you’re not but most licenses can be written off. Licenses, fees, regulatory gouges, I mean fees are usually deductible.

12. Taxes – Whoa. That’s weird. Pay taxes. Use them as a tax deduction? It’s a strange taxable world we live in but yes, taxes are a business expense and if you incur them running your business, Uncle Sam says, write ‘em off!

Obviously, we have a little fun talking about taxes but the most fun you can have with your taxes is when you go from paying double digit taxes to single digits. That’s what I do. I want you to pay taxes – but only the ones you are obligated to and most of you are paying taxes that you are NOT obligated to pay!

Why pay for something when you don’t have to? Dang good question! We should tax, I mean, talk. ( I really did type that mistake – oooh, it must be tax season!)

Have a prosperous and deductible day!

Gabby Huguenin

Wealth Coach

Tax Fighter

All Around Fun Gal

P.S. Call me if you want to lower your taxes in 2011!

208-263-7202