The Financial Storm Warning for Investors | springerprofessional.de

Springer Professional

nach oben

2021 | Buch

Kapitel lesen Erstes Kapitel lesen

The Financial Storm Warning for Investors

How to Prepare and Protect Your Wealth from Tax Hikes and Market Crashes

verfasst von: Jeff Camarda, Steven James Lee, Jerusha Lee

Verlag: Springer International Publishing

Enthalten in: Springer Professional "Wirtschaft+Technik" , Springer Professional "Wirtschaft"

Einloggen, um Zugang zu erhalten

Über dieses Buch

Is an investors’ “perfect storm” brewing? If you’re not careful, it could sweep your wealth away. Long-dormant inflation looks to be catching fire. A stock market in overdrive may crash and burn for years. And taxes to fund deficits and social programs look to be rising to punishing levels not seen in a generation. This triple threat could mean a financial apocalypse from which many investors won’t ever recover.

Getting straight talk on smart wealth management has never been more critical. With Social Security and Medicare tracking to go belly-up in a few short years, there will be dire consequences for millions. Already-retired boomers, living far longer than ever expected, will strain government resources and risk running out of money. Who will pay for it all? Without smart planning, your taxes may rise to confiscatory levels, sapping net worth and lifestyle quality. Your retirement lifestyle and legacy for your kids could get crushed. Some may never be able to retire.

Investors and savers of every age and stripe will want to pay careful attention to the concentrated wisdom in this book and take proactive steps to protect themselves while there’s still time.

Anzeige

Inhaltsverzeichnis

Frontmatter

The Problem

Frontmatter

The Coming Wealth Storm—The Many Risks You Face and Why You Need This Book

Abstract

This chapter explains the risks to your wealth and why this book should be important to you. It details why I know what I am talking about and how I am in a position to help you protect your wealth and yourself. I see many potential dangers coming that can threaten your wealth, and while many may not occur, it is virtually certain that some of them will. Examples of these threats are a stock market crash (possibly caused by another tech bubble), hyperinflation (in mid-2020 inflation was the highest it has been since 1991), and massive tax hikes, given mounting Federal deficits, the looming implosion of Social Security and Medicare, and the increase in Euro-style social welfare benefits. You have to be prepared to protect your wealth and your financial future—for generations to come.

Jeff Camarda, Steven James Lee, Jerusha Lee

The Social Security and Medicare Crisis

Abstract

This chapter examines how American social programs are on the verge of bankruptcy and will likely be gone before most Americans will be able to utilize them. If they don’t go bankrupt (and there are problems if they do), then there will be massive tax hikes to compensate. The inherent problem with Social Security and Medicare, as most of you know, is that they are pay-as-you-go systems where your benefit is calculated based on your lifetime contributions. However, there is now more older people claiming benefits than younger people contributing to the benefit pool. In the near future, both of these programs will need a huge influx of money to remain solvent, and where that money is going to come from probably involves your wallet.

Jeff Camarda, Steven James Lee, Jerusha Lee

The Government Debt Crisis

Abstract

This chapter explains that colossal tax hikes are inevitable and coming quickly. Government debt will soon exceed gross domestic product. In fact, it is forecast that by 2050 our debt will be nearly twice annual gross domestic product. Big tax hikes are inevitable, but it will not make much of a difference given the sheer amount of US debt. The top 1% currently pay more income tax than the bottom 90% combined, and it is still not enough revenue. Half of all taxpayers (which likely includes you) pay 97% of all income tax. You are at risk for future income redistribution that will be needed to fix the massive debt issue and the continued strain on the national economy.

Jeff Camarda, Steven James Lee, Jerusha Lee

The Coming Tax Storm—Will There Be Massive Tax Hikes on Wealth Holders

Abstract

This chapter argues that taxes will increase in the future. Between COVID, state and federal government debt, Social Security and Medicare funding concerns, and the rise of socialistic ideas, the money will have to come from somewhere. Where is the most likely and easiest source of extra money? Taxing the wealthy! Even if you don’t feel like you are one of the wealthy, the United States boasts 40% of the world’s millionaires. Proposed new tax law may shrink your wealth in a number of stealthy ways, not least of all by simply increasing your marginal tax bracket. The chapter goes on to explain how to be on your guard so that you will be able to recognize when this occurs and take appropriate action.

Jeff Camarda, Steven James Lee, Jerusha Lee

The Changing World Crisis

Abstract

Here, we discuss three disturbing aspects of our rapidly-changing world: foreign country threats, persistant COVID, and the rise of western socialism. China, Russia, and Iran all project increasing strength to the world in their individual efforts to challange the US and its economic dominance. Between China’s communist-controlled economic engine, Russia’s intelligence attempts to attach and manipulate America’s institutions, and Iran’s nuclear and terrorist proliferation, the West faces mounting political and economic challenges. COVID-19 has changed and destabalized the world in profound ways. As more and more people retire or otherwise become unemployed and exit the labor force, social programs will increasingly require revenue from those who are still left to tax. None of this bodes well for the wealthy.

Jeff Camarda, Steven James Lee, Jerusha Lee

The Bernie Madoff/Bad Advisor Risk

Abstract

This chapter addresses the danger of inadvertantly selecting bad financial advisors. The current regulatory landscape, perhaps due to the impressive marketing and lobbying budgets of large financial service firms, disfavors the consumer. Fraud and other forms of misconduct occur more often in the industry than they should, and when they do, they are not always clearly visible to individuals seeking financial advice. Education requirements for advisors are nearly absent, and there is no uniform profession. Many if not most advisors are free to put thier own interest ahead of cleints’. The fact that fraud is difficult to define, combined with the fact that most people lack the resources to adequately investigate it, means that you must choose your trusted advisor very carefully. There’s more to an advisor than owing you a fiduciary duty. Regardless of how rich you are, in the wealth-managment business, you cannot afford to hire bad actors.

Jeff Camarda, Steven James Lee, Jerusha Lee

The AI Displacement Risk

Abstract

This chapter discusses potential future economic risks to workers’ livelihoods. One of the greatest potential economic risks in the next ten years may be artificial intelligence. It is likely that in the next five years alone up to two million jobs will be replaced by machines. There is a clear economic risk of lost income and the transformation of economic activity as people suddenly lose jobs and must switch careers to obtain a new one, replete with reeducation, retraining on the new job, and all the associated costs. These lost jobs are not just low-income workers, like grocery store clerks. Surgeons, lawyers, financial advisors, and journalists could all potentially be on the chopping block with the expansion of artificial intelligence and the consequent industry automation as the 21st century unfolds.

Jeff Camarda, Steven James Lee, Jerusha Lee

The Hyperinflation Risk & Inflationary Storm Crisis

Abstract

This chapter looks at the warning signs and impact of rampant inflation. In recent years, inflation has held relatively low and steady, but this has not always been the case. In the1940s and the 1970s, people would often spend money quickly, anticipating sudden price jumps due to the rapidly declining value of the US dollar. In fact, for a time the inflation rate was around 7%. There are many who feel that the US inflation figures released to the public are being purposefully understated. The COVID crisis is exacerbating the chance of hyperinflation because it is causing government debt to spike, and the Fed is printing extra money to try to minimize the economic fallout due to quantitative easing. More money printed often results in higher inflation. So far, the inflation numbers have been spiking.

Jeff Camarda, Steven James Lee, Jerusha Lee

The COVID Stock Bubble: Is a Mother of All Stock Bubbles Brewing?

Abstract

This chapter delves into what appears to be a COVID-era stock bubble. The COVID recession has been linked to the worst economic crisis since the Great Depression, however the market is still setting records. Why? One reason is that consumer spending is down, and saving is up, freeing up resources to invest in the market. The Fed has also been overeager to aid the markets by printing more cash and doing other things to keep the market strong, however this can’t last forever. This artificial bubble of the market may be set for a huge dive. It may come soon or later, but if history is any guide, it is bound to happen. When it does, trillions in wealth could evaporate, so it is important to protect yourself now.

Jeff Camarda, Steven James Lee, Jerusha Lee

Putting All Together—Your Total Risk Profile

Abstract

This chapter breaks down the dangers of the present times for wealth holders. Investors must analyze five major threats before delving into the solutions presented in Section II. The first major threat is increasing taxes put on the wealthy by local, state, and federal governments. The second is resurgent inflation that could erode your wealth. The third is the risk of major stock market crashes and extended bear markets, which can decimate wealth accumulation. The fourth is inaccurate retirement planning that could cause you to have an impoverished nest egg and a substandard level of retirement lifestyle. Finally, the fifth is bad advice that can exacerbate the effects of the other four risks. Heeding these perils will better position you, the investor, to better protect your hard-earned wealth from a variety of threats.

Jeff Camarda, Steven James Lee, Jerusha Lee

Your Countermeasures & Solutions

Frontmatter

Charting Your Path to Financial Salvation: A Big Picture Game Plan to Survive the Storm

Abstract

Part II of this book focuses on the tools, techniques, and strategies you will need to survive all the dangers to your wealth discussed in Part I. First, we begin with estate planning, teaching you how to efficiently transfer your wealth from generation to generation while largely avoiding taxes. Next, we discuss asset protection designed to shield you from losses such as those from lawsuits, theft, and natural disasters. Then, we dive into building family wealth while emphasizing income and payroll tax mitigation. After that, we cover ways you can retire more efficiently without consulting salary online calculators. We close Part II with two themes: The warning signs you should heed when hiring a financial advisor, and the need for a lifelong commitment to your own financial education.

Jeff Camarda, Steven James Lee, Jerusha Lee

Estate Planning for Protection and Control

Abstract

This chapter explores the relationship between estate planning—transferring your property while alive or dead in a tax efficient manner—and asset protection (which shields your wealth from non-tax-related threats like civil liability). Much of this discussion revolves around trusts—legal instruments that separate official ownership from beneficial control. Trusts avoid probate and accomplish other legacy goals. We caution readers to first conceptualize whom you wish to benefit with your property—both alive and after. Some of this type of planning cannot be easily changed once you elect to move forward. While this chapter introduces you to many of the techniques we’ll discuss in detail later, it showcases the reasoning and basic concepts behind the sophisticated mechanisms you will put in place to protect your estate.

Jeff Camarda, Steven James Lee, Jerusha Lee

Advanced Asset Protection for Successful Families

Abstract

This chapter delves into these increasingly-litigious times and the way that, as assets can be lost at the end of a lawsuit, you must find ways to protect what you have. While starting a business confers many tax advantages, it also exposes you to additional risks. There are two main ways to shield your property from liability: various forms of insurance and asset protection structures like Limited Liability Companies (LLC’s). There are other types of asset protection that fall under these main categories, such as holding companies and retirement plans. It explains the protection and problems with many of these potential solutions and also discusses nine of the commonly-seen errors that people make when trying to protect their assets in the case of unfortunate—and often unforeseen—civil litigation or other predatory attack.

Jeff Camarda, Steven James Lee, Jerusha Lee

Converting Avoidable taxesAvoidable taxes to Family Net Worth

Abstract

This chapter introduces you to smart tax planning. Smart tax planning easily constitutes the most important and most underrated wealth building skill. Alas, most consumers treat their taxes like another chore like dropping off the dry-cleaning without appreciating the lost opportunity to supercharge wealth. What is more, many tax advisors play conservative defense, taking unreasonably fearful or just plain ignorant positions with your taxes. Either can cost you a small...or large fortune. You must learn to take the strongest, reasonable position possible. As you will learn throughout this chapter and the entire section, the tax code opens itself to a myriad of legal postitions. Finding your most profitable one is one of the keys to supercharging your wealth accumulation. We give you tips on smart tax strategy, and teach how to find true tax master that understands the nuances within the Internal Revenue Code and thereby minimizes your tax obligations to the government...and maximizes your family wealth.

Jeff Camarda, Steven James Lee, Jerusha Lee

Converting Income Tax to Family Wealth

Abstract

This chapter discusses the inherent disadvantages W-2 workers face when trying to control their tax bill. After the Tax Cuts and Jobs Act took away many of the itemized mainstays that people relied on for decades, many workers struggled to find ways to cut tax. The best way to avoid many of the high-tax problem areas that employees face is to become an independent contractor. Starting your own business is a great way to write off expenses, keep more of your money, and stop making sizable interest-free loans to Uncle Sam every single year. The rest of the chapter shares the tips, tricks, and techniques you can use to drive big deductions on your return, minimizing your income tax burden while maximizing family wealth rather than handing over too much of your hard earned money to the government.

Jeff Camarda, Steven James Lee, Jerusha Lee

Converting Estate Tax to Family Wealth

Abstract

As if income taxes weren’t complicated enough, you must also worry about taxes on property and other asset transfers—gifts and bequests specifically—made either during your lifetime or after you pass away. This chapter brings deft estate planning to the forefront of wealth protection. We explore two powerful stratagies—estate freeze techniques and gifting strategies—to maximize the amount of property you can remove from your estate and thereby minimize or eliminate gift and estate taxes—without giving up control or enjoyment of the assets. Other tax avoiding concepts discussed in this chapter include annual exclusion and unified credit usage, family limited partnerships, grantor-retained annuity trusts, family bank ongoing trust, and family bank individual trust. Additionally, we include a brief discussion on marketability and other discounts to squeeze even more out of your estate, beyond the reach of Uncle Sam.

Jeff Camarda, Steven James Lee, Jerusha Lee

Controlling Other Expensive Taxes

Abstract

This chapter launches into a discussion regarding sales tax and others many people believe are unavoidable like other areas of wealth management, paying less in all kinds of tax requires expert knowledge and advanced planning. This goes for various taxes on things like yachts, real estate, business, and personal income. While the previous chapters provide in-depth, complex tax planning, this one rounds out your tax knowledge and teaches how to research for additional tax savings. Complete with tips you can (and should) use to grow your wealth, in these pages, you will find additional tax-saving strategies designed to maximize the money you keep. In some circumstances, as discussed here, you must pay some tax. However, you often have choices, and we teach you which ones to make that will quickly lead to minimizing your tax bill.

Jeff Camarda, Steven James Lee, Jerusha Lee

Investment Strategies to Prosper in the Storm

Abstract

This chapter considers different investment strategies to grow your wealth. Much of the conventional wisdom surrounding investments appears flawed. We discuss fundamental and technical analysis to target investment growth, and we include a brief tutorial of the basics of technical analysis for the enthusiastic reader. We investigate asset classes that can hedge against inflation and should weather the stormy conditions that may be coming. Traditional assets—stocks and bonds—form the bedrock of a solid investment plan, but they can also expose you to serious risks. We consider alternative assets such as real estate, and discuss the pros and cons of cryptocurrencies like Bitcoin. We conclude the chapter with alternative investment strategies—ways that you can further catalyze your portfolio’s growth such as direct investment in your business and investing in pooled enterprises.

Jeff Camarda, Steven James Lee, Jerusha Lee

Retirement Income Planning—The Critical Path You Can’t Afford to Miss

Abstract

In this chapter, we walk you through the multitude of risks that threaten a long and prosperous retirement. Living too long, taxes, inflation, interest rates, losing money or not making enough, spending to much, asset location inefficiency, and opportunity cost loom large when it comes to your spending down your nest egg. Free online retirement calculators cannot adequately take all of the necessary variables of your situation into account. We explain how competent advice can make all the difference in your golden years. Whether you naturally seek risk or avoid it, it is important to accurately calculate your retirement needs amidst the worsening financial conditions in the United States and around the world. Because retirement decisions are critically important to your livelihood, you will need to consistently monitor, evaluate, and adjust throughout your life.

Jeff Camarda, Steven James Lee, Jerusha Lee

The Holy Grail…Screening for Smart Advisors You Can Trust

Abstract

This chapter unearths one of the most perplexing aspects of realizing your financial goals: selecting an honest and expert financial advisor who looks out for you. The task is easier said than done, since the financial services industry largely obscures important knowledge consumers need to screen for bad actors and expensive products. Tips for navigating the advisor landmines include checking if your candidate is a fiduciary, avoids conflicts of interests, is properly trained, and actually delivers what is promised: advice—not commission products. After due dilligence, he key to managing your manager is to monitor and check-up on them periodically. Just as you must commit to lifelong financial education, so too must you engage in lifelong due diligence on your advisor. Even if your advisor means well in promoting your best financial interests, their employing firm may not.

Jeff Camarda, Steven James Lee, Jerusha Lee

It’s Your Wealth Ship, Captain!

Abstract

In this chapter, the whole book comes full circle to hammer home its primary theme: You are in charge of your own financial destiny. You are the captain of your own ship, and you must navigate these treacherous financial waters well if you wish to grow your family’s legacy into the future. Despite the pressures and threats we discussed in Part I—including taxes raised to fund social programs, inflation that may rob you of your purchasing power, the might and influence of foreign powers like China, Russia, and Iran, and a host of other threats large and small—we trust you will implement the tools we gave you in Part II to take back and preserve your financial freedom. This is your ship—nobody else will care for it like you do.

Jeff Camarda, Steven James Lee, Jerusha Lee

Backmatter

Titel: The Financial Storm Warning for Investors
verfasst von: Jeff Camarda
Steven James Lee
Jerusha Lee
Copyright-Jahr: 2021
Verlag: Springer International Publishing
Electronic ISBN: 978-3-030-77271-0
Print ISBN: 978-3-030-77270-3
DOI: https://doi.org/10.1007/978-3-030-77271-0

Weitere Formate
Fachgebiete
Bücher
Zeitschriften
Themenseiten
Jetzt Einzelzugang starten
Zugang für Unternehmen
Referenzkunden
SLX-Digitalkonferenz: Zukunftswerkstatt 2024