Post
Topic
Board Economics
Re: What are some financial secrets that you know of?
by
Mauser
on 29/07/2023, 06:51:24 UTC
Hey everyone. What are some of your wealth secrets that you could share with us?

Buying homes with cash and taking loans out on it?

Setting up trust funds in foreign countries and setting offshore corporations to avoid capital gains and taxation? (Sorry tax avoidance for any LEO reading this)

What are your secrets?

I am not wealthy yet, so I can't share any success story that might help others. Not sure where you from, but in my country, properties became so expensive that it's nearly impossible to buy anything with cash. Without a loan from the bank for the next 15-20 years it's not feasible to buy any decent apartment or house. There are so many new government regulations on energy efficiency in new houses and apartments that are getting renovated, many people need to take out loans if they are modernising their homes. Which means that most homes already have a loan on it and there isn't much room to borrow more money against it. In the past I also looked into the topics of offshore money investing to reduce taxes, but the fees are so expensive. If you don't already have a few millions available it doesn't seem worth it as most of your return goes into fees.
One thing I am focusing on at the moment is to use private retirement funds to reduce my taxable income today. In my country you can basically choose if you want to take all your salary today and have to pay high taxes on it, or if you want to leave it for retirement and only tax it in the future. The advantage is that my tax rate is going to be much lower when I go into retirement and there are some tricks to make it even lower. For example, you can gift your home to your children and pay rent to them for living there. This makes me seem poorer and I don't have to pay so much taxes. The disadvantage is that I can't use the capital until retirement age.