In the days of merchant ships,

the rich knew how to form alliances as a way to limit the risk of wealth in each trade.

The rich put their money into a consortium that sponsored the trip.

The union will then hire a crew to steer the boat away.

If the boat breaks down, the rich people’s losses are limited to the money they invested in that trip.

The following chart shows the structure of a union beyond the income statement and personal income statement.

It is this knowledge of the power of a legitimate federation structure

that gives the rich a huge advantage over the poor and middle class.

No matter how rich the crowd “takes from the rich” is,

the rich always find a way through.

That’s why taxes ultimately weigh on the middle class.

The rich outshine the brains simply

because they understand the power of money,

a topic not taught in schools.

How do the rich surpass the mind workers?

Real capitalists seek the protection of the federation.

A federation to protect the rich.

But there’s one thing that people who’ve never formed a federation don’t know,

is that a federation doesn’t really have to be something.

A federation is merely a pair of papers with some legal documents located in several law offices and registered with state agencies.

It’s not a big building with the league’s name on it.

Nor is it a factory or a group of people.

A federation is just a legal document to create a legitimate corpse without a soul.

Once again the wealth of the rich is protected.

Again, the use of unions became common, once the regular income laws were passed,

because the federal income tax rate was lower than the individual income tax rate.

Also, as noted above, a federation has certain expenses that must be paid before taxes are paid.

Whenever people want to punish the rich, the rich don’t simply obey, they react.

They have enough money and power to change many things.

They refuse to voluntarily pay more taxes.

They find ways to minimize the tax burden they have to bear.

They hire shrewd lawyers and accountants,

they persuade politicians to change the rules or create some loopholes.

They have every means available to make those changes.

The poor and middle class people do not have such schemes,

simply because they are afraid of the government.

And I know how scary government tax collectors can be.

My poor father never meant to protest.

Neither did rich dad.

He just played the game more cleverly,

and he did it through the federations,

the riches’ biggest secret.

Remember the first lesson I learned from rich dad.

I was a 9 year old kid at the time and had to wait to talk to him.

I sat in my office and waited for him to notice me,

while he deliberately ignored me.

He wanted me to be aware of his power and aspire to have it one day.

During the years I studied from him,

he always reminded me that it is knowledge that is power.

And with money comes a great power that requires knowledge to preserve and make it proliferate. Without that knowledge,

you will be pushed around by the world.

And if you just work for money, you’ve empowered your employer.

If you force money to work for you,

then you keep and control that power.

Once we mastered how to make money work for us,

rich dad wanted us to become more financially savvy and to understand how the law works.

If you don’t understand well,

you can easily be bullied.

If you know what you’re talking about,

you’ve got your chance to fight.

That’s why he pays so well his shrewd accountants and tax attorneys.

His best lesson for me, one that I’ve used most of my life, is that :

“Be more skillful and you won’t be jostled.

” Rich dad knew the law because if he didn’t,

he would have to pay a heavy price.

“If you know you’re right,

you won’t be afraid to fight.”

Poor dad always encouraged me to find a good job in a solid union.

He talks about the perks of “climbing the league ladder.”

He didn’t understand that,

based on the federation owner’s salary alone,

I would be just a docile cow ready to be milked.

When I told rich dad my biological father’s advice,

he laughed and asked,

“Then why not master that ladder?”

As a kid, I didn’t understand what rich dad meant

when he said he had to own his own league.

That sounds scary and seems impossible.

Although I was very interested in the idea,

my age was too young to allow me to imagine all the one day,

adults will work for a company owned by themselves.

At 16, I knew I wasn’t going to go the way most of my classmates were.

That decision changed my life.

Many employers believe that advising employees to run their own business is bad for their business.

But for me, focusing on my own business and growing my assets makes me a better employee.

Now I have a purpose to strive for.

I went to work early and worked hard,

accumulating as much money as possible so I could start my little investments.

Rich dad’s advice made sense.

Money worked hard to make more money for me.

Every dollar in the asset column is an active employee,

working to get more “employees”

and buying their boss a Porsche with pre-tax dollars.

Using lessons from rich dad,

I was able to break out of an employee’s Rat Race at a young age.

Without this knowledge (I call it financial IQ) my path would have been much more difficult.

I now teach others in research topics hoping to share this knowledge with them

Every time I speak,

I remind people that:

Financial IQ is built on knowledge from four broad areas of expertise:

1. Accounting, or financial literacy,

is an extremely important skill if you want to build a business empire.

This is the activity of the left brain or detailed calculation.

Financial literacy is the ability to read and understand financial statements.

This ability allows you to identify the strengths and weaknesses of any business company.

2. Investment, or money-making strategies and formulas.

This is the activity of the right brain or the creative part.

3. Understanding the market, or the science of supply and demand.

It is essential to master the “technical” aspects of an emotional-driven market.

Another market factor is the economic sense of investing.

Whether an investment makes sense depends on current market conditions.

4. Knowledge of the law.

A team “packaged” with technical skills in accounting,

investing and marketing can lead to explosive growth.

An individual who is knowledgeable about tax advantages

and is protected by the federation can get rich much faster than single employees

or small business owners.

And in the long run, that disparity is much deeper.

a. Tax advantages:

A union can do many things that an individual cannot do,

such as getting pre-tax expenses.

It’s a very interesting area of ​​expertise,

but it’s not necessary to get involved unless you have a sizable fortune or business.

The employees earn mussels,

pay taxes and try to live off of what’s left.

A federation makes money,

spends everything it can and is taxed only on the rest.

It’s one of the best legal tax breaks the rich use.

A federation is easy to set up and not too expensive if you have investment assets that generate a cash flow.

For example, when you own a federation,

the sessions are holidays in Hawaii.

Car purchases, insurance,

and repairs are all expenses of the company.

Medical expenses are surcharges of the company.

Most restaurant meals are also part of the per diem.

The important thing is to make it legal in pre-tax dollars.

b. Measures to avoid lawsuits:

We live in a contentious society

The rich hide much of their wealth with means such as unions and credits to protect their wealth.

When someone sues a rich person,

they often encounter many layers of legal defense,

and often they find that the rich person really has nothing.

They control everything but own nothing.

And the poor and middle class people try to own everything

and leave it in the hands of the government or those who like to sue the rich.

We strongly recommend owning a federation of your own

among your assets as part of an overall financial strategy.