Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Coinbase vs Binance for Bitcoin, Ethereum Crypto Trading & Investing During Bear Market 2021 - 11th Jun 21
Gold Price $4000 – Insurance, A Hedge, An Investment - 11th Jun 21
What Drives Gold Prices? (Don't Say "the Fed!") - 11th Jun 21
Why You Need to Buy and Hold Gold Now - 11th Jun 21
Big Pharma Is Back! Biotech Skyrockets On Biogen’s New Alzheimer Drug Approval - 11th Jun 21
Top 5 AI Tech Stocks Trend Analysis, Buying Levels, Ratings and Valuations - 10th Jun 21
Gold’s Inflation Utility - 10th Jun 21
The Fuel Of The Future That’s 9 Times More Efficient Than Lithium - 10th Jun 21
Challenges facing the law industry in 2021 - 10th Jun 21
SELL USDT Tether Before Ponzi Scheme Implodes Triggering 90% Bitcoin CRASH in Cryptos Lehman Bros - 9th Jun 21
Stock Market Sentiment Speaks: Prepare For Volatility - 9th Jun 21
Gold Mining Stocks: Which Door Will Investors Choose? - 9th Jun 21
Fed ‘Taper’ Talk Is Back: Will a Tantrum Follow? - 9th Jun 21
Scientists Discover New Renewable Fuel 3 Times More Powerful Than Gasoline - 9th Jun 21
How do I Choose an Online Trading Broker? - 9th Jun 21
Fed’s Tools are Broken - 8th Jun 21
Stock Market Approaching an Intermediate peak! - 8th Jun 21
Could This Household Chemical Become The Superfuel Of The Future? - 8th Jun 21
The Return of Inflation. Can Gold Withstand the Dark Side? - 7th Jun 21
Why "Trouble is Brewing" for the U.S. Housing Market - 7th Jun 21
Stock Market Volatility Crash Course (VIX vs VVIX) – Learn How to Profit From Volatility - 7th Jun 21
Computer Vision Is Like Investing in the Internet in the ‘90s - 7th Jun 21
MAPLINS - Sheffield Down Memory Lane, Before the Shop Closed its Doors for the Last Time - 7th Jun 21
Wire Brush vs Block Paving Driveway Weeds - How Much Work, Nest Way to Kill Weeds? - 7th Jun 21
When Markets Get Scared and Reverse - 7th Jun 21
Is A New Superfuel About To Take Over Energy Markets? - 7th Jun 21
Why Tether USDT, Stable Scam Coins Could COLLAPSE the Crypto Markets - Black Swan 2021 - 6th Jun 21
Stock Market: 4 Tips for Investing in Gold - 6th Jun 21
Apple (AAPL) Summer Correction Stock Trend Analysis - 5th Jun 21
Stock Market Sentiment Speaks: I 'Believe' We Rally Into A June Swoon - 5th Jun 21
Stock Market Russell 2000 After Reaching A Trend Channel High Flags Out - 5th Jun 21
Money Is Cheap, Own Gold - 5th Jun 21
Bitcoin and Ravencoin Cryptos CRASH Bear Market Buying Levels Price Targets - 4th Jun 21
Scan Computers - How to Test New Systems CPU, GPU and Hard Drive Stability With Free Software - 4th Jun 21
Hedge Funds Getting Bullish on Gold - 4th Jun 21
THERE ARE NO SOLUTIONS When the Media is the VIRUS - 4th Jun 21
Investors Who Blindly Trust the ‘Experts’ Will Get Left Behind - 4th Jun 21
US Stock Market Indexes Consolidate Into Flagging Pattern – Watch For Aggressive Trending Soon - 4th Jun 21
Microsoft (MSFT) Stock Trend Analysis - 3rd Jun 21
No More Market Bloodbath – Beyond Cryptos - 3rd Jun 21
Bank run, or run from the banks? - 3rd Jun 21
This Chart Shows When Gold Stocks Will Explode - 3rd Jun 21
The Meaning Behind Gold’s Triple Top - 2nd Jun 21
Stock Market Breakout Or Breakdown – What Does The Next Big Trend Look Like? - 2nd Jun 21
Biden’s Alternate Inflation Universe - 2nd Jun 21
What You Should Know Before Buying Car Insurance - 2nd Jun 21
Amazon (AMZN) Stock Summer Prime Day Discount Sale - 1st Jun 21
Gold Investor's Survival Guide - 1st Jun 21
Silver and Copper to Benefit from Global Electrification Push - 1st Jun 21
Will Gold Shine Under Bidenomics? - 1st Jun 21
Stock Market Buy the Dip, Again?! - 1st Jun 21
Stock Market Consolidation Ahead - 1st Jun 21
Stock Market Summer Correction Review, Crypto CRASH, Bitcoin Bear Market Initial Targets - 31st May 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

How to Preserve Your Family’s Wealth

Personal_Finance / Taxes Jun 23, 2015 - 12:02 PM GMT

By: Investment_U

Personal_Finance

I remember the scene well. It was the middle of drizzly, cool morning when the hum of the floatplane’s engine echoed through the mountains. The plane circled overhead once and landed on the strip of saltwater in front of us.


Once the plane’s pontoons were resting against the dock and the motor was quiet, the back door of the tiny Cessna opened.

“I hope this is worth it,” the billionaire stepping out muttered.

He’d flown to a remote part of southeast Alaska to meet with us. He was there - just for the day - to talk about a deal. He’d fly out by dark.

This man had his own money, but he married the right gal. Her maiden name was Walton.

And now he was with us, looking to add to his wealth.

It’s no secret how the Waltons made their money. There’s a Wal-Mart in every big town. But few folks truly understand how they’ve managed to grow and protect their wealth.

On our journey to unleash liberty through wealth, it’s vital to understand this simple trick.

It will take only an hour or two of your time, but when you make the move, you’ll instantly join the likes of Bill Gates, the Waltons and countless other successful investors who understand the only way to overcome mediocrity is to take wealth creation seriously.

It means being smart about building and protecting your wealth. In the case of the Waltons, it’s about funneling wealth through a family LLC.

It’s a simple concept that any investor can use.

iuox.display(71);

There are several advantages to a family LLC - like the ability to pool money, tax savings and simpler wealth transfer between generations. But the key to it all lies within the framework behind the LLC, known as the operating agreement.

With a smart operating agreement, you can find immense protection that you wouldn’t be able to get outside of a corporate structure. For example, you can keep family members from selling their shares of the LLC without permission of the family. It keeps money in the pool and ensures an “independent” family member doesn’t waste his wealth. It also adds protection in the case of a divorce.

Even better, you can limit distributions. In our litigious world, this is a vital idea. It means if one member of the family gets into legal trouble, his assets are protected within the LLC. With the right operating agreement, it’s very difficult for creditors to pull assets from the LLC.

That’s huge... and it’s certainly saved the Waltons countless dollars.

Some of the other advantages are more familial, but are equally important. The LLC structure forces a family to discuss their assets and work together to build them. It also allows the members to explore options and agree on how their money will be invested. You can even set it up so each member has to make regular contributions to the fund.

What’s best though is the structure creates a conduit for financial literacy. It ensures the next generation of investors is aptly prepared for its responsibilities and that it has a sense of the family’s financial legacy.

That idea is quite apparent in the Walton’s family LLC.

Three times a year, Sam Walton’s descendants gather to discuss and vote on how they will manage their fortune. They watch presentations from officials at the companies they own (they have a stake in a whole lot more than the retail stores) and they discuss, as a family, where to head next.

As we celebrate Father’s Day, I find myself pondering the legacy I’ll leave my children. I urge you to do the same.

If you haven’t made the move already, explore the idea of creating a family LLC for your investments. You can set one up online in about an hour.

If you’re a father, it’s a way to twist the ties of tradition. It’s your chance to give an invaluable Father’s Day gift to your children.

It’s a gift that will span generations.

Good investing,

Andrew

Source: http://www.investmentu.com/article/detail/46094/setting-up-family-llc-how-to-preserve-your-wealth#.VYlXQE3bK0k

http://www.investmentu.com

Copyright © 1999 - 2015 by The Oxford Club, L.L.C All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Investment U, Attn: Member Services , 105 West Monument Street, Baltimore, MD 21201 Email: CustomerService@InvestmentU.com

Disclaimer: Investment U Disclaimer: Nothing published by Investment U should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Investment U should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Investment U Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in