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How To Shield Against Taxes and Protect Your Wealth

This is part THREE of the Perfectly Passive Income series. We’ll be capping off this series with a live class at PerfectlyPassiveIncome.com.

The Security Blanket

I keep one investment as a super secure “security blanket” that not only grows tax free, but it also has an insurance policy baked into it that will leave Esther $3 million if anything ever happens to me. This is a specific type of whole life insurance that grows at a fixed 6% (tax free) and gives a lot of money to my family in the event of a tragedy.

However, my current plan is to live for a really, really long time. At least another 80 years (side note: I plan to die at age 113). Therefore, keeping this money into a long-term fixed asset that grows at 6% does not phase me. When I retire, it will pay me $100,000+ per year just off of the growth, which is a much better retirement plan than the 401k or the IRA.

The best part of it, however, is that I can take the money out if I want, PLUS I can borrow against it (tax free).

Borrowing Against Assets

Using assets to borrow cash is one of the most overlooked opportunities. You can often borrow against investments at 60% – 75% of the value, and put tax free money into your pocket. As a result, BOTH assets continue to grow.

This gets really exciting when you put the borrowed money into real estate, which carries its own tax benefits. By doing so, you can have multiple assets growing and providing tax free income, while also shielding against taxes. That’s how the rich leverage what they have, while also protecting what they have.

Together, these strategies give me a security blanket that will give me consistent better-than-normal retirement returns and protect my family in the event that anything happens. PLUS, it gives me leverage to invest into other areas, and shield against the tax man while staying completely legit.

Want more on this? 

We’re capping off this Perfectly Passive Income series with a free class this Sunday. Register for it here.

Miss the other two videos?
Watch Video One Here: How I Bought A Tesla For Free (almost)
Watch Video Two Here: Where To Invest For Long-Term Wealth and Cash Flow

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