How America Screws the 99% | How to Not Get Screwed.

this could be one of the most profitable videos you watch on youtube hey everyone me kevin here i just spent 15 hours preparing new lectures in my psychology of money and a stock investing program when i realized wow america screws the 90 america basically keeps the 99 poor on purpose while rich people get all of the benefits but this video is to expose a lot of the dirty secrets for two simple reasons number one i want you to get pissed off because you will when you hear these things and don't take it out on me i'm just the messenger instead when you get pissed off i want you to go find a piece of paper pause the video and write down some of the ideas because again this could be the most profitable video that costs you no money which is kind of like making an infinite return on your money but write down some of these things and go wow how can i do some of that because everybody watching this video can do some of these things so there is something in this video for you even if you've heard some of the earlier on things just wait until i get to the middle and end of the video it gets better and better and better but anyway write down some of these strategies and stop giving the government more money because the reality is the government screws the 99 and if you are waiting for that 1200 stimulus check they keep dangling in front of us then you absolutely need to write down some of these ideas and figure out wow how can i get ahead doing what the rich people do we've got 15 items let's get into this first poor people work a job and spend their take home money let's say oh i got a phone or i got a new laptop you take the money that you earned the government takes their taxes out of it and whatever is left you use to pay your cell phone bill and your computer rich people do things differently they say i have a side business this side business lets me write off expenses even if i'm losing money on this side business but as long as they're necessary and ordinary i get to write them off and get a tax check basically tax deduction for that money so let's say you spend thirty percent in taxes ordinarily if you spend a thousand dollars on a computer and your cell phone bills in a year or more or less whatever you gotta take a thousand dollars out of your bank account and you don't see any of that back rich person spends a thousand dollars on a computer and their cell phone bills they get 300 back when they file their taxes because it's called a business expense and anybody can start a side hustle even if it's a money losing side hustle and take advantage of business deductions as long as you have an intent to make money which brings up number two poor people call stuff they do hobbies rich people call everything a business and another additional stream of income or potential future stream of income see that's a very important difference if you make youtube videos let's say you took my your course on how to make youtube videos and make money from making youtube videos and growing your channel that's linked down below and you treat it like a hobby that is you spent two thousand dollars on cameras and lights and tripods and all this stuff but you treat it like a hobby and you tell yourself this is just a hobby it's not a business well that two thousand dollars you spent gone out the window until you finally start making money but you're not getting anything from the government rich people say i'm gonna try that idea but i'm gonna take that two thousand dollars and call it a business expense for my new startup and that two thousand dollars is probably going to translate to six hundred dollars coming back to me from the irs thanks to tax write-offs so don't call things hobbies like poor people do instead call things a business like rich people do that means if you have a cooking show the pots and pans that you're buying would be business expenses if you actually intend to make money from that business by having a show on youtube think about it number three poor people say oh sweet tax refund day i'm gonna buy a new tv rich people say tax refund oh man i messed up i just gave the government a free loan i'll adjust my w-4 google at irsw4 so that way i take home more money every month by adjusting my dependence up even if i don't have more children you can you can make your dependents whatever you want and instead i'll invest that money into either more business expenses so i get more write-offs or stocks throughout the year so i get more rich folks if you are taking a tax refund you are screwing yourself in two ways one you are tricking yourself into feeling rich for a few weeks and then blowing your money on tvs or things that you don't need and you're giving the government a free loan don't give the government a free loan bad government free loan they like it they're like yes yes sure we'll give you a tax refund it's just getting your own money back government screwing you number four rich people try to call everything they do and this is similar to number one but don't worry we got some really creative things coming up here but we've got more to talk about here rich people try to call everything literally everything they do a business this is dangerous and can be dangerous so it's a little iffy you know i'm not a cpa so talk to a cpa i can't give you tax advice but this is what rich people do okay just being clear here donald trump wrote off his hair styling fees for about seventy thousand dollars and ivanka trumps one hundred thousand dollars of hair styling fees during the apprentice why because donald trump said that he has turned himself into a brand and therefore maintaining his hair and his appearance is a necessary and ordinary part of his business and folks here's the thing even if the irs comes in it says ah come on dude that's a little gray like you shouldn't really be deducting some of that stuff the worst thing the irs does if you take a deduction for something and then the you know one percent chance that you get audited the irs says bad timmy bad donny donny you shouldn't have taken that right off you shouldn't have done that you pay a little bit of a penalty and you pay the tax on it it's not that big of a deal now on the other hand if you hide income you're a criminal and you go to jail that's bad that's tax fraud see the difference see what like the difference between rich person and criminal is it's pretty great i'm telling you like think about this stuff anyway and i'm not saying break any laws i'm just this is just simply rich response how america screws you that's all i'm doing i'm not encouraging anything illegal don't do anything illegal do not do anything illegal uh but uh you know here's just an example of what some rich people like to do let's say some dude takes a ten thousand dollar vacation with his family to ibiza and uh he is a day trader so he shares photos on instagram of him with his laptop day trading yeah look at me i make money while i'm vacationing in ibiza i set my call options and my boom now all of a sudden this person might be promoting their day trading course or their day trading book or whatever it is they're selling the lifestyle of a day trader which might be a necessary and ordinary advertising expense for a day trader and boom all of a sudden this person just wrote off a ten thousand dollar business expense against their income whereas the poor person spends ten thousand dollars on vacation they saved up for and they don't get any discount from the government again poor people get screwed rich people get richer number five poor people oftentimes are more likely to be tenants rich people and i know this one gets debated a lot but listen to some of the benefits rich people buy real estate to lose money and uh nobody wants to lose money right but right folks remember i said lose money and there's a very important distinction see losing money is stupid but losing money is smart quick example let's say you bought a four unit rental property and you live in one of the units because you buy real estate under market value like i teach in my real estate investing course your tenants all together pay you a thousand dollars each that works out to thirty six thousand dollars a year okay well usually if somebody writes you a check for thirty six thousand dollars a year you have to pay taxes on that money it would be illegal not to right right but rich people know they can take a host of deductions against that income property taxes insurance maintenance management utilities reserve money they spend interest unlimited amounts of interest on their rental properties all a tax write-off but on top of those actual expenses they also get to tell the irs oh but irs i'm depreciating the property the property it's losing value over time which means they could tell the irs they're actually losing money on paper while at the same time they're actually socking away loads of cash paying off their debt every single month with their tenants money and the landlord gets richer and richer controlling an appreciating asset while the tenant pays down the property for them and all of the costs associated with it rich people control assets that go up in value and take advantage of tax benefits when they buy stuff that doesn't go up in value phone business expense real estate man it keeps losing money i don't know what's going on irs instead the tenants have the mentality of oh but landlord i need a new stove it's broken my landlord has to buy a new stove sucks for the landlord i don't have to spend that money it's like a concierge service oh they come in and put a new stove in landlord goes okay no problem here's your new stove for 500 bucks got 50 bucks 70 you call it 75 bucks for the plumber to install it and guess what they do they put that on their credit card to get the three-year extended warranty on it they get the credit card points and then they 179 section of the tax code write that sucker off and then guess what they just got another write-off and they're laughing their way to the bank because you just gave them another opportunity to shelter income while they improved their property and took discounts on that as well i'm telling you folks america is not what it appears if you don't know the game once you know the game you start going holy crap i didn't know how much of a difference there was between the poor people and the rich people and when you put it in a list like this i'm like oh my gosh i gotta share this video yeah cause folks i'm telling you every single day i see more and more of these loopholes and i'm like of course there's that for the rich people and of course the poor people getting screwed but the reality is 99 everybody can take a lot of these benefits but we're only on number six folks number six poor people are like oh i don't want to apply for a mortgage because it hurts my credit score i want to try to have a perfect credit score or they don't care about their credit score at all which is even worse don't even get me started on savings accounts savings accounts are another poor people scam rich people don't save rich people invest but that's just a bonus freebie we could talk about that one all day long in a different video when it comes to credit rich people are like dude i don't care about my credit score as long as there's a seven and a four in the front my score does not matter to me that is as long as it's at at least a 740 credit score doesn't matter you get the best pricing and anything above that is a waste so i don't care if i've got a 760 a 741 or an 820 i'm going to apply for loans that allow me to control wealth and assets and grow my wealth every single year very important it protects you against inflation to control assets inflation is bad if you save money but it's really a good thing if you owe a little bit of debt and mortgages usually the best kind of loans like a 30-year fixed rate mortgage and you know you invest in assets number seven poor people say wow our family of four makes fifty thousand dollars a year yeah a rich person who also makes fifty thousand dollars a year so this is how you can here's a difference making the same amount of money here okay the rich person says i make fifty thousand dollars a year with my family as well but i run it as an s corporation so instead of taking fifty thousand dollars in income i pay myself ten thousand dollars a year in payroll and i take forty thousand dollars a year in distributions so i save six thousand one hundred twenty dollars per year in payroll taxes and because my business nets and makes money i can write off my health insurance premiums something only people with a business when they're self-employed whether it's a side business or a main main business you have to be self-employed and making income you can write off your health insurance premiums so if you're working a job and you have to pay your own health insurance and you don't have a side gig you're not able to write off your health insurance premiums rich people are getting tax deductions on their health insurance premiums again folks rich versus poor and at the same time the people with this s corporation and or the side hustle with that fifty thousand dollars of income they're gonna say and this uh this computer that i just bought or this phone that i just bought uh instead of writing it off in full in one year i'm gonna write it off over three years so that way i depreciate that instead of writing it off all in full and i can still qualify for business loans and real estate loans the tricks are endless heck i want to get a new car i'll finance that with my business credit score so it doesn't hurt my personal credit score or be considered a debt when i go qualify for loans because it's part of the business rich people versus poor people and if i lost you in any of these so far let me simplify it there are endless endless things to talk about this and we've got seven more things to talk about here but i'm also releasing at least three hours worth of content in my psychology of money course linked down below explaining all of these hacks in detail over the next week and we're not even close to done here number nine poor people say i'm gonna buy a new thirty thousand dollar car rich people say i'm gonna buy a thirty thousand dollar car that weighs over six thousand pounds and that i'll use mostly for business or at least 50 in business so that way i can take a 25 000 year one bonus write-off via section 179 of the tax code saving me well let's see thirty percent of that at least seven thousand five hundred dollars in that first year in taxes or more rich people risk poor people rich people are taking how can i if i'm gonna spend money how can this save me money big differences number 10 poor people say i'm going to donate my closet full of clothing to the salvation army because it's the right thing to do and i'm going to feel good doing it rich people say i'm going to donate my closet full of clothing that's valued at 3 000 and i'm going to ask for a tax receipt and take a picture of all the clothing that i dropped off so that way i could take 3 000 worth of tax write-offs at the end of the year and guess what both people got a god bless you from the salvation army number 11 poor people say hey dude look i just traded stocks and made a thousand dollars rich people say i just made a thousand dollars in stocks and oh i don't want to have to pay capital gains so let me see i've got some losers over here let me offset my win by selling a couple losers and harvest some tax losses to eliminate paying taxes or i'll prevent selling at all so that way i don't have to pay taxes on my assets that have appreciated appreciation when pr when assets go up in value isn't taxed the irs doesn't tax your wealth when your wealth goes up again why rich people get richer poor people you make more money you get taxed every day rich people you make more money in appreciation you don't get taxed you could even do something known as identifying tax lots in your investment brokerage to sell the highest purchases first to minimize your taxes lots of things you can do number 12 rich people say when i'm younger i don't have to go to the doctor much fortunately if you're younger and that's true knock on wood that that's true for everyone and so i'm going to have a high deductible health insurance plan to minimize my health insurance costs that'll allow me to fund an hsa which means i get to write off 3 500 in contributions against my taxes towards my health expenses in the future every single year and this is on top of being able to write off your health insurance premium if you've got a side hustle and wait for it your medical expenses that you pay from that account are not taxed either so here's just an example poor person goes to the doctor gets a 500 procedure boom they just lost 500 came out of their bank account gone rich person says i got an hsa i'm going to put 500 in this account and i'm going to invest it into say tesla stock and oh great now it's worth a thousand dollars let's say well they're first going to get a tax write-off for having put that 500 in that account which means maybe they'll get 150 bucks back about 30 using 30 as the example right so get 150 bucks back now that money is grown in value because they invested it into the hsa which you can invest into any kind of stocks i'll link a really good hsa provider down below by the way anyway now they take the gains on their stock and spend that money on the 500 procedure and they're not taxed again it's literally like combining and gaming the retirement system tax deduction upfront no taxes on gain boom you're making bank anyway my favorite hsa is linked down below if you click that link and open an account they'll actually any money that you fund into it just goes into a td ameritrade and you can invest it into anything you want it's really cool it's so easy to set up go check it out i love that and i haven't pitched that on my channel in like six months but i really should mention that more because it's like really cool you gotta have an eligible health plan though so make sure you have a high deductible health plan anyway number 13 poor people are like my boss lets me contribute 19 500 to my ira but i don't i don't got that kind of money to put aside i don't even want to put aside a thousand dollars rich people are like um hello first of all if your boss gives you any match at all contribute every dime you have because that's literally like doubling every dollar you're contributing depending on the match your employer gives you then rich people who are employees or self-employed do something cool known as setting up a side business that makes money and then they open up a sep ira and they can contribute 20 of their income up to an additional 57 000 on top of whatever the heck your employer gave you so that means rich people who work for say google and who also have let's say a side hustle that makes money they could invest in their employers 401k and their own sep ira and basically invest a ton of money all tax deductible if they want and maximize their employer match and they could even do the additional six thousand dollars via a traditional 401k if you don't have another boss no matter what and you could just roll that over into a backdoor roth boom telling you folks write some of these things down there are endless endless ways to make money here but here's another one people are like oh my gosh i make a million dollars a year and i'm going to get taxed a lot over the next few years maybe uh well there's something cool known as the defined benefit plan where let's say a millionaire runs a business and maybe they spend 500 000 buying computers and business travel and business expenses and all that stuff so then they have this 500 000 of taxable income and then they say hey i'll create a defined benefit plan and i'll put 500 000 250 for my wife and 250 for me you have to pay payroll taxes on this that's okay and we will invest that into our future via a defined benefit plan and the government will give them a big fat 500 000 tax write-off for investing yeah that literally means rich people they don't even they laugh at the six thousand dollars for your traditional ira you go here's a defined benefit plan you can contribute up to 250 000 tax free now obviously at some point in the future when you retire you pay taxes on the withdrawals but you look at that it's like the amount of deductions you could get up front with some of these options in america is absolutely insane poor people are investing without getting incentives for investing rich people are investing and making money investing and getting incentivized to invest it's insane it's not fair then you even have some rich people who just declare whatever angel investment they made a total loss with no expectation of ever getting money in the future and they just take it right off for that number 14 rich people be like i'm gonna invest in real estate to lose money quote unquote and i'm doing real estate so much now that i'm going to call myself a real estate professional oh that means i can literally now write off unlimited passive income losses against my active income poor people be like wait but i thought there was a limit to how much i could write off with real estate depreciation and passive losses rich people be like real estate pro the game's rigged if you become a real estate professional and do 750 hours a year in real estate and at least 50 of your time boom all of a sudden you are writing off unlimited amounts of money via cost segregation and depreciation and you're pretty much paying 750 a year in taxes number 15 research and development credits you're probably rolling your eyes like oh come on how like what who has that well listen to this if you have a side hustle or business that has ever done any of the following you could qualify for some probably research and development credits developed or designs new products or processes products or processes come on like anything could be a process or enhanced existing products or processes okay so i don't even have to come up with my own product i could just make something a little bit better marginally better for my business hmm then i could qualify for r d credits or quote developed or improved upon existing prototypes hmm okay interesting now you're in business and you might be able to write off 20 to 25 plus your minus for research and development credits on top of being able to write off the expense itself yeah boom now you're in business folks this is why you might want to check out some of the courses i have down below because when it comes to making money i spend all day long trying to find out all of these things when it comes to how to make money efficiently in real estate how to make money efficiently with stocks and the psychology of money and how to make money on youtube thank you so much for watching if you have appreciated this please consider sharing it and folks we'll see you next time [Music] you

Channel: Meet Kevin

Views: 409,258

Keywords: investing, money, building wealth, making money, invest, stocks, real estate, real estate investing, retirement, retirement accounts, defined benefit plan, tax deductions, business expenses, IRS section 179, cars, leases, landlords, homeownership, missed tax deductions, R&D credits, HSA, IRA, individual retirement account, s-corp, corporation, payroll tax, w-4, tax refund, necessary and ordinary, taxes, save taxes, save income taxes, rich vs poor, money habits of rich vs poor, credit, wealth

Id: 7Rt3ZkmYFtM

Length: 23min 12sec (1392 seconds)

Published: Sat Oct 17 2020