Welcome to the weekend everyone!
Earlier this week, a group of folks (I have a hunch they are mostly young and well-meaning), published a bombshell revelation:
“The Secret IRS Files! Trove Of Never-Before-Seen Records Reveal How The Wealthiest Avoid Income Taxes!”
The bolding and emphasis in the above are entirely mine.
If you are so inclined, you can read this “bombshell” here but the below picture tells you everything you need to know:
Now, there’s a reason why I am being semi-sarcastic here, but it’s not the one you might have in mind.
What always shocks me when it comes to these kinds of “revelations” is the absolute ignorance the vast majority of people seem to have when it comes to taxes.
And, of course, the absolute mastery the really wealthy people (and their accountants) possess on the same topic.
Yes, we live in a world where governments tax income, not wealth (for now, anyway).
There are good reasons for it, too.
Imagine being served with a tax bill because your house has gone up in price over the past year – all while you were unemployed!
But minor points like that tend to escape the sensationalist headlines and articles.
Now, to be very clear, I am all in favour of re-jigging the tax code.
Not least because I am in the 45% tax bracket myself, and I know that any income tax increases will have an outsized, negative impact on my own “bottom line”.
I also happen to know a thing or two about taxes and how big tech (and other companies) pay negligible tax rates by taking advantage of tax-friendly jurisdictions, complicated transfer pricing policies, and a host of other methods.
But in yet another “shocking” revelation, I also know that wealthy people (and corporations) have a way of influencing tax policies to their advantage.
So I am not holding my breath – and I suggest you don’t either.
Yes, making the big bucks is very important.
In the meantime, you can (and should) form an opinion on the right tax policy – and vote for the politicians who share your view.
But whatever you do, please don’t rely on them for your financial well-being.
As history shows, that’s not a good idea.
With that in mind, let’s jump into this week’s collection of posts on building, retaining, and enjoying your wealth.
Have a wonderful weekend all!
From Yours Truly
Let’s kick off with one of the best-written personal finance posts I’ve read in a long time:
“Remember when stocks traded on fundamentals? Or at least they traded based on people’s perceptions of the fundamentals.
What do they trade on today? It was always a popularity contest.
Now it’s a three-ring circus.”
Guess what: Your Father’s Stock Market Is Never Coming Back – Josh Brown for Fortune
The Purpose Of Frugality Is To Get Your Stake Money Together – The Escape Artist
Worried about the rise in interest rates? Ben Carlson offers a contrarian view:
Why Interest Rates Have To Stay Long For A Very Long Period Of Time – A Wealth Of Common Sense
Can one get to a point where building wealth takes a backseat to other priorities in life?
As I near the 4-0 mark, I am acutely cognizant that the next 5-7 years is the period of time during which my wife and I are still everything to our children.
Their superheroes. Their best friends. Their guardian angels.
And so, I’ve been grappling with a way to design a life that will allow me to balance earning and parenting.
As it turns out, I’m not the only one. The ever-poignant Indeedably offers his perspective in Ridiculous.
New Blogger Feature
Cutting Through Chaos isn’t technically a new blogger.
On the contrary, I’ve been enjoying his posts for a while now (and he is one of the few folks who made it onto my blogroll).
Hence, I was quite excited to see that he is back to writing after a bit of a self-imposed hiatus.
This is a family that isn’t afraid to live an awesome life on their own terms – a true inspiration for all of us.
Here’s a fantastic post on how A Sabbatical Could Change Your Life
Can one really enjoy life knowing that we are all going to die anyway?
As it turns out, it’s an emphatic yes.
“Research suggests an awareness of death can help people identify and nurture the things that will lead to a more meaningful and healthier life.”
Prioritizing Goals With Death – Incognito Money Scribe
And while we are on the topic, here’s a great one on how to get the most out of the time we do have:
How To Be Productive At Work – Washington Post
As we are coming out of lockdown, many of us are suddenly realizing our friendships aren’t as strong as they used to be.
A year of being holed up indoors, with digital-only contact, will do that.
Here’s some good advice to help reinvigorate old friendships – and establish new ones:
A Common Habit That Costs Us Friends – Raptitude
As always, let’s finish off with some top-notch books on life, money, and happiness:
How To Get Rich – Felix Dennis
Liar’s Poker – Michael Lewis
More Money Than God – Sebastian Mallaby
Happy weekend all!
P.S: Attention New Bloggers:
if you are a personal finance blogger who hasn’t yet been featured on Greatest Hits, I would like to hear from you.
Please send an email to bankeronfire at gmail dot com with a blog post you would like to submit for consideration.
The key criteria for inclusion are as follows:
(i) Content that will be interesting or beneficial to the readers of this blog (I hope you will forgive me for reserving judgment on this one)
(ii) Your blog must be at least 6 months old, with regular posts. Too many bloggers flame out early, and I don’t want the readers here to follow a bunch of dead links.
I look forward to hearing from you.
Note: the above post may contain affiliate links. You can read up about our affiliate policy here.
About Banker On Fire
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Banker On FIRE is an M&A (mergers and acquisitions) investment banker. I am passionate about capital markets, behavioural economics, financial independence, and living the best life possible.
Find out more about me and this blog here.
If you are new to investing, here is a good place to start.
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