• Protection from lawsuits
We live in a litigious society. Everybody wants a piece of your action. The rich hide much
of their wealth using vehicles such as corporations and trusts to protect their assets from
creditors. When someone sues a wealthy individual, they are often met with layers of legal
protection and often find that the wealthy person actually owns nothing. They control
everything, but own nothing. The poor and middle class try to own everything and lose it to
the government or to fellow citizens who like to sue the rich. They learned it from the Robin
Hood story: Take from the rich, and give it to the poor.
It is not the purpose of this book to go into the specifics of owning a corporation. But I will
say that if you own any kind of legitimate assets, I would consider finding out more about the
benefits and protection offered by a corporation as soon as possible. There are many books
written on the subject that will detail the benefits and even walk you through the steps
necessary to set up a corporation. Garret Sutton’s books on corporations provide wonderful
insight into the power of personal corporations.
Financial IQ is actually the synergy of many skills and talents. I would say it is the
combination of the four technical skills listed above that make up basic financial
intelligence. If you aspire to great wealth, it is the combination of these skills that will
greatly amplify your financial intelligence.
In summary:
Business Owners with Corporations
1. Earn
2. Spend
3. Pay Taxes
Employees Who Work for Corporations
1. Earn
2. Pay Taxes
3. Spend
As part of your overall financial strategy, I recommend that you learn about the protection
that legal entities can provide for businesses and assets.
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