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Robert Kiyosaki has up-dated his seminal "Rich Dad, Poor Dad" teachings for 2018.
Learn Change and Adapt ?????
@DL, Good find. I like the re-brand of S as 'smart'. A subtle dig at the expansion of universities during the last few years?? I must say that very few of my students in Accounting say they want to own a business or be a professional investor. They nearly all say they want a high-paying job! Back in the 1980s the options would be answered approx half and half, so it is a marked trend towards 'security' and 'employment'. They've bought that dream imo via the Govt policies in our schools over the last 20 years; teaching to the test; don't think; don't be creative; just concentrate on your grades and results. I wonder where all these 'high-paying jobs' are and will come from in future, as robots move in?
RDPD is so much more than the hum drum mechanics of what structure you hold your assets in
Jonathan Clarke. http://www.buytoletmk.com
I think it will work via company
But the Taxation side is not as straight forward or as flexible as personal BTL
I think its more expensive too accountancy Loans ect ect
It will work an investor sticks to PRA limits
If your a HRT and want income an investor will pay around 50% Tax if they require an income
Not sure this is the case but bearing in mind the issues of pulling out income tax effectively from a company; is it worthwhile being a HRT!?
To me it seems that you can can get into BTL as much as you like even if you are a HRT providing you invest via a company set up.
Yes you will be able to pull a very limited amount of income tax effectively out of the company.
I suppose investor LL just have to accept that they could have a fantastic income earning and CG growing property investment portfolio; just that they can't get at the full income until retirement!!
So a massive case of delayed gratification!!
But still worthwhile being a HRT WAGE slave know that you could retire early with the big corporate pot.
Also working the system as you do with investing in pensions etc.
I guess the new dream is not financial freedom during a normal working life but financial freedom possible at age 55!!!
That still makes the whole dream worthwhile.
OK you have to live most of life on the wave slave route .
But knowing at 55 you could achieve that financial freedom is still a good story.
If you had told be 20 years ago I would not be able to get at my property income until 55 I would still have considered BTL worthwhile .
Perhaps the way the dream of BTL is sold needs to be slightly adjusted.
But to me it is still worth a dream attempting to achieve.
A massive accessible pension at 55
Sounds good to me.
I can not disagree with you Paul
What your saying is investment via a Company Is a good way to retire from 40Hrs a week at age 55
But its not good if you need an income and your still working
I actually consider that investing as a corporate LL could enable people to make different work/life balance choices.
If you know you are going to have the chance to retire with a large pension income then perhaps the sort of things one does during a normal working life doesn't need to be so money driven as you know you will not need to keep earning ever higher income as your portfolio is exponentially earning more and increasing in CG.
I'm sure there are many HRT wage slaves that would love to do something that doesn't necessarily bring in the same sort of money if they knew they had that pension pot awaiting them at 55.
Chasing the money is usually required because it is needed for future life.
Property investment could well be the financial release that many need to get off that hamster wheel of chasing enough money.
We could see the HRT becoming a BRT doing something they want to do rather than being forced to do because of the money.
We see HRT from the City choosing to become teachers etc
Life is more than just the money.
Company property investment could be a way out for the HRT.
It might also ease rent pressures as LL might not be so demanding taking into account they are looking at income 30 hears hence.
It seems to me you should try and get your property portfolio as early on as possible .
Then discover what you want to do until age 55.
I consider that quite a liberating prospect .
Perhaps the GRQ Gurus need to rejig the offer!!
@JC, Yes. The quadrants model is useful at directing attention at the different tax treatments of how you earn your cash, but the RDPD concepts of education, personal development, taking responsibility for your income, recognising your money habits apply in a ltd co structure. The underlying message of 'use debt' 'take your tax advantages' 'find a way to afford what you want' 'your home is not an asset' these all apply in a ltd co structure.
As to the increasing taxes on assets- it was inevitable after the Govt introduced QE in 2008 to pump cash into the economy to save the banks!. The cash went into assets; those of us who saw what was happening (i.e. followed the RDPD model of looking at the business behind the business) increased our property portfolios and have enjoyed asset price gains. Now those gains are being targeted for tax. Even with the S24 I expect to come out (slightly) ahead of where I would have been if I had done nothing since 2008
So, I for one am still studying and following the RDPD model as a guide to my investing.
I was giving more thought to the stratergy this morning
I can see the RDPD working to build stratergy of wealth
where I see the issue which is in two parts when the Landlord comes to retire
They could sell the assets and make a profit and the profits would be taxed on Corporation rates which is 19%
For the Landlord to remove the profits further tax would be required
If the Landlord is a Basic Rate tax payer at the time and took the profits via dividend it works great 19% corp 7,5% Dividend tax 26.5% which is still higher than the basic rate tax of 20% if they
had invested in person
If you look at a HRT its 19% corp plus 32.5% which is 51.5% which is higher again than it would have been if the Landlord had invested in there own name ie 40%
So Income is taxed higher via a company
If your paying HRT and sell up you will lose over 50% of your assets value
your dammed if you do dammed if you don't
If Labour comes to power Corp tax will rise and that makes the figs worse
I still come back when I compare is it really worth investing for such a highly taxed asset class
and don't forget its not an armchair investment without risk from more govt changes
It saddens me to say this but I wont invest in more property with the risks and the taxation so high
If I were to buy houses today it has to be for cash
``I was giving more thought to the stratergy this morning
I can see the RDPD working to build stratergy of wealth``
Hmm - thats not what you been saying though over the last few months DL
You kept saying to me RDPD didnt work now, its old hat, I was living in the past etc etc
Glad you have seen the light though and done your 2nd U turn this week
You delayed my gratification for point scoring over you and I thank you for that :-)
It Can work for a Landlord if they are working and an HRT for maybe early retirement
But its not the investment it was JC