Tuesday, October 19, 2010

How do rich people safeguard their money?

Here are the ways the rich safeguard their money:
  • Warren Buffett - invest in stock. He keeps the good company share over long term, never pay dividend (in US, dividend payment will be subjected to income tax at the shareholder level - if Warren Buffett declare dividend from Berkshire Hathaway, he probably will be the single largest income tax payer in the history of USA)
  • Setup a trust fund - let the professional run and grow the value.
  • Robert Kiyosaki's Rich Dad taught him that rich people do not let themselves be run over by corporations, but instead they use the big corporations safeguard their money and assets.
  • In view of uncertainty in economy, the super-rich buy gold by ton. Click here for report.
  • A lottery multi-millionaire, when asked how he takes care of his money, he said he had a team of accountants looking after it, and a second team of accountants checking on the first team without their knowledge.
  • Get all the insurable-assets insured.
  • Invest in Property. It is tangible and solid. Property may appreciate and able to give return (rental income).