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Are You a Member of the 40-40-40 club?

Updated on November 12, 2015

Discover How to Exit the 40-40-40 Club Once and For All...And Start Enjoying Your Life

Do you want to know how to start enjoying your life but don’t know where or how to start?

Are You Stuck In the 40-40-40 Club?

Do you know what the 40-40-40 club is?

Are you a member of this club, and what can you do to get out of it once and for all?

The 40-40-40 club is the term associated with the group of people who work 40 hours a week for 40 years of their life, only to retire on 40% of their average annual income.

It is a club for losers.

Don’t be a part of it.

If you are a club member and want to get out, how can you do that?

Here are some suggestions:

1). Start a home-based business and start generating some additional monthly income.

This type of income is taxed very favourably as you can deduct expenses associated with the operation of your business from home. This results in an immediate reduction in your taxes, the difference which you can either pocket or put back into your business. Job owners or salary earners do not enjoy this type of beneficial tax treatment of their income so you should quickly jump on this to begin receiving favourable tax treatment. In effect, the IRS will subsidize your business to the tune of the tax savings that you will enjoy.

2.) Re-allocate your “bad” debts into “good” debts.

Most people have credit card debts and other non-deductible debts that they are carrying which is not tax deductible and which represents a drag on your income given that it is non-productive.

Did you know that paying off your “bad” debts with good debts can help you re-structure your financial affairs so that the good debt that remains is totally tax deductible. This will give you an immediate tax refund that you can use for productive purposes such as financing the purchase of income-producing assets. This process is simple but requires discipline on your part. First, you make arrangements to pay off your “bad” debts which are credit cards and the like. Secondly, you then re-finance your purchase of income-producing assets by using good debt that is tax deductible. The end result is the same amount of debt, but you have now re-allocated bad debt which is not deductible for good debt which is deductible. And in the process you have created money out of nothing as the IRS subsidizes your financial affairs.

3.) Purchase income producing assets using other people’s money.

The strategy here is to get cash flow on your side.

If you have the ability to borrow on the equity in your home you can put that equity to work for you to help finance the purchase of income producing assets and then deduct the cost of servicing that debt from your taxes. In effect, once again the IRS is helping to subsidize your financial affairs so why not take advantage of this strategy?

If you don’t have the option of using equity you can achieve the same result by using good debt in the form of credit borrowings from a bank. As long as you purchase an income producing property the cost of borrowing is tax deductible thereby reducing your personal investment and making it tax favourable for you.

4.) Review your finances and spending habits.

Bad spending habits keep people in the poorhouse for their entire life.

Review yours and see if you can adjust your borrowings and your spending patterns and habits to achieve greater savings which will help to finance other purchases of income producing assets. Finding the money from your budget to put down on the purchase of your first income producing property will start you on the road to leaving the 40-40-40 club, a club in where people spend their entire lives unwillingly.

5.) Pool your resources with your family.

If you are married and have a family you can explore the option of pooling your resources to amass a down payment for the purchase of your first income producing asset.

6.) Rent out part of your home.

If you have extra space in your home you can convert it into rentable space and earn a monthly income that will increase your cash flow. Monies borrowed to finance the renovations are tax deductible thereby making this option another attractive one to consider.

7.) Move funds from savings accounts into cash producing stocks.

If you have balances in savings accounts you can consider transferring them to stocks of companies that pay dividends. This will increase your income and will also give you favourable tax treatment that dividend payments enjoy.

Time waits for no one. The longer you delay in starting on your journey to exiting this club the more time you are doomed to spend in it.

If you want to exit the 40-40-40 club you need to take pro-active steps sooner rather than later.

Now, if you are a Gen X'er, you may not be ableto relate to the Boomers issues.

How do the Boomers compare with the Gen X'ers?


Boomers Statistics

1. Born between 1946-1964

2. 773 Million and reducing

3. Wealth shift in trillions of dollars

Boomer's Quiz

Are you a boomer?

See results

Boomers are:

1. Cute

2. Old

3. Grey

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