The Secret of Becoming Wealthy

The Secret of Becoming Wealthy

Let us today discuss the example of 78 years old lady Mrs.Merry. Merry died just 1 year before leaving behind the wealth of $ 10 Million. She was living on her pension money. From the first earning years of her life, she started accumulating stocks in her portfolio and never sold a single stock after that.

Her wealth doubled in just last 5 years before she died. And even after her death, the federal government did not make any money on tax. Do you know why? Because she transferred her wealth to charitable organizations, colleges and churches in the form of assets.

This means that a person is owning $ 10 Million of wealth and government helplessly can’t collect a single dollar of tax from that person. Isn’t it amazing? This is because the wealth of that lady was in the form of stocks and other assets and she never sold their assets. She just bought it and keep it for years.

While what most of the stock traders do? Well, they don’t hold any stock for even a year and that’s why every time they sell stock, they have to pay tax on that transaction. And government makes money.

But the smart people are those who hold the stocks for decades and probably for the rest of their lives once they buy it. And thus, over the time these stocks appreciate very much without paying any tax on its appreciation.

Warren Buffet also buy businesses (Stocks) to keep them. He bought stocks of Cocal-cola, Bank of America & Several other lucrative Businesses in 80s and today still he owns these stocks.