No. of Recommendations: 12
Financial parasites are those that target your money, without really giving something in return. There is a huge network of these parasites, disguised pleasantly with black ties, expensive watches, and confident pleasant behaviors.
Let's discuss how financial parasites have a profound effect on eliminating your wealth. They create traps, that look attractive, but constructed to destroy you. Their job descriptions include lawyers, bankers and financial consultants.
Whilst searching to compound our capital, others are searching to steal from you.
We must be vigilant to avoid being targeted. Parasites should be avoided. Almost in linear proportion, as your wealth increases, you will become surrounded by increased attention from parasites.
You need to understand how to avoid this systemic phenomena in order to preserve your capital.
Also, taxation is fairly often discussed generally, such as how to minimise it, however it is discussed far less in the investment context. The difference between an untaxed 10% return, and a 6% (after tax) return is absolutely enormous after inflation. For example: After inflation of 4%, the untaxed real return above is down to 10-4 = 6%, and the after tax real return is 6-4 = 2%. The difference in this case (if tax could be avoided) is three times more wealth accumulation each year.
Some of these parasites we cannot avoid, but we need to choose the least bad (for example, a currency broker may have much lower currency spreads than a bank, which in turn may have better rates than a lawyer, or worse again - a banking/lawyer partnership).
How do you manage to escape from this system of parasitical relationships?
Let's discuss how to spot them and eliminate them, and ideally remove them at the root so that they cannot attach to you from the start.
By doing this, you might not seem to save a huge amount amount instantly, but over much time avoiding parasites has an enormous positive effect in how your after-inflation, after-tax, capital compounds.
Lady E
