Becoming wealthy has never been easier in America. However, feeling comfortable as a wealthy person on the other hand, has never been tougher. The pandemic has created a K-shaped recovery where the investor class has widened the gap between the working class. This widening gap is why I’m a big proponent of practicing Stealth Wealth.
The investor class crushed it in 2020 with the S&P 500 up over 16% and the NASDAQ up over 45%. Meanwhile, millions of people lost their jobs or were long-term underemployed. To be open about your income and wealth gains would be completely foolish when so many people are hurting. Instead, if you are rich, it’s much better to convince people you are middle class. This way, when the revolution comes, you will be spared.
Further, just look at how the government goes after your money. The government taxes you based on income and much less so on wealth. Taxes are likely going up under Joe Biden as well. Therefore, stealth wealth is paramount.
Stealth Wealth To Avoid The Government
For example, once you make much more than $250,000 a year, you will face an abundance of taxes or tax phaseouts: Medicare tax, AMT, deduction phaseout, credit eliminations, education tax, Net Investment Income tax, etc. With Joe Biden as president, he has promised to raise taxes on households making over $400,000 a year.
However, you can pass on at last $11.7 million per person in wealth, tax-free to your heirs in 2021. This sounds like a lot of money, however, you already got taxes on the $11.58 already. So don’t think the high estate tax threshold is really a great benefit.
Stealth Wealth To Avoid The People
If the government doesn’t get you, regular citizens will. Who did you cheat or rob to get to where you are? Is the common attitude among those who feel left behind. This is a real problem for those who want to make it big in the land of dreams and hand guns.
Freedom is one of America’s greatest attributes. Yet, if you go too far on the income curve you’ll start feeling like a prisoner to society. Finally, hundreds of millions of Americans know what losing freedom is like due to months of shelter-in-place to combat the coronavirus pandemic of 2020.
Despite the rich giving more to charity in one year than many others will give in their lifetimes, people will protest their wealth and hate them forever. Despite paying more taxes each year than what the median household makes, the rich person will be demonized for not paying his or her fair share.
Class warfare is no fun, even if you do have the financial means to own a bazooka.
Practice Stealth Wealth
Most readers here are ambitious folks who want to improve their financial health. Thanks to disciplined savings and investing habits, in another 10 years, I’m sure everybody is going to be that much wealthier, if not millionaires.
But once you get to where you are going, you’ll wonder what’s next. Never lose site of the fact that it’s really the journey to financial independence that’s most rewarding.
When society turns their back on you for being successful, just recollect on all your struggles and take a deep breath. Be proud of your accomplishments because you know you’re not just doing it for yourself, but for your family as well.
You don’t have to be ashamed for not being the dumb ass in high school who thought it was cool to skip class every week to smoke weed. You shouldn’t feel bad that you worked summer internships during college while your buddies went off to play. And you should certainly not feel embarrassed by your frugal habits and smart investments once you found a job.
If you’re getting up at 5am every morning to make extra income before work, good on you! Feel proud of working more than 40 hours a week and not complaining why you can’t get ahead.
It’s OK To Be Secretly Proud Of Your Achievements
Unfortunately, society has a fantastic way of discrediting your achievements. “Nobody is self made,” and “You didn’t build that,” are my two favorite retorts. Just try taking yourself completely out of the equation and see where that logic goes when there’s nobody to think, dream, and execute. When you are outnumbered, resistance is futile. You must blend in and rage with the rest of them.
With the below suggestions you’ll be able to better walk amongst the shadows without fear of retribution any longer. Your family will be more guarded from bullies lurking to recondition your children every chance they get.
Once you finish reading this post, never speak of its matters beyond your immediate family and friends again. We’ve got to protect our own little community on the web.