The Ultimate Guardian

What do we do when the society around us breaks down?  Who do we select as our guardian?

Every society has problems as it adjusts to new technology that busts the old boys’ network.  Evolution, revolution and anarchy are just matters of time.

cute dog chuk

One of our guardians is Chuk, a Plott Hound.  We have the normal range of wildlife on the farm as well as an occasional someone roaming around the county.  Though we are very isolated we fear not because we have Chuk and his cohort, Mah, as our guardians.  They (in their humble opinion) let us know even when the crows get too close to the house.

I am continually thinking about my guardians beyond the home, because our threats continually change.  Twenty years ago many of the main threats we face today, did not exist. For example, today many of the richest people in the world derived their wealth from electronic technology.  The world now runs on little 1s and 0s buzzing across silicone chips and are squirted into optical fibers.  The changes in our ways of life have been as profound as those created by railways, cars, phones, TV and airplanes.

This shift has created unimaginable good… and plenty of bad as well.

Electronics can improve the way eat, dress, house ourselves, bank and conduct business, socialize, love and hate.  Electronics can make us better in bringing justice and in creating crime.

Electronics help banks globally coordinate in ways that are good.  We can access funds from a little Florida bank at any ATM in the world. The same technology can be used for bad.  The 12 largest banks in the world, just agreed to pay a nearly two billion dollar fine for rigging credit spreads..

A New York Times article, “Banks to Settle With Investors in Suit Over Financial Crisis” (1) tells how large banks are paying $1.865 billion to settle accusations.  They conspired unfairly to control a derivatives market that stood at the center of the late 2000’s financial crisis.

In 2013, several pensions sued the 12 banks, all the largest ones in the world,  saying they conspired to charge higher prices.

Numerous headlines commenting about the Justice Department expanding investigations of white collar crime shows the government is paying attention.   Or at least paying service.

Someone should pay attention. A Fox News article (2)  says Wall Street companies have paid an estimated $139 billion in fines to U.S. regulators since January 2012 for the subprime and credit derivatives mess.  A spokesman for the Justice Department said: “Our mission here is not to recover the largest amount of money from the greatest number of corporations; our job is to seek accountability from those who break our laws and victimize our citizens”.

Good.   The public is fed up with big business taking advantage of its customers.

Wait a minute, though.  Is government really the right entity to be our guardian?

Another New Your Times article “U.S. Drops Charges That Professor Shared Technology With China” (3) must make us question whether the Feds are the best people to protect us.

The article tells how the Justice Department arrested  Xi Xiaoxing, the chairman of Temple University’s physics department, and accused him of sharing sensitive technology with China.  In the dawn, F.B.I. agents, some with guns drawn, stormed the scientist’s home, hauled him away in handcuffs in front of his two daughters and wife.  The university put him on administrative leave, removed his title and restricted who he could speak to at the school. He was unable to work on a long-running research project that was nearing completion.

There was one little problem.  The government was totally wrong.  Lawyers contacted independent scientists including a co-inventor of the sensitive information. They all agreed in sworn affidavits that the information the scientist had shared was not what the government said.  Oops!

The simple fact is that governments can never keep up with changes in technology.  Business always finds new ways to use loopholes to stay ahead of regulations.

The greatest guardian we can have is a never ending, growing  income.

We are our own best guardians.  We cannot give away the responsibility to look after our own health and wealth.  One way we can use modern electronic technology to create this guardian is by writing to sell.

When we want to turn our passion into profit, it is easier to do so if we know how to write to sell.

We can see an example of how writing to sell protects freedom and helps pursue passions in the life of the late Joy Golden, an advertising executive, who wrote comedy to sell Laughing Cow’s miniature wax-covered cheeses sold in a mesh bag.

A recent NYT obituary (4) tells how Ms. Golden used writing to follow her passion, protect her independence, build her fame and increase her wealth in the face of unfairness.

Her comedy writing caused sales of Laughing Cow cheese to jump 60 percent in markets where the ads she wrote were broadcast and won her five Clio Awards.

She began her writing career creating promotional copy that sold perfumes, clothing and cosmetics, but, she wanted to be a comedian.  She  struggled to break loose because as she told the New York Times, “The cosmetics industry is very serious; it’s like NASA”.

Then her boss insisted she leave New York and open a branch in Dallas, Texas.  She refused and was fired.

This allowed her to write comedy, that became the  Laughing Cow campaign.  This not only gave her independence and increased wealth, the Museum of Television and Radio put several of her Laughing Cow ads in its permanent collection.  Ms. Golden not only enjoyed following her passion but experienced sweet vindication.

The world has changed a lot during the 50 years I have been in business.  Every change has created new opportunity and threats that had not existed before. One fundamental guardian that has provided protection against all the threats is additional income.  That’s why my main activity is writing to sell.


One session at our October Value Investment Seminar will be on how to add value to your portfolio by expanding the time horizon of your investments through writing to sell.

Learn Fun & Profitable Tax Secrets

Imagine this, micro businesses are such good ways to create wealth and reduce tax that even cruises can be tax deductible.

Small family owned businesses have some of the best tax benefits.

Micro businesses have huge tax savings using really conservative strategies.

conrad oertwig

Conrad Oertwig (far right) after a seminar when delegates visit our North Carolina home.

This is why I am delighted that our tax preparer, Conrad Oertwig, who is a master of tax savings information, has agreed to speak at our October 17-18, 2015 Value Investment Seminar.

Conrad Oertwig can assist you on tax matters.  IN FACT THIS FALL, Conrad will be offering a course and personal service on ways that one-person and family business owners can have more cash via tax savings.   Conrad is offering a report on seven ways to put more cash on the table when you earn and is releasing a course on how to save taxes this fall.

Conrad’s report is “7 Secrets to Paying Less Tax… for the One-Owner Business”.  He sent me this note to share with you about the report.

From: Conrad Oertwig

One hard fact of life is that taxes are cash.  It’s a mistake to think of taxes as taxes.  If you want to create more net worth, you need to think of taxes as cash.

How much tax cash are you leaving on the table? Thousands? Tens of thousands?

Here are just three of seven secrets I will share with Gary Scott readers at the October 17-18 Value Investment Seminar and in my report.   Learn how to pay less tax, have more cash, and build your net worth.

Secret # 1: Gain $12,976 by using two vehicles for business.  In the past, your tax adviser likely told you to drive one vehicle for business and the other vehicle for personal purposes. This old advice made it easier to claim the one car as a business car because no business mileage log was required back then. But that’s no longer true.

Today, tax law requires you to keep a mileage log to prove business use. That changes the game. With today’s rules, you gain nothing by using only one car. But the new mileage log rule gives you a possible opportunity to increase your tax deductions.

First, you might ask: Will the IRS allow me to use more than one vehicle for business?

Yes! The IRS official method for computing business use of a single vehicle is to divide business miles by total miles driven. IRS Form 4562, which is filed by proprietorships and corporations, contains spaces for up to six vehicles. In other words, yes, the IRS recognizes that you can drive more than one vehicle.

Here are the two basics that make the two-vehicle strategy work:
1:  You drive more miles than your spouse, and
2:  Both vehicles are somewhat close in adjusted basis.
To see if you can benefit from this two-vehicle strategy, and by how much (the minimum amount, really), apply the arithmetic from the before-and-after example below to your vehicles.

Before. You drive 2,000 personal and 28,000 business miles on your vehicle (93% business). Your spouse drives 8,000 personal miles on vehicle 2. Each vehicle has an adjusted basis of $24,000. Your maximum depreciation and/or Section 179 deduction is $22,400 (93% times $24,000) on the one vehicle you currently drive for business.

After. You switch vehicles with your spouse every week. You now have 73.7% business use of vehicle 1 and 73.7% business use of vehicle 2. This produces $35,376 in maximum depreciation and/or Section 179 deductions (73.7% x 2 x $24,000).

You gain $12,976 in new deductions ($35,376 minus $22,400). You did not have to drive one mile further or spend one additional penny. You simply had to know (as you learned here) that this strategy could work for you.

Secret #2:  Have a second office in the home.

Have you been told that because you have an office outside your home that you may not have an office in the home?  That’s wrong!

IRS publication 463 states, “You can have more than one business location, including your home, for a single trade or business.”  Learn why in the free report due to IRS publication 587 you want your office in the home to qualify as an administrative office.

Secret #3: Travel by cruise ship and deduct up to $680 a day.

When you know the rules, it’s easy to travel to a business meeting by cruise ship rather than by airplane or other mode of transportation.  Tax law provides various ways for you to deduct a cruise.  The free report shows an example of a trip to St. Thomas in the Virgin Islands from California or New York.

Learn about IRS Regulation 1.274-4 that gives you two one-owner business friendly rules that you can use to your benefit:

1:  The United States means the 50 states and the District of Columbia.
2: Transportation cost to a foreign destination for seven days or less, excluding the day of departure, is not subject to an allocation between business and personal days.

In the example if you fly to Miami, Florida, board a cruise ship that will take five days to arrive at St. Thomas your deductions will include the cost of:

1 :  Travel to Miami
2:   Cruise ship fare to St. Thomas (not to exceed tax law’s luxury boat limits that range in 2014 from a low of $566 to $680 per day, depending on the dates of travel)
3:   Food and lodging in St. Thomas
4:   Airfare to Miami
5 :  Travel from Miami to home

You have to admit, tax knowledge can be fun which is why I want to send you this free report.

I specialize in “nuts and bolts” tax strategies that bring tax law to life so that business taxpayers and professional tax advisers can put the law to work for them.  In fact, my mission is to clarify taxes so that you take control of your money.

Plucking common sense from the tax law is time consuming and difficult work.  Yet, after more than 25 years, I still get great satisfaction when I can clarify and extract tax dollars from the tax law not only for your pockets but also to add to your net worth.  In fact I have extracted over 400 tax savings tips and would like to share the most important lessons with you so am creating a course that will share seven tax secrets each month for the next year.


Conrad Oertwig

Learn how to have a tax advantaged one person or family owned micro business.

Conrad has dozens of tax savings secrets he will explain at our October 17-18 Value Investment Seminar.   To help you get an early start, we will send you Conrad’s report “7 Secrets to Paying Less Tax… for the One-Owner Business”, when you enroll in the seminar.

Get seminar details here


(1) Banks to settle with-investors

(2)  Fox News  New Federal Crackdown on White Collar Crime

(3) US drops charges that professor shared technology


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