PJ Hari

“THE DIFFERENCE BETWEEN A TAX SHELTER AND TAX DEFERMENT The first lesson I learned was simple: not every tax break is scuzzy. Leona Helmsley, also known as the “Queen of Mean,” may have been sentenced to sixteen years in prison for tax evasion (ah, sweet justice), but there’s a big difference between legal and illegal tax avoidance. When I first started out, I didn’t have nearly as many tax-avoidance strategies as the rich did, but there are a few available to anyone, and taking advantage of every opportunity is absolutely critical. Tax sheltering means putting your money someplace where taxes no longer apply. Think of taxes as gravity in The Matrix, or logic in the Transformers movies. Even if it technically exists, it doesn’t apply to you. For example, if you invest in an index ETF and it goes up, it’s not reported on your tax return. If you earn interest on that account, ditto. Once your money is inside a tax shelter, you never get taxed on it again. This is because the money that goes into a tax-sheltering account has already been taxed. Tax deferment, on the other hand, is the process of taking a chunk of your income and choosing not to pay income taxes on it that year. Here’s how it works: You contribute a portion of your income to a tax-deferred account. The amount you contribute reduces your taxable income for that year, and accountants would call this contribution “deductible.” So, if you made $50,000 one year, and you chose to defer $10,000, then that year you would only be taxed as if you earned $40,000. That $10,000 you deferred gets put into a special account where it can grow tax-free, but if you withdraw it, it will be added on to your taxable income and you’ll pay taxes on it then. This is because money going into tax deferral hasn’t been taxed yet. To recap . . . Tax Shelter Tax Deferral Contributions are . . . Not deductible Deductible Growth/interest/dividends are . . . Tax-free Tax-free Withdrawals are . . . Tax-free Taxed as income”
― Kristy Shen, Quit Like a Millionaire: No Gimmicks, Luck, or Trust Fund Required

“According to business and economics professor Paul Harvey, “a great source of frustration for people with a strong sense of entitlement is unmet expectations.”1 If you believe that you’re special, and all you have to do is find your singular passion and turn it into a perfect job, that’s a recipe for disaster. The reality is that the world owes you nothing. You only become “special” by developing skills that are in demand, which takes focus, grit, and long-term work.”
― Kristy Shen, Quit Like a Millionaire: No Gimmicks, Luck, or Trust Fund Required

“I bought five purses in the span of a few weeks. Every time, I’d purr over my new purchase for a couple of days. But those jolts of happiness were short-lived. I’d inevitably get bored and start shopping for a new one. The hunt was intoxicating but the good feels never lasted.”
― Kristy Shen, Quit Like a Millionaire: No Gimmicks, Luck, or Trust Fund Required

“This structure determines the various functions of the Ego. The most important of the functions are the following:  The Ego strives to protect, sustain and expand itself,  The Ego functions in survival mode. One of the most important strategies of the Ego to sustain and reinforce itself is the experience of "I am right.” This is the identification of an idea, position, evaluation. Nothing gives the Ego more power than experiencing that "I am right.” One of the favorite self-reinforcing strategies of the Ego is complaining. Complaining implies the sense that "I am right.” When another Ego refuses to accept that "I am right,” it is an offense to the complaining Ego, which. in turn, further reinforces its self-awareness. The statement that the Ego functions in a survival mode means that it continually struggles to remain "psychologically alive,” so it regards other Egos as rivals or even enemies. It is the desire of the Ego to be right, and thus overcome the other, ensuring its own superiority. The”
― Frank Wanderer, Ego - Alertness - Consciousness: The Path to Your Spiritual Home