One other important factor to consider is TAX.
I’m a big believer in taking every legal means at your disposal to reduce the amount of taxes that you owe.
It’s one of the reasons I’m in Puerto Rico. Here, I legally pay just 4% on my worldwide income.
Barrack Obama used to tell his audience, “Don’t boo. Vote!”
(Jeez did I just quote Obama again?)
If you disagree with your government and are appalled at how much of your money they waste.
Yes it’s important to safeguard and grow your wealth. But it’s also important to make sure you’re not giving away more of your hard-earned money than you have to.
And capital gains tax in the land of the free take a huge chunk out of your investment gains.
The highest earners in the US are paying nearly 25% in long-term capital gains tax (including the 3.8% Obamacare surcharge).
So if you’re sitting on any capital gains today (from stocks, crypto, real estate, etc.), you’re probably hesitant to sell and pay the huge tax.
Plus, as we discussed above, if you did cash out, where would you put those gains today?
There are options, but they’re getting harder and harder to find.
Luckily, the US government (in a rare move) just gave investors a HUGE gift…
Buried deep inside Trump’s recent tax overhaul is something called Opportunity Zones.
The provision encourages investors sitting on capital gains to cash out, then invest that money in underdeveloped parts of the US (so-called opportunity zones).
And if you invest in these zones, you get an incredible tax advantage on existing capital gains, defer paying that tax for years and then pay literally nothing on the money you make in the meantime.
I think it’s one of the greatest tax-savings strategies (and investment opportunities) we’ll see in decades.
That’s why we just produced a very detailed write up on opportunity zones for our premium readers.
If you’ve been invested in the stock market, you’ve watched it rise to all-time highs. Now you can take that money off the table and invest it in an opportunity zone. You’ll defer paying any taxes on your gains for years, you’ll get a discount on your initial capital gain… then the investment return you make from your opportunity zone investment is tax free forever.
There are opportunity zones in all 50 states (even in places you wouldn’t expect, like Manhattan).
And the entire island of Puerto Rico is an opportunity zone.
I’ve been on the ground full-time in Puerto Rico for about a month now. And I’ve been looking around the island for deals. There are lots of compelling investments here.
Puerto Rico is in dire straights.
The government is essentially bankrupt. But so are the municipal governments.
So I’ve been meeting with mayors and looking at some of the municipally owned properties they have for sale… because they’re desperate for the cash.
And to think I could invest in this property on the cheap, then generate tax-free gains on it forever… that’s really compelling.
I’ll keep you updated on my search.
In the meantime, I’d highly encourage you to learn more about opportunity zones. This investment opportunity is still young (I’ll bet 99% of people don’t know about it yet). In fact, we’re still waiting on the IRS to release a few more rules before anyone can officially invest in opportunity zones.
So this is the perfect time to start building your strategy. Because when the IRS ruling comes, we’ll see billions of dollars of capital flow into these zones… and many of the best deals will disappear.
If you want to get more details on this opportunity, here’s a good place to start.