With our current population living longer, there is a crucial need to develop a Balanced Wealth System that will assure your financial stability and wealth as you reach retirement age. Our goal is to make those future years "golden". Current statistics predict that the average American will live 15 to 20 years beyond their retirement and it is impossible for them to live comfortably with only Social Security benefits. With average federal and state taxes of approximately 35%, it is crucial that you take advantage of the IRS laws that will reduce and possibly eliminate this cost. Since Congress passed the 1986 Tax Reform Act, IRS disallows interest rate deduction on all consumer borrowing including automobile loans and credit cards. Real Estate is your only real tax savings advantage.

Home ownership does not only allow you to deduct the interest and the real estate taxes from your ordinary income, but is also gives you the advantage of real estate appreciation which has averaged annually about 10% in most metropolitan areas during the last forty years.

After acquiring home ownership, the IRS also allows you to depreciate the improvements on income producing properties, which is an "expense that you do not pay for". The more income producing properties that you own, the less federal and state tax you will pay and if you develop the Balanced Wealth System to its maximum, you can eliminate your Federal and State taxes. Even though this is a simple legal process, it is not taught in school or publicized at all.

For illustration purposes, an individual making $50,000 per year will pay approximately 35% or $17,500 in federal and state taxes and if they work for 40 years (without adjusting for increases in salary and changes in tax base), will pay the government $700,000 in federal and state taxes. If during that 40-year period they accumulate $500,000 of real estate and they hold the real estate 10 years @ 10% appreciation, that real estate will be worth $1,000,000. Most Americans that have purchased a home during their working years can vouch that it has been their best lifetime investment. Our goal is to have you purchase enough real estate to maximize the system and eliminate federal and state taxes, increase your "residual income" (income you make while you sleep) and take full advantage of the real estate appreciation.

The Balanced Wealth System works as easily as the following example:

	Determine your credit rating FICO score.
	Analyze the Real Estate purchasing programs that are available with no initial investment
	or down payment.
	Search for a Real Estate Financial professional that can assist you in determining your
	real estate purchasing options and become your long-term "wealth coach".
	Choose a market area close to your home or business that you can commence acquiring
	income producing property that will allow you "depreciation of the improvement" which
	is a non cash expense.
	The IRS depreciation allowance on residential properties is 31 ½ years and 39
	years on commercial properties. Example: If a residential apartment building has a
	$1 million of real estate improvements (not land), the annual depreciationwill be
	$31,746 (non-cash expense-you do not pay for, but is a deduction on your
	tax forms).
	Keep in mind that to maximize appreciation over the long term you are better off with
	properties in excellent locations. We recommend that you buy the least expensive
	property in the best neighborhood rather than purchase in a less desirable area.
	Maintain a strategy meeting with your Real Estate Wealth Coach and your accountant so
	that you can increase your monthly income by increasing your allowable deductions. This
	will give you immediate enhancement of your cash flow on a "pay day" basis. You do not
	need to wait until after you file your tax forms the following year to get your taxes back.
	Research property management companies that will provide the option for you to
	delegate the day to day management of your income producing properties. The cost is
	5-6% of the rents collected and for most people, this becomes extremely advantageous.

"WHEN YOU FOLLOW THE SYSTEM, YOU WILL GENERATE WEALTH"

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Want more information? Please E-mail Frank at EFM Financial Center