A chartered accountant has shared some simple rules that allow the rich to stay rich while the middle class risks losing everything. CA Nitin Kaushik took to social media platform X to explain that it’s not luck that allows rich people to protect their wealth, it is a structure used by them.<\/p>\n
In his post, Kaushik explained that the middle class keeps everything in one place. \u201cSalary goes into a personal account. Savings stay in the same account. Business income too. One financial shock and their entire life savings are at risk,\u201d he said.<\/p>\n
He explained that the rich manage their wealth differently, outlining six key ways in which the rich re-structure their earnings.<\/p>\n
The first point outlined by Kaushik was about ownership and controlling the assets.<\/p>\n
\u201cThey separate ownership from control. Your house is in your name and if you default, the bank can take it. Their house is in a trust or company\u2026.creditors can\u2019t touch it. Same asset. Different outcome,\u201d he highlighted.<\/p>\n
According to Kaushik, private trusts are an “invisibility” shield for wealth protection.<\/p>\n
\u201cSettlor (you) creates a trust with family as beneficiaries. Assets (shares, property, investments) are transferred to trust. The trustee manages them. You can still control as trustee, but legally, you don\u2019t \u201cown\u201d it anymore. If your business fails\u2026.creditors can\u2019t seize trust assets,\u201d he noted.<\/p>\n
The CA explained that the rich people also take the advantage of holding companies for their asset management.<\/p>\n","protected":false},"excerpt":{"rendered":"A chartered accountant has shared some simple rules that allow the rich to stay rich while the middle…\n","protected":false},"author":2,"featured_media":34331,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[72,176,26928,61,60,26926,174,175,26927,26929],"class_list":["post-34330","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-finance","tag-how-to-build-wealth","tag-ie","tag-ireland","tag-money-hacks-used-by-rich-people","tag-personal-finance","tag-personalfinance","tag-wealth-creation-hacks","tag-wealth-protection-tips"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/34330","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=34330"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/34330\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/34331"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=34330"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=34330"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=34330"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}