The same thing goes on in the stock, bond, real estate and baseball-card markets. No. 4 is the law. For instance, utilizing a corporation wrapped around the technical skills of accounting, invest- ing and markets can aid explosive growth. An individual with the knowledge of the tax advantages and protection provided by a corporation can get rich so much faster than someone who is an employee or a small-business sole proprietor. It's like the difference between someone walk- ing and someone flying. The difference is profound when it comes to long-term wealth. 1. Tax advantages: A corporation can do so many things that an individual cannot. Like pay for expenses be- fore it pays taxes. That is a whole area of expertise that is so exciting, but not necessary to get into unless you have sizable assets or a business. Emp]oyees_eam and jeyaxeJLandjthey try to live on what is left. A corporation earns, spends everythingjtjran. arid islixedon arvythjiig that is left. It's one of the biggest legal tax loopholes that the rich use. They're easy to set up and are not expensive if you own investments that are pro- ducing good cash flow. For example, by owning your own corporation, vacations are board meetings in Hawaii. Car payments, insurance, repairs are company expenses. Health club membership is a company expense. Most restaurant meals are partial expenses. And on and on- but do it legally with pre-tax dollars. 2. Protection from lawsuits. We live in a litigious so- ciety. Everybody wants a piece of your action. The rich hide muchjofthdrwealth usjngvehicles such ascorporations and trusts to protect their assets from creditors. When some- one sues a wealthy Indliduarthey"are often met with layers of legal protection, and often find that the wealthy person actually owns nothing. They control everything, but own nothing. The poor and middle, class tryjo owgyerthjrig and loseltjothg government QJLtoJidfowjj to sue the rich. They learned it from the Robin Hood story. Take from the rich, give to the poor. It is not the purpose of this book to go into the specifics of owning a corporation. But I will say that if you own any kind of legitimate assets, I would consider finding out more about the benefits and protection offered by a cor- poration as soon as possible. There are many books writ- ten on the subject that will detail the benefits and even walk you through the steps necessary to set up a corpora- The History of Taxes and the Power of Corporations 135 tion. One book in paAicu\ar,Jncnd Grow Rich, provides a wonderful insight into the power of personal corpora- tions. Financial IQ is actually the synergy of many skills and talents. But I would say it is the combination of the four technical skills listed above that make up basic financial in- telligence. If you aspire to great wealth, it is the combina- tion of these skills that will greatly amplify an individual's financial intelligence.