~DL

Some People Dream Of Success While Others Wake Up And Work Hard At It ~Winston Churchill



This week Hans Oliver Joins David in the Studio to chat about entrepreneurship and running a business. Hans owns and operates a sucessful coffee business which can found online at: G3Coffee.com

You must be willing to think outside the box in this economy. In business, it is imperative to be willing to change. Be frugal and be commited to continual self-education. Hans and David chat about what they have learned being self-employed business owners.

Tune in to hear this candid discussion between two small business owners. You just may learn something. At the very least you will be entertained.

Hans recently read: The Reinventors: How Extraordinary Companies Pursue Radical Continuous Change
You may want to pick up a copy yourself. (To view on Amazon.com click on "Extras" in your David Lukas Show App)

Remember, you can listen to this show and all shows on the go by downloading the latest version of The David Lukas Show Iphone or Android App.

Long Live Small Business and Coffee!

~DL

It is no secret that our federal debt is growing at a break neck speed. Our federal government is borrowing over $40,000 per second more than they take in tax revenues. A few months back, I had the opportunity to interview (Listen to Interview Here) William Beach from The Heritage Foundation’s Center for Data Analysis. Specifically, William and I discussed the recently released Index of Dependence on Gov.

You can read the Report for yourself HERE

A few facts below that I found very disturbing.

The percentage of people who do not pay federal income taxes, and who are not claimed as dependents by someone who does pay them, jumped from 14.8 percent in 1984 to 49.5 percent in 2009. This means that in 1984, 34.8 million tax filers paid no taxes; in 2009, 151.7 million paid nothing. (Yes you read that right!)   This poses the question, how long can our form of representative government survive in light of these facts? I am a numbers person. To me it is simple mathematics. Something has to give. I have come to the conclusion that one thing is a certainty: Our taxes will go up in the future.  These are serious issues that must be addressed in relation to where one decides to accumulate money.

In 3000 days, about two-thirds of the now-working population will be 60 years old or older. This is a certainty! Unfortunately, this leaves one-third of the now-working population to pay for all the government social programs for a majority of retired citizens. To compound the problem, the costs of social programs such as Medicare, Medicaid, and Social Security increase every year. This leaves little doubt that increased taxation will be needed to maintain these programs.

It is estimated that by 2040, the elderly population will represent 20.7% of the total population. The largest segment of the population that grew the fastest was people between the ages of 90 and 94. My own grandmother is almost turning 97 and still lives at home by herself! This age group has increased 44.6% since 1990. To give you some perspective, in 1900, the average life expectancy was 47.3 years.Along with shifting age demographics, the government itself plays a role in diminishing our future wealth. Over the last 30 years, the only thing the government has done consistently is overspend the amount of money that is taken in. Recently they raised the amount of money you can put into the government qualified retirement plans. Why? Was this change initiated because they were concerned about your financial future or theirs? A 401K or IRA simply defers taxation to a later date.   At first, it may appear that you save on taxes but you most likely won’t.

If all things are equal meaning your rate of return and the rate at which you are taxed are the same today, and when you retired, THERE IS NO DIFFERENCE between pre-tax and after tax contributions. You will end up with the EXACT same amount of money. This is a mathematical certainty.

The government doesn’t want you to worry about the pain of paying unnecessarily taxes. Today, you need more knowledge so you are capable of making better financial decisions. The more you know the less pain you will suffer financially. The solutions to a rewarding financial future are not found in just the stock market. But that’s what most people believe. Why?  Because that’s all they know. It is difficult to get the right solution when you start out with the wrong premise. The government sees you as a taxpayer. If you don’t utilize the lessons of efficiency, the government will be first and foremost in your financial life.

Taxes are the largest transfer of your wealth. If you learn to be more efficient you will learn to drastically reduce this transfer resulting in you keeping more of your hard earned money. Who’s future are you financing, yours or the governments?