Financial Library

by Charles J. Givens

Summary by Luke Setzer

This list compiles and summarizes the money strategies described by Charles J. Givens in his books More Wealth Without Risk and Financial Self-Defense. The complete Financial Library is sold with accompanying training videos and a host of other benefits by International Administrative Services Financial (IAS Financial), formerly known as The Charles J. Givens Organization. Call them in the United States at 407-786-2120 for information on how to become a member.

This list is posted by me, Luke Setzer, as a courtesy to those who have an interest in personal finance or Charles J. Givens. I have been a satisfied member of his organization for several years. This web page in no way earns me commissions, nor is it a web page "officially posted" by his organization. It is set up as a quick, easy-to-print reference for those who would like to apply his strategies. However, you must read his books and understand the strategies before attempting to apply them.

NOTE:
If you have Internet Explorer 4.0 or later or another browser that supports Dynamic HTML, you can take advantage of the collapsible outlines on this page.

GETTING ORGANIZED AND GETTING STARTED
1. Developing Your Financial Blueprint
  1. Create your dreams list
  2. Spend most of your time on your most important values
  3. Identify your current values
  4. Identify and eliminate destructive values
  5. Focus on the result
  6. Put your financial goals in writing
2. Creating Your Records Management System (RMS)
  1. Create a Records Management System (RMS)
  2. Choose a permanent Records Management area
  3. Set up your filing system
  4. Choose the record keeping categories
  5. Purchase a plastic check box for checks
  6. Store important documents safely
  7. Build a tax reference library
3. How to Keep Records for Tax Deductions
  1. Keep all tax records at least seven years
  2. Keep receipts for all deductible expenses over $25
  3. Keep expense records in a pocket-size expense log
  4. Keep receipts in addition to cancelled checks
  5. Use a credit or debit card for effective record keeping
  6. Keep a time use record of assets for 90 days
4. Your Wealth Check-Up
  1. Create an Assets List for insurance purposes
  2. Prepare a family Financial Statement
CUTTING YOUR INSURANCE PREMIUMS UP TO 50%
1. Life Insurance
  1. Accept insurance as financial alternative, not windfall
  2. If single, no dependents, don't buy life insurance
  3. Do not buy life insurance on children
  4. If your spouse provides family income, insure him/her
  5. Substitute the income of a spouse for life insurance
  6. Insure a working/non-working spouse if you have kids
  7. Buy enough insurance to replace family income when invested at 12%
  8. Determine income before determining life insurance
  9. Replace life insurance with income as you grow older
  10. Buy enough insurance to maintain your lifestyle
  11. Don't buy whole life because it pays dividends
  12. Pick companies rated A or above with the low premiums
  13. Don't buy double indemnity for accidental death
  14. Never buy the disability premium waiver
  15. Don't buy a policy just because of the company name
  16. Never buy whole life insurance as an investment
  17. Don't fall for the big lies about whole life insurance
  18. Don't buy to avoid threat of being uninsurable in future
  19. Don't convert company life insurance to personal insurance when you leave
  20. Buy only term insurance
  21. Choose annual renewable term or level premium term
  22. Buy ART if you have a short-term need for insurance
  23. Buy ART if you smoke or are overweight but intend to stop
  24. Call the Insurance Clearinghouse to get the best value
  25. Replace existing whole & universal life with term insurance
  26. To cancel a life insurance policy, stop paying premiums
  27. Remove cash value during 30-day grace period
  28. Use life insurance-to-annuity tax-exempt transfer rules
  29. Borrow and reinvest your life insurance cash value
  30. Don't give life insurance proceeds to heirs in lump sum
  31. Set up a trust to distribute income from invested proceeds
  32. To avoid probate make proceeds payable to a beneficiary
2. Liability Insurance
  1. Carry bodily injury to cover twice your net worth
  2. Carry $50,000 to $100,000 property damage liability coverage
  3. Buy $1 million of umbrella liability coverage for under $150/year
3. Automobile Insurance
  1. If value of your car is below $2000, drop collision & comprehensive
  2. Drop duplicate coverage
  3. Drop uninsured motorist coverage if legal in your state
  4. Buy 24-hour coverage and drop part-time coverage
  5. Drop duplicate medical insurance coverage
  6. Drop uninsured motorist coverage by substituting better coverages
  7. Raise deductibles on auto & homeowner's to $500 or more
  8. Never file an insurance claim for under $500
  9. Never pay more premiums than you can collect in damages
  10. Substitute a free credit card for low insurance deduct
  11. Check insurance rates on your car before you buy it
  12. Shop around to save on auto insurance premiums
  13. Cut cost of insuring driving-age kids by adding them to your policy
  14. If you own a company w/ vehicles, carry $500K to $1M bodily liability
  15. If you drink and drive, buy all liability insurance company will sell you
  16. If you use family car for part-time business, choose individual liability limits
  17. Don't take extra coverage such as towing or car rental
  18. Determine amount accidents or tickets will raise premiums
  19. Ask for the 10 basic automobile insurance discounts
4. Rental Car Insurance
  1. When renting a car, decline all extra insurance coverage
  2. Charge rental car on card that covers deductible
  3. Check coverage in policy for "occasional driver" clause
  4. Never let someone not on rental contract drive rental car
  5. Don't fall victim to "you must pay now" wrecked rental car demand
  6. When you rent abroad, take Collision Damage Waiver (CDW) insurance
5. Homeowners Insurance
  1. Buy separate policy for motorcycles, mopeds & snowmobiles
  2. Take only the coverage you need on your homeowner's policy
  3. Check with mortgage company for any minimum required coverage
  4. Decline additional coverage on your homeowner's policy
  5. Purchase a "floater" to cover expensive personal items
  6. Buy flood or earthquake insurance only in designated zones
  7. Video tape your valuables for insurance records
  8. Buy replacement value not market value coverage for home
  9. Fire insure at least 80% of replacement cost of home
  10. Buy special tenant policy, HO-4, if you rent
  11. Protect rental properties with an Owners, Landlords, and Tenants (OLT) policy
  12. Say no to loan insurance--Credit Life & Disability
  13. Replace expensive mortgage life insurance with term
6. Health Insurance
  1. Raise the deductible on your medical insurance
  2. Raise deductible to $1000 to cut premiums 35%-45%
  3. Select higher steploss, like 80/20 to $5000, to further cut premiums
  4. Buy from company rated A or above that is a leader in health insurance
  5. Don't pay for maternity benefits with health insurance
  6. Never buy health policy options: dental, supplemental accident, prescription cards
  7. Call the Charles J. Givens Organization for low group rates
7. Nursing Home Insurance
  1. Don't buy nursing home insurance until after age 65
  2. Buy a policy that covers expenses at home after nursing home stay
  3. Buy a policy with no more than $80/day coverage
  4. Buy a policy with inflation protection
  5. Choose a plan with at least a 30-day elimination period
  6. Buy a long-term care policy with 3-year instead of 5-year coverage
8. Disability Insurance
  1. Buy disability only if in poor health or accident prone
  2. Buy a disability policy that replaces 50%-60% of your income
  3. Choose a large elimination period to cut premiums 40%
  4. Substitute free disability protection in retirement plan for high disability insurance premiums
  5. Buy a renewable term disability policy to cut premiums in half
  6. Substitute the income of your spouse for a disability income insurance policy
  7. Don't buy specialty health and life insurance policies
9. Get Rid of Hidden Rip-Off Insurance
  1. Never buy or finance extended warranties
  2. Never buy the service contract on a car
  3. Hire a moonlighting mechanic
  4. Cancel your extended warranties and get a refund
  5. Never buy credit life/disability on a loan
  6. Remove all credit life/disability on existing loans
  7. Replace mortgage life insurance with term insurance
  8. Use income from invested life insurance proceeds to make mortgage payments
  9. Cancel Chargegard insurance on credit cards
  10. Don't buy life or medical insurance from slick TV or mail ads
  11. Don't waste money on Medigap, other insurance that covers deductibles
10. Winning the Automobile and Homeowner's Insurance Claim
  1. Contact state insurance department to help settle disputed claims, low offers
  2. Use emergency procedure checklist when you have severely damaged home
  3. Challenge insurance company when the settlement offer is too low
BUYING AND BORROWING STRATEGIES
1. Basic Borrowing Super Strategies
  1. When borrowing money, never take 'no' for an answer
  2. Contact a mortgage broker if you are turned down
  3. Avoid mortgage prepayment penalties of over 5 years
  4. Think before changing an adjustable to a fixed rate
  5. Don't pay off a low interest mortgage early
  6. Never buy or finance extended warranties
  7. Learn when to pay cash and when to borrow
  8. Beware of add-on Interest Rate Quotes
  9. Never sign a "Rule of 78" loan agreement
  10. Always use short terms for consumer borrowing
  11. Place checking account with a bank that won't hold your checks
  12. Open a bank account with automatic overdraft privileges
  13. Get to know a loan officer at your bank and find his floor limit
  14. Invest in money market funds, never money market accounts
  15. Keep minimum required balance in checking account and rest in MMM funds
  16. Expect loan rejection, but never be denied
  17. Never fall into the bank-provided auto insurance trap
2. Credit Profile and Credit Business Strategies
  1. Develop a positive credit profile with the "big 8"
  2. Pay off all perishable purchases on your credit card
  3. Determine if a low interest card is worth the fee
  4. Use the float if you pay your cards off each month
  5. Use a secured card to rebuild your credit rating
  6. Exercise your credit file "Bill of Rights"
  7. Pull your credit file now and once per year
  8. Use TRW Credentials Service for maximum credit control
  9. Correct all personal data errors in your credit file
  10. Have bureau re-verify and correct any incorrect data
  11. Have all missing positive credit data added to your file
  12. Add the rest of the story to your credit file
  13. Have credit bureau remove derogatory information
  14. Use small claims court & consumer reporters for disputes
  15. If you are refused credit, get the reason in writing
  16. Exercise your right to same good credit as your spouse
  17. Get credit as small business, list yourself as employee
  18. Use a co-signer to help re-establish your credit
  19. To rehabilitate credit, use bank loan as security for loan
  20. File Chapter 13 instead of personal bankruptcy
  21. When in financial hole, protect your attitude more than your credit
  22. When bills loom larger than cash, use offensive, not defensive strategies
  23. Don't let credit doctors operate on your wallet
  24. Contact Consumer Credit Counselors when you see no way out of debt
  25. After series of on-time payments, request re-rating to R-1 or I-1
  26. Have credit bureau remove all unauthorized or outdated inquiries
  27. Avoid high-interest or payment-lengthening debt consolidation loans
  28. Use Givens cash-saving strategies to reduce debt
  29. Apply extra principal payments first to high-interest accounts
  30. Repay student loans early only if interest rate is over 9%
  31. Use cosigner to help re-establish your credit
  32. Use extra principal payments to cut personal loan costs 30%-50%
3. Credit Card Strategies
  1. Eliminate high interest credit card debt
  2. Use debt shifting to pay off credit cards in half time
  3. Replace all high interest cards with low interest ones
  4. Decline or cancel all credit card insurance
  5. Deduct credit card charge in your bank balance for control
  6. Overcome poor credit with a secured credit card
4. How to Choose a Mortgage
  1. Live free by buying, not renting
  2. Shop around to find your best deal on a mortgage
  3. Mortgage payments should not exceed 30% of income
  4. Try for an FHA or VA mortgage before a conventional one
  5. Convert points to interest equivalent for comparison
  6. Bid on VA repossessions for a bargain-priced house to fix up
  7. If fixed rate mortgage is over 9-3/4% take the ARM
  8. Convert ARM to FRM only if new FRM is 10% or less
  9. Use GPM for more home with smaller monthly payments
  10. Use an affordable GEM & pay off home in half time
  11. Get a bigger mortgage & create a better investment
  12. Cut total payment by 45% with a 15-year mortgage
  13. Cut mortgage term in half with extra principal payments
  14. Get a 30-year mortgage & make extra principal payments
  15. Get more when selling home with FHA or VA mortgage
  16. If interest is less than 9%, don't make extra payments
  17. Don't let prepayment penalty scare you off
  18. Don't make extra principal payments on rental property
  19. Invest the amount of your extra principal payment
  20. Obtain amortization schedule for all your loans
  21. Never use a mortgage grace period
  22. Refinance if new rate is 2% less than old rate
  23. Stay away from biweekly mortgages as a mortgage reduction strategy
  24. Obtain escrow statement and check principal balance yearly
  25. Use equity shifting to carry forward mortgage reduction benefits
  26. Convert extra equity into high-interest income when you sell your home
  27. Don't make large, lump-sum extra principal payments
  28. Borrow your home equity free by investing it
  29. If you are single, live free by creating a luxury rooming house
  30. Make your mortgage decision yourself
  31. Turn home equity into cash with a home equity loan
5. Send Your Kids to College Free
  1. Buy a home that will pay off a college loan
  2. Use "PLUS loan" for first $3,000/year of college costs
  3. Turn your property into mini student dorm
  4. Rent property by bedroom on yearly, co-signed lease
  5. Make your son or daughter property manager
  6. Use rental real-estate deduction to generate extra cash
  7. Use profits from investment to pay off student loan
  8. Begin your college aid search with need-based aid
  9. Order Federal Government Funding Source, Formula books and information
POWERFUL INVESTING
1. The 10 Best Investments and General Investment Strategies
  1. Use the 10 best investments to average 20% per year
  2. Pay no or low commissions
  3. Use tax shelters and tax strategies to protect your investment income
2. The 10+ Biggest Investment Mistakes
  1. Keep your money out of vacant land
  2. Don't throw money away in time-sharing
  3. Never use life insurance as an investment
  4. Stay away from individual stocks and bonds
  5. Never invest in bonds when interest rates are rising
  6. Don't invest in inflation hedges like precious metals
  7. Don't fall for investment phone pitches
  8. Never take the advice of a commissioned salesperson
  9. Don't over-leverage in volatile investments
  10. Don't buy overly speculative investments
  11. Avoid options as leveraged or hedged investments
  12. Learn to recognize bad investment advice
3. The 10% Solution
  1. Use the 10% solution to go from paycheck to prosperity
  2. Store 20% of one year's income as attitude money
  3. Rule of 76, not 72, calculates the doubling power of money
  4. Guarantee yourself $1M with the 10% solution
  5. Let the government fund a third of your million-dollar fortune
  6. As small business owner, rely on 10% solution as only reward
4. Asset Management Accounts
  1. Double your interest with an Asset Management Account
  2. Choose an AMA that gives you maximum legal float
  3. Pay all your bills through an Asset Management Account
  4. Choose an Asset Management Account with a debit card
  5. Choose an AMA with a low yearly fee
  6. Use an AMA for your small business checking account
5. The Money Movement Strategy for Mutual Fund Investing
  1. Use Money Movement Strategy (MMS) to eliminate emotion from high-return investing
  2. Never store money
  3. Invest in stocks, bonds and money markets through mutual funds
  4. Use only no-load mutual funds
  5. Choose the right type of fund for each economy
  6. Invest in only one type of fund at a time
  7. Avoid investment strategies that require the prediction of the impact of impending events
  8. Use the MMS to pick the upside of the market while avoiding the downside
  9. Allow time to increase, even double, annual returns
  10. Use the prime rate to identify the best mutual fund investment
  11. Invest in stock funds when prime is below Investor's Decision Line (IDL)
  12. Move money to MM fund when prime moves above IDL
  13. Move money to bond fund when prime is high and coming down
6. Mutual Fund Investing
  1. Use the Money Movement Strategy in no-load mutual fund families
  2. Invest in funds with assets between $25 million & $3 billion
  3. Invest in good funds with telephone switching
  4. Use the fund family fact sheets
  5. Open no-load funds using 6 simple steps
  6. Use a mutual fund margin account to increase your investment capital
  7. Use a mutual fund margin account to free up capital for other investments
  8. Consider investing in emerging company growth funds only when the economy favors new business start-up and growth
7. Retirement Planning
  1. Contribute the deductible maximum to an IRA
  2. Use double deduction benefits in retirement plans
  3. Contribute to your retirement plan now
  4. Use 401(k) to qualify for additional IRA contributions
  5. Choose an IRA with a low trustee's fee, $35 or less
  6. Borrow for your IRA--even if you have the money
  7. Use your retirement plan as instant source of capital
  8. Use the loan provision of 401(k) or 403(b) to borrow money for IRA
  9. Contribute deductible maximum to your retirement plan
  10. Open a self-directed IRA
  11. Set up self-directed Keogh plan for maximum benefits
  12. With no employees, choose money purchase plan; otherwise, profit-share
  13. Choose more complex plan only if you are over age 50
  14. Set up trust for more investment muscle
  15. Hire spouse to increase family maximum deductible Keogh contribution
  16. Never invest your IRA in a tax shelter
  17. Use the switching rule in your retirement plan
  18. Withdraw from your retirement account before 59-1/2
  19. Get next raise tax-free by funneling into retirement
  20. Use lump sum averaging when withdrawing for retirement
  21. Learn common features to unscramble retirement plan mysteries
  22. Get retirement plan money penalty-free by borrowing
  23. Make tax-free down payment on home with retirement money
  24. Use IRA rollover rules to minimize taxes
  25. Open your rollover IRA in a no-load mutual fund family
  26. Locate independent trustee for more flexibility
  27. Invest in land lease limited partnerships
  28. Invest in vacant land or lots
  29. Invest in real estate options on land
  30. Invest in real estate options on residential rental properties
  31. Avoid employer-to-employer retirement account transfer
  32. Never annuitize your company retirement plan
  33. Create tax deductions for retirement withdrawals
  34. Recalculate life expectancy to minimize withdrawals
  35. Enjoy your retirement money
  36. Use special rollover provision for retirement plan to escape taxes
  37. Use amortization withdrawal method for maximum payout
8. Tax-Sheltered Mutual Funds
  1. Use a self-directed (S-D) annuity
  2. Never annuitize your annuity account
  3. Use tax-free exchange to move your annuity
  4. Make your annuity withdrawals tax-free with "equivalent" tax deductions
  5. Invest in an annuity for five years or longer
  6. Use self-directed annuities as estate planning tools
  7. Use self-directed annuities to beat the kiddy tax
  8. Transfer cash value life insurance to a S-D annuity
  9. Ask questions before investing in a S-D annuity
9. Discounted Mortgages
  1. Invest in discounted mortgages for a guaranteed 30% return
  2. Begin by offering no more than 60% of face value
  3. Use the courthouse as a discounted mortgage source
  4. Run newspaper ads in search of mortgages
  5. Make friends with real estate people
  6. Expect the best, arm yourself for the worst, talk to attorney first
  7. Buy discounted mortgages with no more than 80% LTV
  8. Check credit history of mortgagor
10. Tax Lien Certificates
  1. Invest in tax lien certificates for safety and maximum interest
  2. Buy real estate at a huge discount at a tax lien auction
  3. Examine property before you bid at a tax lien auction
  4. Bid no more than 70% of market value at a liened-property auction
  5. Aggressively enforce rights: foreclose on delinquent payers filing bankruptcy
TAX PREPARATION AND TAX PLANNING
1. Your Tax Attitude and Approach
  1. Use legal tax strategies, not loopholes or tax cheating
  2. Determine your tax bracket to track your tax savings
  3. Cut your adjusted gross income to increase deductions
2. Tax Return Filing Strategies
  1. Complete the 1040 long form, you can only pay less tax
  2. Choose an aggressive tax preparer or none at all
  3. Don't over or under withhold from your paycheck
  4. Prepare your own return at least once
  5. Time your refund to earn extra interest
  6. Don't apply this year's refund to next years taxes
  7. Avoid tax penalties, don't worry about interest
  8. When in doubt, deduct it
  9. Sign your return if your income is less than $50,000
  10. File your return later, not earlier
  11. File an automatic extension Form 4868
3. Audit Winning Strategies
  1. Don't react to an audit as more than it really is
  2. Delay an audit as long as possible
  3. Get the reasons for audit in writing
  4. Take your tax preparer to the audit
  5. Let the auditor see your documents only once
  6. Never part company with your original documents
  7. Don't let the auditor copy your tax file
  8. Learn how to behave in an audit
  9. Go beyond the auditor if you are unhappy
  10. Apply the statute of limitations to an audit
  11. Agree only to a limited extension of an audit
  12. Put a stop to the hassle audit should you suffer one
4. Family Real Estate Strategies
  1. Sell your home to your children
  2. Buy a home with your kids or grandkids
  3. Buy a home and rent to kids with "option to buy"
  4. Use 80% fair market value rent rule to qualify for tax deductions
  5. Rent to parents to subsidize their income, qualify for tax deductions
  6. If necessary, subsidize parents with annual lump-sum gift
  7. Use child care credit as on of your most powerful tax reducers
5. Estate Planning Strategies
  1. Keep your will up-to-date
  2. Give gifts to your kids to reduce estate taxes
  3. Create an irrevocable trust to protect your estate
  4. Use a dual trust to protect more of your estate
  5. Give charitable gifts to lower estate taxes
  6. Use exemption rules, move assets to family members w/ no gift taxes
  7. Use joint membership only as a temporary estate protection strategy
  8. Invest for children or aging family members using a custodial acct
  9. Appoint spouse as custodian of children's accounts funded by you
  10. Set up age 21 trust for each child to cut taxes and avoid probate
  11. Use trusts even with small estates to save huge probate, administrative costs
  12. Set up Revocable Living Trust (RLT) to provide trust protection while you are still alive
  13. Use RLT to shelter $1.2 million from estate taxes, not $600,000
  14. Transfer, retitle your assets to your trust now, w/ every acquisition
  15. Save estate taxes with an irrevocable life insurance trust
  16. Use special rollover provision to let retirement money escape estate tax
  17. Insulate against the cost of lawsuits and judgments
  18. Protect estate from liability by increasing contributions to your retirement accounts
  19. Be certain to have an updated will in addition to your trusts
  20. Use tax-deferred annuities to avoid probate
6. Investment Deduction Strategies
  1. Deduct your investment plan's expenses
  2. Deduct your VCR or home computer
7. Overcoming the Miscellaneous Deductions Limit
  1. Take Schedule A deductions by combining deductions
8. Traveling the World on Deductible Dollars
  1. Use job interviews to make vacations deductible
  2. Start a small importing company
  3. Become an "outside agent" for a travel agency
9. Making Consumer Interest Deductible
  1. Use an equity loan/mortgage to deduct interest
  2. Qualify your boat or RV for deductible interest
  3. Use your vacation home as a second, not a rental, home
  4. Borrow the money for your IRA and deduct the interest
  5. Pay off high interest debt with low interest debt
  6. Pay cash for consumer goods, borrow to invest
  7. Sell appreciated investments to deduct expense
  8. Convert consumer interest to business interest
10. On the Job Tax Deductions
  1. Make your job a tax shelter via employee deductions
  2. Deduct your employee business mileage
  3. Deduct your job-related education
  4. Deduct a home office when used for your employer
  5. Deduct meals and entertainment for prospects, clients, suppliers
  6. Deduct club dues, subscriptions, union dues
  7. Pay your spouse or kids to help with your job
  8. Deduct your job-related tools and equipment
  9. Deduct your special clothes
  10. Use Form 2106 for your employee business expenses
  11. Combine employee and miscellaneous deductions
  12. Check Social Security record every five years to correct errors
  13. If you work as independent contractor, treat yourself as a small business
  14. Set up "accountable" reimbursement plan w/ employer, beat 2% floor
  15. Deduct your job-search expenses and end up with a better job
  16. Plan your job moves around deductible relocation expenses
  17. Deduct job-related travel expenses even when travel has partial personal purpose
  18. Deduct expenses of business-vacation trip
11. Instantly Increase Your Take Home Pay
  1. Add withholding allowances to increase take home pay
  2. Get next year's refund this year
  3. Add one allowance for every $660 in refunds you got last year
  4. Add make-up allowances if begin refund process after beginning of year
  5. Work toward zero tax bracket, legally eliminate income tax withholding
  6. Use W-4 form, increase take-home pay when you have small business losses
  7. Avoid penalty, interest: adjust withholding account to minimum 90% level each December
  8. Never use extra allowances as permanent cash flow, to protest taxes
  9. Use W-4, payroll withholding to avoid filing quarterly estimated tax returns
  10. Add 1 allowance per each $2,000 of deductions
  11. Use extra w-hold feature of W-4 once you've eliminated allowances
  12. Use "last year's tax" rule to avoid penalties this year
  13. Turn a $1200-a-year tax refund into over $250,000 in a tax shelter
  14. Use refund as investment in retirement plan, get up to 35% cash rebate
12. Turn Your Home into a Super Tax Shelter
  1. Turn home improvements into tax deductions
  2. Deduct last minute presale home fix-up expenses
  3. Use tax deferral when you sell your home
  4. Don't reinvest profits into your new home
  5. Create a deductible office at home
  6. After 55, save $40,000 when you sell your home
13. Making Your Recreational Assets Deductible
  1. Deduct your boat, plane or RV in small business
  2. Use third party leasing to deduct recreational assets
  3. Deduct boat or RV interest as a second home
14. Create a Rental Property Tax Haven
  1. Treat your rental properties as investments, not as small business
  2. Use rental real estate passive loss exceptions, create $25,000 of deductions
  3. Combine depreciation deductions w/ passive loss to create wealth via tax savings
  4. Allocate 20% land, 80% home before computing depreciation
  5. Don't incorporate your personal real estate investment plan
  6. Carry same liability on each rental property as on auto, home, umbrella
15. Beat the Capital Gains Tax
  1. Calculate the gain or loss on an asset to determine tax effect
  2. Cut your losses short and run your wins long
  3. Take gains early, not late in year
  4. Use end of year losses to claim tax-free gains
  5. Reinvest year-end loss capital into similar, not same investment
  6. Time purchases to avoid paying taxes on someone else's gains
  7. Account for fund distributions to avoid double-taxation
  8. Time sale of investments, create $3000 of end-of-year (EOY) deductible net capital loss
  9. Deduct a stock as worthless first year company is in real trouble
  10. Use installment sales rules to delay capital gains tax
  11. Elect not to use installment sales rules in a low-taxed year
  12. Don't use installment sales rules w/ sales to relatives
  13. Use interest income from installment sale to offset capital gains tax
16. Avoiding the AMT--The Alternative Minimum Tax
  1. Calculate potential AMT before EOY to defer triggering AMT
  2. If you're subject to AMT, get rid of some deduction-generating investments
  3. To avoid AMT, sell stock the year you exercise options
  4. Exercise 10-year write-off election option on intangible drilling costs
SMALL BUSINESS STRATEGIES
1. Take the Business Potential Quiz, measure your entrepreneur skills
2. Turn any small business into a tremendous tax shelter
3. Begin a small business as a "sole proprietorship"
4. Use "paper" losses to tax shelter job and investment income
5. Operate your activity as a business not a hobby
6. Use the business start-up checklist to get started
7. Become a tax-deductible freelance author, photographer, or artist
8. Profit 3 out of 5 years to qualify for tax deductions
9. Learn the truth about small business deductions
10. Choose a small business idea that is exciting and fun
11. Buy equipment at bankruptcy sales, auctions
12. Begin marketing immediately to deduct start-up costs
13. Hire your spouse and create a deductible IRA
14. Qualify your spouse for Social Security benefits
15. Hire your kids and make allowances & gifts deductible
16. When you hire your kids, keep $2150 exemption yourself
17. Pay kid up to $2150 without taxes or returns
18. Beat the kiddy tax with a children's IRA
19. Exempt your dependent child with a salary up to $3,000
20. Use a small business to make your car deductible
21. Circumvent Schedule A medical expense limit through small business
22. Use the biggest tax saving automobile deduction type
23. Estimate auto expenses using the mileage rate method
24. Buy an automobile instead of leasing
25. Use your personal assets to make them tax deductible
26. Calculate deductions by percentage of business use
27. Use asset-expensing rules for immediate deductions
28. Take depreciation deductions for assets you own
29. Get more deductions with straight-line depreciation
30. Use IRS form 4562 for asset-expensing and depreciation
31. Increase business use of assets to over 50%
32. Choose auto deduction method of greatest deduction
33. Use business personal assets for sales tax deductions
34. Keep a 90-day tab of business/personal asset use
35. Take deductions for repairs to business assets
36. Create a deductible office in your home
37. Make club memberships deductible through business use
38. Get deductions for reading, audio and video materials
39. Take deductions for business travel expenses
40. Make interest deductible as a business expense
41. Consider an "S" corporation election
42. Cut self-employment tax by increasing business deductions
43. Create a retirement shelter with a small business
44. Use a self-directed small business retirement plan
45. Avoid matching contributions for employees with an SEP
BASIC REAL ESTATE INVESTING
1. Live free by buying instead of renting
2. Get a bigger mortgage to create a better investment
3. Locate favorable real estate properties
4. Use an Multiple Listing Service (MLS) computer to sort properties
5. Use the 10-10-10 formula to buy property right
6. Use the building block approach to financing
7. Avoid new or assumable conventional mortgages
8. Finance with FHA or VA mortgages for primary residences
9. Buy investment property with an existing FHA mortgage
10. Learn the qualification rules before buying
11. Use a single payment mortgage to cut monthly payments
12. Use the Triple Punch Strategy for your first home
HOW TO WIN THE AUTOMOBILE GAME
1. Don't be seduced by "low, low" interest rates or rebates
2. Never pay over-inflated delivery and dealer preparation charges
3. Never fall for the dealer's sucker sticker
4. Don't fall for the undercoating trick
5. Fabric coat your seat covers yourself and forget the paint sealer
6. Never give your keys to a car salesperson
7. Never use the dealer's Blue Book
8. Beat the finance department before it beats you
9. Never finance your car at the dealership
10. Always buy a car after it is 2-3 years old
11. Buy from an individual instead of a dealer
12. Bargain hunt the classifieds for your ideal car
13. Use the NADA guide to value your car
14. Offer the NADA trade-in price minus repair costs
15. Never make a down payment
16. Get a car loan for no more than 36 months
17. Make money by selling your old car yourself

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Objectivism 101

by Charles J. Givens

Summary by Luke Setzer

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Join the Charles Givens Strategy Discussion List

NOTE:
If you have Internet Explorer 4.0 or later or another browser that supports Dynamic HTML, you can take advantage of the collapsible outlines on this page.