In his book, Secrets of the Millionaire Mind: Mastering the Inner Game of Wealth, self-made mega-dude T Harv Eker makes a statement that, at first glance, seems to show an amazing grasp of the obvious:
Rich people are totally clear that they want wealth.
However, there’s a gem uncovered by parsing it.
The key words there are fittingly right in the middle: totally clear.
The difference between success and falling short is a single-minded attention to detail. By extension is its implication of placing a priority on attention.
The acquisition and accumulation of wealth can be viewed as separate objectives:
- The former pertains to getting there, while
- The latter focuses on staying there.
In your quest to attain the Dot Com lifestyle, the road map to success is in your planning.
A vital detail in this process is to set the stage for wealth accumulation while laying your groundwork for wealth acquisition. You do so by becoming efficient at capital ownership.
This starts by determining the entity that best suits your business goals. Ultimately, odds are you’ll conclude that incorporation best accommodates this objective.
This is underscored by the advice of Christopher Woerhle, Professor of Taxation at the American College of Financial Services in regards to capital accumulation:
Strive to be the owner of capital.
- Appreciation is never taxed until you decide to be taxed. This means you have control.
- Not only do you have control, but those gains are preferentially taxed at long-term capital gains tax rates.
- Furthermore, the returns of capital qualified dividends and long-term capital gains are also preferentially taxed.
Whenever one can afford to be compensated with stock rather than with ordinary income, there will be a greater long-term advantage. In many ways, it’s not how much you get paid, but how you get paid.
This is one reason why you don’t want to incur debt when starting your business.
Expanding it is another conversation, but no matter what, your emphasis must be on capital ownership.
If you’re as calculated, patient, and deliberate as a successful e-commerce entrepreneur should be, you’ll deploy less cumbersome means of augmenting your working capital requirements.
Then, when you get into position to accumulate wealth, continue to focus on capital ownership.
Here’s one example:
By setting a course on capital ownership right from the start, avoiding distractions along the way, and remaining true to it for the rest of your life, you’ll greatly improve your chances of realizing the overall wealth — financial and otherwise — that is the Dot Com lifestyle.