The Most Important Non-Fastlane Thread You will Ever Read (Investing Content Inside)

[Two Dog]

I know that we looked at alot of different options before the sale and almost all of it fell into either the "seems too good to be true" category or the "creative accounting that is all fine and dandy until you are audited and then you have to convince the guy in front of you that blue is really red if you squint just right". We weren't really cool with any of it. I like sleeping at night and taking my risks elsewhere.

I feel the same way nowadays.

How did you pull off the capital gains trick? That's worth hearing about for sure. I'm considering selling my software company in 6 - 12 months. It's probably similar to e-commerce in terms of selling logistics.

 

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[Hong_Kong]

Where's a good place to post content related to reducing the tax impact of selling your business?

Offshorecorptalk is the best place I've seen for this type of knowledge.

 

[biophase]

I feel the same way nowadays.

How did you pull off the capital gains trick? That's worth hearing about for sure. I'm considering selling my software company in 6 - 12 months. It's probably similar to e-commerce in terms of selling logistics.

It’s as simple as categorizing what assets are being sold and how much each one is. There’s really no trick to it. You just need the buyer to agree.

 

[Two Dog]

It’s as simple as categorizing what assets are being sold and how much each one is. There’s really no trick to it. You just need the buyer to agree.

So...

Any company asset held for at least a year will qualify for capital gains taxes? Sort of. This article was kind of helpful.

What's the difference between the sale of inventory vs business property/capital assets? | Taxfyle Help Center

It's like selling product on the shelves vs selling the shelves...

intercom.help

It was actually *really* helpful in realizing I have to talk with a few tax accountants over the next few months.

 

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[NeoDialectic]

I feel the same way nowadays.

How did you pull off the capital gains trick? That's worth hearing about for sure. I'm considering selling my software company in 6 - 12 months. It's probably similar to e-commerce in terms of selling logistics.

Tax law changes all the time and I'm not exactly an expert, so talk to an accountant to confirm anything I say.

As @biophase mentioned, there really isn't a big trick to it. Most of our business sale was capital gains because the most important part of the business was trade secrets, brands, and trademarks. These are all taxed as capital gains. Things like patents I believe are considered ordinary income in most cases. However we didn't decide to go the patent route for our products, so it all worked out.

Previously you were able to sell a software company as capital gains by classifying what you are really selling is the copyrighted code and copyright was capital gains. I think they closed that loop hole ~2018. However you may still be able to classify a good amount under capital gains for other reason. Being diligent on how you classify things in a situation like yours, may be the closest thing to actually be a "trick" in this scenario. For example...Is 50% of the reason that people buy your software over others because of your branding and reputation? Well sounds like 50% of what they are paying for isn't your actual software but branding. Branding and trademarks are taxed at capital gains. Depending on your field, maybe a much bigger % or much smaller % can be justified as branding. Keep in mind that as @biophase also mentioned, you have to come to an agreement with the buyer. I don't know the details but there are possible advantages to buyers buying it as an ordinary income purchase vs capital gain purchase. Luckily we didn't have a tough time here as I believe our situation was basically industry standard.

Good luck! Let me know if you find out any more juicy details as I am always open to learning more about this topic for the future.

 

[biophase]

So...

Any company asset held for at least a year will qualify for capital gains taxes? Sort of. This article was kind of helpful.

What's the difference between the sale of inventory vs business property/capital assets? | Taxfyle Help Center

It's like selling product on the shelves vs selling the shelves...

intercom.help

It was actually *really* helpful in realizing I have to talk with a few tax accountants over the next few months.

Try this link

Asset Allocation for Business Purchases - A Quick Primer for Buyers and Sellers | The FBB Group, Ltd.

By Graeme Cloutte, CPA

www.fbb.com

 

[hasagim]

This thread is not super FASTLANE inspired - but if there is one non-fastlane thread that you pay attention to and take action on THIS IS IT.

If your plan IS to make FASTLANE money – you should start building your mental game to handle that money -- starting TODAY and I will show you exactly how to do that and where to begin!

Please follow me along on this thread as this will jumpstart you way ahead of the game on the investing journey. And there’s nothing that can prepare you better (aka. become a smart and patient investor) other than pure time in market and experience, which you will gain if you start with some of the basic advice I give here!

ALSO - a quick disclaimer – I am not a certified financial advisor and please do not take anything on this thread as financial advice. Do your own research. Consult a professional if you so choose.

What I’m going to give a brief rundown on today is INVESTING – mainly investing in the markets (equities and bonds) – and why it is imperatively important to start doing this DAY ONE when you read this.

Why do I like and RECOMMEND passive, hands off investments like this ?

Because I need time and history tested method to easily invest in that can keep and grow my wealth – while still diverting majority of my focus on other fastlane businesses I’m working on building up! This gives me a plan and direction – without having to keep checking and rechecking my actions daily. Best of all – this plan works for ME, and chances are it will WORK FOR YOU given a long enough time span.

I waited to learn the simplicity of DIY investing until I was years into my FASTLANE business. My personal example is that I was making upwards of $3MIL / year, spending only very little of that annually.

What did I do during that time? Let all my money SIT IN CASH! Core reason for that is that my MENTAL COMPOUNDING game had not been properly established. I'm writing this thread because I believe that if I came up on a thread like this years ago, I would of been significantly richer by now !

I was pre-occupied with making money, and everything else fell by the wayside.

I was afraid of investing, did NOT trust financial advisors – and felt like maybe there’s a BETTER use of my money – coming in around the corner.

I kept putting this off, and not only losing the possible returns I could have had along the way – but WORST OF ALL, not building my mental fortitude of emotional compounding to learn how markets fluctuate, how I withstand and tolerate risk, and learn proper time horizons to let wealth grow.

Most people leave this OFF to their employers, or their ‘financial advisors’. Worst case scenario is that some NEVER do this, or wait until it is TOO LATE.

What I am showing and advising you to do is NOT a get-rich-quick scheme. This is NOT your ‘fastlane plan’ – you have the rest of this forum to consult and work on that.

What I’m showing you here is something you MUST start even if you have absolutely ZERO knowledge on anything else fastlane related. This will be one of the best actions you can take – where your future self will thank you.

Most financial articles, advisors and gurus focus on how important FINANCIAL COMPOUNDING is. What I’m working on showing you is that its just as important to compound your mental strength to be prepared to handle large wealth for when it comes.

If you currently have $50, $1000 or $1MIL it doesn’t matter.

You need to establish mental fortitude in seeing your wealth ride up and downs of the markets. If you start this by 18, in twenty years (when you are 38) you will have 20 YEARS of experience doing this. This is nothing to sneeze at – especially if your career / fastlane business is at the peak during those years.

So brief points on things to consider and HOW to start

1 – Open up a Vanguard , Fidelity or any other low-cost brokerage accounts.

2 – A conservative place to start is to split your investing between 50% stocks and 50% bonds. Think something like the following - US equities and Bonds ETFs (VTI and BND).

3 - Once a week / month etc invest a consistent amount you are comfortable with. If you only got $50 and want to keep it even more simple, invest in a single fund (such as FBALX) – they don’t have a minimum and will spread the allocation for you.

4 - For a slightly more intricate plan you can do US stocks, International Stocks and US Bonds at a ratio of 60/10/30 or some other percentage depending on your willingness and ability to take risk. I use that percentage myself for my risk and time horizons.

If you want to learn more, and customize the portfolio to your risk tolerance, look up (three fund portfolio) and base your allocation on your variables that are more important to you.

There are many lessons in this that will be parallel to building up a fastlane business, process and fortitude required to build something successful.

Good luck on moving forward, and if you have any questions on the advice above please feel free to ask! Please don’t hold off and start taking action on this today no matter your age as proper investing (especially in DIY form) will reward you for years and decades to come in the future.

Very interesting post.

I recently was able to save up a decent amount of money working in my slowlane job.

I'm currently trying to educate myself on app and software development so that I can enter that market.
Sadly, I still have yet to break into a business to invest my money in.

What percentage that you make from your job do you believe should be saved, spent, invested into the fastlane, and invested into the stock market?

 

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[Awoken]

Thought I’d drop a comment here saying that I’ve created a brokerage account which I’ve put a small amount of money into. Ended up doing lots of research on 3 fund portfolio application in the UK and feel I have learnt a lot.

Thanks again for the post @fastlane_dad , I think I would have neglected investing completely until after business success without it!

 

[Ross_102]

Thanks for the useful post!

Started investing just several years ago and what I can relate to is:

You need to establish mental fortitude in seeing your wealth ride up and downs of the markets.

Think though that the invested amount should be meaningful enough, so that you care for the up and down rides and actually experience these emotions.

And also this resonated very well with my way of thinking:

Remember: You're NOT learning how to Get Rich Slowly. You're learning to NOT do stupid things with Fastlane money.

One of the big realizations I had while reading "The Millionaire Fastlane " was that I should not buy into the illusion of living my life "frugally" and having enough money by the time when I won't even enjoy spending them.

 

[Stepan]

This thread is not super FASTLANE inspired - but if there is one non-fastlane thread that you pay attention to and take action on THIS IS IT.

If your plan IS to make FASTLANE money – you should start building your mental game to handle that money -- starting TODAY and I will show you exactly how to do that and where to begin!

Please follow me along on this thread as this will jumpstart you way ahead of the game on the investing journey. And there’s nothing that can prepare you better (aka. become a smart and patient investor) other than pure time in market and experience, which you will gain if you start with some of the basic advice I give here!

ALSO - a quick disclaimer – I am not a certified financial advisor and please do not take anything on this thread as financial advice. Do your own research. Consult a professional if you so choose.

What I’m going to give a brief rundown on today is INVESTING – mainly investing in the markets (equities and bonds) – and why it is imperatively important to start doing this DAY ONE when you read this.

Why do I like and RECOMMEND passive, hands off investments like this ?

Because I need time and history tested method to easily invest in that can keep and grow my wealth – while still diverting majority of my focus on other fastlane businesses I’m working on building up! This gives me a plan and direction – without having to keep checking and rechecking my actions daily. Best of all – this plan works for ME, and chances are it will WORK FOR YOU given a long enough time span.

I waited to learn the simplicity of DIY investing until I was years into my FASTLANE business. My personal example is that I was making upwards of $3MIL / year, spending only very little of that annually.

What did I do during that time? Let all my money SIT IN CASH! Core reason for that is that my MENTAL COMPOUNDING game had not been properly established. I'm writing this thread because I believe that if I came up on a thread like this years ago, I would of been significantly richer by now !

I was pre-occupied with making money, and everything else fell by the wayside.

I was afraid of investing, did NOT trust financial advisors – and felt like maybe there’s a BETTER use of my money – coming in around the corner.

I kept putting this off, and not only losing the possible returns I could have had along the way – but WORST OF ALL, not building my mental fortitude of emotional compounding to learn how markets fluctuate, how I withstand and tolerate risk, and learn proper time horizons to let wealth grow.

Most people leave this OFF to their employers, or their ‘financial advisors’. Worst case scenario is that some NEVER do this, or wait until it is TOO LATE.

What I am showing and advising you to do is NOT a get-rich-quick scheme. This is NOT your ‘fastlane plan’ – you have the rest of this forum to consult and work on that.

What I’m showing you here is something you MUST start even if you have absolutely ZERO knowledge on anything else fastlane related. This will be one of the best actions you can take – where your future self will thank you.

Most financial articles, advisors and gurus focus on how important FINANCIAL COMPOUNDING is. What I’m working on showing you is that its just as important to compound your mental strength to be prepared to handle large wealth for when it comes.

If you currently have $50, $1000 or $1MIL it doesn’t matter.

You need to establish mental fortitude in seeing your wealth ride up and downs of the markets. If you start this by 18, in twenty years (when you are 38) you will have 20 YEARS of experience doing this. This is nothing to sneeze at – especially if your career / fastlane business is at the peak during those years.

So brief points on things to consider and HOW to start

1 – Open up a Vanguard , Fidelity or any other low-cost brokerage accounts.

2 – A conservative place to start is to split your investing between 50% stocks and 50% bonds. Think something like the following - US equities and Bonds ETFs (VTI and BND).

3 - Once a week / month etc invest a consistent amount you are comfortable with. If you only got $50 and want to keep it even more simple, invest in a single fund (such as FBALX) – they don’t have a minimum and will spread the allocation for you.

4 - For a slightly more intricate plan you can do US stocks, International Stocks and US Bonds at a ratio of 60/10/30 or some other percentage depending on your willingness and ability to take risk. I use that percentage myself for my risk and time horizons.

If you want to learn more, and customize the portfolio to your risk tolerance, look up (three fund portfolio) and base your allocation on your variables that are more important to you.

There are many lessons in this that will be parallel to building up a fastlane business, process and fortitude required to build something successful.

Good luck on moving forward, and if you have any questions on the advice above please feel free to ask! Please don’t hold off and start taking action on this today no matter your age as proper investing (especially in DIY form) will reward you for years and decades to come in the future.

Big thanks to you! So glad we have you out here helping us! I'm also glad I found this at such young age and that thanks to you, this will form me and stick to me for the rest of my life. Love your stuff, man!

- Stepan : )

 

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[fastlane_dad]

Very interesting post.

What percentage that you make from your job do you believe should be saved, spent, invested into the fastlane, and invested into the stock market?

That's a highly personal (to you) question and would require much more analysis on what your timelines are, how much you are making, how much you are saving and what your fastlane dreams are. Very far and few hard set rules in this world.

We have always been very lean in all of our startups (and hence never made large initial investments into them), and all the businesses funded themselves once they generated cash flow / revenue / profit. One of our newest current projects was launched with ~ $1000 total.

Also depends on what your personal job situation is, and if you plan to have a cash cushion to quit that job at one point as I did (typical recommendation is NOT to invest anything into markets that you might need in the next 10 years). So start there - and allocate applicably.

BUT having said all that - any amount invested will get you onto the right habits, mindset, outlook and diversification. So start there - and let us know if you have any more questions to get going. Don't sleep on that.

Big thanks to you! So glad we have you out here helping us! I'm also glad I found this at such young age and that thanks to you, this will form me and stick to me for the rest of my life. Love your stuff, man!

- Stepan : )

Thank you for your words! Appreciate you.