Ultimate Secret Of Success. This One-liner Is Enough...

> A successful man doesn't OWN anything, he
> CONTROLS everything.

> (from "The Success Bible")

Robert Kiyosaki talks a lot about this, I think especially in the 3rd book in his "Rich Dad Poor Dad" series -- "Rich Dad's Guide to Investing".

Let me share a short passage from Robert Kiyosaki (starting from a discussion with his "Rich Dad")....

"And what is a C-Corporation?" I asked.

"A C-Corporation is another you. It is not just an extension of you. A C-Corporation has the ability to be a clone of you. If you are serious about doing business, then you do not want to do business as a private citizen. That is too risky, especially in this day and age of lawsuits. When you do business, you want a clone of you actually doing the business. You do not want to do business or own anything as a private citizen," rich dad guided me. "If you want to be a rich private citizen, you need be as poor and penniless as possible on paper." Rich dad also said, "The poor and the middle class, on the other hand, want to own everything in their name. 'Pride of ownership,' they call it. I call anything with your name on it 'a target for predators and lawyers.'"

The main point rich dad was trying to make was "The rich do not want to own anything, but want to control everything. And they control via corporations and limited partnerships." [...]

Within the last two years, I have seen a devastating example of how the choice of entity could have helped prevent the financial destruction of a family.

A very successful local hardware store was owned as a family partnership. The family had been in town forever, knew everyone, had become wealthy, and was quite involved in civic and charitable organizations. You could not have asked for a more wonderful, caring, and giving couple. One night, their teenage daughter was drinking and driving, had an accident, and killed a passenger in the other car. Their lives were dramatically altered. Their 17-year-old daughter was sent to an adult prison for seven years and the family lost everything they owned, including the business. In sharing this example, I am not trying to make any moral or parenting statements; I'm simply pointing out that proper financial planning for both the family and the business might -- through the use of insurance, trusts, limited partnerships, or corporations -- have prevented this family from losing its livelihood.

[From "Rich Dad's Guide to Investing," by Robert Kiyosaki, p. 199.]

By the way, when I read that story, I thought to myself, "the life of the family of the person who was killed was altered too!" But it's good to look beyond the example, and see the point of it....

By the way, Simon, I'm not sure if this is what you were referring to, but I thought many could find it interesting and useful.... :)

- Dien