“The working man is a sucka,” a quote from a classic scene in A Bronx Tale. If you haven’t seen this movie, it should be next on your list after reading this article and sharing it with your friends and family. To put the line in context, Robert De Niro is having a heated conversation with his young son who has been hanging around some mobsters running errands and making extra cash. His son claims that the “the working man is a sucka dad” in which Robert De Niro says “it don’t take much strength to pull a trigger but try to wake up every morning day after day and work for a living then we’ll see who’s the tough guy the working mans the tough guy”. This is a brilliant family, in my opinion, they both have excellent points, and we should heed their advice.
Why “the working man is a sucka”
Think of the wealthiest people you know, how did they accumulate their fortunes? Most understood two things early in life, and it has given them a massive advantage ever since.
1 – The wealthiest people in this country have always been those who deliver value to others and figure out ways to monetize it.
There is a reason that Silicon Valley is so famous right now and that is because we are in a technology boom. This is not just for those using technology to cure disease or figure out how to travel to Mars, technology is also a form of entertainment. Something as simple as creating an app that shows a 10-second photo of what you are doing is valued by millions of users, and now has turned into a $21 billion dollar powerhouse, amazing! So that is it, I encourage you all to launch your app as soon as possible as it is the only way to make it in America in 2017.
Although I am a millennial, I am not so naïve as to believe that everyone has the knowledge or even desire to try and launch a business. The great news is that this is only one path to success. There are many who have lived fantastic lives without starting their own business in America, but how?
2 – If you don’t want to be Rockefeller at least have the foresight to buy some standard oil stock.
For every great entrepreneur, there are those who invest in them to take these wild ideas and bring them to the market. You can take the opportunity to invest in assets that will generate income for you for the rest of your days on earth. Work one time, invest that money and get paid forever.
“The working man’s the tough guy”
Anyone who has a full-time job, and I mean anyone whether you work at a fast food restaurant or as an engineer knows how hard it is to work for the man. It becomes exhausting as you are trying to keep up with all the important parts of life but feel you must drop everything because it is a reality that your next meal comes from your paycheck.
Well, it’s time to take Robert De Niro’s advice and be a “tough guy” at least for a bit. If you are like most of the world, you will have to earn an income to support yourself. You then have two choices, spend this money earned or start today by putting it to use through investing. The great news is if you are reading this article you are ahead of the curve. Most feel they are at the mercy of the system, how Un-American, this country is set up for those who work hard to succeed. Although I agree that many have the cards stacked against them, I also believe that if you are willing to work hard you can achieve the lifestyle you dream of.
Let’s Get Nerdy
Let’s talk about taxes. The system is set up in a way to help business owners in America when it comes to taxes. For those making ordinary income or in simple terms a paycheck from their employer they will be getting taxed at the highest possible rates.
Owners, on the other hand, are wise as they own pieces of a company which will spit out dividends. If these dividends are qualified, they will be taxed at the lower long-term capital gains rate. Another way to accomplish this with companies that don’t pay dividends is to buy and hold them for at least one year which makes the investment a long-term investment. This investment then would receive the same favorable rates as qualified dividends. These rates can be seen below courtesy of nerd wallet.
Real estate investing also has many tax advantages that we will not get into in this article. Rest assured that if you chose to not own anything and only work for others, you will be exhausted and still working when you are ready to relax and focus on what is important in life. So take advantage of the system and get on the winning side be an owner, work less, and keep more!
What Are Your Thoughts?
- Do you think the working man is a sucka?
- How do you plan to not work forever?
- Do you think taxes should be more for capital gains then ordinary income?