Estate Planning - Finding A Home For Your Collection - Charitiable Donation, Trusts -

There comes a point in every person’s life where it is appropriate and prudent to begin planning for the post death division of property and assets.?? It is necessary to anticipate and plan for the quagmire that is probate.? For many facing the task of planning their estate, the mere idea of paying an estate planning attorney can be painful and many simply choose to forego such a task by using cheap or free online forms.? While choosing the easy way out may save you money now, it will cost your estate significantly more in the future.? The pitfalls of cheap online wills and trusts writing programs are many.

The premise is simple enough.? You want a means of distributing your property after your demise but you do not want to pay more than necessary.? The problem is dead serious.? On their face, online wills and trust programs appear to be a bargain.? You can prepare your own will or create a trust for less than $20.00, a tiny fraction of the cost of a good estate planning attorney.? Unfortunately for your family though, the inherent inadequacies of such services are not discovered until after your death.? Any remaining heirs will be forced to pick up the remains of your estate and force it through probate, taking substantial amounts of both time and money.? The money spent today on a good estate planner will save your estate exponentially more in the future.

Numerous amounts of problems arise when deciding to use online wills and trusts services.? ??Most often these services do not take into account specific state law regarding the administration of probate or trusts.? Only an attorney in your state can effectively advise you regarding the various jurisdictional issues that may affect many of your decisions regarding your estate.? Many states have varying requirements regarding the number of witnesses that must attest to the creation of a will.? Failure to comply with state requirements regarding the order of attestation and witnesses will sometimes lead a court to completely invalidate your will as a means to distribute wealth and property.? See, Stevens v. Casdorph, 508 S.E.2d 610 (1998).? By refusing to extend the Doctrine of Substantial Compliance, many state courts, like the Casdorph court, have stressed the importance of proper will execution.? Online will services do not take into account the varying requirements among states.? Only a skilled estate planning attorney can advise you regarding the proper methods to ensure that your will is upheld during probate.? Failure to comply with these requirements will force all property through intestacy, which is where the state decides who gets what.? Moreover, intestacy is not something that the online services will tell you about.? Additionally, the plain meaning rule, which instructs court’s to look only at the plain meaning of words contained in the will, stresses the importance of obtaining professional advice.? Using an incorrect word or clause can dramatically alter the effect of the will, invalidating the very purpose of its creation.

Trusts are often used as a tool to avoid the probate system completely, and many online services use this very idea as a marketing tool.? There are many kinds of trusts used in estate planning (i.e. revocable, irrevocable, discretionary, spendthrifts, marital, special needs and testamentary trusts, to name a few) and only an experienced attorney has the knowledge and ability to advise you regarding the proper form of trust for your desired purpose.? In addition, online services do not address the various issues faced when creating a trust.? As trustee, beneficiary or settlor, there are various rights and obligations associated with each party.? Violation of any imposed obligation or duty can serve to completely invalidate the trust document itself.? In order to properly address your needs, an estate planning attorney considers all relevant factors and will recommend the best option for you.?

Online services fail take into account all available means of wealth transfers and do not begin to address all pertinent issues, such as tax impacts, ease of administration, imposed rights and duties and the potential pitfalls.? Only a qualified attorney can ensure that your estate does not find itself stuck in the murky and troublesome world of probate and intestacy.? Wise planning now could spare your family the unpleasant pain of probate in the future.

About the Author

This article was written by Nicholas J. Deleault, Pierce Law Center ‘07. Nicholas writes select legal articles for the Law Firm’ Blog of Goldstien and Clegg, a Massachusetts Estate Planning Attorney.

Wills Vs Living Trusts -

Perhaps the easiest option to consider is one of the 20 or so collective funds that invest in the sector. You really do need to do your research and understand exactly what you’re investing in. What you’ll find is that some funds invest directly in property whilst others invest in the shares of property companies (with the latter being more volatile).

On 1 January 2007 there will be another way to invest. Real Estate Investment Trusts will be launched and about 15 property companies (such as FTSE 100 company Land Securities) are expected to convert to REIT status. REITs will be similar to funds that currently invest directly in property, with sizeable portfolios of assets in the UK and, for some, worldwide.

But why are REITs being introduced?

The main reason is that there will be generous tax breaks for the property companies.

REITs will not have to pay income or capital gains tax on the returns produced by their property portfolios, so long as they distribute most of their profits to shareholders via dividends.

Investment Property Databank reports that property has produced average annual returns of 15% over the past 5 years, although Aberdeen Asset Management expects gains to fall back to 4-5% pa over the next few years.

So, should you consider investing in commercial property?

The simple answer is yes, as long as you approach it the right way.

The first step is to pool together all your current investments, including pension funds, PEPs, ISAs and any other equity based holdings.

You then need to analyse where your money is currently being invested. What you’ll probably find, especially if you’ve purchased a number of investments over the years, is that your money is invested in a number of funds. You may even have money in a property fund already.

The next step is to organise your ‘asset alloaction’. What this basically entails is making sure your investments are split (percentage wise) in line with your risk tolerance and the potential return that you are trying to achieve.

The main asset classes are Property, Equities (Shares), Cash and Bonds.

So, for example, if you are happy to assume more risk with your investments you may have an asset allocation that looks something like this:

Bonds - 17%
Property - 10%
Equities - 70%
Cash - 3%

The equities would be spread across large and small capitalised shares, UK, International and Emerging Markets.

The final step would be to choose the appropriate tax wrappers (ISAs, pensions etc). If you already have a number of investments it IS possible to alter the underlying investments whilst maintaining the tax wrapper.

The Financial Tips Bottom Line

Some investors totally ignore (or are not aware of) asset allocation. After all, wouldn’t it be strange if you were buying a new car but you weren’t allowed to know the size of engine, colour, features etc.

They forget to look ‘under the bonnet’ and make decisions without all the facts at hand.

When you’re next investing (which could be next week if you’re investing on a monthly basis) make sure you look at all the facts, set up your asset allocation and increase your chances of a successful ‘investment experience’.

New Belizean Law Changes The Way Trusts Can Operate -

What is a Trust And Who Are The Settlor, Trustee And Beneficiaries?

A trust is an institute of a special type of structure capable of holding title of the property-providing benefits to one or more people. It is a lawful relationship between the two people, the settlor and the trustee. The person who hands over his assets is called the settlor; the person who gets the control of the said assets is known as the trustee. The intention of the settlor is usually either to provide benefits to some people known as beneficiaries or to form the trust for some specific purpose. The other terms used for the settlor are creator or granter of the trust.

Gaining Popularity

Benefits of forming trusts are attracting more and more people to structure their businesses and other personal matters in the form of trusts. However, before you opt to forming a trust to get the benefits, you must ascertain that you know the legal implications of forming trusts and be clear about the people involved. Do not make any haste to get the benefits of forming trusts without getting the advice of the experts in this field. Any lawyer is capable of helping you in this regard, yet it would be better if you took the advice of a person who has specialization in this area.

Trustees Cannot Use Property For Their Own Use

It does not matter much that the trustees are the legal owners of the property of the trust because they cannot use this property for their own use. In fact, trustees are the people who are chosen by the settlor to hold the property because they are reliable to him. The main role of the trustees is to make arrangements of providing the benefits to the actual beneficiaries according to the will of the settlor.

Saving Taxes

The structure of the trusts is often seen as too flexible, so many people feel that they can take the benefit of this flexibility in running their businesses and several other non-business activities. By forming a trust instead of a company, they can save a great amount on the tax liabilities. Some people believe that forming trusts is a method adopted by the wealthy people to avoid making payments to creditors while still enjoying the ownership rights.

Good For Every Family Member

However, not everyone uses trusts for such purposes. Some people want to take the benefits of forming trusts in a genuine way. Trusts are the best method as far as the protection of family assets is concerned. If constructed properly, trusts can provide several other benefits other than just being a tax-saving device. In large families, trusts can provide benefits to all the members of a family.

Capital Gains Elimination Trusts -

When a person makes a will, he specifies what happens to his possessions and assets when he dies. A trust provides an entity for owning and managing assets. It is created when a trust maker transfers part of his assets to another person or corporation called trustee, which controls the assets. The trustee also helps in managing and distributing assets to beneficiaries.

There are five types of trusts. Discretionary trust is the most common form of trust. In this trust, any investment or distribution of funds is at the sole discretion of the trustees. They also provide investment of the trust funds and its distributions to beneficiaries. The trustor generally provides trustees with a letter of wishes. It informs trustees the manner in which he wishes the trust assets were to be dealt during his lifetime and after his death. The trustor could also amend this letter at any time in future.

A protective trust is one where the beneficiary has a life interest. It may become a discretionary trust if certain events like bankruptcy of the beneficiary take place.

Fixed interest trust defines the interest that each beneficiary can have and trustees may not vary these constraints. An accumulation and maintenance trust is a gift of assets usually where beneficiaries are the testator?s children. The right to participate in accumulated income from the trust depends upon beneficiary attaining a certain age. Purpose trust does not have beneficiaries and is established to achieve a specific purpose.

A trust can be intervivos or testamentary. The former implies that the trust is made during one?s lifetime while the latter is prepared after death. A trust may also be revocable or irrevocable. If it is revocable, the trustor reserves the right to modify or even cancel the trust. He could even remove or substitute property as long as he is alive. An irrevocable trust means it cannot be changed once established. In addition, the trustor, who is bound by the terms of his trust, cannot recover property assigned to the trust.

Revocable Trust vs Irrevocable Trusts -

Most people would not dispute the value of financial and estate planning, but studies show that relatively few people actually adopt such a plan. Too bad, because in its present form financial and estate planning ensure that a person’s assets and property will be put to the greatest use during life, and to the beneficiary’s best use after death. Planning tools can be as simple as a will, or as complex as a trust. And many times, life insurance can play major role in a trust.

Although most people equate the need for an estate plan with the very rich, it doesn’t take much these days to exceed $600,000 in accumulated assets, the amount at which federal estate taxes kick in. An estate includes virtually anything of value:” real estate, stocks and bonds, savings, pensions, collectibles, jewelry and more. Proper estate and financial planning can help to lessen the eventual tax bite, which ranges as high as 55% of an estate, and preserve or even increase the value of an estate. Trusts can help accomplish those goals.

The definition of a trust is simple enough: an agreement in which a person, bank or trust company manages your assets for the benefit of your beneficiaries. Assets placed in a trust are no longer owned by the person who placed them there, but by the trust. Estate, gift and income taxes are naturally reduced on the individual’s shrunken estate.

The one notable exception is a revocable trust, one of the few that doesn’t offer estate tax advantages, but it does offer flexibility. As the name implies, the trust can be revoked or revised at any time. Assets in these trusts bypass the costly probate process, but are subject to full taxation since full ownership of the assets can be regained at any time.

An irrevocable trust doesn’t offer the same flexibility or control, but it does keep assets out of an estate until death — thus there’s less to levy taxes upon. Once an irrevocable trust is established, it can’t be changed without adverse estate tax implications.

Many planners will suggest that all or part of an irrevocable trust be funded with life insurance. Such an agreement can provide beneficiaries with the necessary liquidity to take care of estate taxes and administrative costs without having to sell off assets.

A Crummey Trust is one popular tool in this situation, allowing for the purchase of an insurance policy with gift-tax-free dollars.

Another type of irrevocable trust is the Charitable Remainder Trust, a vehicle in which assets, including life insurance, can be gifted to charity, allowing for tax deductions during the donor’s lifetime or upon dispersal of the estate.

A variety of other trusts can be used to pass assets to minors or dependents of any age, to spouses who are not U.S. citizens, and to ensure the orderly continuation of a business.

With the assistance of qualified financial advisors, a property structured trust can ensure that future plans can be carried out. Many times, life insurance makes those plans a financial reality.

Frank Amato is a Chartered Financial Consultant and the Managing Member of Arizona ESOP Group, LLC in Scottsdale, AZ. He is receptive to any comments and/or questions at (480)222-0199.

Protect Your Legacy with Trusts -

We all know that we need to have our lives in order in the event of our demise because our families are so important to us. As the Death Tax slowing dies over the next many years, it behooves all of us to have estate plans and trusts set up to shield our assets from legal liabilities which can pop-up out of nowhere and also to pay the least amount of taxes to the government after we die.

Proper estate plans and specially designed trusts can insure that the least amount of liability exposure exists and also make sure that or things are in order in advance just in case we kick the bucket or run out of chips unexpectedly.

Do you have an estate plan? Have you considered the implications and taxes, which will be due in the event of your demise? Have you considered the liability you are creating with out an estate plan? Why have you allowed this to be put off for so long? There are great plans designed to help you and legal strategies, which indeed guarantee a smooth transition of your assets to your family when you leave this world.

Estate plans and trusts can set up smooth sailing for your grandchildren, their college and maybe even their first house. It makes sense to have an estate plan and trust in place to prevent years of probate and legal costs down the road and there are huge tax consequences if you do not have an estate plan and trust or trusts set up. Please consider all this in 2006.

Offshore Asset Protection Trusts for US Citizens -

Trust and Estates is a rapidly growing area of practice in the law that includes estate planning, managing your estate during life and disposing of your estate at your death through the use of trusts, wills and other planning documents.

Learn About Distinctive Legal Practice Areas.

You can easily become familiar with the different practice areas to determine the type of lawyer who will work best on your legal matter. For the purpose of asset protection and estate planning you will need a lawyer well versed in Trusts and Estates.

You will want to hire an attorney who regularly handles matters in the areas of concern in your particular situation, and who will know enough about other fields to question whether the action being taken might be affected by the laws in other areas of law. For example, if you?re going to rewrite your will and your spouse is ill, the estate planner needs to know enough about Medicaid to advise you about whether it?s an issue with regard to your spouse?s inheritance.

Unfortunately, there are some attorneys who hold themselves out as experts in trusts and estates, but who have little or no experience in this area of practice. They recognize that the aging America represents a business opportunity for them and they hope to ?cash in?. So you will want to be particularly careful in narrowing down your selection of a trust and estate planning attorney.

Finding a lawyer may be easier than you think. Creditable and trustworthy resources are already available to you on the Internet. For instance, www.lawyers.com offers a complete database of lawyers sorted geographically and by expertise.

Finding a Lawyer May Seem Like a Monumental Task.

You?re already anxious because you have a legal problem. A creditor may have sued you or you may have been injured in an auto accident. Perhaps you want to start a business, adopt a child or finally tackle your estate planning needs. In these situations, you need a lawyer to protect your rights, but each situation requires very different skills. Yet many people don?t know how to find a lawyer that is right for them, which only raises their anxiety level.

Not surprisingly, recent studies suggest that the vast majority of consumers (81%) wish there was a resource to help them find competent lawyers. The study also suggests that 62% would like to have access to legal resources on the Internet. This article outlines the basic steps to finding a lawyer and using Internet resources already available to you.

Check Out the Database of Lawyers in Your Community.

You can use www.lawyers.com. Other Internet resources can help as well. Lawyer referral services, operated by your local bar association, can assist in finding a lawyer who is right for you. Visit www.abanet.org/referral/ to find a referral service close to home. If you qualify financially, consider contacting your local legal aid service by clicking on www,abanet.org/legalservices/probono.html. You can also contact a legal professional association or the American College of Trust and Estate to find the best attorneys in your area.

Yet some things can not be done on the Internet! In all cases, be sure to interview the lawyer to assure yourself that he or she has the expertise and experience you need, and that you have a comfort level that will allow you to be honest and open with him or her. Usually, you will not be charged (or charged very little) for this initial consultation.

Revocable Vs Irrevocable Living Trusts -

A trust is the right to the beneficial enjoyment of property to which another person holds the legal title; a property interest held by one person (the trustee) at the request of another (the settlor) for the benefit of another (the beneficiary). Trusts have different names depending on their purpose, i.e., Land Trusts, Charitable Remainder Trusts, Irrevocable Trusts, and so on.

Trusts are usually promoted by lawyers or non-lawyers working under their supervision. There are two-hour seminars being conducted in small hotels all over the country touting the use of Trusts and Family Limited Partnerships for the “ultimate asset protection.” In law school, there is a class called Trusts, so many lawyers think (mistakenly) that this is the best entity available for privacy and asset protection. Although they may have some value for estate planning purposes, they are utterly worthless as vehicles for asset protection. The problem is this: any entity or asset that is visible can be attacked by private attorneys at the least or, in the worst case, seized instantly by a Federal Judge.

Let me give you a real life example to demonstrate the pitfalls of Trusts. In the 1990’s, Stephen Hilbert was the high-flying CEO of Conseco, Inc., the insurance and financial services giant. He had it all, a 33-acre walled Indiana estate, the racehorses in Kentucky, and the 18,500 square-foot vacation home on St. Martin in the Caribbean. When everything was going well at the height of the bull market in the 1990’s, Mr. Hilbert, with the consent of his Board of Directors, borrowed more than $175 million to load up on his company’s stock. His company guaranteed most of these loans.

Things began to unravel when Conseco agreed to acquire Green Tree Financial Corp, a Minneapolis mobile-home builder for $6.4 billion in stock in 1998. The mobile-home market and Conseco’s stock promptly tanked, losing 90% of its value. The Board of Directors forced Hilbert out in 2000 and gave him until the end of 2003 to repay at least part of his loan package. He paid back about $7 million and then stopped paying altogether. His silk-stocking lawyers advised him to form a series of Trusts to “protect his assets” from any potential collection lawsuit by his former company. They suggested he name his wife as the Trustee to control the assets in the Trusts. They charged him several hundred thousand dollars for this prescient advice.

Divorced five times, Mr. Hilbert didn’t have a wife, so he quickly married the stripper that appeared at his adult son’s bachelor party. Her name is Tomisue. (In Las Vegas, it is assumed that any woman with two first names is in the adult business, but let’s not get catty.)

Tomisue became the Trustee for several family Trusts naming his minor children as the beneficiaries. From 2001 to 2003, Mr. Hilbert transferred more than $100 million in assets to his wife individually and to the Trusts controlled by her. The Conseco lawyers were not amused. They filed suit against Hilbert, Tomisue, and his two minor children to recover the unpaid portion of the loans. The suit claimed that Mr. Hilbert fraudulently transferred assets to his wife and her Trusts to “avoid paying” his creditors. It sought to void those transfers and foreclose on his primary residence. They named his two minor sons as defendants “solely because they hold beneficial interests” under a family Trust called the Hilber Residence Trust. In response to the suit, Mr. Hilbert lamented, “I feel like what they did to me and my family - suing my 9-year-old, suing my 13-year-old - that was purely trying to intimidate me.” (Do you think his lawyers advised him of this possibility?)

A tight fisted collection attorney, a Mr. Oslan, was brought on board by Conseco to assist with their collection efforts against the Hilberts. Mr. Oslan stated matter-of-factly, “Our view is that either they are fraudulent transfers, or Hilbert maintains enough control over the assets that they are not true transfers. She (Tomisue) is not free to do with the assets what she sees fits. He maintains control. The Trusts are a sham.”

Where are Mr. Hilbert’s lawyers during this imbroglio you might ask? They’re smiling all the way to the bank! First they sold Hilbert the Trusts for hundreds of thousands of dollars (and the notion they would provide him with asset protection) and then they get to charge him thousands more each month to defend him, Tomisue, the Trusts, and his kids. Their double-dipping is entirely ethical.

The outcome of this litigation has not been resolved. Mr. Hilbert has voluntarily relinquished some of his assets to Plaintiff as an olive branch to try and settle the matter to no avail. Mr. Oslan is working on a contingency basis and he knows there’s more meat left on this bone, so he is grinding through the courts hoping to get more flesh under his fingernails. And Mr. Hilbert continues paying his lawyers to defend.

The point is this: Both Trusts and Family Limited Partnerships are visible, they both usually employ family members, and they can be attacked by private attorneys like Mr. Oslan or seized outright by any Federal Judge. When I was a collection attorney, I always sued Trusts, the Trustee, the Beneficiaries, the spouses, family members, kids, babies, everyone. I wasn’t always successful in convincing a Judge to void the Trust or set aside all the transfers, but at the very least I usually elicited a fat settlement. With any litigation, a Defendant has to measure what he’s spending in attorney’s fees to defend a lawsuit against what he can pay the Plaintiff to end the litigation (and pain). It’s purely an economic decision. The facts and merits of the case are irrelevant.

For these reasons, we advise our clients that to protect your assets you must have complete financial privacy and that you should never use family members as part of any asset protection strategy. Trusts and Family Limited Partnerships violate both of these tenets.

(C) 2006 William S. Reed, J.D.

Related Links:
http://www.thewayiseeitbybillreed.com
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http://www.billreedassetprotection.com
http://www.assetprotectionforums.com
http://www.apgnv.com
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http://billreed.squarespace.com

Living Trusts and Estate Planning -

Were you aware of the fact that almost 1 in 4 people over the age of 50 have a living trust? When used as a part of an estate conversation plan, tursts can help preserve more of your assets for your heirs while minimizing the delays and costs of probate court.

A trust is a legal arrangement where one person or institution controls property given by another person for the benefit of a third party. If you don?t have a trust or don’t know if you might need one, keep reading to learn more about A-B (bypass) trusts, irrevocable trusts, and life insurance trusts. When used as a part of your planning, these trusts can help safeguard your legacy.

A-B Trusts

With a properly structured A-B provision, a living trust can allow married couples to exempt twice as much of their estate from taxes as they can otherwise. When one spouse dies, the trust is split in two. The surviving spouse s assets are then transferred to the A trust, while the assets of the deceased spouse go to the B trust. Each trust then becomes a taxable entity entitled to the current estate tax exemption ($1.5 million in 2005).

Irrevocable Trusts

An irrevocable trust is established by you relinquishing control of your assets while still alive. Depending on the way the trust is set up, you may or may not get the use of the asset during your lifetime. This is an option you do not want to enter into lightly, as once you give up the asset, you can not get it back.

Life Insurance Trusts

If relinquishing control of your assets is not your cup of tea, why not consider establishing a life insurance trust to pay the estate taxes on any assets valued above the estate tax exemption amount? A life insurance trust will hold an insurance policy in an irrevocable trust, so the policy itself is not taxable. At your death, it can then be used to help give your beneficiaries the cash they need to pay estate taxes.

Just like any other part of your estate plan, you need to reexamine your trusts on a regular basis so as to protect any newly acquired assets and to update your list of beneficiaries.

Understanding The Benefits Of Forming Trusts -

You have made some great investments in Real Estate or in a Stock Portfolio. Congratulations! Now you are ready to retire on your gains. But wait. To benefit from your investment appreciation, you’re going to have to sell some or all of those assets.

If you sell your investment property, you will need to pay capital gains tax to the Federal Government, State, and you will also pay recaptured depreciation. If you’re in California, add another 3 1/3% in withholding. That’s a huge chunk of change, and a big blow to your savings.

If you sell your stocks, you’ll be giving up at least 15% to capital gains. There is also no guarantee that the long term capital gains rate will remain at 15% forever. It could increase down the road.

How can you start receiving income but not get hit with huge amounts of tax?

For real property, there is a 1031 exchange into a tenant in common property. This works well for investors that don’t want to manage property anymore, but still enjoy the benefits of real estate ownership. This is a subject covered in many of my previous articles.

There is another powerful concept. It’s called a Private Annuity Trust. These trusts have been around since 1939, but until the last few years have primarily been used for Estate Planning purposes. The Private Annuity Trust also works extremely well for Retirement Planning. It is fairly complex to set up and administrate, so many financial planners, real estate brokers, CPAs and Attorneys still don’t know much about them.

The procedure is basically this.

1. A Private Annuity Trust is established. You, the seller become the annuitant.

2. A fair market appraisal is done to determine property value.

3. The seller can negotiate a sale price at the appraised value.

4. The property is transferred to the trust and the trust is now the seller of the property and retains the proceeds.

5. The proceeds are invested by trustees (not the annuitant) and an arrangement is made to pay the annuitant (and perhaps their spouse) in monthly payments for the remainder of their lives. The capital gains tax is spread out over the course of your lifetime. If you pass away before your estimated average calculated life span, the remainder of the assets pass to the beneficiaries. The balance will be passed free of Estate Tax, Gift Tax, Generation skipping tax, and Transfer tax. Any capital gains tax still due will be paid before disbursement.

6. Other properties or stocks can be added to the trust at a later time, and recieve the same benefits.

As an example, let’s say you have a million dollar gain on a property. You might very well owe 350K in taxes. With a Private Annuity Trust, all one million goes to work for you, and you can receive montyly income for the rest of your life. The exact amount is determined by your age and the time you choose to begin receiving your payments. You have the option to defer receiving payments until the age of 70 1/2. This allows the assets to grow compounding and tax deferred, and allows for greater income in the future.

The trust removes the assets from your estate, as the trust now owns them and the annuitant relinquishes control over how they are invested.

Setting up a Private Annuity Trust can definitely give a turbo boost to your retirement bottom line. Ask yourself, would you rather give a “gift” to the government in a big lump sum, or would you like to pay in small chunks and have the bulk of your profits working for you and earning compounded interest for years to come?