Creating Wealth How To Become A True Investor

  
     
  By: Hans Schoff  
 

Along the lines of creating wealth, what makes someone a true investor? Many people think they are investors, but in reality these are the same people who had the largest losses over the last few years in the stock market and housing busts. Are they really investors? If not, then what is it that really distinguishes someone as a true investor?
Raising money.
Creating wealth - or at least the desire to create wealth - by giving your money to someone else to invest (whether into mutual funds via your 401k, etc) doesn't make you a true investor. You are investing but that does not qualify you as an investor. In fact, whoever it is you are investing money with, whoever is raising the capital, that person is the true investor! It is the act of raising capital that makes one a true investor.
For creating wealth, the distinction here is important. The person actually raising the money is the one who receives the tax breaks and other benefits, whereas the one investing with the investor hasn't any control over their money and ends up giving away their wealth due to taxes and inflation.
Back in 1943 when employees lost their tax breaks when the tax code was created (employees were the only ones to lose their tax breaks). And then in 1986, small business owners and the self-employed lost the majority of their tax breaks (leaving only big business - companies with 500 or more - and true investors the lion's share of the tax benefits).
True investors and big businesses never lost their tax breaks. This is how they've been able to continue creating wealth, growing richer and richer while the middle class and lower class continue to get poorer and poorer (again, due to taxes and inflation, among other things).
  
  Article Source: http://yourfinance.co.za   
     
 
About The Author
To learn more about how you can begin creating wealth by being more generous and providing more for more people, visit the following site now: hansschoff.com/creating-wealth-3-business-bu ilding-ways-take-control-get-ahead-uncertain-financial-times
 		  
     
 
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