You are under no obligation to pay more
tax than you're legally required to.
These loopholes are available to
everyone. You just never bothered to
learn about them. That's an expensive
tax to pay for being lazy. Number one on
this list is the only strategy that lets
you cash out a $10 million asset, get
paid for the rest of your life, and
leave your kids the full amount, all
without the IRS seeing a single dollar.
Here are 15 tax loopholes rich people
use that you've never heard about.
>> [music]
>> Welcome to Alux, the place where future
billionaires come to get inspired.
Number 15, upgrade your home four times
in a decade tax-free. Also called the
121 exclusion, plus live in your flips.
There is something called the Section
121 of the Internal Revenue Code, and
it's one of the most generous gifts the
IRS has ever handed the average
American. Almost nobody outside the real
estate world uses it strategically, but
here's the deal. When you sell your
primary residence, you can exclude up to
$250,000 of capital gain from federal
taxes. $500,000 if you're married, as
long as you lived in the home for at
least two out of the last five years. In
real estate, we call it living in your
flips or tax-free home upgrade. Here's
how it works. You buy a fixer-upper, you
move in, you renovate while you live
there. After [music] two to five years,
you sell. You pocket up to $500,000 in
tax-free gain, [music] then you do it
again. Do this four times across 10
years, and you've created $2 million in
tax-free wealth without paying a dollar
of capital gains tax. Not to mention,
you've upgraded your home four times and
now have real wealth. And here's a
real-world example, okay? A married
couple in Austin, Texas bought a 1970s
ranch home in 2018 for $400,000,
renovated [music] it over 24 months
while living in it. Sold it in 2020 for
$850,000.
[music] Tax-free gain, 450,000.
They rolled the money into their next
fixer-upper. By 2026, they've done this
four times. [music]
Their net worth from this strategy alone
is over $2 million.
>> [music]
>> They've combined a W-2 income of
180,000.
The IRS has touched none of it. [music]
Many young people complain about not
being able to afford a home because they
think of their forever home, the one
they're going to grow old in. When in
reality, this path right here allows you
to build your net worth toward that
forever home in a way where you use the
tax system for your benefit because it
was designed to help you. This is the
single most accessible loophole on the
list. You need enough capital for a down
payment, the patience [music] to
renovate while living in the home, and
the discipline to upgrade your life
every time you buy a new iPhone, which
is roughly every 2 years or so.
Number 14, make your kids millionaires
by minimizing your taxes. Known as "Hire
Your Kids Section 162." You can hire
your own kids and pay them a real salary
through your business. As long as the
work is real and the wage is reasonable,
the IRS allows you to deduct the wage as
a business expense. [music] Your kid
then earns up to 14,600 a year and pays
zero in federal income tax. That's the
standard deduction for a single filer in
2026. Then it gets better. You take
their earned income and put it into a
custodial Roth IRA in their name. The
Roth grows tax-free for the next 50-plus
years.
>> [music]
>> Let's run the math on this because
you're not going to believe it, okay? If
you fund 7,000 a year into your kids'
Roth from age 7 to 18, then they never
add another dollar after that, by the
time they retire, that account is worth
approximately $2.3 million.
All tax-free. The Trumps did this, the
Romneys did it. Most wealthy families
with private businesses do this from the
day the kid can hold a camera or carry a
clipboard. You hire your 9-year-old as a
social media model for your company's
marketing photos. You hire your
12-year-old to file paperwork twice a
week. You hire your 16-year-old to
manage your business's TikTok account.
The [music] work has to be real, the
wage has to match the market, the IRS
allows it. [music] Meanwhile, in the
rest of the world, we had to help around
the family business all day, every day,
with [music] no pay.
Number 13, rent your house to your
business tax-free.
>> [music]
>> The Augusta rule, section 280A.
Now, this rule only exists because of
golf. Every April, the Masters
tournament rolls into Augusta, Georgia,
and rich people from around the world
fly in for the week. The local
homeowners realized they could rent
their houses to corporations attending
the tournament for five-figure weekly
rates. Lobbyists got the IRS to write a
rule for them, section 280A, G, known as
the Augusta rule. You can rent your
personal home for up to 14 days a year,
and the rental income is completely
[music] tax-free. Doesn't matter how
much you charge, doesn't matter who you
rent it to, including yourself. Wealthy
business owners realized they could rent
their own home to their own business.
So, here's how it runs. You own an S
corp or an LLC. You hold a real board
meeting at your home. Real agenda, real
decisions, real documentation. You
charge your business a fair market daily
rate, usually $1,500 to $5,000,
depending on your area. The business
[music]
deducts the rent as a business expense.
You receive the money personally and pay
zero income tax on it. That's another 40
to 50 grand you can take out of the
business just for checking a box. Talk
to your CPA to get clean documentation
for [music] this. Run 14 brainstorming
training meetings out of your house per
year and get the equivalent of what the
Airbnbs rent out in your area is
tax-free. As this video goes on, the
strategies get more practical and more
millions saved in taxes, so let's keep
going. Number 12, 20% off your taxes on
behalf of your government, the 199A
pass-through deduction. So, if you own
an LLC, an S a partnership, or you're a
sole proprietor doing under $500,000
[music] a year in profit, section 199A
of the tax code lets you take 20% off
the top before you owe a dollar in
taxes. Make $300,000 in profit, the IRS
lets you ignore $60,000 of it. You save
roughly 22,000 in federal taxes. Yep,
just like that. Why does the government
do this? Well, because in 2017, Congress
cut the corporate tax rate from 35%
[music]
down to 21% for big corporations. Small
business owners pointed out that they
were now paying a higher tax rate
[music] than Amazon and Apple. So,
Congress threw them a bone. The 20%
deduction was the bone. It's a permanent
gift to anyone who owns their business
[music] in America. Half of small
business owners either don't know it
exists, or they claim it wrong. But,
there is a catch. Above $241,000
single or $484,000
married, the rules [music] tighten. And
certain professions like doctors,
lawyers, accountants, and financial
advisers get phased out completely above
the limit. That's why your dentist owns
four different businesses. One company
is the dental practice itself. Above the
income limit, the practice [music]
doesn't qualify. A second company owns
all of the equipment, the chairs, the
imaging machines, the lasers. The
practice leases the equipment from the
equipment company, and the leasing
company qualifies.
>> [music]
>> A third company owns the building the
practice operates within. The practice
pays the rent. The real estate company
qualifies. A fourth company handles the
management, the billing, the IT, the
front desk staffing. [music] The
practice pays the management fees, the
management company qualifies. Same
dentist, same patients, same revenue,
just sliced into four entities so each
piece can claim its own 20% deduction.
So, ask your accountant, am I claiming
the full section 199A deduction? If they
look confused,
you need a better accountant.
Number 11, erase your salary tax with
oil money. Oil and [music] gas
intangible drilling costs section 263C.
Now, here's something you didn't know.
If you put money into an oil and gas
drilling project, the IRS lets you
deduct 60 to 80% of your investment in
the same year you write the check, even
if no oil ever comes out of the ground.
Put $100,000 into a drilling partnership
in December, deduct $70,000 of it on
your tax return in April. If you're in
the top tax bracket, that's roughly
$26,000 in federal taxes you don't owe.
There's a reason for it, too. Drilling
for oil is expensive and risky. And the
United States wants companies to keep
doing it instead of relying on imports
from countries we don't trust. So, they
wrote it into law. Actually, it's a
loophole disguised as energy policy, if
we're being honest.
>> [music]
>> So, here's how the rich use it. A tech
executive cashes out $4 million in stock
options in November. They're facing a
$1.5 million federal tax bill. So, in
December, they write a $500,000 check to
an oil drilling partnership and get
[music] a $350,000 deduction in the same
tax year. Their tax bill drops by
roughly $130,000.
>> [music]
>> Hedge fund managers, tech executives,
doctors selling their practices, or
anyone with a one-time massive income
event uses it as one of the only legal
ways to wipe out a huge salary or stock
comp year. [music]
Oil and gas partnerships are available
to accredited investors only, which
means you need $1 million in net worth
excluding your primary residence or
$200,000 plus in annual income.
Companies like US Energy Development
Corporation and Blue Rock run these
partnerships. And if you're not an
accredited investor, there's still hope.
You can use a different section. Section
179 lets you deduct up to $1.16 million
in business equipment in the same year
you buy it. Buy the equipment in
December, take the deduction in April.
Number 10, use a vacation rental to
cancel out your day job taxes. Cost
segregation plus the short-term rental
loophole. You buy a $900,000 property
and run it as a short-term rental on
Airbnb or Verbo. You hire someone called
a cost segregation specialist for around
5,000 bucks. They walk through the
property and put every component on a
faster depreciation schedule. [music]
The carpets, the appliances, the
lighting, the parking lot, the
landscaping, each one gets written off
faster than the building itself. The
result, [music] instead of slowly
depreciating the property over 27 and
1/2 years like a normal landlord, you
[music] write off 20 to 30% of the
purchase price in year one. On a
$900,000 Airbnb, that's $240,000
in paper losses on your first [music]
tax return. So, here's where the
loophole is. If you're the property
manager, those paper losses don't just
cancel out rental income. They cancel
out your day job income, too. A software
engineer in San Diego making $450,000 a
year buys a $900,000 Airbnb in Joshua
Tree. After the cost seg study, their
taxable income drops from 450,000 to
210,000.
The best part is that you now have a
holiday home that earns you cash flow,
deducts your taxes on your main income,
and you can use it whenever you want to
escape. The only downside is you need to
spend more time on it than any other
person with a minimum of 100 hours per
year, which you can easily do. Now,
everything in this video is insider
knowledge that would cost you tens of
thousands of dollars in just consulting
fees alone. We're able to share these
because we actively discuss them in our
private network inside the Alux app. The
real estate CPA who structures your STR
[music] loophole charges $5,000 a year,
segregation specialist charges $10,000
per study, [music] just sitting down
with the accountant that knows about
restructuring your business into four
entities to claim the 199A deduction
costs [music]
2,000 bucks. The Alux app costs 199 per
year. Same playbooks, same frameworks,
access [music] to a private community of
people climbing the same wealth ladder
you are. So, download it at
alux.com/app.
And since we're in a savings mood today,
if you scan the QR code on screen after
you install the app, you get 25% off
your yearly subscription. That's
alux.com/app
the app, and then scan the QR code for
the discount. We'll see you inside the
network, but in the meantime, number
nine, donate stock, never pay capital
gains, look generous for 30 years. Donor
Advised Funds or DAFs. Bezos, Zuck,
Gates, they all use this one because
it's the biggest charitable [music] tax
move in America. And here's how it
works. Let's say you bought $50,000
worth of Nvidia stock before it blew up.
It's now worth $1 million. If you sold
it, the IRS would take $190,000
in capital gains tax. You'd be left with
810,000.
Instead, you donate the stock to a Donor
Advised Fund, not the cash, the actual
shares. Three things happen at the same
time, okay? One, you get a $1 million
tax deduction this year. That's a $1
million tax deduction on any income,
worth roughly $370,000
in federal taxes saved. Two, you never
pay the $190,000
in capital gains because you never sold.
[music] And three, the full $1 million
on it.
Then, you give the money to charities at
your own pace, over 1 year, 10 years, 30
years. You direct where it goes. The
investment grows tax-free in the
meantime. Some might hire themselves or
a close family member to run the
foundation and earn a salary. This is a
$400 billion industry as of 2026. The
best part is this is the most accessible
billionaire move on the entire list.
Fidelity Charitable, Schwab Charitable,
and Vanguard Charitable all opened DAFs
with $0 minimum balances in 2026. If you
own any appreciated stock and you give
it to any charity, [music]
you should already be doing this. It
takes 15 minutes to set it up online.
Now, at number one, we'll show you the
version of this that pays you a lifetime
income while still giving the kids the
full asset value, so keep watching. In
the meantime, number eight, [music]
defer your tax bill into property and
never pay it again. Opportunity zones.
So, in 2017, Congress drew a map of
economically distressed areas in America
and said, "Anyone who invests in these
zones gets a giant tax break." [music]
The official sales pitch was community
development. Then somebody looked at the
map. Long Island City, parts of downtown
Manhattan, the area surrounding Trump
Tower, several luxury developments in
Miami. Some say that wealthy
neighborhoods that absolutely did not
need help got designated as opportunity
zones because it benefits the rich. In
practice, let's say you sell some
stocks, a business, a real estate, even
crypto. Normally, you would owe tax on
the gain the year you sold.
>> [music]
>> With opportunity zones, you've got 180
days to roll that gain into what's
called a quantified opportunity fund.
Basically, a special vehicle that
invests in property inside of one of
those designated zones. The moment you
roll the money in, your digital tax bill
gets deferred. Then it gets even better.
If you hold the new investment for 10
years, you pay zero federal tax on all
appreciation it generates inside the
fund. The trick the wealthy figured out
is that you can be the fund. You don't
need to buy into somebody else's
opportunity zone investment. You can
start your own qualified opportunity
fund with a single property purchase. In
2026, the maps are public and searchable
on the IRS website.
Number seven, skip $10 million in in
capital tax on startup stock. Qualified
small business stock section 1202.
If you hold qualifying startup stock for
at least five years, the IRS lets you
exclude up to $10 million of gains from
federal taxes when you sell. Or 10 times
your original investment, whichever is
bigger.
I'm going to say that again, okay? Up to
$10 million of capital gains tax-free
[music]
federally. Think stock options, your
founder startup stock, or shares in a
private company that you invested in
early. Imagine being employee number 30
at a series A startup. You exercise your
options for 50,000. You hold the shares
for five years, the company IPOs, and
your stake is worth $10 million. Without
section 1202, you owe roughly $2.3
million in federal capital gains tax.
With section 1202, you owe zero. Not
less, zero. But it doesn't end there.
There's a technique called stacking.
[music]
Are you ready for this one? Okay, you
can split your stock into multiple
trusts, each qualifying for $10 million
each. A founder exiting a $100 million
company can split the stock across five
separate trusts and exclude $50 million
federally tax-free. The IRS rules allow
costs between $50,000 to $100,000 to set
it up, and any good estate attorney can
do it, saving you millions in the
process.
Number six, trade real estate your whole
life, [music] die, pass it on to your
kids tax-free. The 1031 real estate
exchange plus swap till you drop.
Every real estate investor does this. We
do this. Section 1031 of the tax code
lets you sell an investment property and
roll the money into a new investment
property without paying capital gains
tax on the sale. This is how the richest
people build wealth without paying tax
legally. Buy a duplex in your 30s for
[music] 500k. Sell it 10 years later for
1.5 million. Instead of paying taxes on
the capital gains, use the money to buy
a small apartment building or even as a
down payment. Sell that 10 years later
for 5 million. Skip paying capital gains
again by investing it all into a strip
mall or a commercial building. Let's say
you own $20 million worth of real estate
when you die. Your kids inherit all of
it at what's called stepped-up basis. If
the kids want to sell it right then,
they pay no tax on the 20 million. If
they sell for 25 million later, they
only pay tax on the extra 5 million.
That means the IRS resets the value of
the property to whatever it's worth on
the day you die. All the capital gains
you accumulated over 40 to 50 years of
trading up, erased, gone, they never
existed for tax purposes. This is the
real estate version of the master
mechanic we talked about last Sunday on
the video about 1%. Go check it out if
you missed it. [music] The same logic
applies to stocks, businesses, art,
anything that appreciates. All you have
to do is be ready before you sell. The
1031 rules are strict. You have 45 days
after the sale to identify the new
property, 180 days to close using a 1031
escrow company.
Number five, buy land, promise [music]
not to develop it, and deduct millions.
Conservation Easements. Now, this one is
still legal, but they're looking into
doing something about it. You buy a
piece of land with development
potential. Maybe 50 acres outside of
Nashville or a stretch of coastline in
Florida. The land could, in theory, be
developed into condos, a strip mall, a
golf course, whatever the highest value
use would be. You then sign a legal
agreement with a land trust agreeing to
never develop that land, and you
preserve it forever. [music] The IRS
treats the difference between the
developed value and the preserved value
as a charitable donation. So, you get a
tax deduction equal to the loss in
development potential. If a clever
appraiser values the development
potential aggressively, that deduction
can be massive. This is not a theory.
This is a documented playbook used by
some of the most famous wealthy families
in America. Donald Trump used a
conservation easement on his Mar-a-Lago
estate, and he did it again for his
Bedminster golf course in New Jersey.
Combined deductions, tens of millions of
dollars. The Bass family of Texas, one
of the wealthiest old oil families in
America, claimed over a billion dollars
in conservation easement deductions
across multiple properties. Public
reporting and SEC filings showed dozens
of wealthy families running the same
playbook. The entire playbook is in a
gray zone. These properties got bundled
up, assessed [music] at extreme values,
and then sold off in pieces. They're
called syndicated conservation
easements. Basically, invest $100,000,
get a $500,000 charitable deduction. The
IRS has been fighting syndicated
easements in court for years because
it's kind of being abused by the rich.
Number four, turn a $1,700 retirement
account [music]
into a $5 billion tax-free fortune. The
Peter Thiel Roth IRA. Now, this is the
most insane tax story in modern American
history. In 1999, Peter Thiel co-founded
a tiny startup called PayPal. The
company was a year old. The shares were
valued at $0.001
each, a tenth of a penny. Thiel opened a
Roth IRA, the kind of retirement account
a middle school teacher uses to save for
old age. The contribution limit that
year was $2,000. [music]
He used $1,700 of it to buy 1.7 million
PayPal shares at fractions of a penny
each. In 2002, eBay bought PayPal for
$1.5 billion.
Thiel's [music] $1,700 stake was
suddenly worth $55 million
sitting inside his Roth, but he kept
going. In 2004, he used Roth money to
invest $500,000 into a startup called
Facebook. That stake later was worth
roughly 1 billion, still inside the
Roth. By 2019, according to ProPublica's
leak of IRS data, Peter Thiel's Roth IRA
was worth over $5 billion dollars. All
of it tax-free forever. He owes no
capital gains. He's 58 right now, and he
can access it at 59 and a half next year
in [music] April. There are around
30,000 Americans with Roth IRAs over $5
million, and yes, this is legal and
possible to everyone in 2026. Here's how
you do it. You can still open up
something called a self-directed Roth
IRA. Custodians like Rocket Dollar,
Alto, Bitcoin [music]
IRA, and iTrustCapital handle them. The
move right now is putting crypto or
pre-IPO SpaceX shares into your account.
Every gain grows tax-free [music]
forever. Every sale inside the account
is tax-free. By the time you're 59,
you're either a multimillionaire or you
lost it all. What's no longer allowed is
buying your own startup shares at crazy
low valuations. This video is a master
class [music] in building generational
wealth, so the least you can do is
subscribe to our channel. We're trying
to get to 10 million subscribers.
Number three, hide your investments
inside a life insurance policy. Private
placement life insurance plus dynasty
trusts. Now, this is a different kind of
insurance from what your mom and dad
have. It's private placement life
insurance or PPLI for short. Now, PPLI
is a tax wrapper that happens to be
shaped like an insurance policy. And
here's how it works. You give a chunk of
your wealth, say $10 million, to a
specialized insurance company. They put
it inside of an insurance policy with
your name on it. Inside that policy, the
money gets invested into hedge funds,
private equity deals, private credit
funds, real estate. The investments grow
tax-deferred year after year. No annual
tax bill on the gains. When you need
cash to live on, you don't withdraw the
money. Withdrawals would trigger a tax.
Instead, you take a loan from your own
policy at, believe it or not, 0.25% to
1.5%.
The IRS does not tax loans. You spend
the borrowed money on whatever you want.
And guess what? When eventually you die,
the policy pays out to your heirs
completely tax-free, including all of
the gains that compounded inside of it
for 30 to 40 years. And if that wasn't
crazy enough, let us blow your mind.
Combine your PPLI with a dynasty trust
set up in South Dakota, Nevada, or
Delaware. These specific states allow
trusts to exist for hundreds of years.
Some of these trusts are designed to
last 1,000 years. This is absolute
generational wealth where a dynasty fund
set up correctly will compound wealth,
act as a low-interest bank, and pay out
to every generation. Because the assets
never leave the trust, they never
trigger any form of inheritance or
estate tax across generations.
Number two, the business expense ladder.
How making more money lets you pay less
tax.
A teacher making $60,000 a year pays
roughly 22% of their income in federal
taxes. A surgeon making 600,000 pays
around 32%. A CEO making 6 million pays
maybe 25%. A billionaire making 600
million pays effectively as little as
8%. The line goes up, then it bends,
then it bends down hard. Why? Because
every wealth tier unlocks a new way to
turn personal spending into business
expenses. Individuals and employees pay
taxes on income first and then get to
spend the rest. Businesses deduct
expenses first and then pay taxes on
what's left, if there's anything [music]
left. At 60,000 a year, everything you
spend is post-tax. Phone, car, internet,
lunch, all of it bought with money the
IRS already took its cut from. At
150,000 a year with a side business,
your phone becomes a business expense.
So does part of your internet, your
laptop, and your car. Same life, three
to five percentage points lower tax
rate. At $500,000 a year as a business
owner, your car is a company vehicle.
Your travel is research. Your meals with
clients are deductible. You start
running two parallel lives, personal and
business, constantly shifting expenses
from the first into the second. At $2
million in net worth, you own things
through LLCs. Real estate, investments,
side businesses, the LLCs hold the
assets. The LLCs pay the bills, the LLCs
take the deductions. At $10 million in
net worth, you build a virtual family
office. A part-time [music] CFO, a tax
strategist on retainer, an estate
attorney year-round. Every fee is a
business expense.
At $1 million in net worth, you hire
your own staff. Investment manager,
accountant, attorneys, analysts. They
work for your management company. The
management company charges fees to your
family LLCs. Every operating expense
becomes a deduction. At $1 billion and
up, foundations, dynasty trusts spanning
thousands of years, holding companies,
charitable remainder trusts, private
placement insurance. Your entities own
everything and employ or deploy funds to
every member of your family. Nobody will
ever be broke again. So long story
short, after 50k a year, you should form
a company and start deducting most of
your expenses. You just saw the ladder.
Every rung unlocks a new level of tax
efficiency. But, there's a one move that
exists at the very top, and that's
number one, the $10 million rich forever
strategy, or the charitable remainder
trust plus wealth replacement trust
combo. Now, this one right here, this is
the master move. This is why in 2026 you
only need $10 million to never worry
about money again. Wealthy people use it
when they're ready to liquidate a
high-value asset. You own something
worth $10 million, a business, [music]
a property, a stock position. Sell it
the normal way and you hand $2.4 million
to the IRS. The wealthy do not do that.
They move the asset into a charitable
remainder trust before the sale. When
they set up the trust, they name their
own family foundation as the eventual
beneficiary. The trust sells [music] the
asset, zero capital gains tax. All $10
million stays inside and reinvested into
index funds earning 10% per year. The
trust [music]
then pays you 5 to 8% of its value every
year. That's $500 to $800,000 paid to
you annually
>> [music]
>> for the rest of your life. You never
touch the principal because the money
inside the fund grows faster than what
it pays you. The income you get out of
the trust is taxed at a lower rate than
ordinary income. As a bonus, [music] the
government gives you $3 million in tax
deduction the same year against your
other income.
But, hey Lux, what about the kids? Well,
here's what wealthy families do. You
don't want your kids missing out on the
$10 million while the foundation gets
everything. So, while the trust is
paying you that 5 to 8% per year, you
take a small portion of it, usually
around $30 to $50,000 a year, depending
on your age, and you use it to buy a $10
million life insurance policy inside a
separate trust called an irrevocable
life insurance trust. When you die, the
insurance policy pays out 10 million
completely tax-free. The IRS got
nothing.
Now, save this video somewhere and come
back to it when you're ready because you
just learned how to upgrade your home
without paying taxes. How to make your
kids millionaires by hiring them when
they're young tax-free. Then we showed
you how to rent your home to businesses.
How to get 20% of your taxable income as
a free gift from the government. How
instead of paying taxes [music] on your
salary, you can redirect that money to
oil and gas or offset it with a
strategic Airbnb. We showed you how
billionaires use charities they own to
offset their taxes. How they took over
opportunity zones to park cash for 10
plus years. Then we taught you how
startup founders skip $10 million in
capital gains with section 1202 and
stack it for 50 million across multiple
trusts. [music] You learned how to do a
real estate exchange so you can keep
growing your portfolio. How to buy land,
promise you won't develop it, and write
off millions. [music] You now park
Bitcoin and SpaceX stock tax-free inside
your Roth IRA. How life insurance is
basically your private bank with the
lowest interest rate possible. How many
of your expenses are actually business
expenses if you structure them right.
And the master [music] move at number
one, how a $10 million asset became a
lifetime income. A family foundation
your kids run forever and a tax-free $10
million inheritance all without the IRS
seeing a single dollar. All in a Sunday
motivational video. All for free. Now
you see Alex, this is the part where we
ask you to write down in the comments
which of these you found the most
interesting or which one you'd like to
learn more about. Please do let us know,
but there's a bigger theme at play here.
You just realized how much more there is
to the game of wealth and how little you
actually know. So before we end, of
course, there is a secret bonus waiting,
but not what you would expect. [music]
The bonus today, saving money on tax but
losing quality of life, is a bad trade.
Now, it's only the true Aluxers who
stick around until the very end, so let
us go a bit contrarian here. You were
probably expecting us to include a move
to Puerto Rico or Dubai or other
jurisdictions where there are some tax
benefits. But here's the contrarian
take. If you've made enough money to not
have to worry about money again,
downgrading your quality of life to pay
less tax is a bad trade. Now, we didn't
get this one at first until it was
explained to us by one of our mentors
who is happy paying 50% tax living in
California. Now, he's in his 50s, all of
his friends are there, his kids go to
colleges there, so he sees them on the
weekend. He enjoys the weather and has
built deep relationships in his
community. He's appreciated there and
[music] he feels like he belongs. The
social and emotional cost of moving
somewhere like Florida would be too high
even if he saved a few million dollars a
year in tax. [music]
So, Aluxer, learn the rules of the game
to optimize it, but remember, the goal
at the end is to build a life you are
happy with. We hope to hear from you in
the Alux app as well, and if you made it
this far into the video, write the word
goal in the comments. Let's see how many
of you know what the goal actually is.