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Originally Posted by aceventura3
Yes. I think you have to factor in the value added by your children.
Assuming all other things equal
If you build a $200,000 house and you pay your children $100,000 but they added no value, what do you really have? A $200,000 house. So when the creditors come you can only sell the house for $200,000 and you get screwed (unless they give back the money)
On the otherhand.
If you build a $200, 000 house and you pay your children $100,000 and they added $200,000 in value. What do you have? Either a $200,000 and your cost was $100,000. Or a $400,000 house and your cost was $300,000. When the creditors come knocking, you sell for a $100,000 profit, and your kids made $100,000 - Brilliant! Brilliant!  |
What if the majority of the money I spent was either given to a contractor or spent on goods that do not retain value. And that contractor over charged me to the point of fleecing me. So now the house only retained 10% of the value I put into it. Is it still a good idea?
If you think what i'm saying is far fetched, bombs and munitions are expendables and do not retain value. Also Halliburton is charging the US government $45 for a 6 pack of coke, i wonder what they are charging for other things...