Middle Class: Chips Are Stacked Against You

[Jon Q.]

If you are middle class in America and you depend on W2 income for a living, the chips are stacked against you.

1. Why are Americans who work for a living taxed more than investors who live off of their investments?

2. Why is the average return that you're able to generate in public mutual funds less than 5% annually (arguably less, much less) with high fees and how can you generate real wealth by investing in these funds?

3. Why do SEC regulations that "protect" the middle class also prevent them and allow only "accredited investors" (aka rich people) the ability to invest in private investment opportunities?

Full disclosure: through these opportunities, you may lose money, but you also may generate significant above market returns. There are also opportunities that are able to generate above market returns, but manage risks/downside effectively. The reality is, investing in private investment opportunities is how a large percentage of the rich get rich and stay rich. I know wealthy investors who are able to generate 20-30% returns annually. The SEC has effectively taken your investment rights away in the guise of "protecting you".

U. S. tax policy and securities regulation make it very difficult for the middle class to save and grow wealth. These policies help the rich get richer and the poor stay poor.

Though difficult, wealth development is not impossible. By understanding the policies and regulation, starting where you are now, you can develop wealth.