Tuesday, August 06, 2002

Rx for hiding your wealth

1. Why?

A. You're afraid of the taxman.
B. You don't want your spouse to know.
C. You don't want your creditors to know.
D. You've got many cases filed in court.
E. You don't want kidnappers to know.
E. Some of the above.
F. All of the above.

2. How?

A. Put your wealth in a friend's name -- Efficiency rating: Ok. Risk rating: Poor. Your friend can die on you. Also, your friend can forget about you.

B. Put your wealth in a relative's name. Ratings: same as above. Additional disadvantage, you can't sue your mom.

C. Establish a holding company. Ratings: Your best bet. No risk. You are your holding company. Corporations can outlive you. No loss of efficiency. You sign your company's checks. Creditors at your door? Just sign your endorsement at the back of the stocks, enter in the books and its free from credit vultures.

Recommendation: Personal holding company

Do it yourself: www.sec.gov.ph

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