How Legal Gifting Through Cash Is ‘Really’ Done!
Could it be the fear of accepting something that appears to be an unconventional method of cash exchange with others, that makes it appear to some to suspect or suggest, without proof, the presence of deception? At least one of the primary barriers to successful programs in cash gifts is mostly a mental one. Through the process of simple rules, one should find success.
There are long-standing traditions in several cultures, specifically in Asian and Jewish, of creating financial stability through unity, specifically through the process of cash gifting. As Western culture focuses on the notions of self-accomplishment, personal merit and self-determination, some other cultures find their virtue in the benefits of community energy.
It can be said that some of the confusion in Western culture relates to an impression that cash gifts somehow represents illegitimate competition for traditional enterprise, and, therefore, is perhaps robbing mindshare, and, of course, redirecting resources which could possibly be shifted to commercial activity and replacing it with that which is much less deserving of formal recognition. The combination of the lack of awareness, and a mistrust of competition, is, ultimately, falsely judged as a threat by those who would choose not to appreciate, or even to judge objectively.
That objection is rooted in a paradigm of ‘scarcity’, or one of limited resources. It suggests that cash gifting is driven mainly by recipients, while ignoring the ‘products’ of the resulting output of those who recycle their gifts into a plethora of other activities. It was the late Jim Rohn who once said that if you feel that your cup is already full, you can only create the capacity to carry more by first emptying some from the cup first. You could eventually receive more in return than that which you remove, if you will only allow it to happen.
Legally, the annual restrictions on cash gifting maintain a well-supervised monitor of activity. Question – Would there be legally defined gifting limits if gifting were illegal? Now that is not to say that gifting in any any form is fair and proper. A saying exists in the financial markets – “Pigs get fat, hogs get slaughtered.” Gifting through cash is illegal when it goes outside of the regulations. Even Bernard Madoff used legitimate instruments, called financial derivatives, or options, in an twisted practice of fraud to deceive others of an estimated $50 billion for his own good. Thousands of others, however, make their living by observing the rules that Madoff ignored, using those same tools day in and day out. Personally, I use the same tools to create above average returns in very short periods of time, but, of course, only with a small portion of my portfolio, due to the risks involved. I do this by knowing the rules as well as the risks, and by following signals of a technical, legal, and, of course, an emotional nature. Similarly, there exists a thriving gifting activity that provides benefit to those who legitimately participate, without a threat of any kind to other well intended, more traditional activities.
It’s my long-term plan to ultimately dispose of excess resources by ‘gifting’ to as many of a carefully chosen group and/or individual recipients of my contributions as possible, for their own purposes. It is a well-known fact that underfunding exists in far too many areas, in public, private and non-profit areas and locations.
By opening up as many streams of liquid assets as possible, I will maintain an edge over others who are bound within their own self-imposed constraints, and with those limits that do not exist elsewhere, especially those of well-defined cultural or legal traditions
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