Every 1% in Fees Cost You 10-Years of Retirement Income

Ben Stein, Tony Robbins, and John Bogle, founder of Vanguard, all agreed that mutual fund and advisory fees can easily “cost you [at least] 10 years’ worth of retirement income.”  As Rick Ferri wrote, Forbes Personal Finance, May 27, 2013, “The thought of giving up 40% per year in investment return to pay for portfolio management and advice would cause most people to walk away.” Unfortunately, many investors have no idea that they are paying upwards of 40% of their return each year in fees; and, the people who understand this believe they have no alternative.

The solution offered by Tony Robbins was to hire his firm and pay just 1%; Ben Stein and John Bogle, of course, believed that Index Funds are the answer. In my last blog, Index Funds Are No Match for DRIP Stocks, I illustrated a real-life example of one DRIP stock, The Coca-Cola Company (KO), that gained 21.94 times the original investment in 25-years compared to the S&P 500 Index Fund that gained only 9.82 times the original investment after 40-years, i.e., the Index Fund grew to only 44.76% of the value of the DRIP stock AND, it took an additional 15-years!

In fact, based upon my computations, for every $1,000 in fees paid each year for 16-years and not invested using our DRIP strategy, cost you at least $567,000. For example, if you start paying $1,000 in money management fees at age 25 and continue to do so through age 40, you would have lost at least $567,000 by the time you reach 66-years old.

Let’s say by the age of 35 you become much more successful and are paying $4,000 in money management fees each year through your 50th birthday instead of investing in DRIP’s, you would lose over $2,268,000 in DRIP stock value when you turn 76-years old.

You would lose much more than illustrated above because as your portfolio increases, so does the amount you pay in management fees each year.

Our DRIP Strategy works regardless of what is happening in the stock market because it takes advantage of Einstein’s Theory of Compound Interest; in fact, market declines and crashes work to our advantage since the dividends reinvested purchase more shares at less cost and, other great DRIP stocks drop in value and meet our buying requirements!

And finally, the beauty of this DRIP STRATEGY is that you can do it yourself! Just read our newsletters, which are free; and, buy The Best Kept Secret to Financial Freedom and/or Unlock the 4-Doors to Financial Independence; both are available from Amazon starting at $4.99.

Spread the word and avoid the charlatans on Wall Street!

Dum Spiro Spero—While I breathe, I hope.

Slainte mhath,

Robert G. Beard Jr., C.P.A., C.G.M.A., J.D., LL.M.

When the Stock Market Declines It’s Time to Go Shopping!

On Friday, August 23, 2019, after President Trump tweeted several times and upped the tariffs on China, the stock market took a hit; the S&P 500 lost 2.59% or 75.84 points, the Dow dropped 2.37% or 623.34 points, and the Nasdaq lost 3% or 239.62 points.

As DRIP Investors, we look forward to stock market declines and view them as an opportunity to buy additional great businesses—that have paid and raised dividends during wars, recessions and depressions—that have been overpriced or too expensive to purchase in the past. In addition, we can buy more shares of the businesses we currently own at a discount.

Remember, our strategy is to look for DRIPs that have at least a 3% or better yield on the date of purchase; and, have a history of increasing annual dividend payments by 8%-to-10% or more per year.

Only 15 of the 38 DRIP stocks we follow are current buys after Friday’s decline:

·      Exxon Mobil Corp (XOM) - $67.49 per share, dividend yield 5%

·      Weyco Group Inc (WEYS) - $23.38 per share, dividend yield 3.92%

·      Archer Daniels Midland (ADM) - $37.43 per share, dividend yield 3.69%

·      3M Company (MMM) - $155.85 per share, dividend yield 3.58%

·      Walgreens Boots Alliance Inc (WBA) - $49.32 per share, dividend yield 3.59%

·      General Mills (GIS) - $53.63 per share, dividend yield 3.58%

·      International Business Machines (IBM) - $129.57 per share, dividend yield 4.82%

·      Omega Healthcare Investors (OHI) - $40.39 per share, dividend yield 6.57%

·      Qualcomm Inc (QCOM) - $73.52 per share, dividend yield 3.21%

·      Enterprise Products Partners (EPD) - $28.16 per share, dividend yield 6.08%

·      Ameriprise Financial (AMP) - $124.49 per share, dividend yield 3.02%

·      Cardinal Health Inc (CAH) - $42.79 per share, dividend yield 4.4%

·      Cracker Barrel Old Country (CBRL) - $161.28 per share, dividend yield 3.16%

·      AbbVie Inc (ABBV) - $65.97 per share, dividend yield 6.34%

·      Las Vegas Sands Corp (LVS) - $53.11 per share, dividend yield 5.66%

As Finance Professors Rubin and Spaht concluded: “For those investors who adopt ten and fifteen year horizons, the dividend investment strategy will lead to financial independence for life. Regardless of the direction of the market, a constant and growing dividend is a never-ending income stream.”  See Unlock the 4-Doors to Financial Independence, page 53, available from Amazon.com.

Time for some DRIP retail therapy… keep the good times rolling!

Dum Spiro Spero—While I breathe, I hope.

Slainte mhath,

Robert G. Beard Jr., C.P.A., C.G.M.A., J.D., LL.M.




A respected newsletter writer, who stated he only invested in Index Funds, wrote, “here’s a fun one,” let’s say you are 25 and want to retire in 40-years at age 65. He then gave three examples of individuals investing $123,500 in their IRA accounts at different times in the S&P 500 Index Fund, averaging 7% per year. The points conveyed, at least the ones that made sense were: (1) invest early and (2) don’t try to time the market, i.e. once invested in stocks, leave your money, and, don’t wait and hold your cash until the market declines.

The best case ended up, at the end of 40-years, with $1,212,838 or 9.82 times the original investment. And, in order to retire on this money in the Index Fund, you would have to liquidate the principal each and every year. What happens if you had to start withdrawing this money if we go into a stock market crash like 2000-2001-2002, three years straight of stock market declines? It is highly likely that you would run out of money in your retirement!

I’m just looking at one DRIP stock purchased 25-years ago—not 40-years—that has a current dividend yield of 67.96% at the end of December 31, 2018, which keeps increasing each and every year, on average by approximately 10%, regardless of what the stock market does.  Also, the value of that stock as of December 31, 2018—after 25-years, not 40-years—was 21.94 times the original investment rather than just 9.82 times after 40-years.  Also, December 2018 was a horrible month for the stock market, so that was a low value!

Finally, the DRIP stock purchased did not fit our current requirements, i.e., rather than a 3% or better yield on the date of purchase, this DRIP was acquired with a 1.53% yield.

A study has been done by Professors Harvey Rubin and Carlos Spaht II, Financial Independence through Dollar-Cost Averaging and Dividend Reinvestments; see my book, The Best Kept Secret to Financial Freedom, pages 19 and 44.

To sum-up their conclusion, “For those investors who adopt ten and fifteen year horizons, the dividend investment strategy will lead to financial independence for life. Regardless of the direction of the market, a constant and growing dividend is a never-ending income stream.”

“Here’s a fun one” for you 25-year old’s, why not become financially independent in 15-years at age 40 rather than wait 40-years until age 65 to retire.  

Index Funds, mutual funds, growth stocks, tech stocks, real estate syndications, ad infinitum, can’t touch OUR DRIP STRATEGY… supported by two Finance Professors and a few average individuals like Grace Groner, Anne Scheiber, and Ronald Read. See, The Best Kept Secret to Financial Freedom and Unlock the 4-Doors to Financial Independence.

The beauty of this DRIP STRATEGY is that you can do it yourself; you do not need financial planners, money managers, or investment advisors; just a book that costs as little as $4.99.

Dum Spiro, Spero—While I breathe, I hope.

Slainte mhath,

Robert G. Beard Jr., C.P.A., C.G.M.A., J.D., LL.M.


Take Advantage of the Greatest Opportunity to Come Around in Our Lifetime

In 2017, the crypto-currency market sky-rocketed to new heights! Had you invested $1,000 in Bitcoin at the beginning of that year, you would have had $13,180 at the end of 2017. However, had you invested that same amount ($1,000) in Ripple (XRP), you would have had $360,180.

Today, you can buy Ripple (XRP) for $0.420239 per coin or acquire 1,000 coins for a mere $420; 500 XRP coins for $210.  An investment in Stellar Lumens (XLM)—my favorite coin—in 2017 of $1,000 at the beginning of the year was worth $144,410 at the end of 2017. Today, you can purchase 1,000 XLM coins for under $130. An investment of $1,000 in NEM (XEM) at the beginning of 2017 was worth $298,420. Today, you can acquire 1,000 XEM coins for under $100.

If you were inclined to purchase 1,000 coins of XRP, XLM, and XEM, your total financial commitment would be around $650. If you only want to risk $500, purchase 500 XRP coins and 1,000 of the other two; or, if $250 is more affordable, just purchase XLM and XEM. The upside is substantial; the downside is less than $1,000. Now is the time to buy, before the “institutional investors” start pouring in.

“Fidelity, which has $2.46 trillion (trillion!) in assets under management, has opened a crypto trading desk for ‘select’ customers (read: high rollers) . . .  Now imagine if Fidelity just put 2% of its [funds under management] into the crypto market. That would be $49.2 billion [with a market cap of $171.4 billion for the entire crypto market].”   First Stage Investor, May 2019

The Stansberry Digest is promoting a new crypto-currency service touting an expert who believes that Bitcoin, after reaching lows of $3,600 per coin, is on its way back to $25,000 per coin by the end of 2019. As of this writing, Bitcoin is trading around $8,000. Also, 2019 may not be the magic year; and, if not and you have positions in crypto, sit tight and wait it out!

If you are not sure how to get started, go to our website (www.jeffersoniangroup.com) and read some of our past newsletters; and/or, for $4.99 (kindle edition) or $9.99 (paperback), purchase a copy of Unlock the 4-Doors to Financial Independence, specifically Chapter IV; when success strikes over the next several years, you will certainly benefit by reading Chapter V.

As one commentator pointed out, after the increase in value of crypto-currencies in 2017, Ripple (XRP) gained more in one year than Apple had in its entire existence. This opportunity to get in on the ground floor with minimal financial commitment—money that you normally waste and can afford to lose—just may turn out to be a very monumental success!?!  

As Ben Franklin once said, “Nothing ventured, nothing gained.”

Dum Spiro Spero—While I breathe, I hope.

Slainte mhath,

Robert G. Beard Jr., C.P.A., C.G.M.A., J.D., LL.M.

A Winning Strategy When Stocks Decline

If you invest in great businesses (DRIPs) that pay and raise their dividends each, and every year for at least 25-years, you can take advantage of the principles of “compound interest,” which Einstein believed was “the eighth wonder of the world.” Here’s why.

By purchasing DRIPs, even one-time, for $10,000 yielding 5% at the time of purchase; and, the DRIPs raise their annual dividend payments by 10% every year for 30-years, you’d have $5,428,527 from your original investment of $10,000. The dividend payments in the 31st year would be $4,305,661. By the end of the first quarter of the 32nd year, you’d have over $10,000,000 without regard to any increase in the share price.

Now granted, 30-years may seem like a long time. But, consider if you start investing in the right DRIPs when you are 20 years old; by the time you reach 50, you just might have created your own annuity of DRIPs paying you over $4-million per year, which will keep rising each, and every year thereafter.

These Dividend Champions, DRIPs that have paid and raised their dividends for 25-years and longer, have continued to pay and raise their dividends during recessions, depressions, wars, and stock market declines. As a result, DRIP investors benefit significantly when the stock market declines because the dividends purchase more shares at less cost, plus, the dividend yields rise making it much more profitable to invest new money in these great businesses. For most people, this is a difficult concept to understand.  It goes against everything Wall Street and the financial planning community write and talk about… why… because if you buy DRIPs, the financial planning community does not make any money from you!

Let’s try to make this a little easier. As of February 28, 2019, there were 133 Dividend Champions, which averaged 39.4 years of paying and raising dividends; that would bring us back to 1980. Since 1980, there were four periods of major stock market declines: (1) November 1980-to-August 1982, the S&P 500 lost 27.8% over 22-months; (2) August 1987-to-December 1987, the S&P 500 lost 33.5%; (3) March 2000-to-October 2002, the S&P 500 lost 49.1% over a 30-month period; and, (4) October 2007-to-March 2009, the S&P 500 lost 56.4%.

Had you invested in Dividend Champions before November 1980, your stock value may have declined by 27.8%, the amount of your quarterly and annual dividend payments would have stayed the same and continued to increase each year regardless of the change in the stock price. Let’s say your dividend yield was 3% when you purchased your DRIPs; if the DRIPs declined in value by almost 28%, the yield would have increased from 3% to almost 4.2%. So, the dividends reinvested would be purchasing more shares with a yield of almost 4.2% rather than the original yield of 3%.

During market declines, you not only reinvest your dividends to get higher yields, it is highly beneficial to invest more new capital during periods of stock market declines at greater yields that approach and exceed 5%. Remember the miracles of compound interest that are created over time!

Many of the DRIPs we recommend have paid and raised their dividends for much longer than 25-to-39.4 years. To name just a few: Coca-Cola (KO) 57-years; McDonald’s (MCD) 43-years; Wal-Mart (WMT) 46-years; 3M (MMM) 61-years; Target (TGT) 51-years; Kimberly-Clark (KMB) 47-years; Johnson & Johnson (JNJ) 56-years.

Any person, at any age, can do this on their own. Don’t let Wall Street delay or ruin your dreams; and please, stop paying for your Financial Planner’s vacations and private schools for their children!

You have the secret of financial success at your fingertips! For $4.99 you can purchase a copy of Unlock the 4-Doors to Financial Independence, available from Amazon.com, which will guide you on your way to financial freedom.

Dum Spiro, spero—While I breathe, I hope.

Slainte mhath,

Robert G. Beard Jr., C.P.A., C.G.M.A., J.D., LL.M.

Turn $10,000 into $10-Million Even in a Volatile Stock Market

It has been reported that Albert Einstein was asked to name the greatest invention in human history and he replied, “compound interest.” Einstein stated, “compound interest is the eighth wonder of the world.” “He who understands it, earns it, he who doesn’t, pays it.”

The only practical way to put Einstein’s theory of compound interest to work is by investing in certain Great Businesses (DRIPs) that have a history of paying and annually raising their dividend payments every year through wars, depressions, recessions, and market declines.

If you purchase DRIPs for $10,000 yielding 5% and the DRIPs raise their annual dividend payments by 10% every year, your $10,000 would grow to $5,428,527 after 30-years, with dividend payments in the 31st year of $4,305,661. By the end of the first quarter of the 32nd year, your original investment would grow to over $10-million, without regard to any increases in the share price.

If we began teaching this in elementary school and encourage our children and grandchildren to invest small amounts of their allowances and monetary gifts in DRIPs; and, 10%-to-30% of their gross earnings throughout their careers, they would easily be financially independent by age 50, probably much earlier. After all, most of us should be able to live off annual dividends of over $1-million, which continue to increase every year.

In today’s market, it is extremely difficult to find a 5% or greater yield; 3% is more realistic.  With this 3% yield, you can find DRIPs that have paid and raised their annual dividends, on average, by 8%-to-10% and more every year.

Stock market declines are highly beneficial to DRIP Investors taking advantage of Einstein’s theory of compound interest. First, when the market declines, you purchase more shares with your dividends at a higher yield, closer to and greater than 5%. And second, you are able to invest additional capital in new DRIPs that have declined in value, resulting in dividend yields closer to and greater than 5%.

With respect to the 38 DRIP stocks that we follow, 21 currently have yields of 3% or greater, which we believe are good values. You must start investing now; time is more important than waiting for the ideal yield of 5%. Besides, several stock market declines, while you are reinvesting your dividends, will make up for the lower yield of 3%.

That said, we are still hoping for a major stock market decline resulting in all of our 38 DRIP stocks yielding 5% or greater! 

Dum Spiro, spero—While I breathe, I hope.

Slainte mhath,

Robert G. Beard Jr., C.P.A., C.G.M.A., J.D., LL.M.

The Great Wall Street Hoax

Wall Street is in the business of making money by selling investment products to include stocks, bonds, mutual funds, ETF’s, commodities & precious metals, limited partnerships for real estate and oil & gas ventures, ad infinitum. The big firms prepare and sponsor courses so that individuals in the financial planning community are able to sell Wall Street’s investment products (e.g., Securities Licenses); and, obtain various credentials (e.g., Certified Financial Planner) which supposedly makes them experts in the field of investing.

There is, however, one investment strategy that is completely overlooked and not talked about because Wall Street can’t make any money from it. Furthermore, it turns the entire investment philosophy of diversification, as created by Wall Street, into a fraud since diversification’s primary purpose is to generate continuing sales of all investment products, constantly encouraging investors to move in and out of investment products regularly. Every time you buy and sell, commissions are earned by Wall Street on both sides of the transaction!

If you want to obtain financial independence, and, just as important, maintain it and outlive your money, there is only one investment strategy needed. With this strategy, it does not matter whether the stock market continues to rise; or, crashes like it did from 2000 through 2002 and again in 2008.

Invest in great businesses that have paid and raised dividends continually through recessions, depressions and wars. These businesses have dividend reinvestment programs (DRIPs). This is really the only viable strategy available anywhere, which fully utilizes the principle of compound interest. For example, The Coca Cola Company (KO) was purchased in 1994 with a dividend yield of 1.53%; after 8-years the annual dividend yield was 11.69%; in 10-years, it was 15.17%; and, in 14-years it was 25.58%. Today, the dividend yield of KO is over 3% at its current price. If KO was purchased now, with a dividend yield in excess of 3%, and, we experienced the same growth, we would be looking at a dividend yield of 23.38% in 8-years; 30.34% in 10-years; and, 51.16% in 14-years. Eventually between 20 and 25 years, the dividend yield should exceed the original cost of the investment. In fact, if you purchased a DRIP stock yielding 3% and it increases its dividend each year by 10%, in 25-years, you would be receiving approximately 350% or 3 and ½ times the original cost of your investment. And, your dividend cash flow keeps increasing each, and every year!

There are at least 127 Dividend Champions, great businesses that have paid and raised their dividends each, and every year, for at least 25-years; KO has been doing this for 56-years; McDonald’s (MCD) for 43-years; Johnson & Johnson (JNJ) for 56-years. There are another 209 Contenders, great businesses that have paid and raised their dividends each, and every year for 10-to-24 years; and 560 Challengers, which have paid and raised their dividends for 5-to-9 years.

The choice is yours, lose 10-years of retirement income for every 1% you pay in fees and risk running out of money; or, create a private annuity with no fees or restrictions, using DRIPs, which will provide passive income through dividends that just might exceed the earnings from your job or business within 10-to-15 years.

You can do this yourself by reading our free newsletters; and/or, by purchasing our recent book, Unlock the 4-Doors to Financial Independence, available for only $4.99 from Amazon.

It’s time for you to take care of your own financial affairs, steer clear of the sharks on Wall Street, outlive your money, and attain financial freedom.

Dum Spiro, spero—While I breathe, I hope.

Slainte mhath,

Robert G. Beard Jr., C.P.A., C.G.M.A., J.D., LL.M.

Financial Independence In 10-to-15 Years?!

It doesn’t matter whether you make $25,000 or $1,000,000 per year, you can become financially independent in 10-to-15 years if you do three things.

Number one, you must Pay Yourself First.  Second, you must always Live below Your Means.   Third, you must invest regularly using Einstein’s Principle of Compound Interest.  Even if you are already financially independent, in order to maintain your financial freedom, you must continue to do these three things your entire life.

The first two—Pay Yourself First and Live Below Your Means—requires discipline and some short-term sacrifice, as explained in detail in Unlock the 4-Doors to Financial Independence and The Best Kept Secret to Financial Freedom.

Many individuals are able to unlock the first 2-doors to financial independence but, have extreme difficulty finding investments that can fully utilize Einstein’s Principle of Compound Interest. This is because Wall Street and the Insurance Industry have co-opted the financial planning community, training those involved to sell their investment products, which are speculative in nature and/or laden with high fees.  For every 1% you pay in fees over a 30-year period, you will lose 10 years’ worth of retirement income.

You have an alternative and you do not need a financial planner or money manager.  Just setup an online brokerage account with E*TRADE, Schwab, or TD Ameritrade; and, start buying great businesses that have paid and raised dividends for 25 years or more through recessions, depressions and wars. The Coca-Cola Company (KO) is one of those great businesses.  When we bought KO back in 1994, the dividend yield was 1.53%.  In eight years, after reinvesting the dividends, the yield was 11.69%; by year 10, the yield reached 15.17%; and by the 14th year, our dividend yield hit 25.58%.  The dividend yield at the end of 2017 was 63.07%; and, this annual yield will eventually exceed our original cost.  Long-term, no annuity or investment can beat these annual yields, which continue to grow every year, regardless of whether the stock market rises or falls.     

We overpaid for KO back in 1994 because, today, we are looking for a dividend yield of 3% or more when we acquire the stock, plus, we want a history of paying and raising dividends by 8%-to-10% or more per year.  However, even after overpaying for a great business, like KO, the miracle of compound interest went to work for us; it just took a little longer to begin receiving double-digit yields.

To steer clear of the sharks on Wall Street, and, to obtain financial freedom within 10-to-15 years, go to Amazon.com and invest $4.99 for the kindle version of Unlock the 4-Doors to Financial Independence.  You will not need another book or newsletter or money manager!  In addition, Chapter IV outlines a once in a lifetime opportunity you may want to consider.

Dum Spiro, spero—While I breathe, I hope.

Slainte mhath,

Robert G. Beard Jr., C.P.A., C.G.M.A., J.D., LL.M.

4-Cent Crypto You May Want to Buy Now!

Time New Bank (TNB) has a market capitalization of $84,084,299 and its coins/tokens are selling for under 4-cents.  In May of 2010, Bitcoin was under 1-cent, got to 8-cents by that July, and, almost reached $19,000 per coin in 2017. As of this writing, you could purchase one Bitcoin for $7,433.

Time New Bank (TNB) is recommended by two Bitcoin and Crypto-Currency multi-millionaires who have a lot of experience in this area. Time New Bank is an Asian company “using blockchain technology to allow celebrities to sell time—in the form of personal interactions—with their fans.”  This is a huge business in the East, “where fans crave up close, face to face time with stars they love.”  English is supported by the app and they have bought billboard space in Times Square.  As one so-called Crypto Expert stated, “The potential for this platform is limitless because it allows developers to create applications on it, tapping into the motherlode of innovation that is the crypto space.”  I have no idea what that means?!  However, let’s look at a $40 and $400 commitment to this new token TNB.

For $40 you can buy 1,000 tokens and for $400 you can buy 10,000 tokens; I just bought 1,000 tokens on the BINANCE exchange with Ethereum (ETH) and because of the potential upside I’m going to show you, I am upping my financial commitment to $400 so I have at least 10,000 TNB tokens.

Let’s say that TNB rises in price to $2.00 per token.  If you bought 1,000 coins you would have $2,000; if you had committed $400, you would have 10,000 coins worth $20,000.  At this point, we could then sell half of our coins for $1,000 ($40 cost) or $10,000 ($400 cost); a gain of 2,400%.  We are then left with either 500 TNB tokens or 5,000 TNB tokens; and, a sizable profit and our speculative capital returned.

What happens if the TNB tokens start selling for $50.00? We then have another profit opportunity.  Sell half of our coins for another quick profit of $25,000 for 500 tokens and $250,000 for 5,000 tokens. Now you can see why I am willing to spend $400 rather than $40!

You are now left with either 250 TNB tokens or 2,500 TNB tokens.  If TNB only rises to $100 per token, a fraction of what Bitcoin is currently worth, you would have another $25,000 (250 tokens) or $250,000 (2,500 tokens).  Then we have another decision to make; at least we hope it gets this far!  

The upside is substantial, while the downside is $40-to-$400!  Please read our last two free newsletters which explains how to buy these crypto-currencies and lists our favorite seven coins/tokens.  The newsletters are available at www.jeffersoniangroup.com.

Good luck to us all!

Dum Spiro, spero—While I breathe I hope.

Slainte mhath,

Robert G. Beard Jr., C.P.A., C.G.M.A., J.D., LL.M.




The Source for Freedom and Self-Reliant Information

The Source for Freedom and Self-Reliant Information.png

Thomas Jefferson defined rightful liberty as “unobstructed action according to our will within limits drawn around us by the equal rights of others—I do not add ‘within the limits of the law,’ because law is often but the tyrant’s will, and always so when it violates the right of an individual. 


  • Speculation and Financial Freedom

  • Bitcoin, Crypto-Currencies and the Blockchain

  • Turn $250 into $2.1-Million

  • Tax Consequences of Speculating in Bitcoin and Other Crypto-Currencies

  • Final Thoughts

Speculation and Financial Freedom

There are three things you must do to attain and maintain financial freedom:

(1) Pay yourself first;

(2) live below your means;

(3) invest in DRIP’s using the principle of compound interest.

Depending upon your passion and dedication, financial independence may be obtained in 10-to-15 years. This is not a quick scheme to get and stay rich, but a tried and true path to prosperity!

There is, however, a fourth thing you might do, which I have touched on before. You can develop a unique product or service that fills a need becoming a worldwide success; or, you can speculate by funding a startup company or technology that becomes highly profitable.

Let’s say you concentrate on the fourth way to become financially independent. Time will go by much quicker than you might think. You start directing most of your investment capital into speculative ventures in your mid-twenties and by the time you are 35, you still have not become financially independent.  Then your 40th birthday comes around, and you realize that had you concentrated on the first three—Pay Yourself First, Live Below Your Means and Invest in DRIP’s Using Compound Interest Principle—you would have attained financial freedom.

Even if you struck it rich by speculating, whether in a startup venture or with a crypto-currency like Bitcoin, you would still have to do the first three things to maintain your new-found fortune and continue to be financially independent. If you don’t, statistically, you would be financially destitute within five years.

However, I do believe that most people should take on some risk and speculate. But, you should probably allocate less than 10% of your investment capital to speculative ventures. In addition, do your homework, be smart about it, and, limit your risk to the amount of money you feel comfortable losing.

In today’s environment, there are many more opportunities available to “unaccredited investors” than in past times, due to changes in the securities laws and the advent of cryptocurrencies like Bitcoin, which uses blockchain technology. Finding the right opportunity that might make you a millionaire overnight, probably more like 1-to-3 years or longer, is an extremely difficult task requiring luck, good timing, and favorable circumstances.

Unfortunately, there are also a preponderance of schemers and fraudsters taking advantage of the system and the success of others. Probably 90% and more of the 1,584 crypto-currencies existing today are complete SCAMS. But, if you find the next Bitcoin, it will be well worth it, especially if you allocate no more than $1,000; or, less than 1% of your investment capital. AND, you only use the money for this endeavor that you are willing to lose.

Who should take a chance and speculate in crypto-currencies? If you are living paycheck-to-paycheck, what have you got to lose... you only need $250-to-$500... cut back on something you are doing... this opportunity just might change your life! If not, what have you lost? And, you might have figured out a way to live below your means and invest in DRIP’s over the next 10-to- 15 years.

If you are already financially independent, you may want to take a position in crypto-currencies to stay abreast of the technology that is here to stay, not to mention the excitement. Also, if all goes well, you would have that much more to give to your grandchildren and your favorite charities.

For example, I purchased 2,000 coins of one crypto-currency for $500; if this coin only increased in value half the recent high for Bitcoin of $19,000 or $9,500, my crypto-currency would be worth $19,000,000; if it just reached one-tenth of Bitcoin’s high, I’d be sitting on $3,800,000; if it just rises to $100, my $500 would be worth $200,000; and, if it goes to zero, I’ve only lost $500 or one less trip to Disney World with my grandchildren.

By the way, the first coin I bought is supported by IBM and Deloitte (Big 4 International Accounting Firm). Keep reading, I’ll tell you what it is, how I bought it, and, why I bought it the way I did. 

Bitcoin, Crypto-Currencies and the Blockchain

Bitcoin has been around for about ten years, and its price has increased from $0.08 to over $19,000 per coin; it is now trading between $7,000 and $9,000 per coin. Bitcoin has created many multi-millionaires since its inception. However, some of the last ones to jump on the bandwagon have lost half of their investment.

In 2008, around the time of the financial crisis, a “white paper” was published by an individual known as Satoshi Nakamoto but, today, many people believe this was just a pen-name for a group of individuals. The “white paper” proposed a decentralized currency for individuals, “A purely peer-to-peer version of electronic cash [that] would allow online payments to be sent directly from one party to another without going through a financial institution.”

Bitcoin functions because of blockchain technology. I’m not going to explain any of this because it takes too long, the information is readily available... just Google it, and, is not relevant to what I am trying to convey here today. Many of you who have followed my DRIP recommendations and have invested in IBM, Microsoft, and yes, Wal-Mart, unbeknownst to you, are participating in this new technology already! You just won’t have the possibility of turning a $250 stake into $2.1-Million. Unless, of course, you take a position in several cryptos- currencies!

Because of the success of Bitcoin, which exists because of blockchain technology, the last time I looked, there were 1,584 coins/tokens listed on CoinMarketCap.com. Most of these crypto-currencies will not be successful.

Coinbase, for example, only currently allows the purchase and sale of Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. I just read that they will be adding a fifth, ERC20 Ethereum Token.

One newsletter writer wrote, “Despite the hype and large paper profits, I was never comfortable recommending any of those early cryptos to readers. I’m still not...The early cryptocurrencies such as bitcoin (BTC), ether (ETH), litecoin (LTC) and ripple (XSP) are not worth serious consideration as stores of value with long-term potential for appreciation and profit.”

Early Investing wrote a Report identifying “Five Digital Currencies That Will Overtake Bitcoin.” You can access this Report at Earlyinvesting.com by entering your email address. The Report explains why they believe these five crypto-currencies will overtake Bitcoin:

(1) Ethereum (ETH);

(2) Ripple (XRP);

(3) Litecoin (LTC);

(4) Dash (DASH);

(5) Monero (XMR).

In spite of this Report, as of March, they still had a position in Bitcoin, along with Ethereum, Litecoin, and New Economy Movement (XEM). I bought 500 Ripple (XRP) coins Ripple.com and may buy the New Economy Movement (XEM) tokens over the next several weeks.

There is a voluminous amount of information and hype about crypto-currencies and many so-called experts willing to sell you an annual subscription to their crypto-currency newsletters for a going rate of $5,000; some offering first-time subscribers a discounted price of $3,000. Much of their information can be found by searching for yourself. For example, I searched for the Early Investing Report on the five digital currencies that will overtake Bitcoin and found a similar article from another source. Coin Central is a good source for information about crypto-currencies.

Going forward, you may find this newsletter a great source for crypto-currency information, which you should personally verify yourself before taking a stake in a given coin or token. Keep reading, and I’ll show you the possibility of how you may be able to turn $250 into $2.1-Million.

Turn $250 into $2.1-Million

This was the advertisement for an annual subscription to a newsletter for $5,000. They gave more than a dozen examples of crypto-currencies that turned a $250 stake into amounts under and over $2.1-Million. Let’s just look at Bitcoin, which started out at $0.08 and rose to a high of $19,000. Today it is trading over $7,000 per coin. If you had bought 1,000 Bitcoins for $0.25 per coin for a total cost of $250, you would have over $7,000,000 today. Hopefully, you would have sold 500 coins back when it reached $19,000 for a profit of $9,500,000 and, you would still have over $3,500,000 left in Bitcoins.

In my opinion, the real money has already been made in Bitcoin; it is older technology and there may be other opportunities that will turn a rather small stake of $250 into several million dollars. However, there are no guarantees and you should be willing to lose your entire stake.

The first coin I bought was Stellar Lumens (XLM) paying $0.25 per coin or $500.00 for 2,000 coins. This coin is supported by IBM and Deloitte (Big 4 International Public Accounting Firm). If you search for information on XLM, you will find many articles, plus they have their own website. Don’t take too long to make your decision; or, at least get your accounts setup to buy before April 17, 2018. I have read that over a dozen major retailers are going to make an announcement around April 17th regarding their acceptance of crypto-currencies, which may cause an immediate rise in the cost of these coins and tokens.

How I Bought Stellar Lumens (XLM)

Buying these crypto-currencies are not that easy. However, there are many articles available which explain how to buy specific crypto-currencies. I did not use Coinbase for two reasons. First, I would have to buy either Bitcoin or Ethereum on Coinbase, then go to another exchange, like BINANCE and trade my Bitcoin or Ethereum for XLM. The second reason I avoided Coinbase is that they turned information over to the IRS on 14,000 U.S. customers who had made trades of $20,000 or more from 2013 to 2015.

You cannot go directly to BINANCE unless you already have a crypto-currency because they do not accept U.S. Dollars, Euros, or any other fiat currencies. This may change in the future because this Hong Kong based exchange is moving to Malta.

Therefore, I went to Kraken because you can use U.S. dollars to buy over a dozen different crypto-currencies, including Stellar Lumens (XLM) and Ripple (XRP). I bought 2,000 XLM coins and 500 XRP coins. However, I strongly suggest you first acquire Stellar Lumens (XLM).

It is not that difficult to open an account with KRAKEN, but, you first must get verified; just follow the instructions. You will need your passport or driver’s license, a recent utility bill with your name and address on it, and, you must be able to take a picture of your face, holding your identification on one side and a signed written statement on the other side of your face. My daughter took the picture of me on my Samsung Galaxy S7; the resolution on her iPhone was not acceptable.

Next, you must obtain the wiring instructions from your local branch bank, which would include the ABA number and Swift number, along with the relevant information for an intermediary bank, if applicable, and input that information; then the amount of money you want to wire transfer. This is not an ACH-type transfer, where you would input information from the bottom left corner of your check. You must use wire transfers to and from KRAKEN.

After you have been verified and entered your local bank account wiring instructions and the amount you want to wire to KRAKEN, they will provide you with the wire instructions to wire transfer the money from your local bank to your account at KRAKEN.

I wired $1,000.00 from my local branch at SunTrust Bank and spent about 2-hours there before all the paperwork was done. First, I had to open a new account under my name as it exactly was opened at KRAKEN, i.e., I had a joint account at SunTrust Bank. You also should do this for safety and security purposes, just keeping a minimum balance in the account to avoid paying fees; SunTrust requires $500 so I transferred $1,525 to cover this first transaction, $1,000 to KRAKEN and a $25 fee, leaving $500 in the account.

The next day the $1,000 showed up in my account at KRAKEN, they charged me $5 leaving $995 in U.S. Dollars. I then followed the instructions and bought 2,000 XLM coins and 500 XRP coins, leaving me with about $175 in cash on deposit at KRAKEN.

Unfortunately, the next coin I want to purchase, Enigma (ENG), is not available at KRAKEN. Therefore, I had to setup an account at BINANCE, which was very easy. Since BINANCE does not accept U.S. Dollars, I will have to wire transfer more money from my SunTrust account to KRACKEN, then purchase enough Ethereum (ETH) to acquire the amount of Enigma (ENG) tokens and transfer the ETH to the wallet I setup in my BINANCE account. Then I will trade the ETH for Enigma (ENG).

Once I have acquired Enigma (ENG), I will transfer it to a hardware wallet, which I intend on acquiring from Amazon, e.g., the Ledger Nano S is available from Amazon for about $100. The reason I am doing this is to protect these tokens, rather than keep them stored at an Exchange located in Hong Kong.

As for the two crypto-currencies I have at KRAKEN, since the current value is less than $1,000, I am going to leave them there in the hot wallet. Ultimately, if things go as planned, I would liquidate some coins, by converting to cash and wiring the money back to SunTrust Bank; then I would transfer the remainder of the coins to my hardware wallet.

You should do your own research. Every crypto-currency I mentioned has its own website and there are plenty of articles on them. However, I strongly suggest you get an account setup at KRAKEN and buy Stellar Lumens (XLM) while it is under $0.50 per coin. You can wire transfer $300-to-$500 if that is all you feel comfortable doing right now.

Remember, you should only use money for these crypto-currencies that you feel comfortable losing. If you keep your commitment low, your upside is substantial, while your downside is minimal.

Don’t forget, keep buying DRIP’s, it takes longer, e.g., 10-to-15 years, but it is a sure thing. Furthermore, if you hit the big-time with Stellar Lumens (XLM), you should take at least half your profits and invest in DRIP’s to maintain your financial independence. And, don’t forget to set aside enough money to pay your capital gains tax.

Tax Consequences of Speculating in Bitcoin and Other Crypto-Currencies

In IRS Notice 2014-21, the IRS has taken the position that “the sale or exchange of convertible virtual currency [e.g. Bitcoin], or the use of convertible virtual currency to pay for goods or services in a real world economy transaction, has tax consequences that may result in a tax liability.” Basically, the IRS has taken the position that every time a crypto-currency is sold or traded, or used to purchase goods or services, there is a tax consequence.

For most of you reading this newsletter, the purchase of any crypto-currency would most likely be treated as a capital asset, especially if you follow my recommendations. If you, for example, purchased Bitcoin over a year ago and sold half your position in December 2017, converting it to cash or U.S. dollars, you would have a long-term capital gain subject to a maximum capital gains tax of 20%. Likewise, if you exchanged your Bitcoin for other goods or services, you would still have to pay a capital gains tax on the value of those goods or services.

It appears that the IRS has taken the position that exchanging Bitcoin for another crypto- currency is also a taxable event, especially since the new tax law states that the Section 1031 Tax free Exchange provision only applies to real estate. However, even though the IRS may be taking the position that each exchange of a crypto-currency for another is a taxable event, if such a transaction was properly structured, I believe there is a position to avoid the U.S. capital gains tax until a crypto-currency is converted to cash, i.e., U.S. dollars or another fiat currency.

For example, if you wanted to buy Enigma (ENG), you would first have to buy Ethereum ((ETH) with U.S. dollars from an exchange like KRAKEN. I would avoid Coinbase because the IRS has successfully required them to turn over records on U.S. customers. Then you would exchange your ETH for ENG on the Hong Kong exchange BINANCE. Furthermore, as of this writing, you can only exchange crypto-currencies on BINANCE for other crypto-currencies, i.e., they do not accept U.S. dollars, Euros, or any other fiat currency. In my opinion, by using an exchange like BINANCE, and continuing to exchange one crypto-currency for another, you do not have a taxable event until you convert all or a portion of your holdings to cash or use some to purchase goods and services.

FinCEN, the Financial Crimes Enforcement Network, has also issued guidance on this issue (FIN- 2013-G001, March 18, 2013). Tax fraud is considered money-laundering with a maximum penalty of $500,000 or twice the amount of money laundered, whichever is greater, plus up to 20 years in prison for each count. For example, if you converted Bitcoin to cash five times in 2017 and do not report these transactions and pay the requisite taxes, you could be threatened with a penalty of up to $2,500,000 and 100 years in prison. This is in addition to unpaid taxes, interest and penalties for not timely paying the required taxes.

Be careful, maintain a low profile, but, do not ignore the U.S. tax laws. Also, if you have a stake in crypto-currencies, do not prepare your own tax return. Hire a CPA or Tax Lawyer, and make sure they understand what you are doing. If you receive an “expert opinion” and follow it, even if it is later overturned by the Courts, you would avoid criminal prosecution.

Final Thoughts

Bitcoin has been the most successful speculative investment over the past decade; after all, it did rise from $0.08 to a high of $19,000. I’ve seen several predictions that Bitcoin will rise to $30,000 from its current price of just over $7,000. Another prognosticator wrote, “I predict Bitcoin will still hit $50,000 in 2018.” They may be right but, I believe that other crypto- currencies offer a far greater opportunity going forward. In fact, the same person that believes that Bitcoin will hit $50,000 this year also recommends a dozen other crypto-currencies that he believes will increase in value much higher than Bitcoin right now.

Taking a small speculative position ($250-to-$1,000) in crypto-currencies is one of the few opportunities available to practically everyone. If you have more than $1-million in investment capital, $10,000, or less than 1% of your investment capital, is worth losing when compared to the potential upside.

I’m an optimist and hope to turn my $500 stake in 2,000 Stellar Lumens (XLM) coins into $3,800,000. If I hit $200,000, I will most likely sell half for $100,000, pay tax of $20,000, and invest the $80,000 in DRIP’s. Hopefully the remaining 1,000 coins rise to $1,900,000!

Will you join me in this venture? Hopefully, we all pick the right crypto-currencies!

Dum Spiro, spero—While I breathe I hope.

Slainte mhath,

Robert G. Beard Jr., C.P.A., C.G.M.A., J.D., LL.M.

Speculation and Financial Freedom: Three Things You Must Do to Attain Financial Freedom

Speculation and Financial Freedom Three Things You Must Do to Attain Financial Freedom.png

There are three things you must do to attain financial freedom: 

(1) Pay yourself first; 
(2) Live below your means; 
(3) Invest in DRIP’s using the principle of compound interest.

Depending on your passion and dedication, financial independence may be obtained in 10-to-15 years.  This is not a quick scheme to get and stay rich, but a tried and true path to prosperity!

There is, however, a fourth thing you might do, which I have touched on before.  You can develop a unique product or service that fills a need becoming a worldwide success; or, you can speculate by funding a startup company or technology that becomes highly profitable.

Speculation and Financial Freedom Infogragh.png

Let’s say you concentrate on the fourth way to become financially independent.  Time goes by much quicker than you might think.  You start directing most of your investment capital into speculative ventures in your mid-twenties and by the time you are 35, you still have not become financially independent.   

Then your 40th birthday comes around, and you realize that had you concentrated on the first three---Pay Yourself First, Live Below Your Means, Invest in DRIP’s Using Compound Interest Principle---you would have attained financial freedom.

Even if you struck it rich by speculating, whether in a startup venture or with a crypto-currency like Bitcoin, you would still have to do the first three things to maintain your new-found fortune and continue to be financially independent. If you don’t, statistically, you would be financially destitute within five years.

Three Things You Must Do to Attain Financial Freedom.jpg

However, I do believe that most people should take-on some risk and speculate. But, you should allocate less than 10% of your investment capital to speculative ventures.  Also, do your homework, be smart about it, and, limit your risk to the amount of money you feel comfortable losing.

In today’s environment, there are many opportunities available that could make you a millionaire overnight; finding those opportunities on a timely basis is an extremely difficult task and requires some luck, good timing, and favorable circumstances.  

Unfortunately, there is also a preponderance of schemers and fraudsters taking advantage of the system and success of others.  Probably 90% and more of the crypto-currencies existing today are complete SCAMS.

Stay tuned; we will continue to provide beneficial information in your quest to attain and maintain financial freedom.

Dum Spiro, spero—While I breathe, I hope.
Slainte mhath, 
Robert G. Beard Jr., C.P.A., C.G.M.A., J.D., LL.M.

Financial Freedom: 3 Ways to Achieve Financial Independence

Financial Freedom: 3 Ways to Achieve Financial Independence

What does it mean to have financial freedom? Financial Independence has nothing to do with your net worth (assets less liabilities). To achieve financial independence, you only need to do three things!

First Amendment and Protesting Misunderstood

Contrary to popular belief, the First Amendment protects the individual from Government.  It does not protect individuals from businesses, nor other individuals or groups of individuals.

If you do not like what the Government is doing, you have the right to assemble or “petition the Government for a redress of grievances.”  That means, go to Congress, go to the White House, or City Hall, but, do not interfere with private businesses or the right of other individuals to go to work, travel, go shopping, or, to simply enjoy a football game.

Thomas Jefferson said it best, rightful liberty is “unobstructed action according to our will within limits drawn around us by the equal rights of others. . .”

When you interfere with other people’s right to pursue happiness, you are either ignorant of what it truly means to be an American, or, you are just rude, obnoxious, and, have no respect for yourself or others.

Unfortunately, most individuals are ignorant due to their compulsory schooling or indoctrination, which has been controlled by the power-elites, who are global progressive-socialists.  This indoctrination continues through college; and, is reinforced by the elite-media.  

If we desire to improve things, we need to separate Education and State.  Teach our children to be self-reliant and respectful; and, educate them about the Constitution our Founders gave us; not the majoritarian Constitution we now have after the last 100 years of reinterpretation, making us slaves of those who are in control of government.

But, as Voltaire stated, “It is difficult to free fools from chains they revere.”

Dum spiro, spero—While I breathe I hope.

Slainte mhath,

Robert G. Beard Jr., C.P.A., C.G.M.A., J.D., LL.M.   


Houston, Harvey and "Just Compensation"

It has been reported that 80% of the victims of Hurricane Harvey do not have flood insurance.   Furthermore, Government purposely flooded certain neighborhoods to save other neighborhoods, e.g., downtown Houston.   It has been reported that well over 100,000 homes have been destroyed, along with over 1-million automobiles, and, a massive amount of personal property.

Those with flood insurance may be able to recover quicker and put their lives back together.  But, the majority of the victims of Hurricane Harvey may suffer and struggle much longer; many of whom were also victims of Government making decisions to flood certain neighborhoods to save other property.  Unfortunately, Government does have the right to do this under the legal concept of Eminent Domain and the police powers of the State.  However, when Government takes property, they MUST pay “just compensation” under the law.

President Trump and Congress can make all the victims of Hurricane Harvey whole again, by paying “just compensation” for the taking of private property.

If our elected  politicians do not fix this problem, hopefully legal-aid organizations like the Institute for Justice and the American Center for Law and Justice will step-in and help.

Dum spiro, spero---While I breathe I hope.

Slainte mhath,

Robert G. Beard Jr., C.P.A., C.G.M.A., J.D., LL.M.


PS: I would refer any interested Attorney and all victims of government regulation of private property to read Law Professor Richard A. Epstein’s book, Takings, Private Property and the Power of Eminent Domain, which was published in 1985.   


How to Create Jobs, Raise the Minimum Wage, and Create Prosperity

It is estimated that U.S. corporations have over $2.1-trillion of untaxed profits sitting offshore.  If this money was brought back into the United States without being taxed, we would experience a boom in investment activity and the creation of a substantial amount of high-paying jobs.  Even low-level and unskilled individuals would most likely be offered wages higher than the highest State minimum wage laws.

In addition, if we were to eliminate corporate and small business taxes completely, most every worldwide company in existence would move their domicile or headquarters to the United States, creating more investment and significantly more jobs.  Companies would be offering anybody and everybody employment opportunities through on-the-job training.  Welfare as we know it today would become practically non-existent.

Not only would eliminating corporate income taxes be highly beneficial to the American economy, it would actually provide relief to the poor and middle classes.  Corporations do not pay taxes; they are only efficient collectors of taxes.  Eventually, the taxes paid, along with the cost of government regulations, are priced into the products and services provided by corporations.  Therefore, everyone ultimately pays corporate income taxes but, it is the poor and middle classes that pay and suffer the most, from the regulation and taxation of American business.  This is a fraud perpetrated against the American people by the power-elites who control government.

President Donald Trump is trying to reduce regulations and bring the corporate income tax down to at least 15%.  This is a step in the right direction.  However, Ireland’s tax rate on corporations is 12.5%.  Accordingly, at a minimum, the corporate tax rate should not be higher than 10%. 

If the United States Congress seriously desired to create jobs, see wages rise, and reduce welfare, they would follow Trump’s lead.  They would send him a bill that cuts corporate taxes to zero; or, at the very least, reduces the tax rate to 10%, keeping all deductions for ordinary & necessary business expenses. 

Based upon 7-years of false promises and lies to repeal Obamacare, the odds are against us, against the American people.

Dum spiro, spero—While I breathe I hope.

Slainte mhath,

Robert G. Beard Jr., C.P.A., C.G.M.A., J.D., LL.M.


Why Attack the Republicans?

I just read Allen West’s post at 9:01am June 15, 2017 in which he summarized and discussed the politically motivated attack on Republican Legislators practicing for a charity baseball game this evening (June 15, 2017).  Mr. West’s “biggest concern . . . is the question NO ONE is prepared to answer . . .”

“What we must come to grips with is why would Mr. Hodgkinson [—a 66-year old from Belleville, Illinois,  who worked for Bernie Sanders campaign, hater of Donald Trump and all Republicans—] decide that it was his duty to take the lives of those with whom he disagreed politically?”  Let me present my view of this unconscionable act.

When the “progressive socialist left,” which includes many in Government, Hollywood, Academia, and the Elite Media, disagree with the policies of President Trump, the Republicans, and those who support them, they attack and demonize the respective individuals as outlined in Saul D. Alinsky’s Rules for Radicals.  Instead of debating those they dislike and offering better solutions, they call them deplorable names, try to limit their access to the public through the major media, and keep them from speaking at our elite Universities.

Unfortunately, the “progressive socialist left” have taken over our education system and through compulsory-schooling from K through 12th grade, such indoctrination has arrived at, and, taken over our institutions of higher learning.  In the name of the First Amendment, many progressive professors have incited their students to protest and violate the free speech of conservatives and libertarians, assault others they disagree with, interfere with commerce, and destroy property.  They have sowed the seeds of anarchy, which has likewise been done to Mr. Hodgkinson of Belleville.    

Because of this compulsory indoctrination, the Republic of the United States—with limited government and inalienable rights—has been converted to a Democratic Socialist Welfare State.  Aristotle referred to democracy as a perverted form of government and defined it as tyranny by the many.  Dr. Will Durant stated that democracy is now taking its turn in the misgovernment of mankind.  If democracy actually worked, we would all be speaking Greek today.

Socialism has never worked either.  The former Soviet Union (U.S.S.R.) imploded in 1989 after a 70 year experiment in socialism.  Do you really want to live in Cuba or North Korea?  And, look what is happening in Venezuela today.

The problem with the Social-Welfare State is that once you start giving the masses free-stuff, it is never enough; they continue to want more and more.  As the late Margaret Thatcher stated, “The trouble with socialism is that eventually you run out of other people’s money.”

All great empires have self-destructed from within, on average, in 250 years.  If we continue down this same path, the United States government will implode in about 9 years from now in 2026.  This path to self-destruction began roughly 104 years ago in 1913 with the passage of the Sixteenth and Seventeenth Amendments and the Federal Reserve Act.  The Sixteenth Amendment gave Congress the right to tax all incomes, ultimately turning every U.S. taxpaying citizen and resident into slaves to those in charge of government.  The Seventeenth Amendment took power away from the individual states by eliminating the State Legislature’s power to appoint U.S. Senators.  And, the Federal Reserve Act created the central bank giving Congress the ability to institute a hidden tax on Americans in the form of the federal debt closing in on $20-trillion on a cash basis but, more like $200-trillion if the federal government had to keep its books on the accrual method, similar to all publically-traded corporations, e.g., The Coca-Cola Company.

Former President Ronald Reagan once stated, “Freedom is never more than one generation away from extinction.”  We lost our freedom several generations ago; similar to a frog put in a pot of cold water with the heat rising so slowly until it is boiled to death.  To clarify this disaster, you might want to read my new book, The United States Government is Illegitimate, which is now available through www.jeffersoniangroup.com.          

To avoid this prophecy of self-destruction by the end of the next decade, or hopefully delay it,  two things need to happen in the very near future.  First, limit the funding of the federal government by REPEALING the Sixteenth Amendment; and, get rid of our current compulsory schooling-indoctrination system.  We must begin teaching our children what real freedom is as defined by Thomas Jefferson, “unobstructed action according to our will within limits drawn around us by the equal rights of others,” e.g., we have no right to demand others pay for our education or our healthcare or housing or food or anything else, period.  And, we must encourage responsible self-reliant behavior, where going to school is deemed a privilege, not a requirement.

Dum spiro, spero—While I breathe I hope.

Slainte mhath,

Robert G. Beard Jr., C.P.A., C.G.M.A., J.D., LL.M.



President Trump, A Threat to the Left and Right

For most of America, “occupied by people, who vote with, on average, common sense,”[1] President Trump has been a refreshing change as president.  He has actually done what he said he was going to do with less than two weeks in office!

The Left and the Democrats hate him because they believe he will put a stop to their socialist agenda.  Furthermore, they cannot believe Trump got elected in the first place.  They can thank Barrack H. Obama for his eight years of failed policies and lies to the American people, which has ruined the economy for many Americans, left the middle-east in complete chaos, and ramped-up racism in the United States.  With the exception of a small minority on both sides, I thought racism had been mostly eradicated since the mid-1980’s.  In addition, Obama was not entirely happy with the mess he created so he pitted men against women, gays against straights, rich against poor, public school teachers against private & home school teachers, and the educated against the blue-collar working class.

The Right and many Republicans don’t like Trump either.  They argue that since he wants to re-negotiate “free-trade” deals, he is against free trade.  Even Glenn Beck made a statement that all he wants Trump to do is follow the Constitution.  First, Beck and the other Trump-hating conservatives are just as bad as the liberal-left.  In today’s environment, the average American has no idea what the Constitution says; it has not been followed for the past 75-to-100 years.  Secondly, free-trade has not existed in the United States or any other country for well over 100 years; probably longer.  If we truly had free trade, we would need no agreement; or, the agreement would be about one paragraph long.  The existing so-called “free-trade” agreements pick winners and losers and line the pockets of the politically connected.  By re-negotiating these unconscionable restrictive deals, Trump can only improve things for more Americans.

Another benefit with Trump as President and his billionaire-cabinet; they are not doing this for the money.  In fact, most are not accepting any compensation and Trump is donating his presidential salary to charity.  Ben Franklin and George Washington, along with many of the American Founders never received any compensation for their public service.  Franklin warned us that if it became profitable to seek public office, we would revert back to where we had come from (Europe) and only attract scoundrels who are in it for the money.  Franklin’s warning went unheeded.  We now have a professional political class that have become members of the top 10% at the expense of poor and middle class taxpayers.

  I believe that the major media, academia, and the professional political class are most afraid of Donald J. Trump actually having a successful presidency.  If Trump succeeds, the average voter will realize that we do not need professional career politicians.  The professional political class, aided by academia, the judiciary, and the media, have been responsible for destroying the United States and what it is stands for---FREEDOM.  The United States of America is not a democracy, which as Aristotle stated was a perverted form of government, representing tyranny by the many.  We are a Constitutional Republic where the Government is charged with protecting our Freedom and Private Property; not taking it away from us as it has been doing for well over 100 years.  

Throughout recorded history, the average empire has lasted about 250 years (10 generations of 25 years).  The United States of America is in the final two stages before collapse, which would bring us to the year 2026.  To wish or assume that we are different is to assume or wish for something that has never occurred; everything as with life, has an ending.[2]   

President Trump may be able to create enough jobs, making many of our problems fade away.  He has an almost impossible task ahead of him.  Hopefully he can slow things down and delay the implosion of the Empire of the United States of America.  We all need to give him a chance.  He certainly cannot do any worse than Obama did during the past eight years.     

Dum spiro, spero—While I breathe I hope.

Robert G. Beard Jr., C.P.A., C.G.M.A., J.D., LL.M.


[1] Dr. Arthur B. Robinson, Access To Energy, Vol.44 no. 5, December 2016.  According to Dr. Robinson, if you look at the electoral map of the United States, “Most of the land is occupied by people who vote with, on average, common sense.  It is in the population centers on the coasts that the densely packed crowd makes, on average, the poorer political decisions.  While many accomplished individualists are found in cities, there is a statistical tendency toward more group think in these places.”  There is a tendency to revert to the lowest common denominator or to the mean.

[2] Sir John Glubb, The Fate of Empires and Search for Survival, William Blackwood & Sons, Ltd., 32 Thistle Street, Edinburgh EH1 1HA, Scotland. (1976,1977).

Healthcare, A Human Right?

In a town hall style meeting on Monday night, Bernie Sanders said that healthcare was a human right.   Bret Baier with FOX News asked Sanders where this right comes from.   Sanders stated that we have a right to health care simply because we are human beings.   The majority of the audience clearly agreed with Sanders.   Bret Baier moved on to the next question without challenging Sanders’ erroneous  and dangerous statement.   Is this “Fair and Balanced” news reporting?   But I digress!

We do not have a right to healthcare; we have a right to pursue healthcare.   If you or I have a right to healthcare, then someone else must be enslaved to provide us that healthcare.   Similarly, if we had a right to healthcare, then we should also have the right to food, to shelter, to clothing, to transportation, ad infinitum.   These would be considered positive rights, which require other individuals to be enslaved for our benefit.   This was the way the “Old World” operated resulting in compulsion, slavery, and extreme poverty for over 6,000 years.

The Founders of the United States challenged this “Old World” philosophy and fought a revolution to stop the oppression of the masses by and for the few.   As a result of their success, it was realized that we do have “certain unalienable Rights . . . [to] Life, Liberty, and the Pursuit of Happiness . . .”   These are negative rights and constitutional.   This movement towards individual freedom for all has been reversed because the majority of Americans have been convinced that they should have positive rights, which represents the enslavement of others.

Americans have a right to pursue happiness or property, which would include a right to pursue healthcare.   However, a positive right to healthcare requires forcing others to pay for or provide healthcare.   Therefore, apositive right to healthcare results in the indentured servitude  of some individuals for the benefit of others.

As H. L. Mencken stated, politicians have “no special talent for the business of government,” only a talent for getting elected and holding office by offering to provide something to certain groups “by looting” other individuals.   “In other words, government is a broker in pillage, and every election is a sort of advanced auction on stolen goods.”

As Dr. Walter E. Williams recently wrote, “The moral tragedy that has befallen Americans is our belief that it is okay for government to forcibly use one American to serve the purposes of another—that in my book is a working definition of slavery.”

Will we, as a human race, make real progress and understand this?

Dum spiro, spero—While I breathe I hope.

Slainte mhath,

Robert G. Beard, Jr., C.P.A., C.G.M.A., J.D., LL.M.

What Will Your Vote Accomplish?

We have two socialists running for President; one actually calls himself a socialist and the other refers to herself as “a progressive democrat who likes to get things done.”   Hillary Clinton’s progressive ideas are not new.   They go back to Plato’s time, to ancient Sparta (600 B.C.), and, as Henry Grady Weaver stated, such ideas represent “pagan superstition . . .  known by the persuasive name planned economy, which is nothing more than a weasel word for socialism or communism or fascism.”

Real progress occurred and lasted for about 160 years (1776 to 1936) when a majority of Americans were mostly free to do as they so desired with little to no government interference.   Thomas Jefferson believed that the tree of liberty must be refreshed at least every 20-years with the blood of patriots and tyrants alike.   It has been more than 150 years since the end of the civil war, with government gaining substantial power at the expense of individual freedom.   Jefferson turned out to be right.   James Madison agreed, “. . . there are more instances of the abridgment of freedom of the people by gradual and silent encroachments of those in power than by violent and sudden usurpations.”   For example, as Dr. Milton Friedman penned over 20-years ago, “every economic plank of the 1928 Socialist party platform has by now been either wholly or partly enacted.”

Like the Spartans and Prussians, who took children away from their parents at a very young age to mold them into obedient soldiers who would follow orders to their death, the power-elites in control of government, including the industrialists in America, developed a similar scheme in the early 1900’s.   They created a schooling system to mold children into good law-abiding taxpaying citizens; who accepted government as the solution to all their problems; who followed rules; who would seek employment rather than becoming entrepreneurs; and, who would endure working long hours, doing mundane work on factory assembly lines.

The masses have been convinced—through government-controlled compulsory schooling—that democracy and socialism are constitutional.   This has made it exceedingly easy for the power-elites in government to turn our American Republic of Freedom into a socialistic democracy, which is not only unconstitutional, but, flies in the face of liberty and our pursuit of happiness.

Both Bernie Sanders and Hillary Clinton can say anything they want while running for President; their speech is protected under the First Amendment.   However, the President, along with members of Congress must swear an oath to uphold the Constitution.

When the President and members of Congress violate their oaths to uphold the Constitution, by not reading legislation in its entirety and passing laws violating individual liberty, they have committed treason.

If, for example, Hillary Clinton is elected President and able to get some of her socialistic proposals passed by Congress, she and all of the Congressional members who vote yes would be committing “Treason against the United States.”   If this were to happen, she would not be the first President who has conspired with a majority of Congressional members to commit treason.    This has been going on for over 80 years by both Democratic and Republican Administrations.

Before it’s too late, we need to hold the professional political class accountable, either peaceably through the legal system; or, forcibly as Jefferson suggested, by taking up arms under the Second Amendment for “the security of a free State.”

Dum spiro, spero—While I breathe I hope.

Slainte mhath,

Robert G. Beard, Jr., C.P.A., C.G.M.A., J.D., LL..M.

Who Benefits From The Income Tax?

The income tax started out as a tax only on the wealthy.   Unfortunately, there are not enough wealthy individuals to support the whims of the power-elites in government; therefore, hard-working middle-class Americans and many retirees are also required to pay income taxes.   The progressive nature of the income tax theoretically forces wealthier Americans to pay more in taxes because of the higher tax rates applied to their greater amount of income.   The more common argument in support of the progressive income tax is that the wealthy obtained their financial success because they enjoyed a greater share of government benefits; therefore, they ought to pay more in taxes.

But, did the government really create the wealth of the financially successful, the one-per- centers?   “If so,” as explained by Frank Chodorov, “then the government is at fault; the only way the government can enrich a citizen is by giving him a special advantage over other citizens, and in that case the government violates its trust.”

Government is not a producer or creator of wealth.   If government grants an advantage or special privilege for one citizen or group, there is an automatic disadvantage for all remaining citizens.   When someone receives a special privilege in the form of a financial subsidy from government (e.g., rents, green energy loans, grants and tax credits, farm subsidies, research and education grants, ad infinitum) it enriches them at the expense of the rest of us.   According to Chodorov:

It is obvious that in handing out special privileges the government is doing what it ought not to do; it is using its power not for the purpose of dispensing justice, but for the purpose of creating injustice.  This is in violation of the principle of equality, and the violation is not corrected by taxing some of the proceeds of privilege; the privileges should be abolished.  If I have acquired wealth by way of a special privilege granted me by government, then when it lays a tax on my ill-gotten wealth it is sharing my unfair advantage; it is, so to say, a partner in my loot.

In spite of what you may have heard from Hillary Clinton or President Barrack Obama, individuals, through business endeavors, create wealth, “government can only take it.”

So, who then really benefits from the income tax?   Frank Chodorov answered:

The only beneficiaries of income taxation are the politicians, for it not only gives them the means by which they can increase their emoluments but it also enables them to improve their importance.  The have-nots who support the politicians in the demand for income taxation do so only because they hate the haves; although they delude themselves with the thought that they might get some of the pelt, the fact is that the taxing of incomes cannot in any way improve their economic condition.

Since the income tax is really a tax on capital for investment, it is the middle-class and poor who suffer the most; and, the greater the tax, the less capital available for investment.   This results in a reduction in bonuses and pay increases for workers; fewer jobs; and inevitably, increases in the price of goods and services which are needed by the poor and middle-class.   Even though the poor may pay a lessor income tax or no income tax at all, they indirectly end up paying the income tax because the tax is ultimately included in the cost of the goods and services that everyone uses, including the poor.   At the same time, hard-working middle-class Americans not only directly pay an income tax, they also end up paying the taxes that are built into the cost of the products and services that they use.

The federal income tax only benefits politicians by giving them more power to grow government and enslave the American people.   Regardless of the progressive nature of the tax, i.e., taxing the so-called wealthy at higher rates, the inescapable losers are poor and middle-class Americans.   This is because the poor and middle-class, unlike wealthy Americans, have very few options, if any, when it comes to the income tax.

The freedoms won by Americans in 1776 have been trampled due to the passage of the 16th Amendment in 1913, resulting in a permanent income tax.   The only way the American people can rid themselves of this fraud and regain their freedom from an interventionist government is to repeal the 16th Amendment.   This would eliminate the income tax and abolish the IRS; or, at the very least, eliminate the ability of the IRS to impose their Gestapo Tactics to harass and terrify American citizens.

Dum Spiro, spero—While I breathe I hope.

Slainte mhath,

Robert G. Beard Jr., C.P.A., C.G.M.A., J.D., LL.M.