I have heard many good things about Jay Mitton and his asset protection plans. However, I understand he has been issued a cease and desist order from the State of Florida. I passed on his material, but wanted to know what others thought about it.
Can someone share their thoughts about Jay Mitton and his asset planning please?
Thanks!
The Mitton materials are appropriate for large investors. Much of it gets sold to people whose situation in no way justifies the amount of complexity recommended. The materials are quite expensive to boot. What I really dislike about the Mitton people, along with a few other asset protection specialists: They sell on fear, fear, fear. They distort and exaggerate the nature, probability & degree of lawsuits to scare the living heck out of the audience - to set them up for the “solution”, sold by Mitton, of course. I’ve watched people coming out of there well & truly scared out of their wits - I find the tactic appalling. It’s one thing to discuss the problems with the legal system in this country (and there are plenty) in a rational manner. It’s quite another to prey on the fear of laymen who do no understand the system. The Mitton people also make claims on the benefits of entities that are…better in word than in deed. For example, they rattle off a list of “benefits” that come from having a C-Corporation that are either
Trivial: For example, deducting $50,000 in term life insurance is really worth about $30 in tax savings per year. Most people latch on to the $50k number psychologically, no body cares about a $30 benefit.
Illusory: For example, they claim child-care as one of many benefits that a C-Corp might offer. That’s true in that it’s possible in a few cases, but the majority of the listeners in the audience would not qualify for the benefit due to anti-discrimination measures in that part of the Code.
Available Anyway: They claim you can deduct your car in a C-Corporation, sort of implying that you cannot do so otherwise. You can.
I have little respect for their “carnie” tactics and the overselling of entities. As anyone who has followed my posts or heard me speak can attest, entities certainly have their place in an investor’s tax & asset protection arsenal - but that place is very unlikely to be the one described by the Mitton people. Good for Florida!
John Hyre
John,
Thanks for your reply and insight. You stated that his material is more appropriate for larger investors, what constitutes a larger investor? I am in the midst of working 15 differnet short sales right now, which total just over $3 Million in market value and also I am negotiating the purchase of an apartment complex of about 100 units. Am I small potatoes? I think I need asset protection.