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Episode-670- The Power of Redundancy — 7 Comments

  1. Concerning the issue of having assets held under a corporation, I just want people to be aware that just having property held by a corp doesn’t prevent those assets from being subject to a lawsuit. If you are using those assets for personal use, then the “corporte veil” can be pierced. Also, depending on the particulars you may be subject to penalties for not paying tax on the benefit of the use of that property which is owned by the corp.

    Just some things to consider.

  2. To follow up:

    It does seem plausible that you could have an s-corp or c-corp own, for example, your house then rent that house to you. Then the corp could pay you a management salary or fee so the income from the corp is zero but the asset is protected from personal liability.

    I’m just brainstorming I personally would consult an aggressive accountant and/or tax attorney before setting up such an arrangement.

  3. I’m not sure if you talked about this or not as I was listening while working.

    In my flat tire redundancy kit I don’t even have a can of Fix-A-Flat but it has saved me before in some odd situations well, and other times has been a waste of a can. Once when the shoulder of my tire had a pinhole that nobody could fix because it was essentially a sidewall leak, I stuck a can of it on the tire and it held air for 4 months.

    I learned some hard lessons, but was prepared when after those 4 months I simultaneously sprang FOUR FLAT TIRES on a 4WD trail where I was camping. The first flat was fixed using a tire plug and my portable air compressor, we really didn’t even need to take the wheel off except for the fact the hole was on the bottom once we had parked.

    The next morning on our way OUT of the trail the same tire sprang a NEW leak and by the time we exited the trail THREE of my tires were leaking air BADLY.

    Between the donut spare, a tire plug kit, and a portable air compressor, ALL of the pieces of redundancy were in place and I was able to hobble my way 35 miles to Wally World without even having to pull over to re-air the tires (they leaked the whole way to the store).

    Wally World was of course the ONLY store where we were able to purchase 4 tires and have them installed on the spot on the 4th of July.

    I can assume that getting 3 simultaneous flat tires would have completely ruined most people’s vacation weekend, but being prepared for the worst-case scenario meant we lost about half a day of canoe time.

  4. Awesome show. It really got me thinking, especially in regards to making your layers if redundancy self sufficient.

    A side note on the flat tire thing. I know Jack was using that as an example of how to think about a situation, but I was kind of surprised not to hear him say to learn how to plug a tire and keep those tools and one of those small electric compressors with you.

    I used to read water meters in very rural areas. We got flats constantly! We had plugs, a t-handle plug tool, some windex (to spray on the tire to help find the hole, and then to make sure you got the leak fixed), a jack ( most the time we didn’t even need it) and 2 (redundancy!) small plug in air compressors. If we caught the leak early we’d be back on the road in 5 minutes, if the tire was almost flat we’d eat lunch while the compressor did it’s thing.

    Anyway, couldn’t help but throw that out there. Very thought provoking show.

  5. I cannot fathom driving off road without a portable air compressor. After I got those 3 simultaneous flats (granted, my tires were old and on their way out when it happened) I cannot even imagine what a tow truck would have cost stranded in the middle of the woods past 6 or 7 stream crossings.

    Funny thing though is that later on that evening sitting at the campfire we heard a loud rumbling noise in the distance and eventually a big ass 4WD tow truck was making its way through the trail indicating that SOMEONE had just found out how much it costs!

  6. Another thing about land in a corporation: In Ohio at least (maybe other states too), one does not need to purchase a hunting license or tags for hunting on one’s own property. This includes children as well as grand-children under 18. (I think one would still have to purchase Federal stamps, though.)

    Anyways, this exception does not apply if the land is owned in an LLC or corporation. I think this is to keep people from buying a $1 share in the LLC so that they can hunt for “free”.