PARADISE LOST
As I read The WSJ article, I experienced a very strong deja vu sensation and was sure I remembered another article that ran years ago, also declaring that ‘Florida Is Over’. So I ran a search and found the article that ran as a Time Magazine cover story in 1981 and was disseminated around the world under the titles of both “Paradise Lost” and “Trouble in Paradise.”
The following is a direct quote from the 1981 Time Magazine piece.
“The area’s real estate boom, which doubled the price of an average one-family house between 1978 and 1980, has virtually stopped dead. Even the environment, long the regions most attractive asset, is showing signs of wear. Decades of economic growth threaten to outstrip the water supply; water is occasionally rationed in some parts of the area. We’re at a crossroads says Jane Cousins a leading Miami real estate agent. No city in the world has ever had happen to it what happened to us”.
Eerily familiar, right? The 1981 article also cited the growing problems resulting from all the cash and cocaine passing through Miami and from the crimes resulting from the Mariel boatlift of 1980. The conclusion was that tourists and retirees would no longer be filling our hotels or moving to our communities----Hello? Has anyone tried to get into a restaurant on Lincoln Road lately? Not quite on the money, were they…
DID O.J. SIMPSON DO IT?
Are you wondering what O.J. has to do with all of this? Here’s a quote that the author of the 2007 WSJ piece uses to help support the argument that Florida is becoming an undesirable locale to reside in.
“The State’s lenient bankruptcy laws have made the State a destination for debtors on the run”
So who is our State’s most famous ‘debtor on the run?’ O.J. Simpson, of course!! Recall the following: A civil jury convicted O.J. of causing the death of Ron Goldman. O.J. owes the Goldman’s some $33 million for their son’s wrongful death. O.J. bought a home in Florida knowing that his new “Florida Homestead” would be protected from creditors. His advisors also knew that O.J.’s $4 million plus NFL pension would be protected under Florida Laws (and federal laws.)
Therefore, based on the new Frye economic metric called the FLBF (Florida’s Lenient Bankruptcy Factor) I have no choice but to conclude the following;
If, based on the WSJ’s AVLF metric (see first paragraph), Florida is indeed dead, then based on my new FLBF metric; the only rational conclusion is that O.J. Simpson killed Florida! What???
WHAT THE WSJ MISSED
While Florida Statutes may provide a safe haven for “debtors on the run”, they also make the state a very attractive place for legitimate businesses looking to protect their assets. Over the past decade, Florida has firmed up it’s statutes governing Limited Liability Companies (LLC’S) and Limited Liability Limited Partnerships (LLLP’s) making them difficult, if not nearly impossible, to penetrate by outside creditors. In addition, Florida’s statutes give virtually unlimited protection (unlike other States) to IRA’s, Annuities, Life insurance cash values and death benefits etc., further strengthening the State’s appeal as a domicile for citizens from other states. So, while we certainly have problems here with affordable housing, traffic, and O. J. types, Florida will remain attractive to many other potential residents.
WHAT OJ’S ADVISORS MISSED
While O.J. may be looking at criminal charges following his latest escapades in Las Vegas, he may now be looking at a very large problem with the IRS as well. It appears from comments of various individuals questioned in connection with the Las Vegas incident, that over the past few years, O.J., has been showing-up unannounced at sports shows signing memorabilia for cash. This was apparently his creative, supplemental income plan, devised to keep his earnings away from the Goldman’s. So, do you think he reported the cash income on his tax returns? OOPS!
This recent brouhaha brought to mind another way in which Florida protects debtors; one that OJ and his advisors may have missed. Florida allows a debtor, who is the “head of a family” to earn wages and even accumulate them in bank accounts, without having them attached or garnished by creditors. Might O.J. have been able to earn income from a real Florida job, or sign autographs legitimately without worrying about the Goldman’s? Yes, friends…as a financial advisor, these are the types of questions I wonder about….
CONCLUSION
Upon learning that his obituary had been published prematurely, given that he was, indeed, alive, Mark Twain’s oft quoted response was, “The report of my death was an exaggeration.” If I may take liberties with the famous quote, I believe that ‘The reports of Florida’s death are greatly exaggerated.’
However, if I am wrong about this, I believe I have conclusively demonstrated that O.J. would be the one responsible for killing Florida. And in order to add a business purpose to this article, as I know you all count on me to do, I need to remind you of the following:
- There are many creditors and predators out there looking to separate you from your assets.
- Our Law Firm specializes in protecting assets for legitimate business owners and professionals through domestic as well as off-shore vehicles. Therefore, if you are concerned about protecting your hard earned wealth, it behooves you to consult with us.
Oh, and to my Real Estate friends who chastised me when I had the nerve to predict that Real Estate prices were ready to fall, and to publicly recommend to my newly-wed daughter 2 years ago to rent rather than buy,(the young couple thanks me all the time for that bit of advice)---Take comfort in the title and quote from the 1981 Time Magazine article referred to above…I am certain that Real Estate prices will rise again---but not this week.
Austin A. Frye, MBA, JD, CFP®
If you know of someone who may enjoy reading this newsletter, click here.
Don't keep us a secret!
|
