Tag Archives: Financial Planning

Author : Tasha Gill

Investigate Your Options

Your 401K plan may not offer real estate, but you can own real estate within your retirement plan There are a few things you should understand first Since retirement plans are considered long-term investments, you will only be able to invest for income and appreciation You will not able to deduct depreciation as with a taxable investment

It is recommended that you speak with a tax consultant before making any changes Because this is a complex matter, you should not try to do this on your own If not done correctly, it could create major tax problems for you down the road

Know the Law

The law allows your qualified plan to own any kind of real estate You can invest in single family homes, multiple units, co-ops, apartment buildings, condos, and land You can also invest in real estate investment trusts, but the overhead is high, so this may not be a good idea

If you purchase property for your IRA, the income and appreciation builds and is tax-free until the time you start taking withdrawals Keep in mind that there is a special tax on debt-financed income in retirement plans called “UBIT”– Unrelated Business Income Tax If the real estate is mortgaged, you must file a 990-T Form with the Internal Revenue Service This allocates the income earned between debt and non-debt financing, and the tax due The way the UBIT works is you are able to shelter 70% of your income and the rest of the income from the property is subject to regular income tax rates

Things You Should Know

You cannot transfer property that you already own into a retirement account You cannot buy property, such as a vacation home and rent it yourself This is called “self-dealing” and is not allowed This applies to your family members as well So you cannot purchase property and rent it out to members of your family

Cash Transactions Are Best

Because of the UBIT, cash transactions are the easiest to work with If you don’t have enough cash, your retirement plan can purchase a partial interest on the property or a “tenant in common interest ” You can also borrow the money to finance the property and pay the UBIT

Two great advantages of investing in real estate for your retirement plan are the potential for high rate of return and the overall lower risk If you want to protect your nest egg from the ever-changing stock market, investing in real estate is a wise decision

This article was submitted by http://www.junkhouseriches.com
Junk House Riches is a investment company based out of Utah and making its self known through out the country even in Canada. We buy & sell foreclosed homes that we service to investors, as well as get occupants in the homes that will attend our Free Homeowners workshop. We love teaching others how to make a living too, at our Junk House Riches boot camps.

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Author : Peter Kenny

IRA’s (Individual Retirement Account) are very popular these days, but there is often some confusion as to what a person can and cannot do in terms of rolling the account over This article will examine a few of the common issues associated with IRA rollovers It is important to understand that IRA rules change often, so the reader is encouraged to check with current sources before making any final decisions concerning his or her IRA

In most cases, employees have two choices when it comes to saving money for retirement They can participate in a company sponsored 401(k) program or they may have the other option of participating in an IRA program

These plans both involve putting money aside (usually a percentage of your income) into a tax-deferred account, but an IRA works more like a personal savings account than the 401(k) programs With an IRA, when an employee decides to retire, quit, or change jobs, he or she can receive the money saved in an IRA as one lump sum This is known as an IRA rollover What the person does with that money is the key to good IRA management

One thing you can do with the money is to convert it into a more beneficial retirement account known as a Roth IRA A Roth IRA allows you to borrow against the balance with fewer restrictions than those imposed on a standard IRA A company-sponsored 401(k) plan, by comparison, places severe restrictions on employee access to accounts

You do not have to take an IRA rollover even if you retire or leave the company In other words, you cannot be forced to take the money out of the account If you wish, the account can remain with the original company until you reache retirement age even if you are working with another company at the time

For those who want to move their account, most employees have 60 days from the time of termination to re-invest their IRA rollover into a new account or investment plan There are some issues associated with this, however, so make sure you get expert advice before deciding on what to do

All IRA account holders should understand that if they elect to keep their account with a former employer and the company goes bankrupt or hits severe financial problems their money may be lost Keep in mind that often employers change locations over time, and this can make it hard for you to keep up with where they are (and where your money is) By taking the IRA rollover at termination you can transfer the money directly into a new account, reducing your need to keep up with your past employer’s location and financial state

As mentioned earlier in this article, IRA rules have a tendency to change often and it is your responsibility to keep abreast of what is new and current If you find that you are facing an IRA rollover, seek the advice of a professional who can show you the options that you have and help you make the best decision concerning where to put your savings

Peter Kenny is a writer for The Thrifty Scot, please visit us at Mortgages and Loans

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Author : Paul Hata

Saving has always been a way of life for people who believed on its power These people know that they have to save more money in order to create a more established future

However, as time goes by, more and more people find it hard to save money They contend that saving is no longer a way of life but a resolution that they have to strictly adhere to just to salt away some amount of money

Some people even insist that it is no longer possible for a person to save more money because most of them are already living paycheck to paycheck With all the high-prices of commodities these days, saving more money is no longer workable

But the point is that people can indeed save more How? Here is a list of some modern ways that will let you save more money:

1 Save some percentage from your salary

Most money-savers automatically take at least 30% from their salary and save them into their savings account The basic concept here is that most of us spend whatever amount we have on our paycheck, and maybe even more If you are able to limit that amount, your expenses will unexplainably get smaller

2 Pay everything in cash

Credit cards had always been a way of life for most consumers The problem is that they become so comfortable with it that they tend to spend everything on credit In fact, statistics show that the average family has an average outstanding balance on their credit cards amounting to $7,000 And they even pay almost $1,000 in each year just on the interest charges alone

Hence, because of this comfortable shopping, they forget to keep track of their expenses and accumulate more payables than what they can afford to pay

3 Set goals

Create goals that you really want and not be fickle-minded about it If there’s a certain amount involved, be specific with the amount, like saying I will save $5,000 in a year and not around $5,000 Try to set your goals based on your priorities Have a period for every goal

4 Check your company’s retirement plan

With your employer plan such as the 401(k) or the 403(b), you can definitely save more money for the future Here, your company will deduct a percentage of your salary from each paycheck and invest the amount in your choice of instruments mainly mutual funds

The bottom line is that saving is not just a way of life or a resolution It’s the ultimate gratification that you get as a fruit of your labor

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Author : Kristi Ambrose

Most people who are planning their retirement have a company sponsored plan that is set up to work with the stock market for growth The company is also supposed to match their contributions up to a certain percentage However, since the fall of the stock market, many people have unfortunately lost their nest egg, part of their funds or haven’t even begun their investment yet Many also saw their company matching percentages drop If you are one of those people mentioned above, perhaps you took out your money Or you took a risk with day trading and haven’t made out due to the fluctuations in the stock market

Then again, maybe you’re one of many unemployed who has tried several work-at-home prospects that fell through, believing that an opportunity existed in something that didn’t work as the economy sunk You can achieve better returns than 401-k

Returns of as high as 10-12% are possible Nothing is impossible when you utilize the right skills and invest properly Fortunately there is a better way than stocks, bonds, bank accounts, CDs, IRA & 401-K Plans that have been invested in for centuries and will always prove its worth (despite all the doom and gloom ) Your investment backed by real estate is in the most stable market there is Especially when you buy the older homes that can be resold easily

Real Estate Investing is foolproof for those who invest in real estate and know how to manage property Don’t let the media fuel you with its negativity Everyone needs a home and most people buy their first home after college when they are setting up their lives and careers This year, President Obama is going to grant new home buyers an $8,000 00 tax credit This means that more people are going to buy homes, especially since sale prices have plummeted

In February, home sales across the country have risen! Private Investors are less of a risk than any other capitalist venture Especially if you assess your home buyers ahead of time You can choose to sell your home to those who aren’t in a high risk line of work, meaning that you can determine your home buyers in the top ten fields of employment that are booming You can research jobs that are in a particular area with websites and buy a home that is close to the locations of the job sites (hospitals, medical clinics, etc ) and those who might not want to buy just yet will want to rent or rent-to-own

You can still discern who you want to live in the houses you are leasing if you take that route And it can be beneficial to those who lost their homes in the housing bubble blowout There will always be money in houses Are you going to seek the opportunity or watch someone else do it instead?

This Author is a huge fan of fair prices paid for homes nationwide

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