Rabu, 31 Desember 2008
real estate article
obate" process! My website discusses general and specific issues which you would probably want to know of to supplement your normal consultations on the "living Trust" topic at your local "living Trust" specialist's office. Read carefully each page and learn how important is to have a "living Trust" rather than a "Will". You will be amazed at the difference between one and the other. Start reading here: www.legalconsultings.com Your right to create a "living Trust" over a "Will" is a right that you need to exercize it now while you are alive and well, in order to make things happen for your heirs and loved ones. Your timely created "living Trust" will last during your life, plus 21 years after your passing away! And, of course, your loved ones will bless you for such an ingenious move.
Minggu, 28 Desember 2008
Living Trust for Life Plus 21 Years After.
LIVING TRUST FOR LIFE PLUS 21 YEARS AFTER
Much has been said and written about this not so well understood legal topic "Living Trust", as it is publicly known. Nonetheless, a "Living Trust" created by a property owner is a creature for "life in being plus 21 years" (after life), as written by famous jurist and legal scholar George Bogert in his book "The Law of Trusts". It is so shocking to see owners of real properties and most wealthy people being duped into writing a "Will" instead of a "Trust". What difference does it make, and why so much confusion over this topic of "living Trust"?
1. What difference does it make?
A "Will" or "My Last Will and Testament" (as a properly titled document) is SUBJECT to and admissible into a "Probate Court". What does it mean to your heirs? Your heirs will have to wait some years to receive their "inheritance" after the "Probate Court" signs the final decree. In the interim, your probate (specialist) lawyer will accumulate lots of hours of work (their work is not an easy one, I should ad here); and at $200/hr, he/she will be paid lots of money from the "decedent's estate" (but remember, their work is hard and well deserving of their pay). So then by the time probate judge signs the decree, your parents/loved one's estate (i.e. decedent's estate) could incur as much as 40% of the estate's value. Translated in dollars, it could mean as much as 50 times (or more) the amount you would have paid for the creation of a "Living Trust". If I knew that such a deal awaits my heirs/loved ones, I would create a Living Trust at once! And, by the way, I did it some time ago. Now, I do not have to worry about my loved ones that they will have to pay dearly in order to receive their inheritance. They will get it privately (not publicly via the Court's docket) and in its entirety. My own signature will NOT be needed to "transfer" my property to them. The Trust has already accomplished that. It is done privately without the need of a "Will" or "My last Will and Testament" (as Mr. Elvis Pressley's lawyer did it for him). Oh, and this was shocking to me, when I was reading about his "Will"...his (princess) dauther waited some 15 years to receive her inheritance of $2 millions out of some $20 millions Mr. Pressley's estate was at the time it was admitted to the probate court in his jurisdiction! Think about it, seriously! If you want to read more about this topic and understand more about living Trust, go here: www.legalconsultings.com
2. Why so much confusion over the "Living Trust" topic?
A lot of people did not really consult with a (specialist) Trust lawyer. There are lots of (specialists) Trust lawyers both locally and "virtually". You simply need to reach out to them and set up an appointment for "living Trust" consultation. Of course, you may have to pay him/her for the consultation. In one hour, the specialist Trust lawyer should be able to present a pretty good picture of the difference between a "Will" and a "Trust". Anyways, be sure to ask for a brochure on living Trust, or any written information needed for your learning that he/she may be able to make it available to you after the consultation. In general, the confusion over the "living Trust" arises from lack of education about this important legal topic! The specialist Trust lawyer should be able to dispel the confusion during the time of consultation. I have researched the Trust law, and written some 20 pages on the "living Trust" topic. Now you can understand a lot of things about this elusive topic of "living Trust" by going here: www.legalconsultings.com
If you really want to give your loved ones an estate in its entirety and free of "probate" complications, time consuming (expensive and sometime unreasonable attorney's fees), much worries and possible challenges to the "estate" in the probate court, then you ought to educate yourself (as I did long time ago) beginning with a few hours of consultations at the specialized Trust lawyer's office, and also reading the Trust law which the specialist suggests to you. You may want to consult 2-3 Trust law specialists in order to gain a better understanding. After that time, you are ready to create your "living Trust" which will be a "blessing" to your heirs! Immagine your heirs or loved ones not having to put up with a "Will" going through the probate Court's complicated (and brain busting) process of years, expensive attorney's fees, potential challenges to the estate, potential appellate processes, and the like, in order to "deliver" for your heirs! You can have a "Living Trust" for a fraction of the costs involved in a "pr
Much has been said and written about this not so well understood legal topic "Living Trust", as it is publicly known. Nonetheless, a "Living Trust" created by a property owner is a creature for "life in being plus 21 years" (after life), as written by famous jurist and legal scholar George Bogert in his book "The Law of Trusts". It is so shocking to see owners of real properties and most wealthy people being duped into writing a "Will" instead of a "Trust". What difference does it make, and why so much confusion over this topic of "living Trust"?
1. What difference does it make?
A "Will" or "My Last Will and Testament" (as a properly titled document) is SUBJECT to and admissible into a "Probate Court". What does it mean to your heirs? Your heirs will have to wait some years to receive their "inheritance" after the "Probate Court" signs the final decree. In the interim, your probate (specialist) lawyer will accumulate lots of hours of work (their work is not an easy one, I should ad here); and at $200/hr, he/she will be paid lots of money from the "decedent's estate" (but remember, their work is hard and well deserving of their pay). So then by the time probate judge signs the decree, your parents/loved one's estate (i.e. decedent's estate) could incur as much as 40% of the estate's value. Translated in dollars, it could mean as much as 50 times (or more) the amount you would have paid for the creation of a "Living Trust". If I knew that such a deal awaits my heirs/loved ones, I would create a Living Trust at once! And, by the way, I did it some time ago. Now, I do not have to worry about my loved ones that they will have to pay dearly in order to receive their inheritance. They will get it privately (not publicly via the Court's docket) and in its entirety. My own signature will NOT be needed to "transfer" my property to them. The Trust has already accomplished that. It is done privately without the need of a "Will" or "My last Will and Testament" (as Mr. Elvis Pressley's lawyer did it for him). Oh, and this was shocking to me, when I was reading about his "Will"...his (princess) dauther waited some 15 years to receive her inheritance of $2 millions out of some $20 millions Mr. Pressley's estate was at the time it was admitted to the probate court in his jurisdiction! Think about it, seriously! If you want to read more about this topic and understand more about living Trust, go here: www.legalconsultings.com
2. Why so much confusion over the "Living Trust" topic?
A lot of people did not really consult with a (specialist) Trust lawyer. There are lots of (specialists) Trust lawyers both locally and "virtually". You simply need to reach out to them and set up an appointment for "living Trust" consultation. Of course, you may have to pay him/her for the consultation. In one hour, the specialist Trust lawyer should be able to present a pretty good picture of the difference between a "Will" and a "Trust". Anyways, be sure to ask for a brochure on living Trust, or any written information needed for your learning that he/she may be able to make it available to you after the consultation. In general, the confusion over the "living Trust" arises from lack of education about this important legal topic! The specialist Trust lawyer should be able to dispel the confusion during the time of consultation. I have researched the Trust law, and written some 20 pages on the "living Trust" topic. Now you can understand a lot of things about this elusive topic of "living Trust" by going here: www.legalconsultings.com
If you really want to give your loved ones an estate in its entirety and free of "probate" complications, time consuming (expensive and sometime unreasonable attorney's fees), much worries and possible challenges to the "estate" in the probate court, then you ought to educate yourself (as I did long time ago) beginning with a few hours of consultations at the specialized Trust lawyer's office, and also reading the Trust law which the specialist suggests to you. You may want to consult 2-3 Trust law specialists in order to gain a better understanding. After that time, you are ready to create your "living Trust" which will be a "blessing" to your heirs! Immagine your heirs or loved ones not having to put up with a "Will" going through the probate Court's complicated (and brain busting) process of years, expensive attorney's fees, potential challenges to the estate, potential appellate processes, and the like, in order to "deliver" for your heirs! You can have a "Living Trust" for a fraction of the costs involved in a "pr
Kamis, 25 Desember 2008
Senin, 22 Desember 2008
Individual Retirement Accounts Explained. Save And Invest For Your Retirement Tax Free.
Individual Retirement Accounts. It's enough to put you to sleep isn't it? However there are very sound reasons for you to understand Iras, and to set one up for yourself. If you're interested in a comfortable retirement you need to understand Individual Retirement Accounts.
What are I ndividual Retirement Accounts, why would you need one and which is the best one for you?
An Individual Retirement Account, or what is also known as an IRA, is an account that individuals may set up to plan and invest for their retirement. The IRA was enacted into legislation in 1974, however it was only in 1981 when significant changes were made to the tax status of IRAs that they became popular.
It is the tax status of Individual Retirement Accounts that make them extremely attractive to people who are seeking to invest for their retirement to ensure that they have a well funded comfortable retirement when they are no longer able to work and so can no longer earn an income.
In it's wisdom the government recognized that it was extremely difficult to provide sufficient retirement benefits from the public purse so that all retirees could retire in comfort on a government pension. This was recognition of the fact that over time, as the population ages, the public purse would not be able to afford to pay full retirement pensions to everyone, so the government needed to come up with a plan to make individuals invest for their own retirement.
The way to do this was to offer people incentives to do so by way of tax advantages though their IRAs.
So when money is deposited into an Individual Retirement Account it is tax deductible, and all income made through investing the fund during it's life is also tax free.
That doesn't mean though, that money is never taxed on the way in or way out of an IRA. What the government does is to tax the money as it is taken out of the IRA, it is taxed as ordinary income.
One of the great barriers to successful investing is the requirement to pay tax each time income, or a capital gain, is made. Throughout an investors investing life it is necessary to realize funds along the way to pay tax. This seriously reduces the ability to earn high returns on moneys invested because capital is being taken out all the time to pay tax, and so there is less to invest along the way.
However if, though an IRA, it is possible to invest and reinvest all income and capital back without paying any more tax, that increases massively the potential returns that someone can make investing. Hence the reason why an IRA is so attractive to individuals. An IRA can take maximum advantage of the power of compounding.
An Individual Retirement Account is required by law to be held in trust by a "custodian" who is often, or usually a bank, broker or insurance company. There are various regulations governing what your IRA custodian can do with the money, some imposed by tax law and some imposed by the custodians rules as well.
Usually traditional IRA custodians have restrictive rules about what investments the IRA can be invested in, and the funds are usually directed to investments owned by the custodian. This may be good for the custodian, but not necessarily so good for the owner of the IRA, who may not be earning the best returns.
It is also quite possible to have a self directed IRA. This is still held by a trustee, or custodian, however has a much less restrictive range of rules about the types of investments that can be invested in. The owner of the self directed IRA, or what is also known as a self managed IRA, can direct the investments into a wider range of investments that should, over the life of the fund, make much better returns. Add to that the power of compounding and the difference between the returns on a traditional IRA held by a custodian who invests the funds into their own investments, and a self directed IRA invested by the owner, can be massive.
So as you can see there are powerful reasons why you need your own Individual Retirement Account, and there are also powerful reasons why you need it to be a self directed IRA. In particular the best reason is that the best investment for your IRA is in real estate. Over time real estate offers the most stable long term investment, both for an IRA and any other investment. Investing your Individual Retirement Account in real estate offers significant long term benefits, however so many people don't do so, either because they don't know that they should, or because the rules of investing their IRA funds don't allow them to do so.
They need to rollover their funds into a self directed Individual Retirement Account and start making some solid decisions to invest their retirement funds in real estate.
Even in the current market there are some outstanding and extremely solid investments in real estate. One in particular offers no money down investing for both credit investors and IRA investors, with tenants supplied and high quality homes to invest in. Returns are guaranteed and it's a turnkey investment in real estate from a solid US public company with significant experience in real estate investing.
So, despite the fact that learning about Individual Retirement Accounts might send you to sleep, there are very good reasons to start learning anyway. And if you're setting one up make sure it's a self managed IRA, and that you invest it in solid real estate investments amongst others.
You'll be glad you did when you retire.
What are I ndividual Retirement Accounts, why would you need one and which is the best one for you?
An Individual Retirement Account, or what is also known as an IRA, is an account that individuals may set up to plan and invest for their retirement. The IRA was enacted into legislation in 1974, however it was only in 1981 when significant changes were made to the tax status of IRAs that they became popular.
It is the tax status of Individual Retirement Accounts that make them extremely attractive to people who are seeking to invest for their retirement to ensure that they have a well funded comfortable retirement when they are no longer able to work and so can no longer earn an income.
In it's wisdom the government recognized that it was extremely difficult to provide sufficient retirement benefits from the public purse so that all retirees could retire in comfort on a government pension. This was recognition of the fact that over time, as the population ages, the public purse would not be able to afford to pay full retirement pensions to everyone, so the government needed to come up with a plan to make individuals invest for their own retirement.
The way to do this was to offer people incentives to do so by way of tax advantages though their IRAs.
So when money is deposited into an Individual Retirement Account it is tax deductible, and all income made through investing the fund during it's life is also tax free.
That doesn't mean though, that money is never taxed on the way in or way out of an IRA. What the government does is to tax the money as it is taken out of the IRA, it is taxed as ordinary income.
One of the great barriers to successful investing is the requirement to pay tax each time income, or a capital gain, is made. Throughout an investors investing life it is necessary to realize funds along the way to pay tax. This seriously reduces the ability to earn high returns on moneys invested because capital is being taken out all the time to pay tax, and so there is less to invest along the way.
However if, though an IRA, it is possible to invest and reinvest all income and capital back without paying any more tax, that increases massively the potential returns that someone can make investing. Hence the reason why an IRA is so attractive to individuals. An IRA can take maximum advantage of the power of compounding.
An Individual Retirement Account is required by law to be held in trust by a "custodian" who is often, or usually a bank, broker or insurance company. There are various regulations governing what your IRA custodian can do with the money, some imposed by tax law and some imposed by the custodians rules as well.
Usually traditional IRA custodians have restrictive rules about what investments the IRA can be invested in, and the funds are usually directed to investments owned by the custodian. This may be good for the custodian, but not necessarily so good for the owner of the IRA, who may not be earning the best returns.
It is also quite possible to have a self directed IRA. This is still held by a trustee, or custodian, however has a much less restrictive range of rules about the types of investments that can be invested in. The owner of the self directed IRA, or what is also known as a self managed IRA, can direct the investments into a wider range of investments that should, over the life of the fund, make much better returns. Add to that the power of compounding and the difference between the returns on a traditional IRA held by a custodian who invests the funds into their own investments, and a self directed IRA invested by the owner, can be massive.
So as you can see there are powerful reasons why you need your own Individual Retirement Account, and there are also powerful reasons why you need it to be a self directed IRA. In particular the best reason is that the best investment for your IRA is in real estate. Over time real estate offers the most stable long term investment, both for an IRA and any other investment. Investing your Individual Retirement Account in real estate offers significant long term benefits, however so many people don't do so, either because they don't know that they should, or because the rules of investing their IRA funds don't allow them to do so.
They need to rollover their funds into a self directed Individual Retirement Account and start making some solid decisions to invest their retirement funds in real estate.
Even in the current market there are some outstanding and extremely solid investments in real estate. One in particular offers no money down investing for both credit investors and IRA investors, with tenants supplied and high quality homes to invest in. Returns are guaranteed and it's a turnkey investment in real estate from a solid US public company with significant experience in real estate investing.
So, despite the fact that learning about Individual Retirement Accounts might send you to sleep, there are very good reasons to start learning anyway. And if you're setting one up make sure it's a self managed IRA, and that you invest it in solid real estate investments amongst others.
You'll be glad you did when you retire.
Kamis, 18 Desember 2008
Senin, 15 Desember 2008
Safe Investing In A Recession. Do You Need To Accept Low Returns?
Safe investing is a hot topic in 2008. With markets in meltdown and recession upon us everyone is looking for safety rather than profits and returns. Are we doomed to poor returns in the recession just to improve the safety for our money?
There's lots of places to invest our money of course, traditionally with various levels of safety. The stock market, real estate, bonds, CDs, currencies and so on. However it seems that just about everything is down right now. Stocks, including some very solid large cap stocks, and particularly banks, are a disaster. Interest rates are at an all time low and mutual funds are not only showing negative returns but are even failing. And even high profile banks are failing completely.
It seems there isn't an asset class that hasn't been affected by the current economic meltdown. The money market is in total turmoil.
Many are putting their money into gold and other precious metals, however these also pay no return, or income, and as an asset class have their own volatility problems.
Safe investing is difficult at the best of times. It's a simple equation. More safety should attract less risk, but lower returns. More risk, and therefore the possibility of higher returns, is of course less safe.
It's the classic trade off between the safety of our money, and profits, or returns on our investments. And given the current situation should we just accept putting our money into bonds that pay us almost no return, in exchange for the safety of a guaranteed return of our capital, and a guaranteed return of fixed income that is exceptionally small?
Is that what safe investing has become in 2008? Are investors all so scared that we are running to anything that just guarantees the safety of our money regardless of the return? Are we willing to accept, at least in the short to medium term, that safe investing means that we forego returns? That we put our future on hold for - how long?
Here's an example of how many investors are fleeing to safe investing options right now. In the week of September 15th the yield on much in demand 3 month T bills went negative. Yes believe it or not, a yield below 0%. And even now yields are low, less than 1% even recently. But safe investors are snapping up investments like that just for the premium. The premium isn't the return, it's the safety.
Would it be possible that there could be some safe investing options in 2008? Lets look at one. Real estate.
You can't be serious I can hear you say. Real estate is a total mess right now. Foreclosures are through the roof. People living on the streets. Homes for sale on eBay starting at $1.
Put all that aside for a moment and imagine.
A real estate investment available right now. No money down. Finance provided for qualified investors. Turnkey, a nothing to do investment that provides to the investor a fully refurbished home, and a qualified tenant. A rental guarantee for the first 12 months. The investor receives an immediate 15% to 20% equity, and 100% ownership.
All backed by a respected US listed company with a solid background in real estate investing.
Available to credit investors, and also investors through their IRAs with a guarantee to double their IRA return.
Would it be possible that an investment like that could exist, and if so would you consider investing in real estate like that to be safe investing?
It exists, and it's certainly safe investing, even in 2008.
But where do you find it?
And would you like to find out more? Or are you happy with T bills at around 1% return?
There's lots of places to invest our money of course, traditionally with various levels of safety. The stock market, real estate, bonds, CDs, currencies and so on. However it seems that just about everything is down right now. Stocks, including some very solid large cap stocks, and particularly banks, are a disaster. Interest rates are at an all time low and mutual funds are not only showing negative returns but are even failing. And even high profile banks are failing completely.
It seems there isn't an asset class that hasn't been affected by the current economic meltdown. The money market is in total turmoil.
Many are putting their money into gold and other precious metals, however these also pay no return, or income, and as an asset class have their own volatility problems.
Safe investing is difficult at the best of times. It's a simple equation. More safety should attract less risk, but lower returns. More risk, and therefore the possibility of higher returns, is of course less safe.
It's the classic trade off between the safety of our money, and profits, or returns on our investments. And given the current situation should we just accept putting our money into bonds that pay us almost no return, in exchange for the safety of a guaranteed return of our capital, and a guaranteed return of fixed income that is exceptionally small?
Is that what safe investing has become in 2008? Are investors all so scared that we are running to anything that just guarantees the safety of our money regardless of the return? Are we willing to accept, at least in the short to medium term, that safe investing means that we forego returns? That we put our future on hold for - how long?
Here's an example of how many investors are fleeing to safe investing options right now. In the week of September 15th the yield on much in demand 3 month T bills went negative. Yes believe it or not, a yield below 0%. And even now yields are low, less than 1% even recently. But safe investors are snapping up investments like that just for the premium. The premium isn't the return, it's the safety.
Would it be possible that there could be some safe investing options in 2008? Lets look at one. Real estate.
You can't be serious I can hear you say. Real estate is a total mess right now. Foreclosures are through the roof. People living on the streets. Homes for sale on eBay starting at $1.
Put all that aside for a moment and imagine.
A real estate investment available right now. No money down. Finance provided for qualified investors. Turnkey, a nothing to do investment that provides to the investor a fully refurbished home, and a qualified tenant. A rental guarantee for the first 12 months. The investor receives an immediate 15% to 20% equity, and 100% ownership.
All backed by a respected US listed company with a solid background in real estate investing.
Available to credit investors, and also investors through their IRAs with a guarantee to double their IRA return.
Would it be possible that an investment like that could exist, and if so would you consider investing in real estate like that to be safe investing?
It exists, and it's certainly safe investing, even in 2008.
But where do you find it?
And would you like to find out more? Or are you happy with T bills at around 1% return?
Selasa, 09 Desember 2008
Self Directed IRA Rollovers. What Are They? Why Would You Bother?
Self directed IRA rollovers. Are your eyes glazing over already? Too hard and don't want to know? If you're setting up a self directed IRA you will probably need to know what a self directed IRA rollover is, and now is a good time to start.
And don't worry, it's not as hard as you may think.
Simply speaking, a self directed IRA rollover is a transfer of assets from a tax deferred retirement program directing those assets into your own personally managed IRA, or Individual Retirement Account. Setting up a self directed IRA isn't that difficult, and has some major advantages.
(A self directed IRA is a trust that lets you take control over the investing of your own retirement funds rather than leaving it in the hands of an IRA custodian that may be concerned with directing your funds towards their own investments rather than getting the best return possible for you.)
The important part of a self directed IRA rollover relates to tax. If your retirement funds are in a tax deferred program like a 401(k), for example, a rollover allows you to transfer those funds to your self managed IRA tax free. This preserves your tax free status for your retirement funds but allows you to transfer into a different account like a self managed IRA.
Here's 3 major advantages of rolling over your retirement funds.
Firstly, as mentioned, it preserves the tax free status of your retirement funds. Lets say, for example, you have your retirement funds in your own IRA now, and are currently eligible to receive your benefits. If you elect to take those benefits that attracts tax. But if you would rather rollover those funds to avoid attracting the tax, you are allowed to do so, by means of an IRA rollover.
So if you're in a financial position to defer taking your retirement benefits there are good reasons to rollover your IRA. It avoids tax now, and why pay tax now if you don't need to?
Secondly, if you opt for a rollover of your account, it allows you to continue with your investment plans and to grow your retirement assets until you do need those retirement funds, later in life, when your pension will be needed. You control when you need to take your funds, and only attract tax once you need to use the funds, and keep growing your investments in the meantime, tax free.
And the third reason for an IRA rollover is where you have your retirement funds with a tax deferred retirement program now, like an employer sponsored plan, and want to rollover those funds into an IRA trust like a self directed IRA for the purposes of directing your own investments.
There are good reasons to direct your own investments by setting up a self directed IRA. For example a real estate investment is about the best IRA investment, and with control of your own IRA you can invest your retirement funds in real estate. With a traditional IRA your range of possible investment options is often extremely limited, but setting up your own self directed IRA gives you control you wouldn't otherwise have on the type of investment options available to you.
(Surprisingly, even in the current disastrous real estate market there are still some fantastic IRA real estate investments available, if you know where.)
Although the basic principles of IRA rollovers are simple, the details can be more complex, and you need to consult your tax advisor to find out the details.
So don't let your eyes glaze over when your financial advisor starts to talk about a self directed IRA rollover. There are good reasons to set up a self directed IRA, and although the details of the process might be difficult, the reasons to do so are sound.
And once you've done it you're well in front for investing for your future retirement.
And don't worry, it's not as hard as you may think.
Simply speaking, a self directed IRA rollover is a transfer of assets from a tax deferred retirement program directing those assets into your own personally managed IRA, or Individual Retirement Account. Setting up a self directed IRA isn't that difficult, and has some major advantages.
(A self directed IRA is a trust that lets you take control over the investing of your own retirement funds rather than leaving it in the hands of an IRA custodian that may be concerned with directing your funds towards their own investments rather than getting the best return possible for you.)
The important part of a self directed IRA rollover relates to tax. If your retirement funds are in a tax deferred program like a 401(k), for example, a rollover allows you to transfer those funds to your self managed IRA tax free. This preserves your tax free status for your retirement funds but allows you to transfer into a different account like a self managed IRA.
Here's 3 major advantages of rolling over your retirement funds.
Firstly, as mentioned, it preserves the tax free status of your retirement funds. Lets say, for example, you have your retirement funds in your own IRA now, and are currently eligible to receive your benefits. If you elect to take those benefits that attracts tax. But if you would rather rollover those funds to avoid attracting the tax, you are allowed to do so, by means of an IRA rollover.
So if you're in a financial position to defer taking your retirement benefits there are good reasons to rollover your IRA. It avoids tax now, and why pay tax now if you don't need to?
Secondly, if you opt for a rollover of your account, it allows you to continue with your investment plans and to grow your retirement assets until you do need those retirement funds, later in life, when your pension will be needed. You control when you need to take your funds, and only attract tax once you need to use the funds, and keep growing your investments in the meantime, tax free.
And the third reason for an IRA rollover is where you have your retirement funds with a tax deferred retirement program now, like an employer sponsored plan, and want to rollover those funds into an IRA trust like a self directed IRA for the purposes of directing your own investments.
There are good reasons to direct your own investments by setting up a self directed IRA. For example a real estate investment is about the best IRA investment, and with control of your own IRA you can invest your retirement funds in real estate. With a traditional IRA your range of possible investment options is often extremely limited, but setting up your own self directed IRA gives you control you wouldn't otherwise have on the type of investment options available to you.
(Surprisingly, even in the current disastrous real estate market there are still some fantastic IRA real estate investments available, if you know where.)
Although the basic principles of IRA rollovers are simple, the details can be more complex, and you need to consult your tax advisor to find out the details.
So don't let your eyes glaze over when your financial advisor starts to talk about a self directed IRA rollover. There are good reasons to set up a self directed IRA, and although the details of the process might be difficult, the reasons to do so are sound.
And once you've done it you're well in front for investing for your future retirement.
Sabtu, 06 Desember 2008
Rabu, 03 Desember 2008
Buying A House - Homebuyer Dilemma
Most of us consider both of these options when buying a house.
Is buying a new home a better value than buying an older home? Perhaps you have been wondering the same thing.
By the time you finish reading this, you'll will have learned how easy it is to answer these questions. Let's compare new home buying with buying an older home.
A word of caution, there are many decisions to make when it comes to finding the best home for you and your family. There are questions regarding location, affordability, and space. But when it comes to the question of buying a newer home versus an older home, taste has a lot to do with your decision.
All in all your tastes are neither right nor wrong. You can't put a value on perception and it can't be measured. You develop these preferences through experience over time.
Here is a case in point. A newly built home may appear ideal to one person and to another person less than perfect. You may love the architecture of older homes and somebody else loves the modern conveniences of a new home. Focus on the attributes that suit your preferences.
The bottom line then is this. When choosing between buying an older home or a new home, let your taste rule.
For instance older homes offer distinct advantages and disadvantages. Some of the advantages may include neighborhoods that are better established. They have stood the test of time. The residents may have lived there a long time and turnover is less likely. An established neighborhood often leads to a stable community environment.
Again some older homes offer architectural and landscaping character that new homes don't provide. Certainly, these qualities are again a matter of taste according to the eye of the beholder. Ask yourself this question, how does this neighborhood make you feel? Many people surprise themselves when they answer this self-imposed question.
Another feature of older homes is that taxes are often lower than a new home. Although taxes are not a matter of taste they are an important consideration. Your real estate agent can easily obtain property tax information regarding any home you want to buy.
Perhaps you love the idea of owning an older home. This being the case, the obvious upkeep and repairs will not deter you.
We have all heard of The Money Pit, right. Electrical systems are often outdated. Appliances may not have been updated. Plumbing is older. Siding, fencing and windows may be worse for wear.
Be sure, when you are going to buy an older home insist your Realtor request a Home Inspection by a qualified and licensed home inspection service before closing. Prepare yourself for deferred maintenance. The price of a home inspection is small compared to the confidence it instills.
Selecting a new home offers obvious and clear advantages over older homes too. Most new homes are now required to be built according to higher efficiency standards than older homes were. So utility bills could be significantly lower than the utilities of an older residence. However, watch out for taxes on new construction as they may not have been determined yet. This may be a trade off.
Put simply, if you like more modern architecture you will prefer the look of a new home more than an older one. Again taste is the all-important deciding factor here. Are you attracted to the crisp and clean lines of new construction? If so follow your preferences.
One clear advantage that most new homes offer versus older ones is up-to-date heating, air conditioning, electrical, and plumbing systems. In addition, most home builders are likely to provide a warranty on these systems for a specified period of time. If a warranty is not offered or the warranty period is too short you can ask the builder to pay for a better one.
When it comes to older versus newer, taste is the all-important qualifier. The easiest way to decide about buying a house is to get out and compare. Ask a Realtor to recommend neighborhoods for older homes and new homes.
After shopping for homes a bit, you may even discover something new about your taste.
Is buying a new home a better value than buying an older home? Perhaps you have been wondering the same thing.
By the time you finish reading this, you'll will have learned how easy it is to answer these questions. Let's compare new home buying with buying an older home.
A word of caution, there are many decisions to make when it comes to finding the best home for you and your family. There are questions regarding location, affordability, and space. But when it comes to the question of buying a newer home versus an older home, taste has a lot to do with your decision.
All in all your tastes are neither right nor wrong. You can't put a value on perception and it can't be measured. You develop these preferences through experience over time.
Here is a case in point. A newly built home may appear ideal to one person and to another person less than perfect. You may love the architecture of older homes and somebody else loves the modern conveniences of a new home. Focus on the attributes that suit your preferences.
The bottom line then is this. When choosing between buying an older home or a new home, let your taste rule.
For instance older homes offer distinct advantages and disadvantages. Some of the advantages may include neighborhoods that are better established. They have stood the test of time. The residents may have lived there a long time and turnover is less likely. An established neighborhood often leads to a stable community environment.
Again some older homes offer architectural and landscaping character that new homes don't provide. Certainly, these qualities are again a matter of taste according to the eye of the beholder. Ask yourself this question, how does this neighborhood make you feel? Many people surprise themselves when they answer this self-imposed question.
Another feature of older homes is that taxes are often lower than a new home. Although taxes are not a matter of taste they are an important consideration. Your real estate agent can easily obtain property tax information regarding any home you want to buy.
Perhaps you love the idea of owning an older home. This being the case, the obvious upkeep and repairs will not deter you.
We have all heard of The Money Pit, right. Electrical systems are often outdated. Appliances may not have been updated. Plumbing is older. Siding, fencing and windows may be worse for wear.
Be sure, when you are going to buy an older home insist your Realtor request a Home Inspection by a qualified and licensed home inspection service before closing. Prepare yourself for deferred maintenance. The price of a home inspection is small compared to the confidence it instills.
Selecting a new home offers obvious and clear advantages over older homes too. Most new homes are now required to be built according to higher efficiency standards than older homes were. So utility bills could be significantly lower than the utilities of an older residence. However, watch out for taxes on new construction as they may not have been determined yet. This may be a trade off.
Put simply, if you like more modern architecture you will prefer the look of a new home more than an older one. Again taste is the all-important deciding factor here. Are you attracted to the crisp and clean lines of new construction? If so follow your preferences.
One clear advantage that most new homes offer versus older ones is up-to-date heating, air conditioning, electrical, and plumbing systems. In addition, most home builders are likely to provide a warranty on these systems for a specified period of time. If a warranty is not offered or the warranty period is too short you can ask the builder to pay for a better one.
When it comes to older versus newer, taste is the all-important qualifier. The easiest way to decide about buying a house is to get out and compare. Ask a Realtor to recommend neighborhoods for older homes and new homes.
After shopping for homes a bit, you may even discover something new about your taste.
Senin, 24 November 2008
How To Make More Part-Time For Your Fortune Than You Make Full Time At Your Job
You can make more part-time building your fortune than you will be able to save from working full time at your job.
Most people already do what a good part-time business is, but they just don't get paid for it. Most people recommend and promote things that they like everyday, they just don't get paid for it.
Think about your favorite movie or restaurant. How many times have you recommended that friends experience those things? They probably agreed with you and had a great time. Now think about how many times those friends must have recommended to their friends that they experience the same movie or restaurant. The theater owner and the restaurant owner probably sold a lot of tickets and/or food and drinks solely because of those recommendations. Did you like the referral commission check you got from the theater and the restaurant? Oh, you did not get a check? See, you recommended and promoted a thing you liked, but just did not get paid for it.
That's network marketing. So let's talk to you about how you get paid for it. You already are fully trained (except on how to get paid for it, of course).
You like a manufacturer's product. Why wouldn't you recommend and promote that product to other people?
Insurance agents do something similar. Whenever they recommend and promote an insurance policy, the insurance company pays them a commission. Their boss, the broker, who recommended they become insurance agents, receives a commission also. Their business is based on the same business model as network marketing, we just don't ever think of it that way.
In network marketing, the manufacturer rewards the people who recommend and promote their product.
How do you make more than your full time job? If the manufacturer pays a 5% commission on a sale, for every $200 in sales, the representative makes $10. The beauty of a consumable product is that you do not have to go make the sale again as the consumer probably will keep ordering unless they decide they don't like the product anymore.
The manufacturer also pays the person who obtained the representative a 5% commission and that can apply through multiple representatives or layers in the business. That is how a person can get true leverage in network marketing because like an insurance broker or real estate broker, you can have an army of representatives creating sales and you can get commissions on their sales as well as on your own sales.
But back to how you make more part-time. Let's say that you have sold $2,000 worth of product in a month. You probably did not talk to any of them and the company shipped directly to them. Your commission check would be 5% or $100. Whoopee, you say!
Not so fast there and don't turn up your nose yet. That number repeats every month most likely for years and you will add to those sales over time.
Let's figure out what $100 per month really means. To get $100 per month through savings, you would have to have $24,000 in the bank at 5% interest. $24,000 times 5% is $1,200. $1,200 divided by 12 months is $100 per month, right?
Gee, you are only making $100 per month. You ought to quit right now, right? Only if you want to throw away the equivalent of $24,000!
Compare that to your full time job. You are on salary right? You probably barely have enough money for a month. You have to spend 40 hours a week to get that money and if you don't show up, you likely don't get paid at all.
Just how long will it take you to save $24,000 from your after tax earnings from work. Well, let's say you scrimp and save $200 per month. In 12 months, you will have $2,400. With interest, it would take less than 10 years but you get the point.
You earned way more in your part-time network marketing business for your fortune than you can earn full time in your job!
If your check is $1,000 per month (pay house note, at least partially), you would have to have at least $240,000 in the bank to have the same type of passive income through savings.
You also get the tax advantages of having your own business so much of the network marketing income may be tax sheltered. You have to pay full tax on savings unless you put it in an IRA or something like that and then you can't touch the interest income until 59 ½!
Go build your fortune with a part-time business!
Most people already do what a good part-time business is, but they just don't get paid for it. Most people recommend and promote things that they like everyday, they just don't get paid for it.
Think about your favorite movie or restaurant. How many times have you recommended that friends experience those things? They probably agreed with you and had a great time. Now think about how many times those friends must have recommended to their friends that they experience the same movie or restaurant. The theater owner and the restaurant owner probably sold a lot of tickets and/or food and drinks solely because of those recommendations. Did you like the referral commission check you got from the theater and the restaurant? Oh, you did not get a check? See, you recommended and promoted a thing you liked, but just did not get paid for it.
That's network marketing. So let's talk to you about how you get paid for it. You already are fully trained (except on how to get paid for it, of course).
You like a manufacturer's product. Why wouldn't you recommend and promote that product to other people?
Insurance agents do something similar. Whenever they recommend and promote an insurance policy, the insurance company pays them a commission. Their boss, the broker, who recommended they become insurance agents, receives a commission also. Their business is based on the same business model as network marketing, we just don't ever think of it that way.
In network marketing, the manufacturer rewards the people who recommend and promote their product.
How do you make more than your full time job? If the manufacturer pays a 5% commission on a sale, for every $200 in sales, the representative makes $10. The beauty of a consumable product is that you do not have to go make the sale again as the consumer probably will keep ordering unless they decide they don't like the product anymore.
The manufacturer also pays the person who obtained the representative a 5% commission and that can apply through multiple representatives or layers in the business. That is how a person can get true leverage in network marketing because like an insurance broker or real estate broker, you can have an army of representatives creating sales and you can get commissions on their sales as well as on your own sales.
But back to how you make more part-time. Let's say that you have sold $2,000 worth of product in a month. You probably did not talk to any of them and the company shipped directly to them. Your commission check would be 5% or $100. Whoopee, you say!
Not so fast there and don't turn up your nose yet. That number repeats every month most likely for years and you will add to those sales over time.
Let's figure out what $100 per month really means. To get $100 per month through savings, you would have to have $24,000 in the bank at 5% interest. $24,000 times 5% is $1,200. $1,200 divided by 12 months is $100 per month, right?
Gee, you are only making $100 per month. You ought to quit right now, right? Only if you want to throw away the equivalent of $24,000!
Compare that to your full time job. You are on salary right? You probably barely have enough money for a month. You have to spend 40 hours a week to get that money and if you don't show up, you likely don't get paid at all.
Just how long will it take you to save $24,000 from your after tax earnings from work. Well, let's say you scrimp and save $200 per month. In 12 months, you will have $2,400. With interest, it would take less than 10 years but you get the point.
You earned way more in your part-time network marketing business for your fortune than you can earn full time in your job!
If your check is $1,000 per month (pay house note, at least partially), you would have to have at least $240,000 in the bank to have the same type of passive income through savings.
You also get the tax advantages of having your own business so much of the network marketing income may be tax sheltered. You have to pay full tax on savings unless you put it in an IRA or something like that and then you can't touch the interest income until 59 ½!
Go build your fortune with a part-time business!
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