Real Estate IRA for Retirement Savings in Oakland County
Self-Directed IRAs have been around for many years; yet most real estate investors are not aware of this option. A self-directed IRA allows investors to diversify their portfolio with investments you understand and trust.
Real estate has a history of being a very good investment; many people are more comfortable with something tangible that produces income and has the potential to appreciate in value.
When you use your retirement fund, IRA or 401K to purchase real estate you enjoy the benefit of tax-deferred growth on assets, diversification from stocks or CDs, and the possibility of tax-free growth if your account qualifies as a Roth IRA.
Real Estate IRA - Investing in Oakland County Real Estate
A real estate IRA is a self-directed IRA that invests in real estate. It is a qualified retirement plan that allows investors to invest in assets other than traditional stocks, bonds or CDs. Types of retirement plans that are eligible to become self-directed include Traditional IRAs, Roth IRAs, SIMPLE IRAs, SEP IRAs and some 401K plans.
A real estate IRA or other qualified plan can enjoy powerful tax benefits while investing in residential or commercial real estate, mortgage notes, tax liens and more. A real estate IRA must be managed by a qualified custodian.
Self Directed or Real Estate IRAs open the door to a world of investment opportunities. As the owner of the IRA, you need to be aware of the limitations set by the IRS. For example, there are certain people or entities that you are not allowed to buy or sell the assets to or you could disqualify the entire IRA.
The IRS closely scrutinizes real estate IRAs to be sure all rules and guidelines are being followed. Investors who are considering a real estate IRA should consult a professional financial advisor to be sure they are structuring it properly so it meets all the requirements and guidelines put into place by the IRS.
Michael McGee provides help with financial planning, self-directed IRA, real estate IRA, traditional IRA, Roth IRA, SIMPLE IRA, SEP IRA, 401-K plans, college funding, 529 college savings plan, tax shelter, investment savings, family savings and financial security for consumers and business owners in Oakland County, Pontiac, Waterford, West Bloomfield, Farmington Hills, Southfield, Royal Oak, Rochester, Troy, Novi and neighboring cities and communities.
Tuesday, October 13, 2009
Wednesday, July 8, 2009
Retirement Planning: Basic Facts about the Roth IRA
People are hesitant to invest money for retirement in the Stock Market for fear of their investment losing value and not recovering by the time they need it most. The Roth IRA is an option worth considering. Here is some basic information about the Roth IRA and how it is different from the Traditional IRA:
The Roth IRA became available on January 1, 1998 as a result of the Taxpayer Relief Act of 1997. It is named after the late Senator William V. Roth, Jr.
Unlike the Traditional IRA, the Roth IRA does not allow a deduction for contributions but it does provide other benefits not available under the Traditional IRA. In most cases all earnings are tax free when you withdraw the funds. There are other benefits unique to the Roth IRA including no need to take minimum distributions at the age of 70-1/2 and no distribution penalty on certain withdrawals.
There are things to consider when deciding which type of IRA is right for you. The biggest advantage of the Roth IRA is not having to pay income taxes on the investment earnings. The price to pay for this advantage is that you don’t get a tax deduction for the contribution to a Roth IRA.
Choosing the type of IRA to invest in is a very personal decision. Which tax advantages are the most important to you; those associated with the Traditional IRA or those with the Roth IRA? When do want to begin withdrawing the money? What tax bracket do think you will be in when you begin taking distributions? How much do you anticipate the earnings to be?
No matter how you look at it, most people are better off with the Roth IRA because it is an investment of after-tax money with no taxes to be paid on the interest it earns. Maximizing your contribution will add greater tax leverage to your retirement savings.
Almost any one can contribute to a Roth IRA. The contribution amount can be up to $5,000 for the year 2009 ($6,000 for those who will be 50 years old or older by the end of the year). You must have earned income of at least the amount you contribute and your adjusted gross income must be less than $105,000 for a single person and $166,000 for married couples filing a joint tax return. If your income is higher, the amount allowed for a contribution is reduced; the more you make, the greater the reduction.
You may be eligible to convert your traditional IRA to a Roth IRA if you meet income requirements but there is a conversion tax to pay. In most cases, the savings and tax benefits of the Roth IRA far outweigh the conversion tax.
This is just an overview of how the Roth IRA works. Now that you have an idea of the benefits associated with a Roth IRA you should talk to a professional to get more advice and answers to any questions you may have. In any event, it’s never too early to begin saving for your retirement.
Michael McGee is a financial advisor who understands all the terms and conditions and income tax advantages to investing in a retirement plan. Michael is well-qualified to analyze your financial situation and to advise you as to what type of investment account to have to secure your future.
Michael serves clients in South East Michigan, Oakland County, Southfield, Royal Oak, Rochester, Troy, West Bloomfield, Wayne County, Detroit, Livonia, Plymouth, Canton, Westland and neighboring cities and communities.
The Roth IRA became available on January 1, 1998 as a result of the Taxpayer Relief Act of 1997. It is named after the late Senator William V. Roth, Jr.
Unlike the Traditional IRA, the Roth IRA does not allow a deduction for contributions but it does provide other benefits not available under the Traditional IRA. In most cases all earnings are tax free when you withdraw the funds. There are other benefits unique to the Roth IRA including no need to take minimum distributions at the age of 70-1/2 and no distribution penalty on certain withdrawals.
There are things to consider when deciding which type of IRA is right for you. The biggest advantage of the Roth IRA is not having to pay income taxes on the investment earnings. The price to pay for this advantage is that you don’t get a tax deduction for the contribution to a Roth IRA.
Choosing the type of IRA to invest in is a very personal decision. Which tax advantages are the most important to you; those associated with the Traditional IRA or those with the Roth IRA? When do want to begin withdrawing the money? What tax bracket do think you will be in when you begin taking distributions? How much do you anticipate the earnings to be?
No matter how you look at it, most people are better off with the Roth IRA because it is an investment of after-tax money with no taxes to be paid on the interest it earns. Maximizing your contribution will add greater tax leverage to your retirement savings.
Almost any one can contribute to a Roth IRA. The contribution amount can be up to $5,000 for the year 2009 ($6,000 for those who will be 50 years old or older by the end of the year). You must have earned income of at least the amount you contribute and your adjusted gross income must be less than $105,000 for a single person and $166,000 for married couples filing a joint tax return. If your income is higher, the amount allowed for a contribution is reduced; the more you make, the greater the reduction.
You may be eligible to convert your traditional IRA to a Roth IRA if you meet income requirements but there is a conversion tax to pay. In most cases, the savings and tax benefits of the Roth IRA far outweigh the conversion tax.
This is just an overview of how the Roth IRA works. Now that you have an idea of the benefits associated with a Roth IRA you should talk to a professional to get more advice and answers to any questions you may have. In any event, it’s never too early to begin saving for your retirement.
Michael McGee is a financial advisor who understands all the terms and conditions and income tax advantages to investing in a retirement plan. Michael is well-qualified to analyze your financial situation and to advise you as to what type of investment account to have to secure your future.
Michael serves clients in South East Michigan, Oakland County, Southfield, Royal Oak, Rochester, Troy, West Bloomfield, Wayne County, Detroit, Livonia, Plymouth, Canton, Westland and neighboring cities and communities.
Wednesday, April 22, 2009
Yes You Can Save! Retirement Planning in Oakland County
Retirement Planning is a Life-long Endeavor
You will need to spend most of your life planning your retirement if you wish to retire in style. You will face challenges and set-backs along the way. In order to reach your goals, you will have to be well-disciplined to avoid the distractions and overcome the obstacles that you meet along the way. The important thing is to be focused on your objective while you keep moving in the right direction.
Slow and Steady for Growth in Oakland County
Start with a small savings account; deposit the minimum amount that the bank will allow without charging fees. Some banks don’t have a minimum as long as you have a checking account too. Check around. Small deposits are better than none at all. If you think you are unable to save money because your bills exceed you income, think again. What if you just deposit $1.00 to your savings account this week? Maybe you will have a good week and be able to deposit $5.00 next week. Every little bit helps. If this is all you can do right now, your goal is simply to have more in your savings account than you had before.
Do not be discouraged if you are not able to save a lot when you are young. The important thing is to be disciplined enough to save whatever you can. If your bills exceed your income, you won’t be able to pay them all anyway! You might as well hold back a little for yourself. Of course things cannot go on this way forever. You will need to look for ways to cut back on expenses while also searching for better employment.
Picking up the Pace in Oakland County
As you get into a good habit of saving money and things improve; you get a raise or complete your education to become qualified for a higher paying job, you will find that you are able to increase your deposits to your savings account. This should be a priority over a more expensive apartment, new car or the big screen TV. Savings and lifestyle are both important; your savings should increase as the quality of your lifestyle improves.
The next step is to see what the minimum deposit is for a CD which gets a little more interest than a savings account. Usually, the interest is better if you open a longer term CD, but be careful. If the rate isn’t too much better, you will be further ahead with a short term CD, just in case the rates increase. You don’t want your money to be tied up in a 5-year CD at today’s rates if they should increase significantly in the next couple years.
Investing your Savings in Oakland County
Once you have enough money in the bank to sustain you for 3 – 6 months should something unfortunate happen, like injury or job loss, then you can think about other investments, like stocks or mutual funds. Remember to keep some money handy for a rainy day, but on the other hand, think of the long-term and invest wisely.
Michael McGee provides help with financial planning, SIMPLE IRA, self-directed IRA, traditional IRA, Roth IRA, SEP IRA, 401-K plans, college funding, 529 college savings plan, tax shelter, investment savings, family savings and financial security for consumers and business owners in Oakland County, Pontiac, Waterford, West Bloomfield, Farmington Hills, Southfield, Royal Oak, Rochester, Troy, Novi and neighboring cities and communities.
You will need to spend most of your life planning your retirement if you wish to retire in style. You will face challenges and set-backs along the way. In order to reach your goals, you will have to be well-disciplined to avoid the distractions and overcome the obstacles that you meet along the way. The important thing is to be focused on your objective while you keep moving in the right direction.
Slow and Steady for Growth in Oakland County
Start with a small savings account; deposit the minimum amount that the bank will allow without charging fees. Some banks don’t have a minimum as long as you have a checking account too. Check around. Small deposits are better than none at all. If you think you are unable to save money because your bills exceed you income, think again. What if you just deposit $1.00 to your savings account this week? Maybe you will have a good week and be able to deposit $5.00 next week. Every little bit helps. If this is all you can do right now, your goal is simply to have more in your savings account than you had before.
Do not be discouraged if you are not able to save a lot when you are young. The important thing is to be disciplined enough to save whatever you can. If your bills exceed your income, you won’t be able to pay them all anyway! You might as well hold back a little for yourself. Of course things cannot go on this way forever. You will need to look for ways to cut back on expenses while also searching for better employment.
Picking up the Pace in Oakland County
As you get into a good habit of saving money and things improve; you get a raise or complete your education to become qualified for a higher paying job, you will find that you are able to increase your deposits to your savings account. This should be a priority over a more expensive apartment, new car or the big screen TV. Savings and lifestyle are both important; your savings should increase as the quality of your lifestyle improves.
The next step is to see what the minimum deposit is for a CD which gets a little more interest than a savings account. Usually, the interest is better if you open a longer term CD, but be careful. If the rate isn’t too much better, you will be further ahead with a short term CD, just in case the rates increase. You don’t want your money to be tied up in a 5-year CD at today’s rates if they should increase significantly in the next couple years.
Investing your Savings in Oakland County
Once you have enough money in the bank to sustain you for 3 – 6 months should something unfortunate happen, like injury or job loss, then you can think about other investments, like stocks or mutual funds. Remember to keep some money handy for a rainy day, but on the other hand, think of the long-term and invest wisely.
Michael McGee provides help with financial planning, SIMPLE IRA, self-directed IRA, traditional IRA, Roth IRA, SEP IRA, 401-K plans, college funding, 529 college savings plan, tax shelter, investment savings, family savings and financial security for consumers and business owners in Oakland County, Pontiac, Waterford, West Bloomfield, Farmington Hills, Southfield, Royal Oak, Rochester, Troy, Novi and neighboring cities and communities.
Pension Plans, Retirement Plans, Financial Security in Oakland County
Pension Plans, Retirement Plans, Financial Goals in Oakland County
Before you retire, you will have spent roughly 40 – 50 years working hard at your job, raising a family, buying a home and hopefully, saving for a comfortable retirement. Unfortunately, people who are reaching retirement age today are struggling to make ends meet. It also looks like this will be the case with young people who are not saving enough.
It’s hard to say just how much you will need in order to retire comfortably; however, we do know it’s quite a lot. Many of today’s young people, in their 20’s or 30’s may find themselves still working past the age of 70 if they don’t make wise choices now.
Even those who have pension plans and expect to receive a monthly check over and above Social Security benefits need to save. Those who do not have pension plans need to save even more! Of course, those with pension plans most likely earn a higher wage; therefore, they are able to save more money.
Home Equity Savings for Oakland County Employees
Many American are focused on building equity in their homes as this is the closest thing to a savings account that they can have while struggling to make mortgage payments and raise a family. This is a good reason to own rather than to rent.
In today’s economy, as we experience declining home values, we are discovering that relying on the investment in our home is not enough. It is a good start if you are young enough and can wait until the economy turns around as it is predicted that it will get better. As long as you are not forced to sell in a down market, you home equity can be helpful in saving for retirement.
Race to the Finish to Retire in Oakland County
Surveys have shown that most people will not have saved enough to retire; many will have to work past the age of 70 in order to survive. As dire as this may seem, it is not too late to take action and improve your situation. It is possible to build an investment portfolio, even if you are pressed for time.
Consider this; if you set aside just $100 per month and earn 10%, your savings will grow to over $76,000 in the next 20 years. What if you’re able to save more? Do the math. How many years are you from retirement and how much will you need to be comfortable?
Michael McGee provides help with retirement planning, health savings plans, self-directed IRA, financial planning, traditional IRA, Roth IRA, SEP IRA, 401-K plans, college funding, 529 college savings plan, tax shelter, investment savings, family savings and financial security for consumers and business owners in Oakland County, Pontiac, Waterford, West Bloomfield, Farmington Hills, Southfield, Royal Oak, Rochester, Troy, Novi and neighboring cities and communities.
Before you retire, you will have spent roughly 40 – 50 years working hard at your job, raising a family, buying a home and hopefully, saving for a comfortable retirement. Unfortunately, people who are reaching retirement age today are struggling to make ends meet. It also looks like this will be the case with young people who are not saving enough.
It’s hard to say just how much you will need in order to retire comfortably; however, we do know it’s quite a lot. Many of today’s young people, in their 20’s or 30’s may find themselves still working past the age of 70 if they don’t make wise choices now.
Even those who have pension plans and expect to receive a monthly check over and above Social Security benefits need to save. Those who do not have pension plans need to save even more! Of course, those with pension plans most likely earn a higher wage; therefore, they are able to save more money.
Home Equity Savings for Oakland County Employees
Many American are focused on building equity in their homes as this is the closest thing to a savings account that they can have while struggling to make mortgage payments and raise a family. This is a good reason to own rather than to rent.
In today’s economy, as we experience declining home values, we are discovering that relying on the investment in our home is not enough. It is a good start if you are young enough and can wait until the economy turns around as it is predicted that it will get better. As long as you are not forced to sell in a down market, you home equity can be helpful in saving for retirement.
Race to the Finish to Retire in Oakland County
Surveys have shown that most people will not have saved enough to retire; many will have to work past the age of 70 in order to survive. As dire as this may seem, it is not too late to take action and improve your situation. It is possible to build an investment portfolio, even if you are pressed for time.
Consider this; if you set aside just $100 per month and earn 10%, your savings will grow to over $76,000 in the next 20 years. What if you’re able to save more? Do the math. How many years are you from retirement and how much will you need to be comfortable?
Michael McGee provides help with retirement planning, health savings plans, self-directed IRA, financial planning, traditional IRA, Roth IRA, SEP IRA, 401-K plans, college funding, 529 college savings plan, tax shelter, investment savings, family savings and financial security for consumers and business owners in Oakland County, Pontiac, Waterford, West Bloomfield, Farmington Hills, Southfield, Royal Oak, Rochester, Troy, Novi and neighboring cities and communities.
How Oakland County Residents Turn IRA Dollers into a Health Savings Plan
Individual Retirement Account (IRA) Health Savings Account (HSA) Oakland County
Investing in an IRA is simple, whether you’re putting it into mutual funds or a Bank CD, the rules are the same. Getting it out without paying Uncle Sam is the tough part. It is possible to use your IRA, tax-free, to help with medical expenses by transferring it to a special health savings account.
Qualify for a Health Savings Plan in Oakland County
People with high-deductible health plans qualify for a health savings account (HSA). A high-deductible health plan is one where you are responsible for paying the first $1,150 of your own expenses for an individual plan or $2,300 for a family plan. The high deductible is in exchange for lower insurance premiums than traditional health insurance.
Once you obtain this type of coverage, you can open your health savings account and make a tax-free rollover from your IRA. You may move up to $3,000 to an HAS for individual coverage or up to $5,950 for family coverage. If you are 55 or older, you can contribute an extra $1,000 in 2009.
Benefits of HSA Plans in Oakland County
The benefit of having a health savings account is that you can use the money to pay your medical expenses without being forced to pay Uncle Sam! In addition, your HSA can grow tax-free like your IRA.
The IRA to HSA rollover is a once-in-a-lifetime option, so it’s a good idea to transfer the maximum allowed to establish the account. Anyone under the age of 65 who buys a qualified high-deductible policy can open an HSA.
Each year, you may contribute the maximum amount to your HSA; in 2009, it is $3,000 for individuals and $5,950 for family coverage. HSA’s can be opened on your own or through your employer. The first step is to find a list of health insurance companies who offer HSA-eligible plans in your state at HSAinsider.com or you can compare several companies’ policies in most states at eHealthinsurance.com. You can also search for a local agent who knows which policies are available in your area at the National Association of Health Underwriters web site.
Michael McGee provides help with financial planning, SIMPLE IRA, real estate IRA, traditional IRA, Roth IRA, SEP IRA, self directed IRA, 401-K plans, college funding, 529 college savings plan, tax shelter, investment savings, family savings and financial security for consumers and business owners in Oakland County, Pontiac, Waterford, West Bloomfield, Farmington Hills, Southfield, Royal Oak, Rochester, Troy, Novi and neighboring cities and communities.
Investing in an IRA is simple, whether you’re putting it into mutual funds or a Bank CD, the rules are the same. Getting it out without paying Uncle Sam is the tough part. It is possible to use your IRA, tax-free, to help with medical expenses by transferring it to a special health savings account.
Qualify for a Health Savings Plan in Oakland County
People with high-deductible health plans qualify for a health savings account (HSA). A high-deductible health plan is one where you are responsible for paying the first $1,150 of your own expenses for an individual plan or $2,300 for a family plan. The high deductible is in exchange for lower insurance premiums than traditional health insurance.
Once you obtain this type of coverage, you can open your health savings account and make a tax-free rollover from your IRA. You may move up to $3,000 to an HAS for individual coverage or up to $5,950 for family coverage. If you are 55 or older, you can contribute an extra $1,000 in 2009.
Benefits of HSA Plans in Oakland County
The benefit of having a health savings account is that you can use the money to pay your medical expenses without being forced to pay Uncle Sam! In addition, your HSA can grow tax-free like your IRA.
The IRA to HSA rollover is a once-in-a-lifetime option, so it’s a good idea to transfer the maximum allowed to establish the account. Anyone under the age of 65 who buys a qualified high-deductible policy can open an HSA.
Each year, you may contribute the maximum amount to your HSA; in 2009, it is $3,000 for individuals and $5,950 for family coverage. HSA’s can be opened on your own or through your employer. The first step is to find a list of health insurance companies who offer HSA-eligible plans in your state at HSAinsider.com or you can compare several companies’ policies in most states at eHealthinsurance.com. You can also search for a local agent who knows which policies are available in your area at the National Association of Health Underwriters web site.
Michael McGee provides help with financial planning, SIMPLE IRA, real estate IRA, traditional IRA, Roth IRA, SEP IRA, self directed IRA, 401-K plans, college funding, 529 college savings plan, tax shelter, investment savings, family savings and financial security for consumers and business owners in Oakland County, Pontiac, Waterford, West Bloomfield, Farmington Hills, Southfield, Royal Oak, Rochester, Troy, Novi and neighboring cities and communities.
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