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Real Estate News You Can Use

June 2, 2008 - Cash On Hand -

Self-Directed IRAs: You May Need Cash for Real Estate Purchases

Everyone knows that simply doing just a little bit of research and a small amount of planning can go a long way to securing oneself a wealthy IRA and retirement. Take a look at different IRS publications about each type of investment you're considering as a basis for the research as well as following specific industry experts. A little bit of work goes a very long way.

These basics will help you to build a foundation for a strong understanding. The IRS has a number of requirements and rules for non-traditional investments; learn and know these rules. Talk to your trustee about any cash you will need to fuel an initial investment in either commercial or residential Real Estate.

Although a self-directed account can be used to purchase property, there may be a need for cash up front. It is even possible to use a non-recourse loan to fund roughly sixty or seventy percent of the purchase price with the additional thirty to forty percent coming directly from your self-directed IRA.

That said, there are benefits to both owning the property outright as well as using the non-recourse loan. The benefit of using a self-directed IRA for investments is that you have control of your long-term retirement strategy as well as a cash-flowing property immediately.

Saving money in simply stocks and bonds is not a safe investment strategy anymore. Be sure to learn more about self-directed IRAs as well as investing your IRA in Real Estate. The benefits considerably outweigh the negatives, especially with the deepest discounted Real Estate in decades.

These types of secure investments are great balances to the heavily invested stocks, bonds, and mutual funds that the majority of investors are contributing to on a daily basis. Remember, some cash may be necessary, but use the non-recourse loan to your advantage!

 

Self-Directed IRA News You Can Use

May 10, 2008 - Don’t Forget the Roth…

Don't Forget the Roth: Teach Children the Value of a Roth IRA and Compound Interest

It is a belief among some commentators that your children are not as financially aware as you, their parents. Whether you agree or disagree, and if that is the case, one of the best pieces of advice that you can give your children is the value of a Roth IRA. Teaching children how to invest in stocks, bonds, and mutual funds by using a Roth IRA is crucial to receiving the benefits of compounded interest.

As soon as your children start making money in a summer job, after high school or college, impress upon them the value of making regular contributions to a Roth IRA for their future, and help them set up an account. The considerable benefits of investing at age 20 to age 30 is significantly greater than if they invest twice as much at age 30 up to the time of retirement.

Compound interest is worth the effort and a Roth IRA is the vehicle to use for the investment. The importance of tax-free compounding coupled with the advantage of tax-free withdrawals is an incredible way for them to enjoy the kind of retirement lifestyle you will want them to have. Not only that, but not having to rely on anyone else for a secure and self-directed retirement is worth the small price one will pay to invest roughly $2000 a year.

It is always better to have several million dollars in retirement through the power of compound interest rather than to be reliant on Social Security that is going bankrupt from the baby boomer generation. Take the time now to secure yourself a wealthy retirement by investing in a Roth or self-directed IRA. You will not regret it when you have the retirement you always dreamed about. Living like no one else right now will guarantee you can live like no one else later.

 

Self-Directed IRA Investment News You Can Use

April 2, 2008 - 529 Plan Savings Account -

Paying for a Child's Education? How about a 529 Savings Account?

Do you save for your child's education? No? Why not? Open a 529 Savings Account to start building financial stability for your children's education now.

Part of what is important to understand when saving for retirement, is how to save for interim life goals in the process. As many of you are family-focused and family oriented, it is important to think about how to invest for your child's college education. If you have several children, then it is that much more pressing of an issue.

Do not worry; it is not as difficult as it sounds. There are many ways in which to invest smartly, easily, and with the long-term investment in mind. These issues do not take care of themselves, but there are certainly great ways for parents to solve these issues without getting overly confused.

As a loving parent and grandparent, it is important to note that you can prepare for your child's future by opening a 529 Education Savings Account now and shielding some of your money this way. If you have children or grandchildren, you know that one of the biggest expenses in their future will be their education. As an incentive to help parents and others save for their children's educational expenses, the Federal government created the 529 Education Savings Accounts (ESA).

One of the great features of the ESA is that almost anyone can contribute to the account to help the student. This means that not only parents, but grandparents, uncles, aunts or friends can contribute to an ESA.

Unlike other educational savings plans that restrict the use of the funds to higher education, an ESA can be used for both elementary and secondary education as well as college education. When the account is used for educational expenses, the funds are tax-free.

Since the funds can be used to help pay for elementary and secondary educational expense, as well as college, it is wise to open your account as soon as possible. What a great way to welcome a new member to the family and to begin preparing for their future.

Like any non-taxed account, by starting early and putting the funds to work, after eighteen years, you would have a significantly greater amount to apply to the student's educational expenses then what you might save in a taxable account. The benefits of compound interest are limitless.

Implementing these principles as part of a well-rounded financial strategy and investment portfolio will help give stability to your long-term financial plans. It will also help guarantee that your children will have more time to focus on their education then on how to pay for it!

 
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