This is truly an educational financial managmenet program whose time has come. I've seen way too many young adults, as well as mature adults, who really have absolutely no clue when it comes to managing their own finances - even the basics of how to write a check, why you can't just write a check because you still have checks left. This program is targeted toward teenagers to help them learn how to manage their own money. Money Minded Learning.
]]>
This was my first trip and our group was in charge of boxing up groceries for our needy senior citizens who live on a very limited income. We worked in an assembly line packaging various items (I was in charge of the grape juice) and my man Jacob (8 years old) across from me had the cereal. Others packed canned goods, made boxes and sealed them up.
I believe we finished the day making over 350 boxes of groceries. It was hard work which I wasn’t expecting, but well worth it. I plan on volunteering as often as I can! Thank you to Center for Wealth & Legacy for remembering those in need and providing us the opportunity to serve them.
Greg Sallee
Gatto, Pope & Walwick, LLP
Parts of the financial rescue plans are already wrapped up or will be soon. A money market fund guarantee from the Federal Reserve disappeared months ago. Programs for purchasing commercial paper, lending to securities firms to keep them afloat, loaning dollars to foreign banks to help thaw credit and purchasing debt backed by small business, car and other loans have all served their purpose and will end shortly, with little cost to taxpayers. Other changes will be permanent…a hike in FDIC insurance of bank deposits, for example.
And many big-bucks programs will linger. Subsidies for Fannie Mae and Freddie Mac to keep home mortgage funds flowing will continue through at least 2013, for example. So far…about $145 billion. And the final tab could climb to as much as $400 billion by the time the quasi-governmental institutions wring out all the bad loans made.
Washington has $13 billion left to help homeowners avoid foreclosures. A total of $50 billion is dedicated to the program, which has been operating for a year. The Federal Reserve holds a total of $2 trillion in long-term bonds…mortgage backed securities, Treasuries, Fannie Mae and Freddie Mac bonds…bought to hold down mortgage rates.
]]>All IRAs are Self-Directed IRAs. Why do I say this? It's because an "account owner" always has the right to choose where to put his or her IRA. You can choose to place a Self-Directed IRA at a commercial bank, independent trust company or trust department at a bank, a securities broker dealer, life insurance company, or other Treasury Department authorized IRA Trustee or Custodian.
Self-Directed Real Estate IRA allows the real estate investor to make his or her own real estate investment decisions for their IRA. You can buy, hold, manage and sell real estate investments, in addition to the more traditional investments such as stocks, bonds, and mutual funds, inside of your Self-Directed Real Estate IRA.
The real question is how much flexibility the Trustee or Custodian of the individual retirement account will permit you, the real estate investor, to have in the selection of your own investments to be made inside of the Self-Directed IRA. What type of assets will the Trustee or Custodian of your Self-Directed IRA permit you to acquire and hold inside of your Self-Directed IRA?
IRA Trustees or Custodians allow different types of investments or assets. Bank IRAs permit various types of bank deposit products, independent trust companies and securities brokerages permit publicly traded securities, etc. The majority of IRA Trustees and Custodians limit account holders to bank deposit products and/or publicly traded securities such as stocks, bonds, and mutual funds.
Financial institutions or Third-Party IRA Administrators ("TPAs") that market their IRAs as "Self-Directed IRAs" generally permit a greater range of investment options or choices above and beyond the traditional publicly traded securities, including real estate, notes secured by deeds of trust, promissory notes secured by mortgages, franchises, partnerships, private equity, limited liability companies ("LLCs") and tax lien certificates.
Be sure you know your desired investment options before selecting your Self-Directed IRA Trustee or Custodian. You can avoid the limitations that hinder your real estate investments by being proactive when searching for your Self-Directed IRA Trustee or Custodian,” according to William L. Exeter, president and chief executive officer, Exeter IRA Services, LLC. The Center for Wealth & Legacy™ provides a wealth of knowledge with many specialists available offering your family and business assistance in areas of taxation.
]]>The May jobs report failed to continue momentum from strong April results. As seen in past reports, the decline in the unemployment rate from 9.9% to 9.7% was largely driven by discouraged workers exiting the labor force, while the miniscule 21k increase in census-adjusted nonfarm payrolls suggests that hiring remains constrained.
No. While the jobs report was clearly a disappointment, it would be premature to conclude that the recovery is stalling. With recent economic data noisy, it is striking just how much the May jobs report looks to be a mirror image of April. Averaging the two results in a census-adjusted payroll gain of 122k and a flat unemployment rate.
Yes. Fiscal stimulus and stabilization in inventories account for most, if not all, of the 3½ percent increase in real GDP during this last year of recovery. These supports are due to dissipate with several headwinds still in place. These include: (a) labor weakness, (b) state and local fiscal drag, (c) massive housing and industrial capacity, (d) limited credit availability, and (e) uncertain consequences from the European crisis.
Although highly expansionary fiscal and monetary policy have stoked inflationary concerns, disinflation persists due to the sizeable gap between actual and potential output. At roughly 6.5% of GDP, this capacity imbalance should require years to eliminate, leading to a period of contained core inflation measures.
Our monetary policy view remains sharply at odds with consensus. While recent events have pushed out consensus rate hike expectations into early 2011, we see no Fed move before 2012 as key data remain far from the Fed's "dual mandate" of price stability and maximum employment (see charts). Admittedly, some of the hawkish noise from Kansas City and Atlanta regional Fed presidents merit attention, but we believe Chairman Bernanke and the majority of FOMC leadership subscribe to a view that the current balance of risks tilts towards deflation and economic deceleration.
]]>
But, it’s all in the timing. The real estate investor must move quickly to close on the really good (i.e. well priced) real estate deals. Cash is certainly king in today’s market place. For real estate investors that can pay all cash and close quickly the deal is a huge win. For those who can’t pay cash or move quickly it’s lost opportunity. Or is it?
Many times real estate investors want to sell some of their existing property to pay for their new acquisitions and they want to defer their capital gain taxes via a 1031 Tax Deferred Exchange transaction…but, the deal won’t wait. The well priced, and therefore really good real estate deals, will not last while the investor get’s his or her current properties listed, sold and closed through a 1031 Exchange transaction.
The challenge is finding a way to structure the acquisition so that investors can acquire the new investment property immediately, and then worry about selling their existing rental properties after they close on the deal.
A Reverse 1031 Exchange strategy is the answer. The real estate investor doesn’t have to wait to sell his or her existing rental property. They can close on the new acquisition first, and then market their existing properties following the acquisition.
Although the Reverse 1031 Exchange strategy is more complicated and costly, it provides a solution for a rapidly evolving real estate market so that the more astute investors can take advantage of opportunities as they come along, according to William L. Exeter, co-founder of The Center for Wealth & Legacy™ and founder of The 1031 Exchange Institute™.
]]>
You may be sitting back and thinking this doesn’t apply to you because you are not part of corporate America, but merely a homemaker, employee, intern or small business owner. Well let me assure you that if the IRS is permitted to require full disclosure from large corporations with more than 10M in assets to provide step by step analysis on every tax saving deduction and if challenged, what the rationale would be and how much they would owe if the deduction is denied. It is not so far off to think the same can happen to you. If you are feeling stripped and naked by this possible requirement to divulge every strategic method used in your advanced tax plan to save your company money and increase revenues, you should be. If this bill is passed, prepare to welcome the IRS as your newest shareholder: the uninvited one sitting at the end of the table with that smug grin that says, “Gotcha!”
What will this do to the number of audited tax returns? It is quite likely that the IRS will be in a better position to audit and challenge tax deductions and credits. Since all of the leg work will have already been done for them, the cost to pursue corporations will be minimal and the taxpayer is left in a precarious and exposed position. Given the large increase in auditors recently hired by the IRS, it is not surprising that they are looking for ways to put them to work more efficiently. The thought of having the IRS on the board of our companies, divesting us of privacy and the ability to tactically maneuver through the barrage of constantly changing tax codes is more than disheartening. It is frightening to lose the freedom for which so many have lost their lives. This country once went to war to uphold “no taxation without representation,” only to be defeated by the most undesirable representative. The IRS is one shareholder that is not welcome on the board.
The Center for Wealth & Legacy™ provides a wealth of knowledge with many specialists available offering your family and business assistance in areas of taxation. Desiree M. Wilson, MBA EA CEP, is a member of the Advisory Team for The Center for Wealth & Legacy™.
]]>
Social Security is a common form of income for retirees, although, it is unlikely to be around in the future. Social Security may or may not be taxed. Its taxability depends on the total income of the recipient. It is important to know going into retirement how much of your income will be taxed and how much will not be taxed.
Distributions from an IRA have varying methods of taxation. If it is a traditional deductible IRA, your distributions will be fully taxable. A Non-deductible IRA will only be taxed on the gains and a Roth IRA is TAX FREE! The Roth will remain tax free unless you break the five year holding period rule or early distribution rule, which all retirement plans have.
The taxability of your pension and annuity will depend on the source of funds used originally to fund the account. They may be fully or partially taxed. There is always some amount of tax due, but the amount will differ for each person depending on their situation. It is a necessity that you, as the consumer, track the source of funds in each account and be persistent with your tax professional to make sure they are not defaulting to fully taxable mode if you have already paid your dues.
Distributions from a 401(K) or 4013(b) are fully taxable since the contributions were excluded from taxable income. The exception is the Roth 401(k) as distributions are TAX FREE. There are many benefits to using a Roth IRA and this year, 2010, may be the best time of all to make the conversion. With the opportunity for everyone to rollover or convert their retirement plan (including 401(K) and 403(B)) into a Roth IRA and pay the tax over the next two years 2011, and 2012 the potential for tax savings, investment increases and a tax free source of income in retirement are just some of the many reasons why many are compelled to convert. Factors you should consider before converting are: current age, how close you are to retirement, and your tax bracket as you will be taxed on the full amount of your self-directed IRA.
There are tax strategies that can be used and implemented to affect your tax rates and possibly change the future taxation of your retirement plan distributions. The Center for Wealth & Legacy™ provides a wealth of knowledge with many specialists available offering your family and business assistance in areas of taxation. Desiree M. Wilson, MBA EA CEP, is a member of the Advisor Team for The Center for Wealth & Legacy™.
]]>