Estate Planning as a Career

Tip #1-Tax Advantages Of A Roth

When it comes to estate planning with IRAs, you may want to consider the tax advantages of the Roth account. While traditional accounts provide you with a tax-break today, Roth accounts provide you with a future tax-break.

Although you pay regular income taxes on contributions that you make during the year. Withdrawals are non-taxable. None of the earnings made within the account, including interest on other returns, are ever taxed. Basically, you are creating tax-free wealth for your retirement.

Tip #2 - Think Outside The Box

Smart real estate investors have been taking advantage of this tax shelter for quite some time. What? You didn’t know that you could use your retirement account to make real estate investments?

Well, it’s not that surprising. The conventional advice that you get about estate planning with IRAs comes from bankers and brokers. They focus on the earnings generated with money markets, certificates of deposit, stocks, bonds and mutual funds. But, you actually have more choices than that.

You can buy houses, hold mortgage notes, resell property, or hold it for rental income…practically any type of property investment, along with other less traditional choices is allowed under the current tax laws. The only that that you need to get started is a good self-directed custodian and some sound advise.

Tip #3 - The Unwritten Rule

There is an unwritten rule, of sorts, when it comes to investments made from within a retirement account. Always use it for your most profitable investments.

Let’s say that you buy houses and resell them for a profit. You haven’t gotten the best advice about estate planning with IRAs, so you use personal funds to complete the deals. One year, your profit from a sell is $50,000. You’ll only get to keep about (more…)