Advanta IRA Trust – Real Estate IRAs

In our changing economic times, it is more important than ever to focus on our retirement planning and financial futures.  For most of us, we have never seen the wild ride that the financial markets have shown us the last few years.  Just as we check our calories, blood pressure and weight on a regular basis, how are we doing with our finances?   It may be time for a routine check-up.

Studies have shown us the average American spends more time annually on vacation planning than on financial planning.  There was also a survey by Aetna claiming 31 percent of pre-retirees would rather clean their bathroom or pay bills than plan for retirement.  Allstate used to have an ad that claimed last year Americans spent 19 hours planning for their retirement. That’s about the same amount of time they spent planning their Thanksgiving dinner. 

So how do we get started and what are our choices today?  Unfortunately, retirement planning is not something the faint of heart can jump right into, but it can be done and with a little practice, it does get easier.  Here are some tips:

Read the rest of this entry »

Press Release – February 15, 2011.  Dave Owens, CPA, CES is proud to announce his newest publication, TFS Briefs.  TFS Briefs focuses on current news and technical topics that will help investors save money by thinking outside the box in their investment approach, particularly in terms of retirement planning.  These Briefs will be used by individual investors as well as professionals, including accountants, attorneys, financial planners and realtors.  The first four Briefs have been posted online and cover the topics of Prohibited Transaction, Required Minimum Distributions, IRA Contributions 2011 and 1031 Exchanges.  To read the current TFS Briefs, please visit www.tfsBriefs.com. 

TFS Briefs is written to examine topics used by individuals interested in understanding and taking control of their financial situation, covering topics ranging from investing in real estate, retirement planning, and changes in tax law.  Going forward, TFS Briefs will be written monthly and disseminated to subscribers.   To subscribe to TFS Briefs, please visit www.tfsBriefs.com. 

Dave Owens, CPA, CES is Managing Member of Entrust Freedom, LLC and  can be reached at 239-333-1031 or owens11@entrustfreedom.com.

If you are a real estate investor, understanding depreciation rules is critical to making good decisions. The most common misconception is that the tax rate on a sale never exceeds 15%.  This is rarely true for investment real estate.  Please read the entire article because there are some sneaky nuances that every seller should know.

Technically, depreciation is a noncash expense that reduces the value of an asset as a result of wear and tear, age, or obsolescence. In layman’s terms, it is the process of expensing tangible assets over their expected lives (as determined by the IRS). I will focus on real estate in this article. The depreciation rules for equipment are completely different.  For most businesses, working assets like computers are expensed via a technique called Section 179, which allows a business to expense the entire asset cost in one year. Real estate assets do not share this benefit. Read the rest of this entry »

How do we make our financial decisions? Why do we invest the way we do and what is the benefit?  I think the current economy has put a cold dose of reality in every type of investor.  Many of us now realize that when our parents were harping on hard work and telling us what the world used to be like, they were not kidding. Oh my gosh, did I say my parents were right? Read the rest of this entry »

Our lives are so busy anymore.  The current economy is making it harder to get ahead.  The good news is that it will get better.  I don’t know when.   Two years ago, I thought it would have happened by now.  Where I live South Florida, there will be no dramatic improvement in the near future.  These worries affect people’s decisions.

So what are you doing now with regards to your Financial Life Plan?  As Americans, we are terrible planners.   Let me give you some statistics.  Twenty percent of pre-retirees have spent no time actively planning for retirement.  Sixty percent of pre-retirees have spent the same amount of time or more time on home improvement vs. financial planning.  Thirty one percent said they would rather clean their bathroom or pay bills than plan for retirement.  These statistics are from the Financial Planning Association. Read the rest of this entry »

If you think doing your income taxes is hard, wait until you have to one day dive into the world of college financial aid. As a father with a soon to be college bound son, one of my interests has turned to reviewing how I will pay for college.  As a CPA, I have spoken to dozens of clients on the topic, and feel I can point the novice in the right direction.

While the process is not insurmountable, it does require a lot of time and some serious planning.  If you have a Junior in high school, you should be reviewing the process now.  Several financial moves or decisions you make may save you thousands of dollars in college costs. Read the rest of this entry »

Savvy Sanibel and Captiva real estate investors are always looking for deals, and now may be the best time.  The Golden Rule of real estate investing has not changed – the profit is made by purchasing at the right price and not over paying.  The rule on Sanibel and Captiva has never been truer.  For buyers getting property at the right price, the tax laws have never been more favorable. Read the rest of this entry »

Being a young adult or college student, you have other things on your mind rather than retirement. Let’s face it, it’s decades away and you don’t have to worry about it now, or do you? With the government in turmoil, do you really want to put your future in their hands? Now is the perfect time to start a Roth IRA. Granted, being young might mean you won’t have much money to put into an account at first, but it still puts you years ahead of the game with investments compounding and building your money. Put the trust of your future in your hands.   Read the rest of this entry »

At the beginning of the year, all we could talk about were the new Roth Conversion rules.  Well, six months later we are still talking about the new rules, but we have learned quite a bit.  For taxpayers with a Traditional IRA that have a lower basis (on assets currently owned) compounded with the three year deferral on the tax payments, the Roth 2010 rules are a great opportunity. Read the rest of this entry »