A 457b retirement savings account is a tax-advantaged retirement savings plan offered by certain state and local governments, charitable organizations and non-governmental employers. Employees contribute pre-tax dollars that reduce their taxable income; then the money accumulates tax deferred until withdrawal is made from their account. Withdrawals may be made without penalty before age 59 1/2; however, income taxes may apply on them. Investment options tend to vary between plans. Taxes Your money invested in your 457b plan is not taxed...
Read More
Your self-directed IRA allows you to withdraw funds if certain criteria are met, making them suitable for paying healthcare premiums or college costs. Just ensure you verify information like prices and asset values before withdrawing any funds from it. As well, avoid investing in collectibles or life insurance that are considered conflict of interest transactions by the IRS, along with investments that require regular maintenance or have higher-than-average fees. It’s tax-free Self-directed Roth IRAs provide investors with more flexibility to...
Read More
Gold and silver investments are considered by many investors to be assets, which may increase in value over time. When sold, any profits are subject to capital gains taxation. Where you live determines how much taxes you owe. New Jersey, with support from Sound Money Defense League and Money Metals Exchange, recently passed legislation which exempted precious metal sales tax sales taxation altogether. Exemptions Physical gold and silver have long been prized as tangible stores of wealth and an insurance...
Read More
Self-directed IRAs differ from traditional IRAs in that they allow investors to invest in alternative assets such as real estate, private companies, lending money with promissory notes and precious metals – although these assets tend to be less liquid and may take more time to sell. Before investing in a self-directed IRA, investors should carefully evaluate their custodian. It may also be prudent to consult a tax professional or financial advisor. Tax-deferred Individual retirement accounts (IRAs) are tax-deferred savings accounts...
Read More
An LLC is an attractive alternative investment vehicle for Self-Directed IRA owners, offering several tax advantages as well. Furthermore, this technology enables IRA investors to invest in real estate more quickly and cost effectively as there is no longer any custodian review process involved. An IRA LLC allows investors to invest in various assets, such as residential and commercial real estate, raw land suitable for single-family dwellings to multi-unit properties, contracts for sale and lease options and even commodities futures...
Read More
QQQ is an ETF that tracks the Nasdaq 100 Index and offers a cost-effective way of accessing innovative tech companies, without paying exorbitant fees. To prevent big stocks from dominating performance, modified market capitalization allocation is used as an allocation mechanism in this fund. Technology stocks make up 52% of this portfolio, with additional investments spread among consumer cyclical and defensive sectors to provide balance. Learn more about this hands-off investment option for Roth IRAs here. What is an ETF?...
Read More
An IRA is an excellent way to save for retirement and offers tax benefits. You can open one through either a traditional broker or an automated robo-advisor which selects low-cost, risk-appropriate investments on your behalf. Start investing early to give your money the best chance at growth! You can fund an IRA via bank transfers on the custodian’s website. No. IRAs are tax-advantaged retirement accounts that provide investors with a range of investment options, from stocks and mutual funds to...
Read More
Many investors seek refuge in gold as an inflationary hedge, yet it’s important to understand how taxes can influence investment decisions. Tax law classifies physical gold as a collectible. As such, its maximum capital gains tax rate of 28% is significantly higher than normal long-term capital gains rates. Taxes Before investing in gold, it’s essential to consider its tax implications. The IRS taxes investments based on market value and type; gold investments like any financial asset may be subject to...
Read More
Gold has long been recognized for its capacity to serve as a store of wealth and can act as an effective hedge against inflation, yet inheriting physical items containing precious metals such as coins or bars may bring with them certain tax considerations. Heirs must understand capital gains taxes, estate taxes and reporting requirements before determining how best to manage their inheritance. A financial advisor can assist with these matters and devise a strategy that minimizes tax liabilities. Taxes Physical...
Read More
A Bitcoin IRA allows you to invest in cryptocurrencies tax-deferred. Fund your account either by transferring funds from another retirement account, or making direct contributions. There may be set-up and transaction costs. Your long-term financial goals should be the driving force behind your investment decisions, while taking into account any associated volatility when investing in a Bitcoin IRA. Tax-free withdrawals A Bitcoin IRA allows you to invest in cryptocurrencies like Bitcoin and other alternative assets through an established self-directed IRA...
Read More
