Posted by Entrust Sacramento on Tue, Aug 10, 2010
We are nearing the end of the Bush tax cuts, which are due to expire at the end of 2010. Unfortunately, it does not appear they will be extended because of the drastic decrease in federal tax revenue. This of course, is relative to the federal government’s continued massive spending in an effort to jump start an ailing economy, bail out banks and corporations, fund social programs, etc. At some point we all should have known a new bill was due.
With the federal deficit at record levels and growing, and continuously declining tax revenue in every sector, that bill is coming by the end of the year. Are you prepared to shelter your income and gains from these looming taxes? In addition to increased federal taxes, we can expect increased state taxes, local taxes, property taxes, sales taxes, capital gains taxes, etc. Couple these various looming tax increases with declining incomes and inflation, and you must ask yourself: Are you in the best shelters available to you?
Now more than ever, you should consider a self-directed IRA to shelter your retirement savings from taxes, as well as to take advantage of the many alternative investment vehicles available to build your retirement account with less volatility than traditional investments. If at all possible, you should seriously consider establishing a Roth IRA and/or converting all or a portion of your tax-deferred accounts into a Roth IRA.
In 2011, when the Bush tax cuts expire, we will just see the beginning of tax increases. Do you think that will be the end of the tax increases? If not, consider the worst-case scenario of what tax bracket you could end up in at retirement, and consider converting your funds into a Roth IRA.
Many believe that they will be in a lower tax bracket at retirement age than during their income earning years. But what will that tax rate and/or bracket be in the future, compared to what it is for those who are retiring now? It’s all relative. Many people have lost up to half of their retirement savings as a result of the losses in the market over the past two years. They may not recoup those loses and cannot afford to have their nest egg further devastated at retirement when it’s time to take distributions, due to higher taxes, inflation, etc.
Make an appointment with your CPA or tax professional to discuss the various tax shelters you might want to consider in order to protect your retirement account(s). If you would like more information regarding the various investment options available using a self-directed IRA and/or other account types, please call us at (916) 509-7271.
By Lamarr Baxter, Business Development Manager
lbaxter@theentrustgroup.com
Posted by Entrust Sacramento on Mon, Sep 14, 2009
With the federal government spending more money than it takes in as a result of corporate bailouts, stimulus spending, and eventually the passage of healthcare reform, it seems inevitable that income taxes will be raised. Now is the time to start thinking about sheltering your income from future taxation by establishing a self-directed Roth IRA.
Why a Roth IRA versus a Traditional IRA?
With a Roth IRA, your withdrawals are not subject to tax. No one knows how high the income tax rate will rise over the next 10-20 years. But if you have a Roth IRA, you don't have to worry about what the tax rate will be because your investment returns won't be taxed. In addition, there are no requirements regarding distributions. You can let the money sit as long as you want or can afford.
On the other hand, with a Traditional IRA, you defer your tax liability to when you take distributions-which are required. Your withdrawals are taxed at your rate at the time of the distribution. So if you anticipate being at your current tax rate or higher, you have to take a tax bill into account.
The benefits of the Roth IRA growing tax free and without required distributions are clear. If you are eligible to contribute to a Roth IRA-eligibility is based on your current income-then consider establishing a self-directed Roth IRA. Self-direction allows you to broaden your investment options. Here are some of the ways that you can diversify your account and potentially improve your rate of return:
According to various economists, retirement accounts have, on average, lost approximately 20% of their value within the past 18 months. If you have a Traditional IRA that has lost value, now might be a good time for you to roll over the funds into a self-directed Roth IRA. Check with your tax advisor whether converting your IRA fits into your financial goals.
If you would like to learn more about the investment options of a self-directed IRA-either Roth or Traditional-contact Lamarr Baxter at (916) 509-7271.
The Entrust Group and its Franchisees do not provide investment advice or endorse any products.
All information and materials are for educational purposes only. All parties are encouraged to consult with their attorneys, accountants, and financial advisors before entering into any type of investment.
Posted by Entrust Sacramento on Sat, Aug 01, 2009
Your financial planners/advisors and other financial professionals have always emphasized the importance of diversifying your investment and retirement portfolio. But are your investments and retirement portfolios TRULY as diverse as they should be? Diversification isn’t just relative to high versus low risk investments.
A truly diverse retirement portfolio goes well beyond stocks, bonds, mutual funds, CD’s and level of risk. In addition to the traditional forms of investments there are alternative investments that you should consider such as:
Real Estate (residential, commercial, raw land, etc….)
Offshore Real Estate
Private Notes
Private Stock
Precious Metals
Foreign Currency
LLC’s
Futures & Commodities
If you are seeking to truly diversify your retirement portfolio you should consider some of these options.
The storm within the stock market has not completely subsided. With the institutional banks still in crisis and the U.S. automakers on the brink of collapse, there may still be more upcoming losses to endure in the stock market. Take back control of your retirement dollars and invest in what you know through an Entrust Self-Directed IRA account.
To start taking advantage of these investment options call me at 
916-708-0235.
Lamarr Baxter, Business Development Manager
Lbaxter@theentrustgroup.com
Posted by Entrust Sacramento on Mon, Jun 01, 2009
Many of you have suffered great losses in both the stock market and your retirement accounts. While prices are low for traditional investments (i.e. stocks, bonds, mutual funds, annuities, etc…) the market continues to be volatile because of many other external and global factors.
The real estate market is set to be an excellent long term investment vehicle. With interest rates at historic lows coupled with low home prices, you are in the position to leverage monies using your existing 401(k) and IRA accounts. Transferring or rolling over to an Entrust Self-Directed IRA would allow you to take advantage of this wealth-building investment opportunity.
With so many people losing their homes to foreclosure and now becoming renters, the demand for rental housing for many qualified displaced families has increased. Now is the right time to investment in Single Family Residences with your Self-Directed IRA. You can enjoy immediate monthly cash-flow, annual property appreciation and the excellent income tax shelter.
Other forms of real estate investments can come in the form of purchasing and offering Real Estate Trust Deed loans. With institutional lending limited and in some aspects frozen, the opportunity for your IRA to be the bank is becoming more common among investors who seek a decent rate of return on their cash. Loans to homeowners with your investment secured by the property in the form of a lien until the borrower refinances or sells the property makes the IRA investor secure. You can choose to invest in either a 1st Trust Deed or 2nd Trust Deed, the choice is yours. Also keep in mind, many account investors are also invest their funds together with friends, relatives and other investors to achieve the investment objectives described above.
Once your Entrust account is established, you are ready to begin investing in real estate. What are you waiting for? Call us today for more information 
916-509-7271
.
To determine which type of IRA account would be best for you, we strongly encourage you to consult with you tax professional. Seeking professional advice would also apply to the investment aspect of your transaction as well, be sure to consult with a licensed real estate professional and/or real estate attorney before investing. Entrust provides excellent educational resources, we do not endorse, sell or recommend any investment products.
Lamarr Baxter, Business Development Manager
lbaxter@theentrustgroup.com