3 Reasons Why IRA Upkeep is Important

Umbrellas | Blog | Mountai West IRA
1.Required Minimum Distributions
If you are age 70½ or older. it is required for you to take minimum distributions (RMDs) from your IRA. You need to take your RMD before December 31 each year. The one exception is for first year that minimum distributions are required, in which you have the option of waiting until April 1 of the following year. Keep in mind that utilizing that option means that you will have to take two distributions in that year, which may shift you into a higher tax bracket. The penalty for failing to take your RMD is a 50% tax on the amount you were required to take, in addition to income tax.

2. Fair Market Valuation
Assets that are held in your IRA must be valued every year for the IRS. The value of a publicly traded stock is much easier to attain than calculating the FMV of an alternative asset which can be more challenging. It is important that any IRA holder with a self-directed IRA or 401(k) plan which owns alternative assets, such as real estate, acquire an independent valuation of the asset. This could be in the form of acquiring an independent valuation from a professional or expert in that market, or even something as simple as tax assessment records from the county or state. This is particularly important if you are over the age of 70 ½, and are subject to the IRS’s required minimum distribution rules. If you will be taking the asset as an in-kind taxable distribution as the value of the IRA asset(s) has a direct correlation to the amount of tax you will pay. If the value of that asset is wrong, you could potentially be charged penalties for under-reporting your income, or you could be paying more tax than required.

3. Estate planning
Calculating your plan contributions is important, everyone wants to be able to retire at some point in their life. Most would like to live comfortably at an earlier age. In order to retire comfortably you will need to calculate the amount and how often these contributions are required for you to retire. Creating a budget for your future is essential, not only for you, but your beneficiaries. It is recommended that you always designate your IRA beneficiaries. The foremost reason for naming beneficiaries is to avoid probate. Probate is the long and often expensive process of reviewing your estate and assets to determine proper distribution upon your death. Making sure your beneficiaries are exactly who you want them to be is very important because your named beneficiaries override any distribution requests you may make in a will.

3 Benefits to Purchasing Real Estate in Your IRA

Estate | Blog | Mountain West IRA
To fully maximize your investment options, you need to have a retirement plan that allows you to select your own investments. A truly self-directed retirement plan allows you the freedom to invest in many types of assets. By investing in real estate, you are able to diversify your portfolio maximizing your potential investment goals.

1. Build or buy your dream home potentially tax free or tax deferred.

Your IRA can purchase your dream retirement property. With this asset you may attain rental income that is tax-free or tax-deferred to pay the initial cost of the home. Then, when you are ready to move into your dream retirement house you may distribute without penalty at age 59½ (or 5 years in a Roth IRA) any property from your IRA as a normal distribution.

2. Leverage your funds with non-recourse loans. Diversifying your investments.

If your IRA does not have enough money to pay for the entire purchase on its own, you may finance or leverage any income producing property. The property is used as the collateral for the loan. Because the property belongs to the IRA, the debt must be repaid from assets within the IRA, whether income from the property, permissible contributions, or other assets income in your IRA.

3. Attaining long term wealth through rental income.

Rental income can pay for the initial cost or the mortgage of the property. As well as any other expenses this property incurs. For example: The property management company expenses, upgrades inside and outside the property, and maintenance. You will never have to pay for these expenditures out of pocket. Any extra income grows tax-deferred, and will potentially be tax-free if utilizing a Roth IRA or be used to supplement any other investments.

3 Crazy Investments Ideas

3 Crazy Investments Ideas | Blog | Mountain West IRA
Crazy Investments

Self-directed IRAs can become The Ultimate Retirement Machine, the IRS only provided rules on what you cannot invest in which leaves endless options for savvy investors. A truly self-directed retirement plan allows you the freedom to invest in what you know and understand. The retirement industry has been dominated by large transaction-driven custodians who have focused on a narrow universe of low return on investment choices. Accounts controlled by financial advisors, with low yielding returns may be right for some, they will never offer the kind of freedom that a Mountain West IRA Self-Directed retirement plan can offer.

We are sharing only 3 of the many of the well thought out and contradicted crazy IRA investment opportunities that our clients have inside of their IRAs. These investment opportunities that would baffle most.

Investment: Fishing License in Alaska
How is this profitable? Our client leases the contract lists, a percentage of the profits of the catch go right into his IRA

Investment: Airplane
How is this profitable? A pilot can lease the airplane from our client, all profits of the lease go directly the IRA

Investment: Cattle
How is this profitable? Let’s talk about Cowpital Gains and Bovidends?. Imagine having the ability to earn 100% Cowpital Gain on your investment. This is what our client earns by investing what he knows best!

Your Financial Advisor will tell you that only stocks, CDs, and mutual funds are allowed in your retirement account, however this is a common misconception. The truth is, broader investment options have been available to the public since the inception of the IRA in 1975. Neither the IRS nor the Department of Labor has ever published a list of legal investments; however, there is a list of Prohibited Transactions and Disqualified Persons that deal with what is not permitted. Almost any investment is permitted provided you follow the IRA provided rules.

Join us on our webinar to learn more about all these crazy investments plus more: JOIN WEBINAR HERE!

6 Things Financial Planners Tell Their Friends

Every wonder what tips a financial advisor gives to his/her friends? We all want to make sure we’re making the right decisions, especially when it comes to money. In this post, we’ll go in depth into 6 tips that financial advisors give their personal friends.

1. Have a budget.

Despite the amount of money you get, you should have a budget of all your expenses, savings and investments. It is easy to carelessly spend your money without a budget, however, when you have a budget, you’ll be able to balance your spending, savings, and investment. Write down all your intended expenses, and don’t spend beyond your budget; having discipline over your money is necessary and beneficial both now and in the future.

2. Invest/save for your retirement days.

Your financial planning friend will always remind you to set aside some portion of your income for the sake of your future. This could be through signing up for life insurance benefits or save it for other investment ventures such as real estate. The subject matter also involves investing in educating your children so that they would take care of you in your old age.

3. Spare some money for fun and relaxation.

A financial planner will always tell you that it is not healthy to work 365 days a year without relaxation and fun. Since you work so hard for your money, you also have the right to enjoy and rest. However, money for fun should also be included in the budget – this helps in avoiding too much spending while out for fun with your family and friends, hence confining you to the budget.

4. Plan before you spend.

It is easy to spend the money you have at hand. All you need is to plan how you’ll use the money for you to fulfill all your needs; otherwise, some of them will be left unfulfilled.

5. Make smart choices when it comes to insurance.

The most important insurance that you should never ignore is the life and disability insurance. Most people assume that they will always have the ability to look for a living. In case you become sick, you’ll be able to receive this savings and benefits from the insurance company you signed up for.

6. Be updated with the benefits offered by your employer.

Always stay alert for any benefits that your employer sets aside; this may be health benefits or incentives for subscribing to a given insurance scheme. Many insurance companies partner with companies to offer friendly services to their employees; always be aware of such offers, they’re usually more beneficial to you.

These tips can certainly help anyone with their financial planning, but it’s also important that you do seek and receive advice from a financial planner. A financial advisor in Florida can go beyond these tips and review your exact situation to make precise suggestions on what you need to do.

8 Financial Tips Advisors Wish You Knew


Financial discipline is a critical subject in that recklessness in spending money may lead to bankruptcy alongside other financial-related problems. That’s why it is very necessary for all to acquaint themselves with general tips to ensure sound financial management.

The gist of the discussions below is to explore some common yet critical financial management tips that any competent financial advisory service company may want you to know.

8 Financial Tips Advisors Wish You Knew

Tip #1 Whatever you Earn, Spend Less

Debt, though may often be necessary for the short run, is not sustainable in the long run. That’s why you are strongly advised to shun debt as much as possible and only contract it if and only if you have to. To do so requires you to adjust your lifestyle extensively, avoid too many luxuries, and draw a clear line between your wants and needs.

Tip #2 Draft and Adhere to a Budget

A budget is a plan of expenditure. To keep off debt and unnecessary expenses, it is imperative that you develop a budget that shall guide you in spending your money and stick to it faithfully.

Tip #3 Enroll in and Contribute to a Retirement Plan

Immediately when you start earning you need to enroll in and to start contributing to a retirement plan. This is the only sure way to safeguard your financial future once you exit the labor force. Company-sponsored retirement plans are a nice way to start off. In case the company you are working for lacks an employee retirement plan, you may consider enrolling in an individual retirement plan of your choice but which is more likely to give you the same level of satisfaction.

Tip #4 Develop a Saving Plan

Apart from retirement, saving plans also play significant roles insofar as safeguarding your long-term financial future is concerned. You may consider enrolling in a “Save-as-you-Earn” system if you are not able to afford a fixed deposit saving plan.

Tip #5 Invest Extensively

You may also consider putting some of your money in an investment plan. This could be through the purchase of shares, equities, bonds or treasury bills. In case you have plenty of money at your disposal, you may also wish to explore real estate, restaurant, and retail e.t.c.

Tip #6 Write a Will as Early as Possible

A will is a legal document which stipulates the preferred beneficiaries of a deceased estate. In case you have dependants you may want to write a will as is practically possible to avoid squabbles upon your death.

Tip #7 Familiarize Yourself with the Prevailing Tax Laws

Taxes vary from jurisdiction to jurisdiction and affect various aspects of the typical worker. The failure to remit taxes in time may elicit various penalties from the relevant state organizations. It is therefore of utmost importance that you familiarize yourself with the various taxes that may likely affect you as well as when to pay them and the likely penalties for not remitting them in time.

Tip #8 Familiarize Yourself with the Insurance Coverage

Just like taxes, insurance coverage also exists in various shapes and forms, vary from jurisdiction to jurisdiction, and affect various aspects of the typical worker’s life. It is also necessary to familiarize yourself with them and to know when to remit them.

Final Verdict

Even though the aforementioned tips are self-explanatory, the real life situations are often way too complicated to navigate along. That’s why the intervention of a competent financial advisory service provider such as the financial advisor in Florida may be necessary.

7 Facts to Consider About Retirement Planning

Retirement planning is a greatly advanced process, and we unequivocally urge retirees not to endeavor through it alone. Notwithstanding the danger of outlasting your advantages, you have other cash predators to avoid, like taxes, expansion, stock market and loan fee unpredictability, human services, government disability, and much more. These are seven facts to consider about retirement planning.

1. Growth Potential

It’s safe to state you need your cash to develop. However, the genuine motivation behind why you need your advantages for development is not to wind up well off, but rather to guarantee that you can keep pace with things like expansion, taxes, arranged out of date quality, innovation changes, rising healthcare costs, and so forth. If you need your income to keep pace with expansion, then you ought to request an all-around diversified portfolio to keep pace with your changing lifestyle over the long run.

2. Safety Provisions

The two greatest monetary feelings of trepidation most investors and retirees face are losing cash and coming up short on cash. These feelings of dread are reasonable, as well as the most basic! We generally tell our customers that 90% of our occupation is dodging huge misfortunes. If you are taking income from your retirement resources and endure significant misfortunes in your portfolio, it can be annihilating… and furthermore they drastically increment the probabilities of coming up short on cash. In this manner, each customer ought to request a retirement plan that contains clear systems to appropriately protect you against expansive venture misfortunes and outlasting your income.

3. Tax Efficiencies

A fruitful retirement plan ought to involve two pieces. In the first place, your cash ought to develop with as meager (or no) tax outcomes as could reasonably be expected. Second, your income ought to be gotten in the most tax-proficient way that is lawfully conceivable. In all actuality, we can’t beat the phenomenal rival (the IRS). However, our occupation as money-related professionals is to fill in as ace experts in helping our customers maintain a strategic distance from pointless taxation.

4. Income Growth Potential

Altogether for your income to develop, your advantages must develop at a rate that surpasses your withdrawal rate. This implies, as much as some of you would prefer not to hear this, putting a segment of your money in the stock market which assumes an indispensable part in your retirement plan.

5. Maintain Control

A fruitful retirement plan ought to ensure that you have the income you require, as well as never run out. In past times, this had to be refined through an annuity. The enormous drawbacks to these “old school” annuities were that you would surrender the two most imperative things: control and access to your cash. In other words, an annuity would pay you a settled income forever, but you would no longer have admittance or control to these monies. Impossible!

6. Full Transfer to Beneficiaries

Another normal topic we get notifications of from our resigned customers is the significance of leaving a legacy. At an absolute minimum, each retirement plan ought to request that there is an arrangement set up to guarantee that whatever cash you don’t spend will effectively pass on to your kids, family, and friends, or foundations.

7. Professional Supervision

Retirement ought to be one major excursion, where you get the chance to appreciate everything you adore, like traveling, eating out, purchasing pleasant things, gifting or going through cash with our families, donating, and so on. The exact opposite thing you ought to concentrate on in retirement is stressing over your cash and your budgetary arrangement. In this critical part of our lives, there are professionals out there who are energetic about dealing with you. In this manner, you ought to request to make the most of your retirement, and leave the stresses over your accounts to the professionals.

To sum up, here is our solid proposal: use these facts as a test to put your current money-related professional under serious scrutiny. It is precisely what our financial advisers in Idaho noted from our retirement arranges, and truly, they ought not to consider working with us if we can’t give this to them. We think you’ll concur that these inheritances are basic, as well as they truly aren’t “asking too much.”

5 Myths About Retirement Plans Everyone Should Know

When it comes to retirement planning and personal finances, people often think they are on the right track. The truth is that most people fail to understand the basic ideas about retirement planning and personal finances. Misinformation and blind spots can undermine how your financial security. Misconceptions can badly affect how you save and prepare for the future. You have every possibility to encounter these misconceptions on a regular basis when working with financial experts. In this content, you will find some myths about retirement plans and savings that everyone should know.

Myth 1: I will go back to work if there are not sufficient retirement funds

The longevity of life is a clear view about this myth. It implies that people can simply continue to work past the normal retirement age of sixty-five, which they can, however do you really want to? It is not a wise plan to depend on employment as one of the methods of financing your retirement years. Earlier than planned retirements are often caused by disabilities and health problems, which may not allow you to go back to work.

Myth 2: In retirement, all my bills will be reduced

Most retirees believe that they will fall into the bracket of reduced tax after retirement. Many soon-to-be retirees believe they will be living on a lower income. Many retiree goals are to maintain their standard of living, however have an increase of income. When you pay off or clear your home debt prior to retirement, it implies that such deduction will not count, however you will decrease your cost of living. Your traditional 401(k) or Traditional IRA will be taxed based on the withdrawals from tax-deferred investments. It is a largely estimated task to determine or figure out what tax rates will be in your retirement years. Speak with a tax professional to plan accordingly.

Myth 3: My health insurance will be taken care of by Medicare

Your health care expenses will not be completely covered even if you are eligible for Medicare. Your largest future expenses will be cascaded on health. Medicare does not cover copayments, deductibles, visits to medical experts, out-of-pocket costs for prescriptions, other expenses such as hearing aids, dental visits and eyeglasses. Many people usually believe that when visiting a nursing center Medicare will provide for them. However, in most cases, this scenario is not correct. If Medicare actually qualifies, then you will only be covered for a limited number of days.

Myth 4: I will need less funds when I retire

The money you will spend during retirement may be much more than when working actively. This scenario is actually noticed in the first couple of years. When you are in retirement, you’ll have more free time to carry out leisure activities, travel, hobbies and other important things. For this reason, you will be spending more on your wants than when you were actively working.

(Potential) Myth 5: My retirement years will be funded by social security

The average retiree’s income is simply covered Social Security for only 38% percent. Retirement plans can be complicated if you do not understand the entire concept. It is important to have a schedule to accumulate your own money. This will help make up the gap between your living costs and Social Security during retirement. For your retirement plans, social security should be considered an additional advantage and not the foundation.

10 Tips to Re-Stress Your Retirement Plans

There is a well-known nursery story about an ant who works hard all his life so that after the rains come he can be secure and guarded with all the provisions he needs. The same lesson is to be exercised while retirement making plans is considered. Effective and efficient retirement planning can be equated to early planning. Planning is the key in order to determine how you will spend the rest of the days. Given below are certain guidelines and strategies that are recognized to be useful to many; it might even help you too.

1. NEVER Withdraw from Your Retirement Plan

Withdrawing money from your retirement plan is never advisable except in the most extreme situations. Withdrawing from your retirement plan will mean losing the valuable interest that has accrued. This will reduce future interest you earn on that account and keep it from building into a larger nest egg. You could face penalties or early withdrawal fees. Some plans allow you to have withdrawals or loans but you must be extra careful in taking advantage of these withdrawals.

2. Invest in YOUR Future

Invest as much money into your company retirement plan for as long as you can afford it. You should invest enough to get your company matching funds if they are offered. Even small amounts can grow into very large amounts over time. A small sacrifice now, can set you up for success in retirement.

3. Monitor the Investments

Always monitor your investments on a regular basis. Only then will you be aware of any discrepancies or unexpected downturns in your plan. You will also be aware of how your investments are doing. Alternative assets may require more attention than traditional investment choices.

4. Social Security

Do not rely too much on social security. You should always have other means of income as a backup. It is wise to have a retirement plan, an IRA, and personal savings. The more streams of income the better, especially in retirement. Have you ever wondered whether the social security system will survive the coming retirement of the baby boom generation? You should think about this and plan accordingly.

5. Separate the Plans

Each family member should plan for their retirement. Often, only one spouse will have a retirement plan, however you can partner your retirement accounts for better retirement investing opportunities. If something were to happen to either spouse and remaining spouse is a primary beneficiary, they can then merge the IRAs to continue cash flow. You will be setting your family up for long-term success if you plan early.

6. Review the Plan

Alternative assets in self-directed IRAs are more geared towards the hands on investor. If you happen to have a low-maintenance investment, always remember to review your portfolio goals. You may not achieve your ultimate success, if you are not reviewing your portfolio outcome. The bottom line is to take your retirement planning efforts seriously, widen your mind for your investments, save regularly, and always keep your goals in mind. That will insure that you enjoy your golden years comfortably!

7. Get Organized

Gather your financial papers, receipts of charitable contributions and proof of the deductions you intend to claim. Sit down, plan your future and work towards it. You cannot aim for a fruitful retirement without a plan to get there.

8. Find Out What is New

Nearly every year there’s something new about the tax codes. Credits, exemptions and deductions can change so ask your tax professional or do some research to find out about what may affect your circumstances. Always be open to second opinions, as this is your future and your money – take control.

9. Know What You Are Doing

Tax forms can be complicated and confusing, but incorrect information can delay your refund or generate IRS penalties. Tax preparation software programs can take out some of the guesswork. If you don’t trust yourself to do your own taxes, consider going to a reputable tax service or a CPA. Always have a meeting to review your documents this way you can guarantee nothing was missed.

10. Safeguard Your Long-Term Financial Records

You will want to save income tax returns and supporting documentation – such as cancelled checks – not less than six years. And it’s important to save your retirement portfolio account papers indefinitely. Year end is a great time to review your financial situation, revisit your asset allocation and retirement portfolio diversification strategies, and do as much as you can to boost your retirement savings.

7 Flaws Most Retirement Plans Have

Despite the constant news coverage of impending doom in regards to social security, many people are still counting on their social security payments to support them through their retirement. The sad fact is that it simply is not possible because the money is not there. Sadder still is the fact that even if the money were there, it is doubtful that it would be enough to get the average person through their twilight years. Here’s why.

1. Your Expected Retirement Costs:

Choosing the right retirement plans should include an evaluation of your expected retirement costs. These costs are different for each person, the ideal plan for your retirement will allow you to save the amount of money that you expect to need once you retire. Some plans may not offer investment options that will provide the return needed to reach the desired account balance. Make sure that you include all potential expenses faced after retirement; otherwise you could choose a plan that falls short.

2. Your Anticipated Plan Contributions Each Year:

The plan that you choose should factor in your yearly expected contributions and ensure that your retirement goals can be achieved. Some plans may limit allowable contributions to a small amount on an annual basis, and some plans may allow catch-up contributions at 50 years old. Keep in mind, a small sacrifice today may greatly benefit you in the future!

3. Tax Planning Advice:

Finding the best retirement plans should include professional tax advice. The consequences of poor retirement planning can be large tax liabilities, at a time when your income is needed the most. Some plans utilize pre-tax contributions that are taxed upon distribution, while other plans use contributions made on a post-tax basis, so withdrawals are not taxed after retirement. Tax advice can help you choose the right plans for all of your retirement needs and goals.

4. A List of Retirement Goals:

Before deciding on the best plan for your financial security during retirement you will need to create a list of your retirement goals. Will you want to travel? Will you keep a second home? Will you work at a part-time job or take up a hobby with related expenses? Your retirement goals will affect the plan for your future, and the amount of retirement income you will need to live on.

5. A Professional Financial Planner:

A financial planner can help you choose the best retirement plans for your unique goals and financial needs at this stage in your life. A financial planner will help you to set financial goals, and then outline steps you need to take so that these goals can be easily met. Always remember this is YOUR retirement account, many financial planners say they have your best interest at heart, however at the end of the day YOU have to live off of this account, not them.

If you are knowledgeable in real estate, promissory notes, precious metals, private companies and you know you can increase your return on investment then do it! Find a financial planner that will encourage you to diversify your portfolio. A smart financial planner will know that encouraging diversification is better than an unhappy client.

6. A Good Retirement Calculator:

A good retirement calculator can help you accurately calculate all of the expenses you will have after you retire. This should be one of the first steps in retirement plans so that you do not end up short on funds in your golden years. These tools can help identify unexpected costs and expense that you may not have considered.

7. Your Annual Income Amount:

Some retirement plans have certain restrictions concerning annual income amounts for eligibility. Many 401K plans, IRA accounts, and other retirement options may not be open to high income earners. Some plans may be intended for small business owners or self-employed individuals, while others are intended for high income employees, and still others may be ideal for low-income wage earners. You will need to know the annual amount that you earn to determine which plan is right for your retirement needs. Speak with your tax-professional to discuss the best option for you.

It is best to begin making these plans as early as possible. It is not impossible to recover from poor planning in your younger years. The sooner you begin making plans for your financial retirement the healthier your retirement options will be. The best way to go about this is to define your retirement goals, make plans, and then take your goals and plans to a financial advisor and get his or her input, then follow your plan. Investing smarter is much wiser than investing harder.