The Basics of Limited Partnerships

In a partnership, which is a type of unincorporated business organization, multiple individuals, called general partners, manage the business and are equally liable to the debts of the business. Investors can invest their Self-Directed IRA in these businesses. These investors are then called a limited partners. They simply invest in the business but are not involved in management.
Limited partnerships are an investment option for Individual Retirement Account holders with Mountain West IRA. The partnership does not pay income taxes, but the individual partners have to report their share of business profits or losses. This means the investment is subject to Unrelated Business Income Tax. However, this is only if the IRA earns more than $1,000 in unrelated business income.
Although the investment might require the IRA to pay taxes, it requires little involvement by the owner since they are not involved in management. This is one of the benefits of this type of private placement investment. One important advantage when investing as a limited partner is the liability limitation. If the business goes bankrupt or is sued, the investor is only responsible for their own investment and not the debts of the business. General partners have a much greater liability.
Some rules regarding partnership investment with a self-directed IRA include:
• The partnership agreement must permit an individual retirement account or a qualified plan to be a partner
• The partnership must comply with the appropriate state law, have a determinate life, and be assignable
• The partnership subscription agreement must be signed by the investor as having been read and approved, and will be executed by Mountain West IRA on their behalf
Research and learn about Unrelated Business Income Tax and the company itself before making any investing decisions related to limited partnerships. Visit the Mountain West IRA website to learn more about private placements such as limited partnerships.

Savings Tips for Millennials

Millennials are struggling to save and pay off student debt at the same time, putting them behind in the retirement savings area. The ones that are managing to save, aren’t saving what experts consider enough. There are some things they can do about it though.

Cut Costs

One of the biggest expenses on Millennials’ plates is housing. Before signing the lease to the really nice apartment with a pool, dishwasher and other extras, take a moment to reconsider. Most people can probably get along just fine without a few of the extra amenities and put the rent savings aside for retirement.

Create a Budget

This goes for everyone, but Millennials should get into the habit of creating a budget early on. Tracking spending can help determine how much money is spent on necessary purchases and how much is spent on extras. After creating a budget, it is easier to put more into a retirement savings account.

Adjusting Savings

Millennials should make it a goal to increase how much they save for three months. This can prove it is possible to save more, with a few lifestyle adjustments. It might mean having to cook at home more than eating out with friends, but it will be worth it later on.

These all seem like fairly easy tips, but putting them into practice is the difficult part. Millennials are in the spot where they’ve begun a career and are probably making more money than before. However, instead of saving the extra, Millennials, like many others of all ages, tend to increase their spending.

The tips listed about can help deter this habit and get Millennials on the right track for retirement savings. For those who haven’t yet set up a retirement savings account, contact Mountain West IRA. They have an option that is right for everyone.

The Lazy Man’s Retirement Plan

At the end of the day, most people just want to relax and turn off their brains. They don’t want to think about their retirement accounts or investments. However, not keeping these things in mind, and making time for them could be detrimental to the future.

With time, life has become about convenience. People want things done fast, and with the least amount of stress possible. Investing and managing money is neither of those things. To get the “lazy person” to invest and save for retirement, it needs to be made simple.

One way to make things simple is to have a certain amount of money pulled out of each paycheck. This way the investor doesn’t have to think about it, the money is automatically put into their retirement account and begins gathering interest.

Open an account outside of work. Mountain West IRA offers many types of retirement accounts for investors to provide investing freedom. For those who don’t have the time to learn to play the stock market, or don’t want to, Mountain West IRA offers other, simpler investing options. They could invest in real estate, precious metals and more.

Start early and let the money continue to grow with interest over the years. This is probably the easiest and simplest way to get money for retirement. However, it might not always be enough, which is why there are other investment options. It might take a little more time and attention, but investing will help beef up retirement savings.

For those interested in opening an account outside of work, contact Mountain West IRA and talk to them about their retirement account options.