Posted on August 2, 2010 @ 6:06 pm - Written by BawldGuy
Most aren’t aware of the new rule allowing conversion to a Roth IRA from a traditional IRA. — regardless of either your income tax filing status or your income. Income? Yeah, those makin’ over $100,000 annually used to be restricted from creating Roths. That rule has now been eliminated for good. It became effective the first of the year. You’ll be happy to learn it also allows you to spread the conversion’s tax hit over three years — AND — you’ll be able to skip 2010 totally. This makes it possible to split the tax between 2011 and 2012. This tax split is only available this year. As you might imagine, this bundle of carrots offered to taxpayers has motivated a buncha IRA owners to dive into the conversion pool.
Here’re a few other facts you should know about converting to a Roth IRA Read the rest of this entry »
Posted on July 14, 2010 @ 7:29 pm - Written by BawldGuy
BawldGuy Here: This is a post from quite awhile back. It struck many sensitive chords the first time out. Long time readers will also notice that there are pictures that don’t have a dang thing to do with the post. I plan to bring that practice back soon, if my poor overworked cousin ever gets any time. I wouldn’t have his schedule for all the ‘burgers at In ‘n Out.
Anywho, this post is still timely, and I’m hopeful it’ll get you thinkin’ about what you’ve always thought about 401K’s and IRA’s. Don’t get me wrong, I still help folks invest in real estate through them cuz it’s better than wavin’ the white flag. Still, if you can get out of ‘em now without too much financial bloodshed, do it. Preferably by 4:30 yesterday afternoon.
Here’s the post. Read the rest of this entry »
Posted on June 17, 2010 @ 4:49 pm - Written by BawldGuy
Written By — John Park
I know BawldGuy has preached about this for years so what I am about to say probably won’t shock anyone, but I couldn’t resist anyways. So, BawldGuy, here’s to you!!
Sooooo, is Wall Street a scam?! Well, actually, while we might believe it is at times, most likely it is not. But, with all the rash of problems in the market that has surfaced and continued to hold high its ugly head over the last couple of years, one does definitely wonder. Since, there are many articles and posts devoted to the woes or Wall Street, let’s take a higher road and just provide some good, basic education to those of us who are interested in protecting, nurturing and growing OUR retirement accounts. Read the rest of this entry »
Posted on May 20, 2010 @ 10:19 am - Written by BawldGuy
One of my all-time favorite quotes: “In the end it all comes down to talent. You can talk all you want about intangibles, I just don’t know what that means. Talent makes winners, not intangibles. Can nice guys win? Sure, nice guys can win – if they’re nice guys with a lot of talent. Nice guys with a little talent finish fourth and nice guys with no talent finish last.”
Let me know in the comments who you think might’ve said it. Don’t Google it, OK? 
Hint: It was an iconic sports figure.
Folks insisting they can do most things in life themselves are not only doers, but to be admired. On the other hand, it’s amazing sometimes what gets on their ‘most things’ list. Some of us can do things very well that others simply can’t or won’t do. For instance, I don’t design my own office interiors — nor do I paint them myself. Could I? Of course. Should I? Um, not if I want clients to think my IQ has three digits before running into that pesky decimal point. Read the rest of this entry »
Posted on May 19, 2010 @ 6:01 pm - Written by BawldGuy
Today I offer you another of one of my all time favorite subjects — the potential nightmare consequences of not just being short on answers, but not knowing the questions to ask. It’s the answers to those questions that can change your own ‘feel good’ movie into Friday the 13th.
Here’s a real life example of what could’ve happened to an investor family who thought for sure they were doing the right thing. But for a fortuitously timed phone call, their financial lives would’ve been set back more than a bit.
It revolves around what we’ve all experienced at one time or another in life — ya can’t know what ya don’t know. I urge you to read this linked post, while asking yourself what you might be doing currently that could have an ending for which you surely never planned.
Please call me at 619 889-7100 with any questions. Have a good one.
Posted on May 18, 2010 @ 4:30 pm - Written by BawldGuy
Written By — John Park
Many of us remember our first “dive” into the municipal swimming pool or lake. Once we overcame the trepidation of diving head first into the expansive body of water, did we dive in completely or just halfway?
The same is true with self-directing your retirement assets. While your plan must be established and continually adhere with all IRS and, if applicable, Department of Labor regulations, the code in no way prevents a fiduciary (e.g., you, yes it can be you) from controlling all aspects of the plan.
This is true provided the fiduciary is not “self-dealing”, which is expressly prohibited. A fiduciary can only act in the best interests of the retirement plan, and may not personally benefit. Read the rest of this entry »
Posted on May 13, 2010 @ 4:43 pm - Written by BawldGuy
BawldNote: I haven’t forgotten about the case studies. Murphy has sabotaged this week’s schedule. Just so ya know.
It’s our turn in the ‘tax whatever moves’ game in D.C. Increasing capital gains taxes is on the table, big time. It reminds me of when other monster tax changes affected real estate in the mid-80’s — the last quarter of the year before they became law was like a room full of kindergarteners after a Starbucks/Snickers party. Everyone wanted to make their move before they left for New Year’s Eve parties. It was crazy busy.
I suspect we may be seeing the same thing, though maybe a relatively muted version this year. Even a muted version would spell chaos for the poor lenders, escrow, and title folks. Back in ‘86 they had no lives from Halloween ’till close of business New Year’s Eve.
Are you a candidate for doing something this year with your real estate investment portfolio that may have been penciled in for a year or two from now? Who might wanna think about it?
1. You have a buncha unused depreciation on the shelf gathering dust? Offsetting ‘most’ of a capital gain at 15% may be attractive, but how ’bout 20-25%? Yeah, ouch.
2. It’s my experience once Washington starts down any tax raising road, they begin adding targets to their agenda. Raising cap gains tax rates? “Hey, I gotta idea — let’s raise the depreciation recapture tax too!”
Those are the two biggies — at least for the moment. Whatever they do, it’s more likely than not it’ll go into effect 1/1/2011. If you think moving up a scheduled sale might benefit you, give me a buzz, and we’ll explore it a bit.
Whatever your reason, call me! I need a fix. I ain’t proud, as at least one call a day is required. My number is 619 889-7100. Have a good one.
Posted on April 23, 2010 @ 7:01 am - Written by BawldGuy
Written By — John Park
What Are You Telling Me?!?!
Many a blog and article have been written by this author and others about the benefits associated with a self-directed IRA and 401K. So, that being said, why would this post even begin to state that establishing a self-directed IRA might be the worst mistake you ever made?! Why would the ability to self-direct one’s own retirement assets be a bad thing…let alone the worst mistake an individual may have made?
First, let’s break this down a bit. In general, the title of this article reflects an opinion that most do not hold. The benefits of a well-structured, self-directed IRA account are many. However, here is the rub:
Do you really know what you are doing with your self-directed IRA? Have you, and how do you know, that your investment choices fit the stringent IRS rules regarding prohibited transactions? Read the rest of this entry »