62°F
weather icon Clear

Is your tax sheltering strategy bulletproof?

Regardless of whether you invest in the conventional market or you participate in more sophisticated investments like real estate, we are all sitting in a world of unknowns right now. All politics aside, there are a couple things that are certain. First and foremost, at the end of the day, the trillions of dollars that will have been issued for pandemic relief will need to be paid back. Secondly, it can generally be agreed upon that the recourse for those relief dollars will be through taxes. The underlying question here is, what measures are you taking in preparation of this impending tax event?

Do you only have tax shelters in place for your personal income? Business owners, do you have tax shelters in place for your company’s income? Are you only sheltering your conventional investments and not your alternative investments, like real estate?

The government has granted you the boon of many forms of tax sheltering vehicles, including the self-directed IRA (SDIRA). It is no secret, and yet self-directed IRAs are still one of the most underutilized vehicles for tax relief on alternative investments by new and even seasoned investors. SDIRAs are available for individuals in the form of traditional or Roth IRAs and Solo 401ks, and for the entrepreneurs/business owners with SEP and SIMPLE IRAs.

Since its inception in 2011, Ignite Funding has empowered thousands of investors to invest in turnkey real estate investments via trust deeds within a SDIRA. Trust deeds investments are highly regulated, have shorter hold periods, lower investment minimums, offer capital preservation, are generally passive, and deliver a fixed income, making it an ideal investment to deploy in a retirement portfolio. Investors utilizing a SDIRA can compound 10 percent to 12 percent annualized returns tax-deferred or tax-free, depending on the account. Let’s put it into perspective by breaking down the numbers for investing with cash versus investing with qualified funds.

As you can see, that is a significant amount of interest income that is sheltered from taxes and can help supplement the growth of your retirement nest egg. With enough foresight, the trust deed investment’s ability to generate a fixed, monthly income also can be used to help bridge the income gap during your retirement years.

The primary problem that many retirees face is how to replace the income they used to earn from their job. Sources of income from pensions, social security, disability and income properties may still not be enough; and, unfortunately, not a lot of thought is given to creating a strategy on how to effectively use the retirement assets once we reach those latter stages of life. Imagine if you could take $120,000 from a retirement account and generate $1,000 per month of income in perpetuity without spending a dime of the $120,000. Sounds too good to be true, right? To learn more about this strategy, you can download our free whitepaper “Building-up vs. Drawing Down: An IRA Income Strategy.”

To learn more about investing in trust deeds with a self-directed IRA, you can call Ignite Funding at 702-761-0000 to schedule a 15 minute no obligation consultation.

Ignite Funding LLC, 2140 E. Pebble Road, Suite 160, 702-739-9053, 877-739-9094, fax: 702-922-6700, NVMBL #311, AZ CMB-0932150. Money invested through a mortgage broker is not guaranteed to earn any interest and is not insured. Prior to investing, investors must be provided applicable disclosure documents.

Don't miss the big stories. Like us on Facebook.
THE LATEST
REAL ESTATE BRIEFS APRIL 10

The Howard Hughes Corp., developer of the Summerlin master-planned community, Downtown Summerlin, Las Vegas Ballpark and owner of the Las Vegas Aviators, the city’s professional baseball team of Triple-A West Minor League Baseball and affiliate of the Oakland Athletics, has announced the promotions of four executives.

Skye Canyon to host Chalk For Earth event April 16-22

In honor of Earth Day 2021, Skye Canyon will host its second annual, socially distant community event, Chalk For Earth on April 22. A sidewalk chalk challenge that invites residents to create an earth-themed chalk masterpiece on the sidewalk or in the driveway of their house, Chalk For Earth provides an opportunity to show community spirit and get creative.

Home prices spring forward amid tight supply

A recent Las Vegas Realtors report shows local home prices rising to another record and more homes being sold despite a tight housing supply.

Summerlin offers homes under $500,000 in more than a dozen neighborhoods

Summerlin has long been regarded as a premier place to live and a popular choice for the city’s influencers, professionals, captains of industry, celebrities and professional athletes. Yet, Summerlin is also a great place for first- and second-time homebuyers with dozens of floor plans priced under $500,000 now available in 13 neighborhoods throughout the community.

Trilogy Sunstone to hold second homesite release

On April 9 at 10 a.m., Pacific Standard Time, Trilogy Sunstone will host its second virtual homesite release to interested buyers on the VIP priority list. The first homesite release was successful, resulting in all available homesites being reserved by buyers. Interested buyers can call 877-221-3264 to schedule a virtual appointment with a community representative to register before the April 9 release. Only homebuyers on the VIP priority list will have the opportunity to purchase in the next release.

Downtown Summerlin to celebrate Earth Day

April 22 is Earth Day, and at Downtown Summerlin in the master-planned community of Summerlin, visitors are invited to express gratitude to Mother Earth. Starting April 19, Downtown Summerlin visitors can participate in an “act of love for the earth” by posting their pledges on an oversized Instagram-worthy globe mural located near HM. Whatever your earth-loving promise — from recycling more to reducing your carbon footprint — put it on a post-it for everyone to see. The display will be up until month-end.

Taylor Morrison puts down Vegas roots

Trustworthy. Passionate. Accountable. Over the past year, these three words have become everyday staples for national homebuilder and developer Taylor Morrison as they established roots in Las Vegas with the acquisition of William Lyon Homes in February 2020.

Custom Home Life sells out Unicorn Hills development

Custom Home Life, a Nevada-based designer, builder, and brokerage firm, announced that it has completely sold out all home sites inside the mega-luxury development of Unicorn Hills in Henderson at an estimated value of $9.450 million. The elevated residential community containing 15 Strip-view, hillside lots was closed in record time — roughly 120 days from official release (plus one earlier pre-sale).

KTGY wins design awards for Builder Chowa Concept home

KTGY Architecture + Planning, a leading full-service design firm focused on residential and mixed-use developments, sustainability and neighborhood revitalization in the U.S., has announced that it has earned 13 awards including one Platinum and seven Gold awards at the three recent National Association of Home Builders’ (NAHB) virtual awards events: Best in American Living Awards, Multifamily Pillars of the Industry Awards and The Nationals.