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Roundup of Recent Investment Info Sites to Watch

Mack — Fri, 18 Jun 2010 16:25:35 +0000

I have been cruising the internet today and found some very interesting sites for you to look into. Here is a variety of investment ideas that may be important for your strategy. Happy Investments to you!

The southeast portion of the US was one of the first regions to recover after the real estate crisis. This is good news for owners of Atlanta investment property, as they quickly saw minimal gains. Atlanta remains a popular location, which means there are locations to buy and rent out for every pocketbook.

Forex investing has gotten a bad rap over the years, but the truth is that investing in the forex markets is a legitimate way to strengthen your portfolio. Knowing that there are inherent risks involved with any type of investment is the key to realizing that due diligence should be executed when researching any potential opportunity.

Forex investments can be risky, but also very lucrative. Critical skills are needed to profit in this highly competitive investment landscape, but these skills can be acquired through education, training and practice trading utilizing virtual (demo) accounts from the right broker. There is money on the table for those who can follow a system, control their emotions and practice good money management methods.

Costa Rica has more expatriates than any other country in Central America and investors have been purchasing Costa Rica real estate for decades. It’s not hard to understand why. Costa Rica is a beautiful country with a rich biodiversity, benefit laden retirement program, stable democratic government and a growing economy.

If you were told that you could get free money in the form of a real estate grant that you would never have to pay back, what would you say? Nothing is free these days but if you are looking for a down payment on your mortgage, help towards the closing costs for your home purchase, or money to refurbish your home and then you could qualify for a real estate grant.

The stock market can be a daunting place for a beginner investor. There are so many types of stocks, bonds and other instruments to trade – where does one start? Here’s an idea: try exchange traded funds. ETFs are like a mutual fund because they are a fund of companies in one instrument, however they are traded like stocks on the exchange. So these funds can be a great place to start – with options like financial ETFs, foreign currency ETFS, commodity ETFs, derivative ETFs to name a few. As always, do your research on your ETFs of choice before investing in any given sector.

So you want to be a real estate investor? Have you been thinking about buying investment property for a long time? Have you read all the books and watched all the infomercials, but just didn’t know where to start? Here are some quick steps to get you started toward your investment property dreams.

To add new investment ideas to your portfolio, take some time to learn to invest money in vehicles you haven’t tried before. Consider investments in global index or commodity ETFs, currencies, corporate bonds or real estate. Try tracking these investments with an online virtual trading account until you feel like you have a handle on how these investments work, and add these to your portfolio to improve diversification.

There are times where a penny stock investment can make you a profit and then there are times you will lose your investment. Research is the key to helping you reach your goal and there is no substitute for it. Take your time and do it right.

If you are experiencing significant financial turmoil, you may have wondered whether you should declare yourself bankrupt. At Claiming Bankruptcy, we provide you with all the information you need to make an informed decision, allowing you to get on with your life.

That’s all for this month. Hope you enjoyed the Roundup!

Can Forex Trading Income Be Tax Sheltered In Some Way?

Mack — Wed, 02 Jun 2010 22:20:08 +0000

Early retirement is a possibility for you. You are 60, so IRA penalties no longer apply, but you have to be careful about recognizing income since it may reduce your social security benefit if you decide to take an early distribution, not to mention tax impacts. You have also begun to dabble in foreign exchange trading and notice that you have a knack for generating profitable trades. Is there anyway to shield this new stream of income from recognition for both social security and tax authorities in a legitimate way?

The answer to your query is “Yes”! It is possible to set up an Individual Retirement Account (IRA), either a self-directed or Roth IRA, for trading currencies. The law permits this day-trading investment activity in currencies, as opposed to restrictions that are placed on stocks. Since the rules are complex, you may need to consult your tax adviser and then your forex broker before embarking on any account transfer or deposit strategy to ensure that everything is done to suit your individual tax and income situation.

A separate forex trading IRA must be opened first, and then either funds must be transferred to it from another IRA or new deposits made. There are limitations on new deposits. Once set up, the earnings are sheltered from tax and income recognition. Self-directed IRA’s have age limitations associated with them. No new contributions may be deposited after age 70 ½, and Required Minimum Distributions, or RMD’s, must also begin at that age. Roth IRA’s have neither of these restrictions.

If you already have an IRA, then a transfer can be arranged tax-free to your new forex trading IRA, but only if the transfer comes from a similar type of IRA. In other words, a traditional IRA, where all funds must be recognized as ordinary income when withdrawn, may only be transferred to another traditional IRA. Deposits in a Roth IRA are not taxable when withdrawn, subject to certain penalty qualifying rules, and may be transferred with no tax effects to another Roth IRA. Once again, your broker will advise you on how to perform this set up correctly.

There is one more option to consider. A new law for 2010 removes the income restrictions related to transfers from a traditional IRA account to a Roth IRA. The transfer has to be recognized for tax purposes, but it would allow for the funding of a Roth IRA devoted specifically to Forex trading if one was not allowed beforehand. In this case, you must be anticipating that the funds will remain in the Roth IRA for a minimum of five years, but the income tax on the transfer would be dealt with currently. This treatment may be an advantage by preventing reductions to early social security benefits or if you expect tax rates to increase in the near term. The law also allows the transfer income to be spread over two years.

Foreign exchange trading has become a very popular investment activity over the past decade. In many cases the rates of return can be highly volatile and unpredictable. Sheltering these current income streams from current taxation becomes highly advisable if a suitable method can be arranged. The “multiplier” effect of earnings piling up without tax considerations is appealing to everyone. Individual Retirement Accounts, especially the Roth IRA version, are appropriate for the task. Since there may be other factors that could determine which options are most suitable to meet your financial needs, be sure to consult your tax professional and your broker before making any decisions.

Prepared by: Tom Cleveland, June 2, 2010

Roth IRA Facts for 2010

Mack — Tue, 22 Dec 2009 18:48:51 +0000

I have written many posts about Roth IRAs and all the advantages of having a Roth. I have not updated these posts as the Roth IRA facts haven’t changed that much in the last 2 years. I felt it was time to talk about some of the changes for 2010 in the US tax code, and how some of these changes relate to the Roth IRA.
Our government spent a ton of money in 2009 and you know they are thinking about raising taxes as the liberals always think that they can take more of our money when they need it. With this in mind, I think it is likely that taxes are going to go up in the next few years, whether that is what they are saying or not.

1. The major change for 2010 is the lifting of the income restrictions allowing more people to convert other retirement accounts to a Roth IRA. This is great news for many people who made too much money to have a Roth IRA. You have to consider whether you can “afford” to do this, as you have to pay taxes on the conversions. Many people who want to do this are thinking that taxes will go up in the future, so it’s better to pay them now. That is a choice that is up to you. This becomes effective January 1, 2010.
Of course, how soon you need the funds is a big consideration also. Funds that you roll over to a Roth IRA must remain in the account for five years.

2. Anyone with earned income can contribute to a Roth IRA. Eligibility begins to get phased out for single taxpayers with an adjusted gross income above $105,000 and married taxpayers above $166,000. This is something to keep in mind. You can put in $5,000 in 2009. (plus an extra $1,000 if you’re age 50 or older).

3. Contributions are not tax-deductible. Withdrawals are tax free! That is the key for Roth IRAs. As long as you are 59.5 years old and have had the money in there for 5 years. You don’t have to take the money out by 70.5 either. You can will the Roth to your kids.

4. Finally , why is it called a Roth? It is named after Senator William Roth who was instrumental in getting the legislation approved.

Three Important Roth IRA Facts

Mack — Tue, 29 Jan 2008 01:34:54 +0000

It’s time to start thinking about investing in your Roth IRA. Do you have one? Are you over 18 and breathing? Do you expect to live a while longer? Do you have anyone in this life that you care about?

You need a Roth IRA. Why ? Because it is the best wealth building, get rich slow, government sanctioned, tax conscience investment you could have. Too bad there is a limit on how much you can put in each year. But many people don’t even invest in a Roth at all. We have to fix that.

The 3 most important facts about a Roth IRA are as follows:

The earnings on the money you put in are tax free! That is tax free forever, basically. You can leave the money in the Roth and even after you’re dead, the money still earns tax free.
The Roth IRA does not have to be used in your lifetime. You can will it to your kids. Read my post on How to Make a Million Dollars. You will then see how 50-60 years in a good growth mutual fund will change your kids lifestyle forever.
If you are married and you make under 156,000 dollars filing jointly, you can contribute at least $4000 each to a Roth every year. So a married couple can put 8000 in per year. These numbers change some each year, so this is for the 2007 tax year.

There is much more to know about Roth IRAs, but trust me, it’s all good!

I will cover a few of the subtle things about these great investments for you in the next few posts.

Stay Tuned!

By the way, I am not giving legal advice or tax advice and I recommend you seek a professional if you need expert advice. I am only talking from my own experience and research.

Leave me a comment, and tell me if you are taking full advantage of the Roth.