Federal Reserve Explained # 3 Economic Security act (SSN) STRAWMAN Jedi NInja Bankers
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Categories: Social Security Tags: Bankers, Economic, Explained, Federal, Jedi, Ninja, Reserve, Security, Strawman
The Number 1 success book of all time is updated, analyzed & explained
This seminar is the most complete scrutiny of the”Think & Grow Rich” book. Includes a webinar, videos and audios fully explaining why many millionaires believe it has been the secret of their success. The product is new thus 75% commission.
The Number 1 success book of all time is updated, analyzed & explained
Lesson 3 – Inflation Explained [pt. 4]
bit.ly – Obama’s Unlimited Social Security Tax bit.ly – Bernanke on 60min. bit.ly – The US Misery Index
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Categories: Social Security Tags: Explained, Inflation, Lesson
Lesson 3 – Inflation Explained [pt. 4]
bit.ly – Obama’s Unlimited Social Security Tax bit.ly – Bernanke on 60min. bit.ly – The US Misery Index
Categories: Social Security Tags: Explained, Inflation, Lesson
Lesson 3 – Inflation Explained [pt. 4]
bit.ly – Obama’s Unlimited Social Security Tax bit.ly – Bernanke on 60min. bit.ly – The US Misery Index
Categories: Social Security Tags: Explained, Inflation, Lesson
To Sipp or not to Sipp? – More Pension Options Explained
We have been seeing a lot of enquiries from clients wanting to know if a Self Invested Personal Pension (SIPP) would be appropriate for them.
Let’s look at an example to illustrate this.
Let’s say you have several personal pensions, some separate share investments and an investment property. How can you use a SIPP to invest in the shares and the property?
A SIPP allows greater control of pension investments and a wider range of options. This means that, subject to what legislation will allow, you can decide when, where and how to invest your pension contributions.
By using a SIPP, you are able to access investment funds which are managed by the full range of fund managers. You will also be able to invest your fund directly in stocks and shares, commercial property and other assets.
To assist with this, the fund will be able to borrow up to a maximum of 50 per cent of the net assets of the scheme. However, it should be noted that when borrowing to help fund a property purchase, the SIPP will also need to cover all associated costs such as stamp duty and legal fees.
As well as buying a new property, the ban on connected party transactions that was lifted by HM Revenue & Customs on April 6, 2006 means that if you already own a commercial property, you can either sell the property to your SIPP or pass the property to your SIPP as an in specie contribution.
Technically speaking, it is not possible for property, shares or other allowable assets to be passed to a scheme as a contribution. However, the Revenue has confirmed that it is possible to say: “I am going to contribute £100,000 to my SIPP and to discharge this obligation I give my SIPP this property or these shares.”
Where the allowable asset is passed to a scheme, the contribution will benefit from tax relief limited to the higher of earnings or £3,600 gross, rather than the full value of the asset.
When passing a property to a pension scheme as a contribution, any outstanding mortgage will need to be paid off before the property can be moved into the pension scheme.
But where you own an existing property, what is the best option?
The in specie transfer might appear to be the more attractive of the two because tax relief is available on the contribution. However, the major drawback with this method is that the mortgage must be paid off before the transfer can proceed.
Investors wishing to benefit from tax relief on the full value of the property will need to have earnings that are at least equal to the value of the property. It would therefore appear that the most practical method of moving property into a pension is likely to be to build up a fund first and then buy the property.
In relation to share ownership within a SIPP, the following points should be noted:
- The SIPP or connected parties cannot own over 50 per cent of the shares of the company
- Shares acquired under savings-related share option schemes or share incentive plans are allowed by the Finance Act 2004 to be transferred to a pension scheme and these will automatically qualify for tax relief as contributions if they are rolled over into the pension scheme / arrangement within 90 days of the member becoming the owner
- The purpose of the investment must not be for the SIPP member or a connected party to use the company’s assets
- The company’s main activity must be trading
The transfer is in effect a contribution, so it is entitled to tax relief in the normal way. If the contributions would normally get tax relief at source, basic rate tax relief on the value contributed will be paid by HMRC into the plan, with any higher rate relief being claimed through self-assessment.
The person transferring the ownership of the asset will be liable for any capital gains tax on any gain in the asset since he/she acquired it. They may also be liable for stamp duty.
The simplest way of making a contribution to a pension scheme equal to the value of assets held would be to sell those assets and pay the proceeds into the pension plan.
This avoids the potential problems with an in specie contribution and allows someone who does not initially have the cash to make a substantial contribution to their pension scheme. Tax relief will be given on the contribution as normal, assuming the gross contribution does not exceed their UK earnings. Capital gains tax and stamp duty may be payable on the sale of assets.
The disadvantages are that the assets do not end up in the pension scheme, unless the pension scheme subsequently buys the assets. This could involve delay and values may have moved in the meantime. If the asset was a property, of course, it might not be available for sale.
The Financial Tips Bottom Line
If you are considering the SIPP route, make sure you do your research in advance as this area can be a minefield!
Also, there are a number of SIPP providers so make sure you look at what type of SIPP you need, as well as checking the small print before you sign on the dotted line.
Ray Prince is an Independent Financial Planner with Rutherford Wilkinson plc, and helps UK Resident Doctors and Dentists get the best deals on mortgages, protection and investments, as well as helping them achieve their financial objectives. Click here for Financial Advice for UK Doctors and Dentists and to get your free retirement guide, How To Avoid The 7 Most Common Retirement Planning Mistakes. Rutherford Wilkinson plc is authorised and regulated by the Financial Services Authority.
Individual Retirement Accounts Explained. Save and Invest for Your Retirement Tax Free
Individual Retirement Accounts. It’s enough to put you to sleep isn’t it? However there are very sound reasons for you to understand Iras, and to set one up for yourself. If you’re interested in a comfortable retirement you need to understand Individual Retirement Accounts.
What are I
ndividual Retirement Accounts, why would you need one and which is the best one for you?
An Individual Retirement Account, or what is also known as an IRA, is an account that individuals may set up to plan and invest for their retirement. The IRA was enacted into legislation in 1974, however it was only in 1981 when significant changes were made to the tax status of IRAs that they became popular.
It is the tax status of Individual Retirement Accounts that make them extremely attractive to people who are seeking to invest for their retirement to ensure that they have a well funded comfortable retirement when they are no longer able to work and so can no longer earn an income.
In it’s wisdom the government recognized that it was extremely difficult to provide sufficient retirement benefits from the public purse so that all retirees could retire in comfort on a government pension. This was recognition of the fact that over time, as the population ages, the public purse would not be able to afford to pay full retirement pensions to everyone, so the government needed to come up with a plan to make individuals invest for their own retirement.
The way to do this was to offer people incentives to do so by way of tax advantages though their IRAs.
So when money is deposited into an Individual Retirement Account it is tax deductible, and all income made through investing the fund during it’s life is also tax free.
That doesn’t mean though, that money is never taxed on the way in or way out of an IRA. What the government does is to tax the money as it is taken out of the IRA, it is taxed as ordinary income.
One of the great barriers to successful investing is the requirement to pay tax each time income, or a capital gain, is made. Throughout an investors investing life it is necessary to realize funds along the way to pay tax. This seriously reduces the ability to earn high returns on moneys invested because capital is being taken out all the time to pay tax, and so there is less to invest along the way.
However if, though an IRA, it is possible to invest and reinvest all income and capital back without paying any more tax, that increases massively the potential returns that someone can make investing. Hence the reason why an IRA is so attractive to individuals. An IRA can take maximum advantage of the power of compounding.
An Individual Retirement Account is required by law to be held in trust by a “custodian” who is often, or usually a bank, broker or insurance company. There are various regulations governing what your IRA custodian can do with the money, some imposed by tax law and some imposed by the custodians rules as well.
Usually traditional IRA custodians have restrictive rules about what investments the IRA can be invested in, and the funds are usually directed to investments owned by the custodian. This may be good for the custodian, but not necessarily so good for the owner of the IRA, who may not be earning the best returns.
It is also quite possible to have a self directed IRA. This is still held by a trustee, or custodian, however has a much less restrictive range of rules about the types of investments that can be invested in. The owner of the self directed IRA, or what is also known as a self managed IRA, can direct the investments into a wider range of investments that should, over the life of the fund, make much better returns. Add to that the power of compounding and the difference between the returns on a traditional IRA held by a custodian who invests the funds into their own investments, and a self directed IRA invested by the owner, can be massive.
So as you can see there are powerful reasons why you need your own Individual Retirement Account, and there are also powerful reasons why you need it to be a self directed IRA. In particular the best reason is that the best investment for your IRA is in real estate. Over time real estate offers the most stable long term investment, both for an IRA and any other investment. Investing your Individual Retirement Account in real estate offers significant long term benefits, however so many people don’t do so, either because they don’t know that they should, or because the rules of investing their IRA funds don’t allow them to do so.
They need to rollover their funds into a self directed Individual Retirement Account and start making some solid decisions to invest their retirement funds in real estate.
Even in the current market there are some outstanding and extremely solid investments in real estate. One in particular offers no money down investing for both credit investors and IRA investors, with tenants supplied and high quality homes to invest in. Returns are guaranteed and it’s a turnkey investment in real estate from a solid US public company with significant experience in real estate investing.
So, despite the fact that learning about Individual Retirement Accounts might send you to sleep, there are very good reasons to start learning anyway. And if you’re setting one up make sure it’s a self managed IRA, and that you invest it in solid real estate investments amongst others.
You’ll be glad you did when you retire.
Want to know more about profitable IRA Real Estate Investing? Visit Peter’s Website Win-Win Real Estate Investments and find out more about no money down real estate investing at http://win-winrealestateinvestments.com/
Categories: Retirement Tags: Accounts, Explained, Free, Individual, Invest, Retirement, Save
Air Travel Explained
A complete guide to air travel. Learn how to plan a trip, find the lowest fares, travel with children and pets, travel with disabilities, how to pack, international travel, and what to do when weather affects your flight. Be in the know before you go.
Air Travel Explained
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Categories: Social Security Tags: Explained, Travel
Online Marketing Explained – ‘Recurring Income’.
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Online Marketing Explained – ‘Recurring Income’.
Medicare Australia and Seeing a Doctor: nib Health Insurance Explained
www.nib.com.au nib Health Insurance Explained Medicare Australia and Seeing a Doctor. Medicare is run by the Australian Government and is funded by Australian tax payers. Medicare provides Australians with access to public healthcare and the ability to claim some medical expenses. Who is covered by Medicare? Medicare covers people residing in Australia who are Australian citizens, New Zealand citizens or holders of permanent visas. Some visitors and temporary residents, from countries with which Australia has made reciprocal health care agreements, are eligible for Medicare with some restrictions – visit the Medicare Australia website for more information. What funds do I contribute to Medicare? Australian taxpayers contribute a Medicare Levy of 1.5% of their taxable income. The Medicare Levy Surcharge is an additional 1% in tax that you may have to pay if your annual taxable income is above the Medicare Levy Surcharge thresholds and you do not have an appropriate level of private hospital cover. What is covered by Medicare? Benefits covered by Medicare include: – A stay in a public hospital as a public patient – Part of the cost of pharmaceutical prescriptions, through the Pharmaceutical Benefits Scheme. – Part of the cost of GP and specialist consultants through the Medicare Benefits Schedule. – Part or whole consultation fees for doctors, including specialists. – Part or the whole cost of tests and examinations by doctors needed to treat illnesses, including X-rays and …
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