Tax Guru – Ker$tetter Letter

Helping real people win the tax game.

Archive for the ‘Retire’ Category

Investing in your own business

Posted by taxguru on July 11, 2014

FoxNews has this interesting piece on the BeneTrends service that I have written about on several occasions, where it is possible to invest retirement funds in a closely held corporation. 

How to Reinvest Your 401(k) to Buy a Business

 

It’s still a very good idea and much less risky than investing in the stock market. 

 

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QRP vs IRA

Posted by taxguru on December 28, 2012

As should be obvious, I’m a big fan of side by side comparisons of features of various things.  I found these slides comparing Qualified Retirement Plans (QRP) with IRAs from a recent webinar to be very interesting.  The webinar was presented by Michael Hawes, President of Pension Planners, LLC via CPA Academy, which has a lot of very interesting free CPE qualifying webinars.

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Posted by taxguru on November 29, 2012

GOP Lawmakers May Break Anti-Tax Pledge – from The Onion, which has become virtually indistinguishable from the normal news media.

 

Companies Shelling Out Billions to Beat the ‘Fiscal Cliff’ – In anticipation of higher taxes on dividends.

 

Fiscal Cliff: Where Are Your Spending Cuts, Mr. President? –  As the naive Bush 41 learned, DemonRats always lie about making future spending cuts in exchange for up-front tax hikes. Spending is never cut in DC.  Are the current GOP rulers any less gullible than Bush was?

 

Two-thirds of millionaires left Britain to avoid 50p tax rate – And the morons in DC think this won’t happen here if they jack up the tax rates on the evil rich.

 

Conservative think tank scholar: Raise taxes on the middle class – There is some merit in the concept of spreading the tax burden across more than just the top five percent. If more people paid taxes, they would probably be more concerned with the out of control spending by the drunken sailors in DC.

 

‘Fiscal Cliff’ Could Put Millions of Taxpayers Into ‘AMT Shock’ – The insane AMT will be nailing millions more people.

 

Dims Plan to raid 401k Accounts –  As I have long warned, our rulers in DC have no qualms about breaking promises and changing the rules for retirement plans.  I would think that investments in non-liquid assets, such as real estate, will be more difficult for the DC thieves to go after than cash accounts.

The 401(k) Is a $240 Billion Waste

Amid Tax Talks, a Cry of ‘Save My 401(k)!’

Fiscal Cliff: Why Congress Might Have to Mess with the 401(k)

Does Government Want To Drain Americans’ 401(k) Plan?

 

 

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Posted by taxguru on July 19, 2012

IRS Data Shows That Businesses Will Bear Brunt of Obama’s Tax Hike –  Part of his War on Capitalism.  As usual, he will blame capitalism itself for businesses reacting to his tax hikes by cutting back on employees and investment in assets as they struggle to survive.  

 

Why You Should Plan on Working to Age 70 – This appears to be part of a current propaganda campaign by the Social Security Administration to encourage people to hold off claiming their retirement benefits as a last ditch effort to delay the SS system’s inevitable bankruptcy.  They promise larger monthly checks if you will delay taking payments, with the hope that plenty of people will die off before taking dollar one because unclaimed benefits revert to our rulers in DC. 

From Blog Pix

My advice to clients, friends and family members is still to claim SS benefits as soon as legally possible, which is usually at age 62.  When the system goes belly up, they will almost certainly allow current recipients to continue to be paid, while freezing out or drastically reducing the benefits for everyone else who have not yet become accustomed to the SS income. 

Means Testing, where benefits will be denied to anyone earning over a certain amount or having more than a nominal net worth (aka the Evil Rich), is also a certainty in the near future.  Our rulers in DC have absolutely no qualms about reneging on the promises that have been made to people to entice them to pay thousands of dollars into the SS system each year for several decades.  Again, any private market retirement plan that would breach the payout part of its contract with investors would find its managers sued up the wahzoo and sent to prison for fraud.  No such repercussions await our imperial elected officials in DC who have orchestrated and looted this monumental Ponzi scheme. 

 

TaxCoach Software: Are you giving your clients what they really want?

 

Posted in Retire, SSA, TaxHikes | Comments Off

Some useful retirement finance tips

Posted by taxguru on March 14, 2012

Smart Strategies for Taking Required Minimum Distributions 

How to Protect Your Retirement Investments from Scams

6 Ways Spending Changes in Retirement

Should You Buy Long-Term Care Insurance?

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Posted by taxguru on December 7, 2011

11 Retirement Benefit Changes Coming in 2012 – A good summary of changes for next year.

 

 

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Posted by taxguru on February 18, 2010

Class Warfare’s Next Target: 401(k) Savings – Raiding private retirement accounts, either with an upfront tax or as a conversion to government control, has been under consideration by our rulers in DC for a while now; at least since the Clinton years. That huge pool of wealth is simply too tempting for our money and power hungry rulers to resist.

This is also another example of how our rulers have no shame about changing the rules after the fact in regard to retirement plans, as I have explained on countless occasions when warning about Roth IRAs. How can anyone seriously feel safe about Roths remaining tax free for much longer, when our out of control rulers are openly contemplating a full scale confiscation of private retirement funds?

Posted in Commies, Retire | Comments Off

Investing retirement funds into C corp

Posted by taxguru on November 23, 2009

Q:

Tax Guru
 
In 2005 you recommended the use of the BeneTrends rainmaker plan for using your 401k funds to finance a company.  Have you had anymore experience with them in the last four years?  I am thinking of using them, but am worried that there may be some problems with the IRS.
 
Any help you might give would be appreciated.
 
Best Regards,

 

A:

I haven’t heard of any problems with the BeneTrends program, and in act I am still recommending it, as in this recent vidcast.

Good luck.

Kerry Kerstetter

 

 

Posted in Retire, video | Comments Off

2010 IRA Conversions

Posted by taxguru on September 11, 2009

From the latest Intuit ProConnection Newsletter:

Is 2010 “The Year of the Roth”? – After 12/31/09, more people will be eligible to convert conventional IRAs to Roth IRAs as the evil rich clause (AGI over $100,000) expires. 

I pass this along in the spirit of better understanding your available options.  As I have explained several times since Roth IRAs came into being, I am still strongly opposed to these kinds of IRA conversions if they will require you to pay actual taxes in exchange for the promise of future tax free Roth IRA benefits.  If you have other kinds of losses to offset the IRA income so that there are no actual taxes on the conversion, such a strategy might be a good move. 

While the actual Federal taxes on 2010 IRA conversions can be paid with the 2010 1040 or spread out over the 2011 and 2012 1040s, I still have very serious doubts that our rulers will leave the tax free status of Roth IRA income alone for those they deem to be evil rich.  We have seen time and time again where our rulers in DC reneged on promises of this kind and every indication is that they will have no qualm whatsoever about taxing evil rich folks on their Roth IRA distributions even though that was not the way it was supposed to be.

 

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Roth IRAs

Posted by taxguru on January 6, 2009

I will soon be posting another email exchange with a reader on Roth IRAs.  In the meantime, here are some recent items from the free WSJ on them.

Roth Is a Good Way to Hedge on Your Future Taxes

Advantages Abound When Converting to Roth IRA

 

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