Money Matter$

We have an order of priority for most folks for how to save and invest. The following items have eligibility requirements, so are not “one-size fits all”:

Beginning in 2018—and until 2026—the federal tax code has been changed fairly dramatically. How does this affect you, and what should you be doing to take full advantage of these changes?

We have a lot of clients that own real estate investments as another way to provide investment income and grow their net worth. I can appreciate the tax advantages and diversification of owning investment property; in fact, my wife and I have acquired a few income properties over the past ten years.

A common question we are asked from those finally reaching retirement is which payout option do I choose? The options usually include lump sum payout, lifetime income or term certain. A lump sum payout is fairly easy to understand … you are paid a lump sum and sent out the door. But now what do you do with it? If you don’t move it to an IRA, be prepared for a huge tax consequence. If you move it to an IRA, how will you invest it?

In the spirit of what’s not in SFM’s best interest, we are going to suggest you consider the idea of investing in rental real estate—from which we do not collect an advisory fee; and which may take a down payment from funds currently under our management. With the Federal Reserve Bank effectively printing $85 billion a month, and setting interest rates at zero, investors are being “forced into risk assets” like stocks & real estate. Don’t believe me? Check your local bank for CD rates on $100,000 for five years. Yep; 1.5%—if you’re lucky. There are three ways that your household finances can be improved by investing in rental real estate:

There is currently an initiative on the November ballot in Oregon to repeal Oregon’s estate tax. This Death Tax Phase-Out Act (Measure 84) would reduce the existing tax each year until 2016, when it would reach zero. The tax currently applies to the amount of an estate over $1 million - which, coincidentally, is the minimum amount many financial experts say that baby boomers should possess in order to not outlive their assets.