Are you saving for retirement? Part of being successful in funding the retirement you desire is avoiding common retirement planning mistakes. By participating in the plans that are available to you, diversifying, and leaving the money alone, you can largely guarantee a financially pleasing retirement.
For your best retirement plan results, avoid these common errors:
You’re probably well aware that it's important to save for your retirement. For most of us, the days of 100% employer-funded pensions are long gone, and Social Security is only designed to offset a portion of your pre-retirement income.
Most financial advisors recommend that workers save enough to cover 75 to 85 percent of their annual pre-retirement income. With stagnant incomes and the rising cost of expenses such as healthcare, food, and housing, it's challenging for most of us to save for retirement!
Luckily, you can boost your retirement savings, regardless of your age, or how strained your existing budget might be.
Use these steps to increase your retirement savings and secure your financial future:
Using your IRA to purchase real estate has been allowed since 1974, though not many people knew about this until recently. Regardless of when you became aware of this option, there are a few rules to be aware of before you get started.
With your IRA, you have the ability to invest in nearly any type of real estate: malls, warehouses, boat slips, and cemetery plots, as well as the more typical houses and apartment buildings. The common exceptions are your personal residence and personal vacation homes.
Important IRS Rules
When investing in real estate through your IRA, be sure to note these IRS rules:
It’s much easier to plan your budget, savings, and retirement when your income is consistent. If you’re paid on commission or own your own business, it can be significantly more challenging to save regularly for your retirement. Strategies that work for most might not apply when you’re working for yourself.
Try these strategies to build your retirement savings even if your income changes from day to day:
Have you been hearing about Roth IRAs and would like to know a little more? Are you curious about whether you're investing your money wisely? Maybe you're just tired of investing with the knowledge that you'll pay taxes through the nose when you finally retire someday.
Roth IRAs may be your best bet, if you fall under a certain income bracket. These requirements can change year-to-year, and may also be affected by your age group, so check with your financial advisor about the latest laws.
Consider these benefits:
Roth IRAs are different from Traditional IRAs in that the contributions you put in the IRA are not tax-deductible. But... Roth IRAs do not require you to start taking money out at a certain age, and all...
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Do yourself and your business a favor and stop renting out your
personal space as soon as you possibly are financially able to.
Always pay yourself and even your kids for jobs that you perform. This is an expense for your business, which lowers the income, which lowers your business' tax burden. As long as your kids make under a certain amount, $12,200 in most cases, they do not have to pay taxes on it.
Get your mindset away from your old thinking. Employees and Self-Employed people think incorrectly about money - which usually is one of the main reasons they're stuck on the E and S side of the Quadrant!
THINK AND ACT like a business owner. Pay yourself! Hire the right professionals to get the job done! Don't step over dollars to save cents!
Stop Thinking Like an Employee
Start Thinking Like a Business Owner!
Here are the books Michelle referenced in today's podcast. Note, these are Affiliate Links.
[00:00] Over the last two centuries nearly 90 percent of the world's millionaires have created their wealth through real estate. Here to tell you how you can ride this wave, with less risk and less capital, while creating greater income, is your host, Best selling author and speaker, Michelle Russell
[00:21] Hi this is Michelle, the master of money mindset, and I'm here with the short term rental revenue podcast and in today's episode we're going to talk about using your self directed IRA to invest in your short term rental revenue business. This is one of my favorite subjects. I have a website called the Prosperity Process and actually it's the parent company to the short term rental revenue. And when you go to the prosperity process dot com you'll be...
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