Archive for the ‘Taxes’ Category

3 Ways To Capitalize On Roth IRA Investments


Mike Iredale

Most asset class’s brokers and bankers invest your funds in like stocks, bonds; mutual funds are getting crushed with no immediate end in sight. The government is bailing out banks, broking houses, insurers and mutual funds with handfuls of cash to stop an even worse scenario happening. So what’s the answer? You basically have two choices, do nothing and hope for the best, or take some positive action and look for better returns from other asset class investments.

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1. Roll your traditional Roth IRA to a self directed Roth IRA

Why bother doing this? Simply, because you can invest in more asset classes and have more control over investment opportunities. An employee wants to earn as big a wage as possible doing a decent days work, he is not an investment guru, and hasn’t time to be running around looking after investments, so why would he take this action? Again the answer is simple, because he can use specialized people in organizations structured to look after all the issues using a turnkey approach.

2. Get a better interest rate and ROI

Under normal circumstances investors could expect to receive 7 to 8% return on their IRA retirement plan. However, things aren’t normal at the moment and probably won’t be for a long time to come. Getting these kinds of returns is highly unlikely at the moment; in fact many are turning to cash for safety with even lower interest rate returns. There are real estate investment opportunities at the moment offering a far superior return on investment. We all know real estate hasn’t been immune from worldwide financial problems. However, there are some great turn key investments available where you can invest self directed Roth IRA money to get a better ROI.

3. Use Roth IRA tax incentive to gain greater ROI on capital to compound profits

Working a normal 9 to 5 job doesn’t offer regular employees much opportunity to create wealth. Retirement saving plans are great incentives to encourage people to be self financed retirees and not rely on government pensions. But, if you want to be financially independent in retirement you may have to broaden your investment scope. One successful way to create wealth faster is to grow your original capital with better profits from greater ROI. Then use this money to reinvest and try to do the same thing again, each time you do this the capital grows. The self directed Roth IRA tax incentives enable you to speed up increasing your wealth in the account by not having to pay tax on the profits when the funds are withdrawn provided you abide by the IRS rules.

In conclusion, the financial environment is difficult today compared to even twelve months ago; just about every asset class is giving poor results. A Roth IRA investment in real estate may be a viable option worth considering to help grow your retirement income. Seek advice from a trusted financial advisor, and then find a company that specializes in proven turnkey real estate solutions that can give you a better return on your money invested.

Mike Iredale researches retirement investment strategies, and is experienced in residential and rental property investments. Selecting a self-directed IRA real estate turnkey solution can be one of the best strategies and options for in-experienced investors in todays financial environment. To discover how you can increase your ROI and retirement wealth, visit my website at

to find out more details, and who can help you get the best results

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3 Ways To Capitalize On Roth IRA Investments


UK High Earners benefit From legal Tax loophole


J. Davies

The UK has witnessed a host of high-profile cases recently centring around supposed tax avoidance by well-known figures.

One incident that garnered the most column inches concerned comedian Jimmy Carr, but what is interesting about this and the other cases, is they didn\’t result in any legal prosecution.

The prime reason being all the highlighted celebrities had acted perfectly in line with the law. Yes, they had managed to avoid paying taxes, hence the \’moral\’ opprobrium heaped upon them by the press, but legally, they hadn\’t done anything.

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This raises the issue about legal tax loopholes which high earning individuals take advantage of, and rather than explore the rightfulness or not of such actions, which becomes, often or not, a political question, it pays to examine what these legal tax planning strategies are.

In the aforementioned case of Jimmy Carr and many other celebrities, their legal tax avoidance comes from utilising remuneration trusts. These can be many and varied but share sufficient commonality to states certain salient points about their operation.

Firstly, remuneration trusts tend to have a threshold of entry in the UK, which typically will be a single payment or income averaging above 100k.

Secondly, and most importantly, is their legality. For two decades, remuneration trusts have been recognised by the UK government body governing taxation – HMRC and QC legal opinion also vouches for their legal viability. Beyond threshold and legality, they tend to operate with an offshore company invoicing for someone\’s services creating a tax-free trust environment with significant tax benefits.

The offshore company can invest these fund into UK companies tax-free or indeed loan these funds to private individuals without incurring tax. This helps mitigate taxation for income tax, capital gains tax, inheritance tax or national insurance, and with the fees involved in the creation of such remuneration trusts working out far below what would have been payable in tax, is is any wonder so many high profile figures in the UK continue to make use of them?

Regardless of our own views, if an individual acts within the law, then he is not guilty of criminal tax avoidance, but is indulging is what is tends to be called more euphemistically tax planning or tax mitigation but is in reality legal tax avoidance.

Remuneration trusts offer a convenient loophole for high earners to get their money back into the UK in a tax free manner, helping to protect their wealth. Rather than pillory individuals for doing this, it would make more sense for legislators to acknowledge these loopholes more or close them by changing tax laws. Until then, high earners will continue to exploit tax loopholes to their advantage.

Blue Silver Wealth

provide tax planning advice in the UK.

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Need a Tax Deduction? Hire your Child Tax Free!


Christy Pinheiro, EA

If your child is under 18, you can pay your child up to 5,000 in wages a year without incurring most income taxes, most employment taxes, and you still get to write it off as a business expense on your own tax return! Many small business owners are unaware of this wonderful tax loophole. Is your teenager begging for a car?

Well, put her to work and allow her to make the money for herself, while still giving you a tax break! Isn t that a great deal? There are a few rules you must follow. Your business cannot be incorporated, otherwise you lose the tax benefit of avoiding employment taxes. But even if you are incorporated, you can still hire your child and get a tax deduction for the wages paid, but your corporation will be required to pay payroll taxes on the child’s wages.

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You must pay them a reasonable wage. You must also substantiate the deduction.

You can do this by paying your child by check, and making them sign a timecard when they begin their workday.

If questioned, you must also prove reasonableness for the deduction, so don t pay your 8-year old $5,000 to sweep your floor once a week. But it is reasonable to pay minimum wage for your teenager to sweep floors. It’s also reasonable to pay a competitive salary to your teenager if they have marketable skills, such as web design skills, or skills using a multi-line phone.

This legal tax shelter is often overlooked. Hiring your children does not increase the chance of an IRS audit, and it allows taxpayers to show their children a good work ethic. Save money for yourself legally with this great deduction! So think about it– can you hire your child? Remember, though you have to be self-employed and own your own business.

Think about creative ways to minimize your tax burden– legally! This is a great way to give your son or daugher some valuable work experience and still get a great tax deduction for your business.

Christy Pinheiro

is an Enrolled Agent and Accredited Business Advisor. She worked for two CPA firms and also for the State of California before going into private practice. She has published numerous books on taxation and finance. She is the co-author of the

Passkey Publications

Enrolled Agent Exam Review Series.

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