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For generations, $1 million stood as a symbol of enormous wealth and the retirement-savings goal for millions of Americans. But between taxes and inflation, the million-dollar dream has turned into a question.
A cool million today has the not-so-chill buying power of roughly $605,985 in 2005. And if you have a traditional IRA account, your withdrawals will be taxed like income — which can add up.
But before you delay retirement for another decade, take heart. There are ways to make sure you keep as much of your hard-earned money as possible.
The timing and size of your taxable withdrawals matter. So, it’s in your best interest to fully understand the ins and outs of your retirement accounts.
First, assess what your funds demand tax-wise. “Retirement plan” is a catch-all for many different kinds of savings vehicles and accounts — and the IRS lists at least 15 different kinds.
Because Roth IRA holders use after-tax dollars to fund their accounts, they don’t have to worry about the government taking more when they’re ready to withdraw funds.
Traditional IRAs and 401(k)s, by contrast, use pre-tax dollars. That’s a benefit when you grow the account because it reduces taxable income each year you contribute. But it creates tax obligations when it’s time to spend the money. So, it’s useful to have an idea of how much you’ll be taxed when you do eventually withdraw funds.
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If you’re looking to boost your nest egg without riding the stock market roller coaster, it may be worth thinking outside the box. With a self-directed IRA, you can invest in alternative assets, such as precious metals, cryptocurrency and real estate. Plus, you still get the same tax advantages as a traditional IRA.
Accredited investors can use a self-directed IRA to start investing in commercial real estate with a self-directed IRA through First National Realty Partners (FNRP). Their platform offers investors access to grocery-anchored commercial real estate with historically strong return potential.
Investors own a share of institutional-quality properties leased by national brands like Whole Foods, CVS, Kroger and Walmart, which provide essential goods to their communities. The Triple Net (NNN) lease structure of these properties means you can potentially get a stable, positive cash flow without having to worry about tenant management costs.
Savvy investors often advise that you don’t bank all your retirement on the dollar. Robert Kiyosaki once said, “the best investment you can make is in yourself. But if you want to invest in something tangible, gold is a great choice. It has intrinsic value and is a hedge against inflation.”
While there are multiple ways to invest in gold, gold IRAs have distinctive tax benefits. Investors can enjoy tax-deferred growth and potentially lower their taxable income as contributions are tax deductible.
You can take advantage of this historically strong asset class with Thor Metals, a leading precious metals company and authorized dealer for the U.S. Mint. They assist clients looking to safeguard their money, whether it sits in a retirement account or a savings account.
If you think this might be the right investment for you, you can get a free precious metals IRA kit with details on how you can protect your retirement savings with gold.
If you want to reduce the tax burden on your retirement accounts, consider doing what the rich do — get professional help. More than 80% of millionaires in the U.S. work with a financial advisor.
With Advisor.com, you can find qualified financial professionals to help you fulfill your wealth goals. Their free service that helps you find the right fiduciary for you by matching you with a small list of the best options for you to choose from.
Set up a free, no-obligation consultation with one of their pre-screened financial advisors today.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.