IRA Financial Group, the leading provider of self-directed retirement solutions, such as the self-directed IRA and solo 401(k) Plan, has seen an increasing number of retirement investors looking to make alternative investments with their retirement funds in light of the looming fiscal cliff issues confronting the United States. Retirement investors have been recently turning their attention to the $607 billion of tax increases and federal spending cuts set to kick in automatically in January, the so- called fiscal cliff. The Congressional Budget Office has said the U.S. economy would slow by as much as 0.5 percent next year if Congress fails to keep the increases from taking effect. One area that has concerned investors is the tax increases that could take effect at the beginning of 2013. For example, if the tax increases that are set to kick in automatically in January, the rate on dividends for high-income taxpayers will rise to 43.4 percent from 15 percent and the top rate on capital gains to 23.8 percent from 15 percent. For an individual with $10,000 invested in the S&P 500, payouts would fall to $120 a year from $180.20 should the old rate be reinstated. An investor who sells the stock at a $5,000 profit would face capital gains obligations of about $1,190 compared with $750 now. “Many of our self directed IRA clients have been looking to move additional funds out of the equity markets and into more alternative asset forms, such as real estate and gold in light of the looming tax increases as a result of the fiscal cliff,“ stated Adam Bergman, a tax attorney with the IRA Financial Group.
“A growing number of clients have been contacting us concerning adding more retirement funds to their self-directed IRA accounts over concerns that a President Obama victory positions him to demand tax increases for the wealthy as part of a deal to reduce spending to tackle the nation’s deficit, “ stated Maria Ritsi, a senior paralegal with the IRA Financial Group. “As a result, an increasing number of retirement investors are looking to take advantage of the tax-deferred benefits of using a self-directed IRA or Solo 401(k) Plan to make investments, versus taxable accounts, “ stated Ms. Ritsi.
With IRA Financial Group’s Self directed IRA or Solo 401k plan, an individual can invest his or her retirement funds in traditional as well as non-traditional investments, such as real estate without paying tax currently on any income or gains and, thus, escaping the increased investment tax rates.
To learn more about the IRA Financial Group please visit our website at http://www.irafinancialgroup.com or call 800-472-0646.