With stock, bond and financial markets plagued by volatility, real estate investing provides a refreshing alternative. Real estate brokers, agents and investors alike understand that real estate can offer safe and lucrative investment returns.
Real estate professionals utilize special tax advantages that are permitted through ownership in real estate. Savvy real estate investors will place an emphasis on income-producing real estate because of the excellent passive income opportunities that they present.
In order to fully protect their real estate wealth, it is imperative that real estate professionals, as well as their high net worth clients, understand the ways to enhance investment portfolios through sources of tax-free, liquid income.
The Asset Rich And Cash Poor Trap
Real estate investing has made many a millionaire, but for the IRS, it is also a major source of revenue as well. Federal and state governments routinely impose inheritance taxes on the estates of wealthy individuals. This tax, known as an estate tax and commonly referred to as a death tax, can place a heavy drain on the estates of deceased individuals. The United States Federal Government imposed the current national death tax by means of the Revenue Act of 1916. Aside from a one-year reprieve in 2010, during every year since 1916, the IRS has been taxing the value of deceased estates.
How much is the IRS taxing? For the unaware or unprepared in their estate and retirement planning, the consequences of a resulting liquidity shortfall can be devastating. From 1935 to 1981, the top death tax rate was at least 70% and has never fallen below 35% since. This rate is applied to the valuation of ANY real estate holding (partnership or otherwise) deemed inside of the estate of the deceased.
Compounding this potential tax nightmare even further, the estates of the deceased are also responsible for the filing and payment of the final annual income taxes, gift taxes, generation skipping taxes and any capital gains taxes that are owed to the IRS as well.
The list of influential people who have had their estates victimized by the death tax reads like a who’s who of American culture. Banking and finance giant J.P. Morgan paid a nearly 70% death tax rate on his gross estate as did John D. Rockefeller, Sr.
Elvis Presley had a staggering 73% of his estate go towards his death tax liability. Elvis may be the king of rock and roll, but he was no match for the king of all taxes.
Secure Returns And Tax-Free, Liquid Income
The death tax is not going away, so what can real estate professionals do about it to help themselves and their high-net-worth clients avoid a fire sale of assets in order to fund these tax liabilities?
Teachers Pension Advisory Services is a nationwide team of estate planning specialists. Our investment and retirement planning services proudly serve the needs of the real estate professional. We are a fully independent agency, and this independence allows us to partner with some of the most respected and successful life insurance, long-term care and annuity carriers in the world.
illiquid assets such as real estate need to be protected from estate taxes. The best way to do just that has always been through life insurance. No other type of estate planning vehicle allows for as many tax savings and living benefits as what life insurance provides.
Even if you or your clients already have a life insurance plan in effect, we can be just as valuable of an asset. We provide free assessments of your current life insurance program and can seamlessly transfer you into a new one that we GUARANTEE will both save you money on your cost of insurance while significantly increasing your permanent, tax-free benefits.
Just because you or your clients decide to exit your current plan and switch into a new life insurance program does not mean that the prior policy’s cash value earnings have to be left behind with it. The life insurance industry is constantly changing. United States tax code allows for any permanent, cash value benefits earned inside of a current life insurance policy that qualifies to be transferred completely tax-free into a better, more up-to-date product.
Earn Passive Income Growing Tax Deferred
Real estate professionals and investors are always looking for the passive income opportunities offered through income-producing properties to enhance their retirement portfolios. At Teachers Pension Advisory Services, we believe strongly in passive income too and offer a couple of other methods for you and your clients to diversify your holdings.
Our selection of annuity products that we endorse provides passive income through the highest guaranteed income for life crediting rates available in the industry. These are secure returns offered by some of the largest life insurance companies in the world. Unlike the stock market, our annual rates of return in these annuity products are guaranteed, and the benefits paid out will never be reduced.
In addition, our equity-indexed annuity investments generate passive income returns with both compounding and tax-deferred growth. These are advantages that the stock and bond markets simply cannot compete with. These annuity products capture the gains of the stock market, but unlike stocks, they carry absolutely no downside market risks. At Teachers Pension Advisory Services we simply do not believe in variable investment products or in our clients taking on unnecessary risks in order to amass long-term wealth.
You and your clients will be impressed by the benefits contained in all of our estate planning and retirement products. Contact us today for more information on our current products and rates.
Click here for more information on how our products can be used for you or your clients both personally or for businesses as well.
Looking For Better Interest Rates On Investments?
The benefits of an association with Teachers Pension Advisory Services are not limited solely to retirement and estate planning. Are the interest rates that you and your clients are paying on your real estate or personal investments not nearly as desirable as you would like? Do you find yourself continually frustrated dealing with lenders who are clearly not looking out for your best interests?
We have established affiliations with some of the premier financial and lending institutions in the world because of our large client base. By forming a relationship with Teachers Pension Advisory Services, you and your clients will have the opportunity to pursue preferred, relationship terms that we can secure through these relationships for any of your real estate, personal or business needs based on financial suitability.
Can you imagine the difference it could make if you were able to lock yourself or your clients into significantly lower interest rates with your investments? Your entire financial outlook would improve substantially because of the increased security in paying less in debt service every month. This would result in significantly more profit to you and your clients’ bottom lines.
There is just no reason why you or your clients should have to continue to spend far too much on interest for not nearly enough benefit in your investments.