Tax Planning: The Advantages of First Trust Deed or ‘Hard Money Loan’ Investing

Do you have visions of sugarplums or visions of the taxman dancing in your head during this time of the year?

This season is a time when we take stock of how our investments have done throughout the year and it’s especially important to consider how our retirement investments are performing.

Even if you prefer to take a “hands off” approach to investing, you need to keep pretty close tabs on how things are shaping up for your retirement because when that day arrives you don’t get any “do overs.”

If you have any doubts that you’ll have the funds retire, let me give you two solid suggestions:

– Take full advantage of the extra yearly contributions allowed by the IRS once you reach the age of 50, and

– Consider investing some of your retirement savings in First Trust Deeds, where

you may outperform virtually any other market investment.

Make extra contributions

Although the specific rules and numbers change a little bit, whether you have a 401(k), 403(b) 457(b) or regular IRA account, you can make significant “catch up” contributions once you reach the age of 50 years old.

With an IRA you can make $3,000 per year additional catch-up contributions (these are above the standard $12,500 in contributions you’re allowed each year). With the other retirement accounts you’re allowed to make additional catch-up contributions of $6,000 each year once you’re 50 years old.

There are other little wrinkles, so you need to check with your tax advisor to see exactly what would work out best for you. Of course, you need to be hitting your maximum allowable base contribution throughout the year before any of the money deposited is “catch up” money.

Advantages of hard money loan investing

Real estate loans in California are funded through Trust Deeds, including First Trust Deeds, which we specialize in here at Evoque Lending. We work with hard money loans and this gives the average investor the opportunity to earn an excellent rate of return on loans to qualified borrowers.

For example, our investors are currently earning double-digit returns on their money. Many investors don’t realize that they can usually move all or part of their retirement portfolio into First Trust Deeds, and if you aren’t enjoying steady double-digit growth in your retirement investments, this is something you need to consider. Further, Evoque Lending can help you make the switch.

We make loans in California’s top real estate markets, specifically Los Angeles real estate, Orange County real estate and San Francisco area real estate.

Safety and control are top priorities

For retirement investing, safety is always the number one concern for smart investors and these investors need to be in control of their investments. At Evoque Lending, our investors always have the final word on the notes they fund. Further, we have a solid, time-proven approach to assuring the safety of our investors’ money. This involves two important points:

– We insist that our investors have 40 percent protective equity, and

– We thoroughly vet borrowers to be sure they have the ability and willingness to meet their obligations.

This is, of course, a very short introduction to the topic of First Trust Deed retirement investing. There is much more to say, including the fact that First Trust Deeds and the steady monthly income they provide make great investments even after you are retired.

I always welcome calls and emails from individuals on this topic because I’ve seen this strategy work so well for our clients over the years. So please contact me today so you can put your best retirement strategy in place this year.