Retirement Riches: How to Go Tax-Free with Real Estate

The Problem...

Many people struggle with their retirement savings because of taxes. Traditional retirement accounts like 401ks and 403bs are tax-deferred, meaning you or your heirs will eventually pay 100% of the taxes on that money when you take it out. This can significantly reduce the amount of money you have available in retirement.

Why This Is An Issue For You

If all your retirement money is in tax-deferred accounts, you're essentially building a bigger tax bill for your future. Imagine being a farmer who pays taxes on the entire harvest instead of just the seed; that's what happens with traditional retirement accounts. You lose a big chunk of your hard-earned money to taxes, which means less for you to enjoy during your golden years. This can be especially challenging if tax rates go up in the future, or if you live in a state with additional income taxes.

The Solution and How To Solve The Problem...

The key to a more secure and tax-efficient retirement is understanding and using Roth IRAs and exploring tax deed real estate investments.

1. Embrace the Roth IRA:

• Tax-Free Growth: Money in a Roth IRA grows completely tax-free. Once you've had the account for five years and are over 59 and a half, all your withdrawals, including gains, are 100% tax-free.
• Start Early: Even if you can only contribute a small amount, open a Roth IRA as soon as possible. This starts the five-year clock, allowing your money to grow tax-free sooner.
• Conversion Options: If you earn too much to contribute directly to a Roth IRA, consider "backdoor Roth" strategies or converting money from traditional IRAs or 401ks. While you'll pay taxes on the converted amount now, all future growth and withdrawals will be tax-free.
• Self-Directed Roth IRAs: You can even use a self-directed Roth IRA to invest in things like real estate or other assets, giving you more control over your investments and potentially higher returns, all tax-free.

1. Explore Tax Deed Real Estate:

• High Potential Returns: John Burlet's company, Core Tax Deeds, focuses on buying properties at tax sales for pennies on the dollar, with examples of huge returns on investment.
• Opportunity Zones: For those with capital gains from other investments (like selling a business or crypto), Opportunity Zones allow you to defer and even eliminate capital gains taxes by investing in specific areas.
• Accessible Investment: Core Tax Deeds offers opportunities for non-accredited investors, making real estate investing more accessible.

What are your thoughts on shifting your retirement strategy to focus more on tax-free income? Watch the full video to dive deeper into John's insights and real-world examples!