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A sad state of (retirement) affairs

By Terry Kuehn

Real Estate Agent with Family Real Estate Services, Inc.

February 20, 2008 12:33 PM

So it comes to pass that broad shoulders, big elbows, ego ticks and lack of constraint is leading many 20-year-pre-retirement folks into bludgeoning their retirement accounts.

Interesting article:

http://www.thenewstribune.com/business/story/288102.html

My youngest just turned 25 and I constantly remind her to protect her home, her finances and her retirement accounts. (I wonder if she'll ever get sick of my harping? I hope not.)

As a side note, though, she and I have concluded that I will assist her in setting up an LLC. The kicker, here, is that the LLC will be financed with Self Directed Roth IRA retirement funds. (Terry's my name and real estate's my game and what I know about the business I'm goina have fun teaching her.) *smile*

Also, as I explained to her, so she's missing out on a little tax deduction regarding Roth contributions, but, over time, what with investment profits piling up TAX FREE, what's a little lost tax deduction. This is the marvel of the Roth IRA vs. the Traditional IRA.

For anybody thinking about cracking their piggy bank, please take a deep breath and think about what you're getting ready to do.......

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Jeff Kessler

Austin Homes, Realtors www.OwnAustin.com - Austin, TX

Broker,CLHMS,GRI

Terry. I started saving when I was 18. The great thing is at that age you have so much time on your hands and the interest really adds up.

Feb 20, 2008 12:50 PM

Terry Kuehn

Family Real Estate Services, Inc. - Tacoma, WA

Self-Directed Roth IRA Associate

Jeff, may I say, respectfully, that I was raised with the word "save." Respecting the source of that training, I was, though, not raised knowing how to "invest." What I know of that little subject is what I have learned through the school of hard knocksand what I have attempted to teach our three kids is that there is a difference between saving and investing. My youngest has seemed to have picked up more on that than the other two. In fact, what she has asked me to do is to help her set up an LLC for her and begin floating her Roth IRA funds through it and begin investing in, naturally, real estate. Maybe in my having to work close with her in that endeavor she won't tire of my harping. One thing for sure, though, I will have the pleasure of seeing her and her husband accumulate a substantial amount of wealth, hopefully, before I head off into the hinterland.

Feb 20, 2008 01:19 PM

I started a 401k and IRA when I was eighteen. I just use the word save, because I am not spending it. I get your jist though. I have been like a Michael Keeton since I was a kid. Michael J. Fox from Family Ties, boy does that date me or what.

I am trying to get my niece to do the same. We will see.

Feb 21, 2008 01:25 AM

Bill Roberts

Brooks and Dunphy Real Estate - Oceanside, CA

"Baby Boomer" Retirement Planner

Terry, I wish your post had contained more of the information you put in that last comment. Investing in self-directed IRAs, particularly Roth IRAs will be worth so much more than most people could expect to accumulate in their 401(k)s, that I can't get too excited about people "borrowing" from their retirement accounts. Just so long as they establish an IRA at least 10 years before they intend to retire.

Feb 25, 2008 02:44 AM

Bill, I guess sometimes when I should blabber, I don't, and sometimes when I shouldn't, I sometimes really let 'em have it. Anyway, the Roth IRA, to me, is probably the best thing that hit this country since the Declaration of Independence. It is hard to believe that the notion hasn't garnered more energy than it has. Next week I plan on heading to Olympia with my youngest to set up her LLC. My background is in taxes, accounting, construction, land development, and virtually most all phases of residential real estate and I plan on letting her make herself a fortune. The fact that Roth IRA fund profits can be re-invested TAX FREE is phenomenal. And when and where it really gets fascinating is when and where you control all aspects of it: the Self-Directed Roth IRA, the only way to fly. Course, you know all that......

Thanks for your comments.....

Feb 25, 2008 05:42 PM

Terry, "Edit" your post to add a little of this information. You need a few more words to get your 200 points and you deserve them.

I don't get up to Seattle much, but I would be very interested in meeting you. If you ever get down to Southern California or even Las Vegas I will make every effort to get together with you.

Feb 26, 2008 03:05 AM

Terry, You did good, as we used to say. I hope more people get your message.

Feb 27, 2008 05:32 AM

A sad state of (retirement) affairs

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