All Forum Posts by: Josh Rich

@Mike thanks for the tips, I will likely keep the Roth IRA separate as it is not much and not worth the accounting hassle. Good to know about the retirement strategy, let's see if I can remember that when it takes effect...in 40 years!

Unfortunately, that is not the case. Thanks again for sharing your insights.

@Doreen Thanks for the Roth clarification and income sources.

@Dimitriy Great guidance here on software, I much appreciate your postings. No, once the attorney's office set me up, I'm on my own... I guess I get what I pay for, and it was a great deal!

@Mike Fantastic clarification and examples!

Last question to all...how about converting a Roth into an IRA, then rolling it over to the 401K?

Today I'm working on taxes and finalizing my Solo 401k set up, yes tons of fun...not my favorite way to spend a sunny 75 degree Saturday in San Diego!

That said, I need some guidance on next steps.

Step 1) Have had sole propriatorship for a couple of years (unprofitable)

Step 2) Applied for and received my Tax EIN

Step 3) Gave self-employment info to foxnfox.com's Bruce Fox (great guy, most affordable) who processed the paperwork, and sent me a binder of legalise; this is for a solo 401k only, they do not act as custodians, or admin

Step 4) Acting as custodian, I will need to set up a bank account somewhere (any recommendations on which bank is best?); bank account will be exclusively for Solo 401K. (Will I need a bookkeeper if all transactions are tracked in/out of this bank account?)

Step 5) Roll over my previous employer's IRA and my wife's IRA (is that allowed since she and I are the only 2 employees?) into this new bank account (Hopefully the bank will help me do this?)

Step 6) Can I simply start investing in approved assets/transactions with checkbook control? (Mortgage Notes, and Turn Key SFR's)

Step 7) Can depreciation from properties be accounted on the standard schedule (straight-line, or accelerated)?

For all tax experts, accountants or attorneys, am I missing any steps? Also, I thank you all in advance for answering my "Bolded Questions".

@Jon, good catch on the post date... Didn't notice. Recently, I heard some investors discussing this and thought I would do a BP search to see if anyone has calculated average LTI for Nashville, Houston, Dallas, Charlotte, or Raleigh. Came across this post and thought I would weigh in.

In my previous post, I'm not sure how "separating" became "deprecating"! Didn't catch the darn auto-correction!! (Haha)

One way of deprecating the two is by looking at insurance. Typically, property insurance will cover dwelling, not land, and therefore separates out the two values.

LTI ratio is a measure for risk. Usually, the improvement value to the land will hold fairly constant, as it actually costs something to build and/or replace. The land is what determines "location" and will determine the majority of property value appreciation.

Think of it this way... a 2/1 house on a quarter acre lot in the mid-west will be priced EXTREMELY lower than the same property sitting on the same size parcel of land near a popular vacation destination, such as San Diego. To reduce market risk of volatile prices, seek properties where land is virtually free, or near $0, and you should find upside potential in your favor.

Sundeep,

We seem to be kindred spirits of sorts, as I have been through the same analysis over the last couple of years, not to mention we both live in the best place on earth! (shhh, let's keep that a secret!)

Reading through this topic, I can see you already received some good advice. Let's connect and I can share with you more about what I have found. By the way, add Nashville to your list of prospects. If you do, you'll see why.

~Josh

[email protected]

A good book on this subject is Wm Nickerson's "How I Turned $1k into $5M". It's a rare find and written 30+ years ago, but the classic investment principles still hold true today. Worth the investment in reading.