All Forum Posts by: Jason Powell

Thanks @Todd Goedeke. I think you hit the nail on the head with what I've largely been grappling with. That is, the more assets one has (not necessarily more complicated), the less and less an AUM based fee advisor seems to make sense....unless the AUM fee percentage drops rapidly. I'm not convinced that the average, moderately financially informed, person with say $3 million is better off by paying $25k - $30k annually for wealth management advice. Advisors who charge an hourly rate or annual retainer seem to make a lot of sense,  but sure are far and few between. I suppose I'm scratching my head on why this business/fee model hasn't taken off more.

Thank you, wonderful responses!

I would love to hear from folks who use an advisor and are content to pay their 1%(ish) fee, what value are you getting that you feel is worth paying for? 

@Brian EastmanThank you! Exactly why I posted here before doing anything. Much appreciated.

Here is the scenario. Cash in a bank checking account under an LLC that's owned by a self directed IRA through Entrust. I'm wanting to transfer some cash to another IRA at another SDIRA custodian for some different investments through a firm that uses a different provider. How do I transfer cash to that new IRA?

Preferred option - I sent a wire directly from the LLC checking account to the new IRA custodian (Kingdom Trust for what it's worth). Do you see any issues with doing that? I know the IRA transfer process normally entails transfer paperwork on the receiving custodian forms that are sent to the releasing custodian back office, but I'm confused in this case since the cash is actually at a bank checking account.

Thank you all. I realize if all I have is syndication investments than this is largely a moot point. My main motivation was the potential of using syndication pass-through losses against my personally held cap gain sale in 2021. Im basically trying to figure out if there is a smart way to not pay 100k in taxes as a result of that sale. 

I've read articles and tried to drum up info online about the pros and cons of making a grouping election for rental real estate activities, but it's not "clicking" with me for some reason. Hoping someone can share the pros, and mostly the downsides of doing this. I'll share a few details of my situation and why I'm considering this in the event it helps. Thansk!

2021 - Sold a personally held property at approximately a $250k long term cap gain, plus some depreciation recapture

2021 - Invested in many syndications as an LP, which in aggregate will generate pass-through losses of say $175k. I also have about $25k of suspended losses from future years.

I have been classified as a real estate professional, including 2021, but will no longer qualify for that classification moving forward for the foreseeable future. At this point, I'm more inclined to continue with syndications as my sole real estate allocation, but it's possible I eventually desire to be more active. I currently have no remaining personally held rentals.

My thoughts were that I could make a grouping election in order to wipe out a huge portion of my tax bill this year; is that correct? If yes, what are the downsides I should be aware of assuming I'm going to be investing as a passive LP in many more deals moving forward?

I'm more in favor of using my "WHY" as my North star for driving incremental decisions as opposed to a distant finite number where I consider myself to have "made it". In reality, I dont think many people would be happiest to work their tail off, hit their number, and then abruptly quit all "work". My WHY is to create flexibility, low stress, ultimately to maximize by ability to be a good father, husband, and friend. 

This led to some tough decisions of selling personally owned rentals, paying some taxes, declining deals that would have made money but caused stress, and moved cash to more passive strategies luke syndications and dividend paying stocks. It also means a goal of having lower to no debt, even primary residence, which many would justifiably scoff at. 

I've found this to provide what I seek, and allowed me to take a role at a startup company for a mission I'm passionate about. I work very hard, but I dont worry about my income as much, job loss, or the company going under. Its also allowed my wife to choose to work part time at the expense of rising her corporate ladder and much higher income. If you handed me $10 million today, I'm not sure our life would look terribly different other than increasing our generosity (Id like to think).  

For us, a slower path to "FIRE" is much more comfortable, allows us to live well now, and hopefully also live well later whenever our energy declines.

Robert, CrowdStreet is not a Craigslist where anybody can post anything they want. CS does more sponsor vetting than any single individual I've ever met. New Era is legitimate and has many happy repeat investors whom I know personally. If you have any tangible concerns, I'd vocalize those to CrowdStreets investor relations team. I'd also recommend spending some time watching the video content on how CrowdStreet screens sponsors and deals. 

If the 10k/mo is truly passive and risk free, I'd take that all day long. It takes a lot more money than $1m to make $10k/mo (i.e. 12% cash yield) in a low risk way for 99% of the population. It takes a lot of hustle, time, taxes, and risk to simply double the $1m as others have suggested and then invest it. Feel even more strongly if the $10k/mo is inflation adjusted.