REIT (Real Estate Investment Trusts)
Real estate investment trusts (REITs) are organizations that invest in different types of real estate or real estate-related assets and distribute at least 90 percent of their income to shareholders. REITs can invest in a wide variety of real estate-related properties including shopping centers, hotels, office buildings and mortgages. The REIT designation reduced or eliminates corporate income taxes an investor may have to pay when investing in real estate. Many REITs are publicly traded on national exchanges and file reports with the Securities and Exchange Commission. There are three different types of REITs: equity, mortgage and hybrid. Equity REITs are the most common type and invest or own real estate and make money for investors through rent that is collected. Mortgage REITs lend capital to developers or invest in financial products secured by real estate. Hybrid REITs combine the aspects of equity and mortgage REITs.
Pursuant to IRS Circular 230: We are providing you with the following notification: The information contained in this document is not intended to (and cannot) be used by anyone to avoid IRS penalties. This document supports the promotion and marketing of retirement products.
401K and 403b Plans
A 403b plan, also known as a tax-sheltered annuity (TSA), is a tax-deferred retirement savings plan for certain employees of public schools, tax-exempt organizations, and non-profit organizations. The features of a 403b are very similar to a 401k as employees make contributions to the plans before income tax is paid, allowing the funds to grow tax-deferred until the money is withdrawn from the plan.
Profit Sharing Plans
STRS / PERS Advising
Traditional and Roth IRAs are established by individual taxpayers, who are allowed to contribute 100% of compensation (self-employment income for sole proprietors and partners) up to a set maximum dollar amount. Contributions to the Traditional IRA may be tax deductible depending on the taxpayer’s income, tax filing status and coverage by an employer-sponsored retirement plan. Roth IRA contributions are not tax-deductible.
SEPs and SIMPLEs are retirement plans established by employers. Individual participant contributions are made to SEP IRAs and SIMPLE IRAs.
Also referred to as “individual retirement arrangements.”
What can I expect when I meet a Savage and Associates financial advisor?
- Our Financial Advisor’s will get to know and understand your background, values and objectives to effectively manage your accounts and target your investment goals.
- We keep you updated with monthly and/or quarterly statements from Royal Alliance, our brokerage firm, and depending on the account type chosen you may also receive quarterly performance reports from Pershing, the custodian of your brokerage accounts.
- We will keep you informed about changes with taxes and economic news. You are always welcome to contact your Financial Advisor with any questions or concerns that you may have.
Our goal is to help you achieve your financial goals with knowledge, access and service beyond your expectations.