Trump, Self-Control & Your Money
Whether you love him or hate him, it is undeniable that he has grown his sizable company based on "control" of real estate. When amassing his real estate empire, Mr. Trump controlled his real estate first through negotiations and contracts - then he purchased, assigned, leased, or sold the asset. He knows that "control" is key.
So do you have "control" over your financial empire? If you have a sizable amount of your investments in qualified plans, e.g. IRA's, or 401(k)'s, etc., do you have control of your money? I say no because Uncle Sam can raise tax rates anytime he wants and to whatever tax rate he wants. Every penny that comes out of your IRA is taxed.
So who controls your IRA and your 401(k)? Uncle Sam does. Is there anything (legal) that you can do about it? Yes!!!
To have better control of your money you can convert your qualified money into a Roth, BUT then you have to pay the tax today. What would The Donald do to avoid the IRA to Roth IRA conversion tax so he can have better control of his money? He would use a trust. The IRA to Roth IRA conversion creates a taxable event, but by using a trust correctly you can create a tax credit to offset the Roth conversion tax due.
Now you converted your qualified money into a Roth IRA tax-free, and now your money grows tax-free and you can withdraw it tax-free. Uncle Sam no longer has control of Your Money. The Donald would be proud of that "deal" because now YOU have control of your money.
So see, there are things you can learn from a guy concerned about the size of his hands. Lets just hope we all focus on the critical few things.