A couple of tips free of charge.
Instead of discussing the pro's and cons of Rim I thought as a change of pace I would just post a couple of things that may be of benefit to some of the posters here.
1) If you have Rim stock in an IRA and your income will be less than $100,000 this year, AND you believe the price will go up, you may want to convert your IRA Rim stock to a Roth. You pay tax this year at the current value, which we all know is not very high, and then all future growth is tax free. When you sell the stock and buy other investments, the growth on those will also be tax free.
If you believe the price is going down, then it would be foolish to pay the tax on the current value.
Your income for the year includes the sale of stock at a gain, but does not include the amount you converted.
2) If you have an IRA and want to get money out tax free and also avoid the pre age 59 1/2 penalty, you can take out substantially equal periodic payments based on your life expectancy. If you use this to purchase real estate with a 30 yr mortgage, then the interest deduction will mostly offset the taxes on the withdrawal. Consequently you are shifting some of the asset from an IRA to real estate with very little or no tax.
Needless to say you would need to check with your tax man to make sure the interest on your real estate is deductible, and all of the other stuff that goes along with those decisions.
P.S. The IRS rule is 72t.
AI
