Retirement Plans Need Exit Strategy

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IRA exit strategies are being forgotten about until it is too late. When retirement accounts are distributed, the tax ramifications and government plan regulations are costing investors significant amounts of money. The time to act is now, before retirement. Sum Total Financial Management has a revolutionary plan to assist investors who are looking to secure their retirement funds, and to develop an exit strategy to limit the distribution costs once they retire.

Young executives and those who are closer to retiring that are looking for an IRA Exit Strategy have a unique opportunity to prepare now, before their options become limited. Saving for retirement and estate planning is very important and it is crucial to have good advice on both the growth of your assets as well as your Exit Strategy.

The exit of an IRA and the use of IRA funds can have disastrous effects on your assets if not given adequate forethought and planning. Tax burdens, required minimum annual distributions, and estate taxes are just a few issues to consider. Worse, if you end up dying with a valuable IRA, it may be subject to double taxation. Estate taxes would take 45% and whatever is left will be subject to 35% income taxes paid by your heirs. The total taxes paid could be grater than 67%!

The leverage utilized to control real estate, along with the ever increasing demand for housing is what continues to make it one of the greatest investments of all time. Real Estate is also an excellent avenue in which to create an Exit Strategy. However, most retirement plans that set up property ownership using IRA funds do not address the Exit Strategy for the investor. Technically, when real estate is purchased with IRA funds inside of the IRA, the IRA owns the property, not the individual. The individual will need to liquidate or distribute the property from the IRA in order to use the funds, realize profits, or personally occupy the property itself. During liquidation, a substantial portion of the value can be lost in order to satisfy tax burdens, distribution costs, as well as potential penalties if withdrawn prior to age 59 1/2 from the IRA. Even though investing in real estate can be very secure and profitable, it is conceivable that the value of your account could be substantially decreased if you do not have a well planned and executed Exit Strategy.

Using Sum Total Financial Management's revolutionary plan to buy real estate outside of the IRA, an investor will already have a lucrative exit strategy working for them. It is possible to use retirement funds to purchase a new home, a vacation home or even investment property, outside of an IRA without the IRS becoming your largest beneficiary.

The method that has been perfected by Terry Treudt of Sum Total Financial Management will allow for the ownership of property outside of an IRA, while using the funds from an IRA fixed investment to pay for it. Because the property is owned outside of the IRA, the owner can take advantage of a full range of real estate tax savings and cost recovery strategies. In addition, the government's retirement plan law does not apply to the real estate since is owned outside the IRA. This not only saves the investor money, the investor is also able to personally enjoy their property and profit from it prior to actually retiring. The investor has complete control over the use, profit and tax benefits of the appreciating investment.

Sum Total Financial has done the research and can help navigate the legislative requirements and the IRA tax laws that can encumber many investors. This plan 100% compliant and is within all legislated IRS and IRA tax law.

For additional information on this new program, contact Terry Treudt with Sum Total Financial Management, Inc. or visit

About Sum Total financial Management, Inc.:

Sum Total Financial Management, Inc. has been serving people across the country since 1990. Headquartered in the Chicago Metropolitan area, our client base is a broad one from coast to coast including large and small business enterprises as well as individuals interested in their financial well being.


Terry R. Treudt

Sum Total Financial Management, Inc.



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