Tax Guru-Ker$tetter Letter
Friday, November 21, 2003
Real estate agents avoid retirement disaster. 'Exit strategies' include investing in rental properties, REITs - This is what I have always tried to explain to our many Realtor clients. They are in the best position to find good investment opportunities and should be able to accumulate a much larger retirement portfolio by acquiring properties than by putting cash away in "conventional" retirement accounts.
As I've described on several occasions, one of the main reasons that I have somewhat specialized in real estate tax issues is that, growing up in the San Francisco Bay Area, I had seen that as the more reliable path to wealth. It has always amazed me how many Realtors don't personally invest in real estate, including some who don't even own their own homes.
On a couple of occasions during my life in the PRC, I even got my own real estate license just so that I could be more in the loop for good investment opportunities. Unfortunately, my CPA work kept me much too busy to utilize the real estate licenses as often as I had hoped to.
However, I have not lost my faith in real estate as a less risky path to wealth accumulation than the stock market.
Tax Hike May Doom Mike - As it should be for tax loving Nurse Bloomberg. He has been a terrible replacement for Giuliani.
Governor: Pass bond or raise taxes. Schwarzenegger rejects reductions in social programs - Not a good follow-up to his reduction of the car tax. Everyone knows that the fiscal problems in the PRC are not due to a lack of revenue; but to too much reckless DC-style spending.
Battling over Buffett - The recall election may be over, but the stench of Arnold's number one economic advisor calling for huge property tax increases is still lingering in the PRC.