What is a Lien?

 

Lien

Lien

Barry Kornfeld is a proficient and sincere financial advisor. Also a supporter of Shriners Children’s Hospital, Barry M. Kornfeld co-owns the Boca Raton-based First Financial Tax Group with his wife of 29 years. Mr. Kornfeld focuses on assisting pre- and post-retirees with retirement & income planning, and he specializes in First Position Commercial Mortgage notes (FPCMs). FPCMs pay a 6% yield over one year and are considered a safer alternative to other financial products.

FPMCs provide clients with a first mortgage position, also known as a first lien position. This assures the owner of the FPCM the first lien position, which is the most secure and highest priority. This position differs from secondary or tertiary positions which are only repaid after the first lien position.

A publicly recorded legal interest, known as a lien, is an encumbrance on an asset or property that remains in effect until the debt is repaid. First liens must be properly developed and recorded to be secure and binding. Mr. Kornfeld and his resource partners work to ensure that all FPCM holders have properly recorded liens in the county land records where the subject property is located, so that all FPCM note holders enjoy a low maintenance and smooth experience for the duration of their holding period.

The Psychological Adjustments of Retirees

Retirement pic

Retirement
Image: investopedia.com

Barry Kornfeld helps retirees plan for their financial matters through his company First Financial Tax Group. This focus correlates with Barry Kornfeld’s interest in the psychology of seniors, something on which he takes continuing professional education.

One of the most pressing concerns as people approach retirement age is financial security, so much so that people tend to equate retirement preparation with amassing wealth. However, a smaller percentage of people consider the psychological implications of retirement.

Professionals who have been working their entire adult lives may find the transition difficult for a number of reasons. For those who have come to be associated with their jobs, there is the impending loss of career identity. The workplace is also a source of one’s social life, so severing ties with people who have become part of one’s support network can prove to be a challenge. For some people, their jobs keep them active physically and intellectually, so they are presented with the challenge of looking for activities that can keep them stimulated. While some people can easily adjust to these changes, psychologists have found that other people can experience depression and anxiety.

Considerations for Reducing Retirement Tax Liabilities

Reducing Retirement Tax Liabilities  pic

Reducing Retirement Tax Liabilities
Image: ftaxgroup.us

Experienced in first position commercial mortgages, Barry Kornfeld leads First Financial Tax Group. With diverse financial experience and acumen, the company’s co-founder, Barry Kornfeld helps individuals establish conservative income strategies to sustain their retirement.

With the guidance of a tax professional, individuals can take the following steps toward reducing income tax during retirement:

Keep income low to avoid social security tax.
At the age of 62, you gain access to social security benefits. Depending on your combined income, which takes into account adjusted gross income, nontaxable interest, and half of your social security benefits, you may be required to pay social security benefit taxes. For couples filing jointly, income must remain below $32,000 to qualify for exemption.

Stay under the 15 percent tax bracket.
In 2015, the 15 percent tax bracket for single filers ranges from $9,225 to $37,450. Married people filing jointly make between $18,450 and $74,900. If you are in or below the 15 percent tax bracket, you may qualify for tax breaks, such as the earned income tax credit, which refunds a portion of taxes to people with low to moderate incomes. In addition, income earned from dividends will not be taxed.

Choose a Roth IRA over a traditional IRA.
A traditional individual retirement account (IRA) helps you save money for retirement without taxing deposits. However, upon withdrawal during retirement, you will be assessed taxes at the present rate. Conversely, a Roth IRA accrues pre-taxed dollars, so you will not have to pay taxes when you make a qualified withdrawal. To qualify, you must be more than 59-and-a-half years of age and have made contributions for more than five years prior.

Options for Limiting Taxes during Retirement

Taxes and Retirement pic

Taxes and Retirement
Image: taxes.about.com

Possessing three decades of experience in retirement planning, Barry Kornfeld is the co-founder of First Financial Tax Group. Through his firm, Barry Kornfeld focuses on tax planning and income optimization to maximize clients’ wealth.

Plan a retirement that limits tax implications by opening a Roth individual retirement account (IRA) and downsizing your home. A Roth IRA allows you to save a sum of money that has already been taxed. Available through numerous financial institutions, the account gives you the option to withdraw funds at the age of 59 and a half without paying additional taxes. If you decide to access the funds earlier, be aware that a 10 percent penalty may apply.

During retirement, you may discover that the size of your home exceeds your needs. Downsizing is a reasonable solution to reduce costs associated with maintenance. Furthermore, if your mortgage is paid in full, selling can increase wealth with little to no tax. Use the money to supplement your retirement income or invest it for future gains. It is best to discuss this option with a tax professional to ensure you comply with Internal Revenue Service regulations.