Silber Bennett Financial
Rebecca Dawson is an experienced, independent financial advisor offering personalized wealth and investment management guidance to a select group of individuals, families, and businesses in Southern California and around the country. Her mission is to be a trusted advisor to her clients by partnering with them to identify what is most important in their financial lives while providing tailored solutions to help achieve their goals.
For over 20 years, Rebecca has served as a financial advisor. She has developed highly refined methods for evaluating client's needs and formulating successful investment strategies. She and her staff provide an exceptional level of service to her clients, who are typically worth well in excess of $1 million and include some of the most prominent people in the United States.
Before joining Silber Bennett, Rebecca managed her own independent brokerage office since 1999. Prior to that she held similar positions with PaineWebber, Merrill Lynch, and Alex.Brown & Sons.
Her clientele have included corporate presidents, and officers, charitable foundations, pension funds, business owners, and wealthy retirees. Her affiliation with Silber Bennett Financial provides her clients with full service wealth strategies.
Professional & Securities Licenses:
FINRA Series 53 Municipal Securities Principal
FINRA Series 79 Investment Banking
FINRA Series 7 General Securities
FINRA Series 22 Direct Participation Programs
FINRA Series 63 Uniform Securities Agent State Law
BA, Liberal Arts, Magna cum Laude, University of Texas at Austin
SECURITIES AND ADVISORY SERVICES OFFERED THROUGH SILBER BENNETT FINANCIAL, INC.
DOI: CA 0H72697 | MEMBER: FINRA / SIPC
Why Choose Rebecca Dawson
Rebecca Dawson on To The Point
If you have already sold your rental property and purchased a new property then a 1031 exchange is no longer available. The 1031 exchange has specific guidelines to be followed. Once you sell your rental/investment property there must be an exchange of properties. The simplest type of Section 1031 exchange is a simultaneous swap of one property for another.
To qualify as a Section 1031 exchange, a deferred exchange must be distinguished from the case of a taxpayer simply selling one property and using the proceeds to purchase another property (which is a taxable transaction). Rather, in a deferred exchange, the disposition of the relinquished property and acquisition of the replacement property must be mutually dependent parts of an integrated transaction constituting an exchange of property. Taxpayers engaging in deferred exchanges generally use exchange facilitators under exchange agreements pursuant to rules provided in the Income Tax Regulations.
Both the relinquished property you sell and the replacement property you buy must meet certain requirements.
Both properties must be held for use in business or for investment. Property used primarily for personal use, like a primary residence or a second home or vacation home, does not qualify for like-kind exchange treatment. So this would also disqualify your 1031 exchange as well, although if you do want to use the property you swapped for as your new second or even primary home, you can not move in right away. In 2008 the IRS set forth a safe harbor rule under which it said it would not challenge whether a replacement dwelling qualified as investment property for purposes of a 1031. To meet that safe harbor, in each of the two 12-month periods immediately after the exchange: (1) you must rent the dwelling unit to another person for a fair rental for 14 days or more; and (2) your own personal use of the dwelling unit cannot exceed the greater of 14 days or 10% of the number of days during the 12-month period that the dwelling unit is rented at a fair rental.
Both properties must be similar enough to qualify as "like-kind." Like-kind property is property of the same nature, character or class. Quality or grade does not matter. Most real estate will be like-kind to other real estate.
The first limit is that you have 45 days from the date you sell the relinquished property to identify potential replacement properties. The identification must be in writing, signed by you and delivered to a person involved in the exchange like the seller of the replacement property or the qualified intermediary.
Replacement properties must be clearly described in the written identification. In the case of real estate, this means a legal description, street address or distinguishable name. Follow the IRS guidelines for the maximum number and value of properties that can be identified.
The second limit is that the replacement property must be received and the exchange completed no later than 180 days after the sale of the exchanged property or the due date of the income tax return for the tax year in which the relinquished property was sold, whichever is earlier. The replacement property received must be substantially the same as property identified within the 45-day limit described above.
It is important to know that taking control of cash or other proceeds before the exchange is complete may disqualify the entire transaction from like-kind exchange treatment and make all gain immediately taxable.
If cash or other proceeds that are not like-kind property are received at the conclusion of the exchange, the transaction will still qualify as a like-kind exchange. Gain may be taxable, but only to the extent of the proceeds that are not like-kind property.
One way to avoid premature receipt of cash or other proceeds is to use a qualified intermediary or other exchange facilitator to hold those proceeds until the exchange is complete.
It is critical that you and your tax representative adjust and track basis correctly to comply with Section 1031 regulations.
Gain is deferred, but not forgiven, in a like-kind exchange. You must calculate and keep track of your basis in the new property you acquired in the exchange.
Yes, it is important to have help and advice in order to properly invest your assets. That being said CDs are not going to give you the return I believe you are looking for, and your advisor may be charging you a fair fee of 1% although what are those assets invested in besides CDs? A thorough analysis of your entire financial picture would be a prerequisite to making any recommendations to a diversified portfolio including your risk tolerance and other investment holdings.
You mentioned you do not like the 1% commisison your advisor is offering. Is this an upfront commission or an annual fee? There are times that paying an upfront commission on your investments is more cost effective in the long run versus paying an annual fee which would also be something you would want to discuss with your financial advisor.
Being a California resident myself, we do have the burden of a highly taxed state so the 401(k) at least gives you the tax deferred aspect of investing although with a Roth IRA you will be paying taxes initially then your money will grow tax free. If paying taxing upfront is not a burden then I would opt for the Roth IRA. Alternatively, you could alternate having retirement funds in both a tax deferred and tax free bucket. Later down the road, when, and if, you are in a lower tax bracket you could always roll you 401(k) to your Roth IRA. Keep in mind that with a Roth IRA will have more available investment options to choose from which may also be a factor to your allocating between the two.
Yes, it sounds like you have a good plan in place although some things to consider would be what interest rates are you paying on your debt? With the current low interest rate environment we have been in perhaps some of your installment loans may have low interest rates which you may want to keep since they will be important when buying a home in order to show your credit history. I also think you may have some room on a larger down payment versus starting a college fund or paying off low interest debt. And nothing is set in stone, depending on what decisions you make now you can always make adjustment down the road.
Without knowing more about your overall financial picure it would be difficult to give you a specific recommendation. First off, keeping six months of living expenses that you could easily tap into for any emergencies or financial hardships is a priority. Then knowing what other investments you currently own would be important so that you maintain a diversified portfolio. Also, what debt you may be carrying at what interest rate in which case you may want to pay down any potential high interest debt. What personal financial goals you may have such as education for children, retirement goals, paying down mortgage debt, etc. You may even have some other recreational goals to take your family on a dream trip. Regardless, it is important to set time aside to visit with a Financial Advisor in order to establish your personal financial situation. Once you have found someone that understands your specific needs then you can make your plans accordingly.