Real Estate Investing: 9 Considerations for Success

By Bobby Daniels, CFP®, CIMA®, Financial Planner

Real estate investing has pros and cons, but it can be rewarding if done correctly through strategic planning because it has the potential to offer cash flow, appreciation and portfolio diversification from your other assets. Investing in real estate, just like any other investment, involves risk. It is crucial to understand the risks involved, do your due diligence, and deploy strategies to help mitigate these risks as much as possible.

Market Update

Chief Investment Officer Jason Gunkel is joined by Managing Director Lance Gunkel in our final quarterly update from 2023 where they recap the end of 2023, share their thoughts on the bond market and stock market variances, and provide a few predictions for what we can look forward to in 2024. 

Podcast

Retirement Account Management (RAM) Service

Are you looking for professional guidance on how to manage your employer-sponsored retirement plan? In this short Finance Moment podcast episode, Chief Investment Officer Jason Gunkel provides information on Syverson Strege’s Retirement Account Management (RAM) services. You can listen to the full episode here. 

Financial Updates

SECURE 2.0 Act

The SECURE 2.0 Act passed in 2022, but many of the provisions didn’t go into effect right away. There were 90 provisions as part of the law to modernize the retirement system that will be rolled out through 2026.

Here is a summary of some of the key changes that will take place in 2024:

• Prior to 2024, individuals over 50 could contribute an additional $1,000 to an IRA (i.e., the catch-up contribution). Unlike the regular contribution limit ($7,000 in 2024), which would go up with inflation, the catch-up contribution was fixed. That will change starting this year and the catch-up contribution will be indexed to inflation and go up in $1,000 increments.
• For employers with less than 25 employees, the deferral amount to a SIMPLE IRA can be increased by 10% of the contribution limit ($16,000 in 2024). This increases the contribution limit to $17,600. The same increase can be applied to the catch-up contribution for those over 50 ($3,500 in 2024).
• Funds in a 529 account that meet certain requirements are eligible to be rolled into a Roth IRA on a tax-free basis for the same beneficiary. To be eligible, the account must have been maintained for 15 years.
• Extends the Required Minimum Distribution (RMD) rules for Roth IRAs to other types of retirement accounts, such as Roth 401(k)s or Roth 403(b)s. Roth IRAs have not been subject to RMDs pre-death and now this will be the case for other types of Roth retirement accounts.
• The original law stated that individuals that make $145,000 or more must make their catch-up contribution to a 401(k), 403(b), or 457(b) on a Roth basis beginning in 2024. Due to several concerns over implementation of this provision, this has been pushed back to 2026.

If you would like to discuss how any of these changes will impact your situation, please contact your planning team at Syverson Strege.

Inside Look

Office Closure

Our office will be closed Monday, Feb. 19 in observance of Presidents Day. We will resume normal business hours on Tuesday, Feb. 20. 

Follow us on Instagram!

The Syverson Strege Instagram account is live, and we invite you to follow us @syversonstrege if that is a social media platform you engage with. While Instagram will provide us the opportunity to share content differently, we will continue to post content on our Facebook and LinkedIn pages, as well. 

Events

Join us for our Power of Connection Women’s Series Kickoff Event!

Thursday, Feb. 22 (4:30-6:30 p.m.)

Royal Flooring, 11801 Hickman Road, Urbandale, Iowa

We’re excited to kick off our women’s event series at this educational and fun first event! Through these quarterly gatherings we plan to explore topics – financial and otherwise – that women find important in various life and career phases. We hope you will plan to attend, and we invite you to bring friends! Heavy appetizers + beverages will be provided.

Register for this event with Deb Longseth at (515) 225-6000 or dlongseth@onlyworkforyou.com. 

Save the Date!

• March 19: Estate Planning Fundamentals Workshop @ Syverson Strege Office; 11 a.m.- 1 p.m. (lunch will be provided) – Zoom option also available.
• March 27: Challenges of Aging: Caregiver Concerns for the Sandwich Generation & Beyond @ Syverson Strege Office; 11:30 a.m.-1 p.m. (lunch will be provided)
• April 26: Investing Fundamentals @ Syverson Strege Office; 11:30 a.m.-1 p.m. (lunch will be provided) – Zoom option also available.
• May 1-3: Document Shredding Client Event

RSVP for any – or all – of these events to Deb Longseth at (515) 225-6000 or dlongseth@onlyworkforyou.com. 

Philanthropy

Orchard Place Holiday Gift Drive

Syverson Strege was proud to support Orchard Place’s Holiday Gift Drive which provided gifts to children in Iowa with mental health issues. In 2023, Orchard Place provided care to 6,895 Iowa youth. Learn more about Orchard Place here. 

Out and About

Imagine 50 Symposium and Gala

David Strege attended the Imagine 50 Symposium and Gala held in Washington, DC, in early December celebrating 50 years of CFP® certification. David is pictured with a few other former CFP Board chairs, including Elaine Bedel (left), Rick Adkins (second from right) and Karen Schaeffer (right).

Junior Achievement’s Bowl-a-Thon

Syverson Strege was delighted to send two teams of bowlers to Junior Achievement of Central Iowa’s recent fundraiser, Bowl-A-Thon! This fun afternoon out helps Junior Achievement STRIKE out financial illiteracy in young people in central Iowa. Syverson Strege bowlers even saw a few strikes!