Anyone have experience or strong opinions about investing in an Opportunity Zone Fund?
An outside manager I have through my Schwab accounts has suggested this as a vehicle for me. I have never heard of this before he mentioned this.
I am 55
Home paid off.
$200K in a 529 plan, one child in high school.
One investment property with a monthly renter, not interested in dabbling more into rentals. 10-year mortgage on that property, rent pays my mortgage and condo association fees and repairs but not taxes.
About $1.7 million in qualified IRA, 401K accounts.
A little over $2 million in heavily stock-weighted funds, spread between Schwab and Vanguard.
Ownership in an entity that I will need to sell upon retirement (no immediate plans), currently valued at $600 K.
Edit: just got off the phone with the outside investment manager. Gist is, as I understand it:
Created by the 2017 Tax Cuts and Jobs act, designed to spur economic development in distressed communities
Take capital gains from this year and invest into the fund.
Gains are not recognized until December 31,2026.
Capital gains from the fund are reduced by 10% for all funds put in after 2019
If funds are held at least 10 years, the investor's liquidation of the investment in the fund does not result in any federal income taxes
2% fees
The particular Opportunity Zone Fund he is interested in proposing to me is located in San Jose, CA
Thanks in advance
An outside manager I have through my Schwab accounts has suggested this as a vehicle for me. I have never heard of this before he mentioned this.
I am 55
Home paid off.
$200K in a 529 plan, one child in high school.
One investment property with a monthly renter, not interested in dabbling more into rentals. 10-year mortgage on that property, rent pays my mortgage and condo association fees and repairs but not taxes.
About $1.7 million in qualified IRA, 401K accounts.
A little over $2 million in heavily stock-weighted funds, spread between Schwab and Vanguard.
Ownership in an entity that I will need to sell upon retirement (no immediate plans), currently valued at $600 K.
Edit: just got off the phone with the outside investment manager. Gist is, as I understand it:
Created by the 2017 Tax Cuts and Jobs act, designed to spur economic development in distressed communities
Take capital gains from this year and invest into the fund.
Gains are not recognized until December 31,2026.
Capital gains from the fund are reduced by 10% for all funds put in after 2019
If funds are held at least 10 years, the investor's liquidation of the investment in the fund does not result in any federal income taxes
2% fees
The particular Opportunity Zone Fund he is interested in proposing to me is located in San Jose, CA
Thanks in advance