A Time and Season for ChangeWith nearly 80 million baby boomers approaching the estate planning phase of their wealth cycle, the focus has shifted from wealth accumulation to wealth distribution. If you are an investor that owns rental property or other types of investment real estate, you are likely in a season of life where it's time to transform highly appreciated and actively managed property into a more secure and reliable form of passive income.  Income that can be used to fund home care, health care, charitable giving, and other lifestyle expenses.  According to the US Census Bureau, nearly 60 percent of all residential rental property is held by senior investors. Most properties are older, requiring hands-on management and ongoing capital expenditures. Further, the children dont want the burden of property management or responsibility for selling properties after the parents have passed. Now, facing a crossroad, older property owners desperately need an exit strategy. Section 1031 of the Internal Revenue Code states that any taxpayer who sells property held for investment purposes or used in an active trade or business can defer taxes provided that sales proceeds are reinvested into one or more qualified replacement properties. While tax deferral is a critical component, it does not solve the bigger issue of eliminating property management. Fortunately, there is a solution that combines 1031 tax deferral with diversified property income and simplified wealth transfer.     In 2004 the IRS approved a co-ownership structure known as the Delaware Statutory Trust or DST. DSTs are pre-structured, cash flowing property interests that allow smaller investors to acquire a fractional interest in larger Class A multifamily residential and commercial properties. With low minimum investment requirements, multiple DSTs can be combined to create diversified portfolios with professional third-party management. Sample properties include Class A apartments, senior housing, medical and healthcare facilities, industrial properties, self-storage, and U.S. government leased properties. DSTs also offer flexible estate planning strategies for target date liquidity needs and transfer of beneficial ownership to the heirs.        As the baby boom generation prepares for the greatest wealth transfer in history, it is critical to preserve assets through strategic tax planning and income protection.  A carefully planned portfolio of DST property investments can compound wealth through 1031 tax deferral and generate passive income for living, giving, and legacy estate planning. Senior real estate investors have worked a lifetime for Return-On-Investment and now it is time to experience Return-On-Life!  Contact Petra Capital Properties to learn how you can unlock financial freedom and finish life well through 1031 tax deferred DST passive property investments. Editors Note: This article was submitted by Brad Watt, Founder & CEO of Petra Capital Properties. He may be reached at 719-649-7770 or by email at bradwatt@petracapitalproperties.com For more information visit: www.PetraCapitalProperties.com *Distributions are not guaranteed. Securities offered through Saxony Securities, Inc., Member FINRA/SIPC

If you save and investfor decades, youd like to know you can retire without financial worries.Nonetheless, you still have to be aware of some threats to a comfortableretirement and how to respond to them.These threats include: Inflation Inflation has beenhigh recently, but even a mild inflation rate can seriously erode yourpurchasing power. In fact, with just a 3% inflation rate, your expenses could doublein about 25 years and your retirement could easily last that long. So, if youregoing to rely on your investment portfolio for a sizable part of yourretirement income, you will need to own a reasonable number of growth-orientedinvestments, such as stocks or stock-based funds, whose potential returns can equalor exceed the inflation rate. Excessive withdrawals Once you retire, youshould establish a withdrawal rate for your portfolio an amount you can takeout each year and still feel secure that you wont run out of money. Some peoplemake the mistake of withdrawing too much, too soon, once theyre retired. Yourwithdrawal rate should be based on several factors, including your age at retirement,the size of your portfolio and the amount of income you receive from other sources,such as Social Security. A financial professional can help you determine awithdrawal rate thats appropriate for your needs. Market volatility The financial marketswill always fluctuate. When youre still working, this volatility may not besuch a problem, as you have years or decades to recover from short-term downturns.But when you retire, you dont want to have to sell investments when their priceis down. To help prevent this, you can tap into the cash in your portfolio, assumingyou have enough to cover several months worth of living expenses. You could also draw on a CD ladder a group of CDs thatmature at different times to provide you with resources for the next fewyears and allow your equity investments time to recover their value. Unexpected costs You had them when you were working, and youll probably have themwhen youre retired: the furnace that breaks down, the car that needs a majorrepair, and so on. But if youve established an emergency fund containing ayears worth of living expenses, with the money kept in a liquid account, youmay be able to ride out these costs without jeopardizing your investmentportfolio. Be sure to keep these reserves separate from your typical day-to-dayaccounts to avoid the temptation of spending your emergency money. Health Retirees may face more health concerns thanyounger people, and those concerns often come with larger medical bills. Thatswhy its important to maximize the benefits from Medicare or your MedicareAdvantage plan. Also, if you contributed to a Health Savings Account (HSA)while you were working, and you havent depleted it, you can use the money inretirement. As long as the HSA funds are used for qualified medical expenses,withdrawals are tax- and penalty-free, and wont be included in your income. Thiscould help keep your income below certain levels, lower your Medicare premiumsor avoid the 3.8% surtax on net investment income that can be assessed on high-net-worthtaxpayers. Retirementcan be a pleasant time in your life and youll enjoy it more if youre preparedfor the challenges that face all retirees.     Chad Choate III, AAMS   Bradenton's Riverwalk   828 3rd Ave W   Bradenton, FL 34205   941-462-2445   chad.choate@edwardjones.comThis article was written by Edward Jones for use by your local EdwardJones Financial Advisor.Edward Jones, Member SIPC

Those who obtain a workers compensation settlement for future medical expenses must create a Medicare Set-Aside (MSA) Account to preserve their eligibility for Medicare. This separate, interest-bearing account pays for medical costs related to the workers injury. After the funds are exhausted, Medicare provides coverage for medical fees related to the injury.Why You Should Create an MSA AccountFailing to establish an MSA can have significant consequences for Medicare eligibility. Neglecting to create an MSA can result in losing Medicare, as well as means-tested government benefits like Medicaid. In certain cases, not using an MSA following a settlement can lead to liability.Keep Your Medicare CoverageIndividuals who receive settlements or judgments to cover future medical care must use these funds for that purpose to preserve Medicare coverage. For these expenses, Medicare is not the primary payer. Payments for the injury kick in only after the account is depleted and the beneficiary files a report with the Medicare Secondary Payer (MSP) Recovery Contractor. (Learn more about the Medicare Secondary Payer Act.)Receiving a settlement for future medical expenses without setting up an MSA jeopardizes Medicare eligibility. Someone who ignores the requirement to create an MSA could forfeit Medicare coverage entirely. This could mean losing coverage for all medical expenses, including those unrelated to the injury.If Medicare acts as the primary payer meaning that Medicare pays first when funds should have come from workers compensation, Medicare has a right of action. It can take legal action against the primary payer responsible for the payment, as well as those who received Medicares funds.When beneficiaries are unaware of the rules and fail to create an MSA, they could lose coverage.Stay Eligible for Public Benefits Programs With Asset LimitsNot having an MSA, or setting one up that is ineffective, can also make individuals ineligible for means-tested benefits such as Supplemental Security Income (SSI) and Medicaid.The Social Security Administration counts settlement funds as assets. Without a proper MSA, a person who acquires money to cover prospective medical costs following an accident could lose their public benefits.Increases in assets can also disqualify beneficiaries of the following programs:Supplemental Nutrition Assistance Program (SNAP)Temporary Assistance for Needy Families (TANF)Low-Income Home Energy Assistance Program (LIHEAP)People who obtain workers compensation settlements can continue to receive means-based benefits, along with Medicare, when they have a well-structured MSA. According to the Special Needs Alliance, embedding a special needs trust (SNT) within an MSA can allow a person to continue accessing government benefits. This is because the funds in an SNT are not countable assets.Avoid Liability After a Workers Compensation SettlementThe Centers for Medicaid and Medicare Services (CMS) requires that workers compensation settlements reasonably consider Medicares interests. A workers compensation settlement requires a person to create an MSA. If they fail to do so, they could face legal consequences for breaching their settlement agreement.CMS can also obtain restitution from anyone involved in the settlement, including the worker, workplace, insurance companies, and attorneys.Consult With a Special Needs Planning AttorneyCreating and maintaining an MSA can be complex. If you wish to keep your Medicare eligibility while receiving compensation for an injury, working with an attorney to help you set up and manage an MSA is critical.Consider consulting with a special needs planning attorney like Sharek Law Office. We can help you stay eligible for Medicare after acquiring a workers compensation settlement. Call our office at 412-347-1731 or click here to schedule a complimentary 15-Minute Call with our staff to discuss your needs today. Learn More About MSAsFor more information about Medicare Set-Asides, check out the following articles:What Is a Medicare Set-Aside and When Do You Need One?What Happens When You Have a Medicare Set-Aside and Don't Need Treatment?What Happens If My Medicare Set-Aside Runs Out? This article is a service of Sharek Law Office, LLC. We dont just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life and Legacy Planning Session, during which you will get more financially organized than youve ever been before, and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life and Legacy Planning Session and mention this article to find out how to get this $750 session at no charge. Please note this is educational content only and is not intended to act as legal advice.