1. Retirement Secrets Of The Wealthy:
How To Maximize Upside Gains While Minimizing Losses
and Avoiding the Volatile Stock Market
Planning for retirement in today’s teeter totter economy is not for the weak of
heart.
One option is to place your financial future in the hands of a volatile stock market
that in my opinion is overvalued and headed towards another crash. Having
money tied up in this crap shoot can make you a perpetual ball of nerves.
On the other end of the spectrum you can put that hard earned retirement cash
of yours in a CD or money market account that pays a puny fraction of a percent
in interest and does not even cover the effects of inflation.
Given even a modest inflation rate of 3% which has been pretty typical over the
last 20 or 25 years, and you are going backwards and actually losing ground each
and every year.
What is a middle class person/family with average to even way above average
income to do in this seemingly hopeless situation?
We will get to the answer in a second, but first, let’s take a closer look at the stock
market.
As I write this report the Dow Jones Industrial Average is over 17,500 in mid
December 2014, but what does this number even represent anymore?
The Dow used to be an index that gauged the growth of 30 major businesses over
time.
Is it still?
Just 5 short years ago at the bottom of the financial meltdown the Dow was at
6627.94 in March of 2009. Here at the end of 2014 we are approaching 18,000.
Given the stagnant nature of the economy and still high unemployment, how is
this number justified?
In my opinion, it is not.

2. The Federal Reserve has been pumping close to 100 billion dollars a month into
the markets to prop them up since the crash through a program called
Quantitative Easing.
This has sent the market soaring since the low in 2009, but is this a number to be
trusted?
In my opinion the Dow has become more of an index representing investor
confidence in the policies of the Federal Reserve than it is an index of the health
of the overall economy.
I am just not seeing the level of business growth necessary to nearly TRIPLE the
growth of the market in a 5 year span. The real economy is still stagnant, meaning
the Dow is like a house of cards that could topple at any moment.
Fed policy has a history of blowing up asset bubbles with low interest rates and
easy money policies and Quantitative Easing is no exception.
Sooner or later the bubble is going to burst, but no one can know when.
At the same time, by keeping interest rates artificially low, the Federal Reserve is
also preventing you from getting a decent return on your money in a CD or money
market fund.
It may seem like a lost and hopeless cause when planning for retirement, but
there are other options available. We will spend the rest of this report exploring 1
such option.
An excellent way to maximize returns and minimize risks by using a Self Directed
IRA to make passive real estate investments. Let’s go over some basics so you can
become familiar with and feel comfortable about the process.
Moving your investments to a Self Directed IRA (or SDIRA for short) will allow you
to invest your retirement income in nontraditional investments like oil, precious
metals, mortgages, and real estate.
In order to do this you would move your retirement funds to a company called an
IRA custodian that will take care of your funds and transactions. It is a simple
process and takes less than a month.

3. Here are the types of retirement accounts that can be moved to an SDIRA:
 Traditional IRAs
 Sep IRAs
 Roth IRAs
 401(k)s
 403(b)s
 Coverdell Education Savings (ESA)
 Qualified Annuities
 Profit Sharing Plans
 Money Purchase Plans
 Government Eligible Deferred Compensation Plans
 Keoghs
You can also transfer funds from a CD or money market account into an SDIRA.
Once the funds are transferred, you are ready to get started.
The nice thing is that YOU are in control of how your retirement funds are
invested, giving YOU control of the risks.
In this way you can control where and how your retirement funds are invested.
And in my opinion the best way to use an SDIRA is to passively invest in real
estate.
How do you invest passively?
By finding someone with real estate knowledge to find the deals and partnering
with them.
This person could be a contractor or rehab specialist.
You could loan them the money to buy and fix at a better rate of return than you
get in the stock market or a CD. By keeping the value of the loan at 70% of the
repaired value of the house or less, you are able to manage the risk of your loan.
If you have loaned $65000 on a house that is worth $100,000, and the borrower
defaults, you stand a better than average chance of recouping your investment.

4. The amount borrowed divided by the value after repairs is called the Loan to
Value Ratio (or LTV)
You could also create a joint venture (JV) on rental property with someone and
split the rent, and upside equity down the road with your partner. Again, by
keeping the loan to value ratio at or below 70%, you are managing your risk.
One of the biggest risks in the rental market is poor cash flow, meaning the
amount of rent minus the mortgage on the property is low or negative.
By structuring the deal as a joint venture, there is no mortgage to pay. You and
your JV partner split the rent each month. Down the road when you sell, you both
split the equity.
And the returns can be quite astounding.
Let’s look at an example:
Your partner finds a house you can buy for $60,000 that needs $10,000 in repairs.
Once fixed, it will rent for $900 and be worth $100,000
Your partner fixes and rents the house and you each receive $450 a month in
rent.
Let’s say you hold the property for 5 years and then sell at $100,000.
You have received $27000 in rent over those 5 years, plus $12,500 at closing.
This means you have earned an 8% return annually on your $70,000 investment.
Much better than a CD, and without the risks of the stock market.
When the property sells, you collect an additional $12,500 in equity. Adding this
to the $27000 in rent, dividing by 5, and dividing the total by $70,000 will give you
the annualized return on your investment. It comes to 11.28%.
This is an EXCELLENT rate of return.

5. If you kept a $100,000 investment growing and compunding at 11.28% interest
for 20 years, your initial investment would grow to $846,896! In 30 years it would
grow to $2,468,957!
Real Estate is the IDEAL vehicle for creating remarkable rates of return in your self
directed retirement account while minimizing the risks associated with most
investment vehicles that give the double digit rates of return necessary for this
degree compounding.
My name is Andy Spaeth and I am a real estate investor looking for private
lenders to fund deals and joint ventures like the above example.
As I stated earlier in this report, the stock market is overvalued and WILL correct
itself sometime in the future. That correction will be PAINFUL for those invested
there.
By contrast, the real estate market is in the beginning stages of recovering from
the 2008 meltdown. There are deals everywhere but the banks CANNOT lend on
them. Real Estate is on sale right now but the banks will not fund the deals. They
are still smarting from 2008.
This has created an exceptional opportunity for those savvy investors who know
the Retirement Secret of the Wealthy I have just shared with you.
By using a self directed IRA to fund joint venture deals in Real Estate, you have an
excellent opportunity to create a VERY comfortable retirement without having to
worry about the solvency of Social Security.
Again, my name is Andy Spaeth and I am looking for private money lenders to
partner in joint venture deals and enjoy nice returns with controlled downside
risk.
Feel free to contact me at (859)905-9019 and set up a face to face meeting to
discuss this outstanding opportunity further.
No amount of money is too big or too small.
Give me a call to learn more about how to plan your future.