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Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
Investing In Real Estate And Other Alternative To Grow Your Retirement
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Investing In Real Estate And Other Alternative To Grow Your Retirement

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This is an introduction to self-directed IRAs and how they can be used to invest in alternative assets like Real Estate, Notes, Precious Metals, Oil & Gas, Entities, and a whole lot more.

This is an introduction to self-directed IRAs and how they can be used to invest in alternative assets like Real Estate, Notes, Precious Metals, Oil & Gas, Entities, and a whole lot more.

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  • The purpose of this course is to educate individuals into the opportunities that exist with SELF-DIRECTED retirement plans. The key to TRUE self-directing is choosing investments that the individual knows best. The audience for this course will most likely be individuals who invest in these types of investments or trusted advisors such as CPA’s, Realtors, CFP’s who can provide clients for your office. The goals of this session are: Educate about the opportunities with PLANS and PLAN INVESTING Educate about the ways to invest in these investments Educate about the process to take advantage of these investments
  • INVESTORS NEED TO EDUCATE THEMSELVES HOW TO ANALYZE AN INVESTMENT AND COMPARE IT TO WHAT THEY HAD BEFORE – THE PURPOSE OF MOVING TO A SELF DIRECTED IRA IS TO HAVE IT DO BETTER THAN IT IS DOING NOW. THE INVESTOR TAKES CONTROL CONTD… Investors need educate themselves on what is available. Investors need to know how to analyze investment potential themselves. Investors need to look at what is being presented to them by advisors and compare it with investments that are not available from the advisor. Investors must control this process, not the advisors
  • Let the audience know what types of plans can be self directed. Let them know that all types of IRA and qualified funds can be used……especially those old 401k funds that are still sitting with ex-employer plans. Whether you’re an individual or owner of a business, Entrust has a solution for you. Cover the tax benefits that these individual or business plans can offer. Tax advantages through tax deductible contributions and tax deferred earnings with the potential through the Roth accounts of tax free earnings. Discuss the difference between a Traditional account and a ROTH account. KEY DIFFERENCE IS: Traditional accounts you pay tax later not now – Roth accounts you pay now not later – CONTROL over taxes NOW vs. later. What will tax brackets be in 10, 15, 20 years? SALES POINT: All types of plans can be self directed. If you qualify for a ROTH…set one up. If you have an old employer plan sitting around….move it to your Entrust account. Don’t forget to mentions those 401k plans that they have sitting around at old employers. Those can easily be rolled over to their Entrust account.
  • Let the audience know what types of plans can be self directed. Let them know that all types of IRA and qualified funds can be used……especially those old 401k funds that are still sitting with ex-employer plans. Whether you’re an individual or owner of a business, Entrust has a solution for you. Cover the tax benefits that these individual or business plans can offer. Tax advantages through tax deductible contributions and tax deferred earnings with the potential through the Roth accounts of tax free earnings. Discuss the difference between a Traditional account and a ROTH account. KEY DIFFERENCE IS: Traditional accounts you pay tax later not now – Roth accounts you pay now not later – CONTROL over taxes NOW vs. later. What will tax brackets be in 10, 15, 20 years? SALES POINT: All types of plans can be self directed. If you qualify for a ROTH…set one up. If you have an old employer plan sitting around….move it to your Entrust account. Don’t forget to mentions those 401k plans that they have sitting around at old employers. Those can easily be rolled over to their Entrust account.
  • Let the audience know what types of plans can be self directed. Let them know that all types of IRA and qualified funds can be used……especially those old 401k funds that are still sitting with ex-employer plans. Whether you’re an individual or owner of a business, Entrust has a solution for you. Cover the tax benefits that these individual or business plans can offer. Tax advantages through tax deductible contributions and tax deferred earnings with the potential through the Roth accounts of tax free earnings. Discuss the difference between a Traditional account and a ROTH account. KEY DIFFERENCE IS: Traditional accounts you pay tax later not now – Roth accounts you pay now not later – CONTROL over taxes NOW vs. later. What will tax brackets be in 10, 15, 20 years? SALES POINT: All types of plans can be self directed. If you qualify for a ROTH…set one up. If you have an old employer plan sitting around….move it to your Entrust account. Don’t forget to mentions those 401k plans that they have sitting around at old employers. Those can easily be rolled over to their Entrust account.
  • Let the audience know what types of plans can be self directed. Let them know that all types of IRA and qualified funds can be used……especially those old 401k funds that are still sitting with ex-employer plans. Whether you’re an individual or owner of a business, Entrust has a solution for you. Cover the tax benefits that these individual or business plans can offer. Tax advantages through tax deductible contributions and tax deferred earnings with the potential through the Roth accounts of tax free earnings. Discuss the difference between a Traditional account and a ROTH account. KEY DIFFERENCE IS: Traditional accounts you pay tax later not now – Roth accounts you pay now not later – CONTROL over taxes NOW vs. later. What will tax brackets be in 10, 15, 20 years? SALES POINT: All types of plans can be self directed. If you qualify for a ROTH…set one up. If you have an old employer plan sitting around….move it to your Entrust account. Don’t forget to mentions those 401k plans that they have sitting around at old employers. Those can easily be rolled over to their Entrust account.
  • The IRA, because of the special tax status granted, ie, pre-tax money for which you received a tax deduction, has “strings” attached. In order to self-direct you need to understand this. Think of it as money belonging to someone else, someone who needs your help and expects you to be honest in your efforts to manage their money. We like to use the metaphor of “uncle Ira”, your older, doddering uncle. Uncle Ira will leave you his money when he passes on if you take good care of it. If you don’t take care of it he either will have no money to leave or leave it to another relative. You don’t want that to happen, do you?
  • It is important to keep your own business dealings and that of your family separate from those of Uncle Ira’s. The IRS rules dealing with this and other things that you may not do with your IRA are called “prohibited transactions” Prohibited transactions are all about “self dealing”, getting a direct or indirect benefit from your IRA now, rather than at retirement. The question should be “what is best for Uncle Ira? Not, how can this money help me or my family now.
  • The law says there are only two types of investments you MAY NOT invest in. COLLECTIBLE -anything that has a value that is based on singular uniqueness. This would include antique cars, some coins, artwork, rare wines. Beanie Babies, baseball cards etc. Life insurance is self-explanatory. A THIRD RULE THAT COULD BE LISTED WITH THESE TWO IS NO SELF DEALING, BUT THAT’S IMPORTANT ENOUGH TO GET ITS OWN SECTION IN THIS PRESENTATION.
  • The law says there are only two types of investments you MAY NOT invest in. COLLECTIBLE -anything that has a value that is based on singular uniqueness. This would include antique cars, some coins, artwork, rare wines. Beanie Babies, baseball cards etc. Life insurance is self-explanatory. A THIRD RULE THAT COULD BE LISTED WITH THESE TWO IS NO SELF DEALING, BUT THAT’S IMPORTANT ENOUGH TO GET ITS OWN SECTION IN THIS PRESENTATION.
  • Investment Choices- This is where we can show the audience what investments can be held in their Entrust Account. Reiterate that they are not limited to just securities. They can invest part or all of there retirement funds into these assets. SALES POINT: They have a world of choices with an Entrust Plan
  • Think about investments that you currently do outside of your plan. Are there any that would be appropriate for your IRA? Can your IRA partner with others in investments of co-workers, friends? Do you have a particular expertise in a type of non-traditional investment?
  • Investment Choices- This is where we can show the audience what investments can be held in their Entrust Account. Reiterate that they are not limited to just securities. They can invest part or all of there retirement funds into these assets. SALES POINT: They have a world of choices with an Entrust Plan
  • 8 easy steps to adding Real estate to your IRA- This section is meant to give the audience a quick overview of how they would go about purchasing real estate with their retirement account. Let them know that we will get into some specific examples in a minute, but use this as a chance to show how easy it really is. Again, STRESS why use your office for performing these transactions. - A quick example to show the audience how easy it really is to buy real estate in a retirement account
  • We have provided you with tools on how to fund your account now lets take a look at techniques to invest in what YOU CHOOSE.
  • This case study shows a simple mortgage. This is an example of a long term hold for larger accounts. This is a good example to show to Doctors, Dentist and individuals with larger accounts who may be looking for an 8-10% return with little risk. Jack Brown has $100,000 in his Rollover IRA with Entrust and wants to loan funds to an investor as a 1st mortgage on a $135,000 home.
  • 5 things to take from this class: We know we threw a lot of information at you today. Don’t feel like you need to grasp it all today. Call us with any questions or Visit our office. You are welcome to attend an upcoming CE Class. REALTORS: We would be happy to speak at an upcoming sales meeting.
  • Transcript

    • 1. Investing in Real Estate and Other Alternative Assets to Grow Your Retirement
    • 2. Disclaimer <ul><ul><ul><li>The Entrust Group, Inc. and its franchisees (&amp;quot;Entrust&amp;quot;) do not provide investment advice or endorse any products. </li></ul></ul></ul><ul><ul><ul><li>All information and materials are for educational purposes only. All parties are encouraged to consult with their attorneys, accountants and financial advisors before entering into any type of investment. </li></ul></ul></ul>
    • 3. Who is Entrust? <ul><li>LARGEST NETWORK of Self-Directed TPAs. </li></ul><ul><li>NO CONFLICTS OF INTEREST with how you want to invest. </li></ul><ul><li>WITHOUT LIMITS imposed by other custodians. </li></ul><ul><li>OVER 25 YEARS managing self-directed accounts! </li></ul>
    • 4. Traditional Custodians What Wall Street Doesn’t Want You To Know
    • 5. Traditional Custodians Never, ever think outside the box!
    • 6. Entrust’s Philosophy <ul><li>You don’t have to think outside the box, because the box is bigger than you think! </li></ul>
    • 7. What is a “Self-Directed” IRA? An IRA in which the IRA owner directs all investments in the account. There is no legal distinction between a “self-directed IRA” and any other IRA except with a truly self-directed IRA the account agreement allows the broadest possible spectrum of investments.
    • 8. Take control of your retirement! What are the benefits of self-direction?
    • 9. Diversification What are the benefits of self-direction?
    • 10. <ul><ul><li>Tax Savings </li></ul></ul>IRS IRA Investor What are the benefits of self-direction?
    • 11. Social investing! It’s midnight. Do you know where your IRA dollars are? What are the benefits of self-direction?
    • 12. <ul><ul><li>Invest in what you know best! </li></ul></ul>What are the benefits of self-direction?
    • 13. Why save for retirement? <ul><li>Realtor Rose is 51 years old. </li></ul><ul><li>Rose has saved $200,000 for retirement. </li></ul><ul><li>Rose earns $80,000 net per year on her Schedule C. </li></ul><ul><li>Rose would like to have retirement income of $60,000 (75% of her working income) so she can retire in style and enjoy life. </li></ul>
    • 14. <ul><li>Assuming 6% income from her retirement assets, and ignoring the effects of inflation, Rose needs to have $1,000,000 in retirement assets when she retires in 15 years. </li></ul><ul><li>This means Rose’s retirement savings must grow at a rate of more than $53,000 a year, including gains from her investments and contributions. </li></ul>Why save for retirement?
    • 15. Why save for retirement? <ul><li>Rose’s choices include: </li></ul><ul><li>Dying sooner </li></ul><ul><li>Working longer </li></ul><ul><li>Relying on Social Security </li></ul><ul><li>Increasing savings </li></ul><ul><li>Increasing yield from assets </li></ul>
    • 16. What types of plans can be self-directed? <ul><ul><li>Traditional IRA </li></ul></ul><ul><ul><ul><li>(including rollovers) </li></ul></ul></ul><ul><ul><li>Roth IRA </li></ul></ul>
    • 17. <ul><ul><li>Employer plans: </li></ul></ul><ul><ul><li>SEP IRA </li></ul></ul><ul><ul><li>SIMPLE IRA </li></ul></ul><ul><ul><li>Individual 401(k) </li></ul></ul><ul><ul><li>Roth 401(k) </li></ul></ul>What types of plans can be self-directed?
    • 18. <ul><ul><li>Special plans: </li></ul></ul><ul><ul><li>Coverdell Education Savings Account (ESA) </li></ul></ul><ul><ul><li>Health Savings Accounts (HSA) </li></ul></ul>What types of plans can be self-directed?
    • 19. <ul><ul><li>ALL of the above accounts can be self-directed! </li></ul></ul>What types of plans can be self-directed?
    • 20. Which account is right for Rose ?
    • 21. Roth IRA There are worse problems to have! But wait…there’s hope!
    • 22. Roth IRA Fun Fact #1 <ul><li>You can take a tax and penalty free distribution to help purchase a home if you are a “First-time Homebuyer.” </li></ul><ul><li>“ First-time homebuyer” means that you and your spouse have not had a present interest in a main home during the prior 2 year period. </li></ul><ul><li>First-time homebuyer can be you or other family members, including children or parents. </li></ul><ul><li>$10,000 lifetime limit per person. </li></ul>
    • 23. Roth IRA Fun Fact #2 <ul><li>Distributions from a Roth IRA of any amount up to your total contributions at any time are PENALTY FREE and TAX FREE ! </li></ul><ul><li>Great for those who may need access to these funds prior to age 59 ½. </li></ul><ul><li>Make your child a millionaire by encouraging savings in a Roth IRA risk free while young. </li></ul>
    • 24. Traditional IRA <ul><li>Can be converted to a Roth IRA if modified AGI is $100,000 or less. </li></ul><ul><li>IMPORTANT NEWS FLASH : In 2010, the $100,000 limit for converting to a Roth IRA is removed! </li></ul><ul><li>For conversions in 2010, you may pay the taxes 50% in 2011 and 50% in 2012! </li></ul>
    • 25. Rose ’ s Work Plan Options <ul><li>In addition to her Roth IRA or Traditional IRA, Rose may have one of several types of retirement plans related to her working income. </li></ul><ul><li>Rose’s options include: </li></ul><ul><li>- SEP IRA </li></ul><ul><li>- SIMPLE IRA </li></ul><ul><li>- Profit Sharing/401(k) Plan </li></ul>
    • 26. Rose’s Work Plan Comparison <ul><li>For 2009 tax year, Rose can put: </li></ul><ul><li>- $16,216 into a SIMPLE IRA or </li></ul><ul><li>- $14,870 into a SEP IRA or </li></ul><ul><li>- $36,870 into a Profit Sharing/401(k) </li></ul><ul><li>Which is best? </li></ul>
    • 27. But wait, there’s more…. <ul><li>Rose may qualify for 2 additional types of Entrust self-directed accounts: </li></ul><ul><li>- Health Savings Account (HSA) </li></ul><ul><li>- Coverdell Education Savings </li></ul><ul><li>Account (ESA) </li></ul>
    • 28. Health Savings Account (HSA) <ul><li>Used to pay qualified medical expenses, which are broadly defined. </li></ul><ul><li>Contributions to HSAs are TAX DEDUCTIBLE . </li></ul><ul><li>Distributions for qualified medical expenses are TAX FREE FOREVER! </li></ul><ul><li>No income limits for contributions . </li></ul>
    • 29. Health Savings Account (HSA) <ul><li>Catch up contributions are permitted after age 55. </li></ul><ul><li>Must have a High Deductible Health Plan (HDHP). </li></ul><ul><li>Contributions after Medicare enrollment are not permitted (currently age 65). </li></ul>
    • 30. Coverdell Education Savings Account (ESA) <ul><li>Used to pay qualified education expenses. </li></ul><ul><li>Eligible expenses include college expenses as well as expenses for elementary or secondary school. </li></ul><ul><li>Contributions are not deductible, but distributions for qualified education expenses are TAX FREE FOREVER! </li></ul>
    • 31. How much can you contribute with $30,000 in wage income (2009)? <ul><li>Roth IRA – Husband (50+) $ 6,000 </li></ul><ul><li>Roth IRA – Wife (50+) $ 6,000 </li></ul><ul><li>Roth 401(k) Salary Deferral (50+) $22,000 </li></ul><ul><li>Profit Sharing Contribution (25%) $ 7,500 </li></ul><ul><li>Health Savings Account (Family) $ 5,950 </li></ul><ul><li>(Catch Up Contribution $1,000 if 55) </li></ul><ul><li>Education Savings Account (1 child) $ 2,000 </li></ul><ul><li>Totals $49,450 </li></ul>
    • 32. Restrictions on IRAs People Restrictions Transaction Restrictions Investment Restrictions
    • 33. People Restrictions on IRAs Disqualified Persons = Those persons who cannot benefit from or enter into transactions with your IRA or other plan.
    • 34. Think of your IRA as Mr. Ira You Mr. Ira People Restrictions on IRAs
    • 35. Disqualified persons may not enter into transactions with Mr. Ira You Mr. Ira NO NO People Restrictions on IRAs
    • 36. Mr. Ira Fiduciary Disqualified Persons People Restrictions on IRAs
    • 37. Fiduciary “F” (includes IRA Owner) Member of F’s Family Corporation “C” if F owns (directly or indirectly) 50% or more of vote or value of stock Partnership “P” if F owns (directly or indirectly) 50% or more of capital or profits interest in P Trust or Estate “T” if F owns (directly or indirectly) 50% or more of Beneficial interest in T 10% or more partner or joint venturer with C F’s Spouse F’s Ancestor F’s Lineal Descendant “LD” LD’s Spouse Officer or Director of C Highly Compensated Employee of C (10% or more of wages) 10% or more shareholder of C Person with management or administrative functions of P Highly Compensated Employee of P (10% or more of wages) 10% or more partner of P Trustee of T Highly Compensated Employee of T (10% or more of wages) 10% or more beneficial interest owner of T 10% or more partner or joint venturer with P 10% or more partner or joint venturer with T IRA
    • 38. Prohibited Transaction Restrictions Any direct or indirect Sale, exchange, or lease
    • 39. Lending Money Prohibited Transaction Restrictions Any direct or indirect
    • 40. Goods, Services, or Facilities Prohibited Transaction Restrictions Any direct or indirect
    • 41. Fiduciary self dealing Prohibited Transaction Restrictions Any direct or indirect
    • 42. What is the effect of a prohibited transaction? Is there an IRA Jail?
    • 43. What is the effect of a prohibited transaction?
    • 44. What is the effect of a prohibited transaction?
    • 45. Investment Restrictions Life Insurance Contracts
    • 46. Investment Restrictions Collectibles
    • 47. Investment Restrictions <ul><ul><li>Collectibles are defined as: </li></ul></ul><ul><ul><li>Any work of art; </li></ul></ul><ul><ul><li>Any rug or antique; </li></ul></ul><ul><ul><li>Any metal or gem; </li></ul></ul><ul><ul><li>Any stamp or coin; </li></ul></ul><ul><ul><li>Any alcoholic beverage. </li></ul></ul><ul><ul><li>An exception exists for certain U.S. minted gold, silver and platinum coins, coins issued by U.S. states, and gold, silver, platinum or palladium bullion. </li></ul></ul>
    • 48. Owning a Business Unrelated Business Income (UBI) Renting Personal Property
    • 49. Debt Financed Rental Income Unrelated Debt Financed Income (UDFI) Debt Financed Capital Gains
    • 50. Unrelated Business Income Tax Partnership Income
    • 51. 401(k) Exemption Unrelated Debt Financed Income (UDFI)
    • 52. What can I invest in with my IRA?
    • 53. What investments are you knowledgeable about? You can buy that in your IRA!
    • 54. Investment Choices <ul><ul><li>Real Estate, including foreign property </li></ul></ul><ul><ul><li>Real Estate Notes </li></ul></ul><ul><ul><li>Secured/Unsecured Notes </li></ul></ul><ul><ul><li>Limited Liability Companies </li></ul></ul><ul><ul><li>Limited Partnerships </li></ul></ul><ul><ul><li>Private Stock </li></ul></ul><ul><ul><li>And a whole lot more…… </li></ul></ul>
    • 55. Horses Investment Choices
    • 56. Steps to Purchasing Real Estate Assets in a Retirement Plan <ul><ul><li>1. Open a self-directed IRA </li></ul></ul><ul><ul><li>2. Contribute or move funds </li></ul></ul><ul><ul><li>into the self-directed IRA </li></ul></ul><ul><ul><li>3. Locate an investment </li></ul></ul><ul><ul><li>Complete the proper documentation to purchase the asset </li></ul></ul><ul><ul><li>(Buy Direction Letter, Private Placement Instructions, Note, etc…) </li></ul></ul><ul><ul><li>5. “Read and Approve” all the documents prior to closing </li></ul></ul>
    • 57. <ul><ul><li>6. After your approval of all documents, Entrust signs the closing documents and funds your transaction </li></ul></ul><ul><ul><li>7. Asset is recorded in the name of your IRA, for example: </li></ul></ul><ul><ul><li>Entrust Retirement Services, Inc. FBO John Smith IRA #12345-11 </li></ul></ul><ul><ul><li>8. All expenses come from your IRA and all income stays in your IRA </li></ul></ul>Steps to Purchasing Real Estate Assets in a Retirement Plan
    • 58. Case Studies <ul><ul><li>Rental Property </li></ul></ul><ul><ul><li>Rehab Real Estate </li></ul></ul><ul><ul><li>Flipping </li></ul></ul><ul><ul><li>Options/Assignments </li></ul></ul><ul><ul><li>Real Estate Note </li></ul></ul><ul><ul><li>Entity Investment </li></ul></ul>
    • 59. Purchase Rental Real Estate for Cash Example #1
    • 60. Example #1 <ul><li>Purchase Price: $330,000 </li></ul><ul><li>No. of Units: 10 </li></ul><ul><li>Gross Rents Collected in April, 2008: $5,235 </li></ul><ul><li>Gross Rents for Year: $62,820 or 19% </li></ul><ul><li>(Still have yet to account for appreciation) </li></ul>
    • 61. Example #1 <ul><li>Purchase Price: $40,000 </li></ul><ul><li>Tax Value: $94,000 </li></ul><ul><li>Square Footage: 2,928 </li></ul>
    • 62. Tales from The Money Vault <ul><li>Purchase Price: $438,900 </li></ul><ul><li>Loan Amount: $307,000 </li></ul><ul><li>Loan Terms: 8.15% fixed, non-recourse, annual payments </li></ul><ul><li>Cash from IRA: $137,391 </li></ul>
    • 63. Tales from The Money Vault <ul><li>Sales Price 18 Months Later: $614,460 </li></ul><ul><li>Net Profit Before UDFI Tax: $124,462 </li></ul><ul><li>UDFI Tax : $12,591 </li></ul><ul><li>Net Profit After Paying UDFI Tax: $111,871 </li></ul><ul><li>Net Return on Investment: 81.43% </li></ul>
    • 64. Example #2 Purchase, Rehab and Resale
    • 65. Example #2 <ul><li>Purchase Price: $101,000 </li></ul><ul><li>Rehab Costs: $30,000 </li></ul><ul><li>Sales Price: $239,000 </li></ul><ul><li>Profit After Sales and Holding Costs: $94,000 </li></ul>
    • 66. Tales from The Money Vault Purchase and Immediate Resale (Flipping)
    • 67. Tales from The Money Vault <ul><li>Purchase Price: $503,553.60 </li></ul><ul><li>Sales Price: $650,000.00 </li></ul><ul><li>Net Proceeds to IRA/401(k): $146,281.40 </li></ul>
    • 68. Tales from The Money Vault Assignments and Options – Getting Paid NOT to Buy!
    • 69. Tales from The Money Vault <ul><li>Purchase Price: $5,500 </li></ul><ul><li>Earnest Money: $100 </li></ul><ul><li>Assignment Fee: $8,500 </li></ul><ul><li>Profit in Only 30 Days: 8,400%! </li></ul>
    • 70. Example #3 Hard Money Lending/Private Money
    • 71. <ul><li>Jack Brown has $100,000 in an IRA and wants to loan $70,000 to an investor as a first mortgage on a $100,000 investment home. </li></ul><ul><ul><ul><li>70% LTV (loan to value) </li></ul></ul></ul><ul><ul><ul><li>12% interest rate </li></ul></ul></ul><ul><ul><ul><li>Interest only payments with </li></ul></ul></ul><ul><ul><ul><li>balloon payment in 1 year </li></ul></ul></ul><ul><ul><ul><li>Minimum loan term of 3 months </li></ul></ul></ul><ul><ul><ul><li>3% origination fee </li></ul></ul></ul><ul><ul><ul><li>Borrower pays all costs for legal and Entrust fees </li></ul></ul></ul>Example #3: Real Estate Note
    • 72. Does lending work? <ul><li>Balance of Account 9/25/2006: $64,960.09 </li></ul><ul><li>Anticipated Balance 3/24/2009: $87,257.43 </li></ul><ul><li>Dollar Increase in 30 Months: $22,297.34 </li></ul><ul><li>Percentage Increase in 30 Months: 34.32% </li></ul>
    • 73. Example #4 Private Placements Private Stock
    • 74. Example #4 <ul><li>Initial Investment: $50,000 </li></ul><ul><li>Partnership Distributions: $59,321 </li></ul><ul><li>Current Estimated Equity: $31,598 </li></ul><ul><li>Estimated ROI in 36 months: 82% </li></ul>
    • 75. Example #4 <ul><li>Purchase Price Feb. 2007: $10 per share </li></ul><ul><li>Purchase Price April 2009: $15 per share </li></ul><ul><li>Total Assets as of 4-30-2009: $250,000,000 </li></ul><ul><li>ROI after 2 years: 50% </li></ul>
    • 76. <ul><ul><li>IRAs can hold all types of investments, not just securities. </li></ul></ul><ul><ul><li>2. Partnerships and split ownerships are allowed. </li></ul></ul><ul><ul><li>3. IRAs and other Entrust self-directed plans grow tax deferred or tax free. </li></ul></ul><ul><ul><li>All plans qualify &amp; partial transfers are allowed. </li></ul></ul><ul><ul><li>Take control of your retirement today! </li></ul></ul>5 Key Points
    • 77. How can I get more information? <ul><li>www.EntrustTexas.com </li></ul><ul><li>800-320-5950 or 214-800-3488 </li></ul><ul><li>[email_address] </li></ul>For More Information:

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