1. Introduction to Self-
Directed & Real Estate IRAs
Presented By Gary Kowalski
© 2012 The Entrust Group, Inc. All Rights Reserved

2. Disclaimer
The Entrust Group ("Entrust") does not provide
investment advice or endorse any products.
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.

3. Agenda
 Current state of retirement in the U.S.
 What are your retirement plan options?
 Who is The Entrust Group?
 Understanding the basics of self-directed IRAs
 Your investment choices
 Investment examples
 Q & A

4. Current State of Retirement in the U.S.
 1991:
 50% of workers expected to retire before age 65
 11% of workers expected to retire after age 65
 2013:
 23% of workers expected to retire before age 65
 36% of workers expected to retire after age 65
 Over 30% of households have less than $50,000 saved for retirement
 Nearly 50% of U.S. workers are not confident that they will retire
comfortably
Sources: The 2013 Retirement Confidence Survey, Employee Benefit Research Institute and the Center for Disease Control’s National
Center for Health Statistics.

5. What are my Options?
 Individual Retirement Accounts (IRAs)
• Traditional
• Roth
 Small Business Accounts
• Simplified Employee Pension (SEP)
• Savings Incentive Match Plan for Employees (SIMPLE)
• Individual(k)
 Other Accounts
• ESA (Education savings)
• HSA (Health savings)

6. Who is The Entrust Group?
 Leader in our industry
• Over 30 years of service
• Nearly $4 billion in
investor assets
 Knowledgeable staff
• All staff eligible have
earned CISP designation
 Educators
• National CE Program
• National and local in-person events
and webinars
 Local offices / Designated representative
Entrust is the premier provider of self-directed retirement plans:

7. Basics and Advantages of Self-Directed IRAs
 What is a self-directed IRA?
• “Self-directed” is an industry term for an IRA that
invests in non-traditional assets such as real
estate, precious metals, private stock, etc.
 Take control:
• Make your own investment choices
 Diversification:
• Invest in what you know and understand
 Tax savings:
• Contributions may be tax deductible
• Tax-deferred or tax-free growth

8. Investment Restrictions
 Collectibles
• any work of art
• any rug or antique
• any metal* or gem
• any stamp or coin*
• any alcoholic beverage
 Life Insurance
 S Corporations
* Exceptions: Gold, Silver, Platinum & Palladium bullion of certain purity

9.  Residential Real Estate
 Commercial Real Estate
 Precious Metals
 Hedge and pooled funds
 Limited Partnerships
 Secured and Unsecured Loans
 Oil and Gas Ventures
 Trust Deeds
 Almost anything…
What Can I Invest In?

10.  Your Spouse
 Your Parents
 Your Grandparents
 Your Children
 Your Grandchildren
 Spouses of
Lineal Descendants
 IRA Fiduciary
Disqualified Persons
Certain family members cannot do business with your IRA.

11. Examples of Acceptable Transactions
Remember the Self-Benefit Rule
 Partnering with yourself on
a new deal
 Partnering with your spouse on
a new deal
 Leasing property to your siblings
 Partnering with your cousin

12. IRA Purchase of Rental Property – example 1
 IRA purchases rental property in Hawaii
• Purchase contract must be signed by Entrust and signed
“Read and Approved” by IRA holder
• Vesting must read “The Entrust Group Inc. FBO J. Smith IRA
account 12345”
• All rents/expenses flow into/out of the IRA
• Cannot stay there on holiday; cannot provide sweat equity

13.  IRA purchases rental property in Davis, CA
• Daughter cannot rent from your IRA even at fair
value
• Examples of ways your IRA can invest:
• “Partner” with yourself
• Partner with others, including your spouse
• Borrow via a non-recourse loan (percentage of
net income attributable to the loan may be subject
to UBIT (Unrelated Business Income Tax)
• Via a single-member LLC
IRA Purchase of Rental Property – example 2

14. Single-member LLCs
 Advantages:
 Affords “checkbook” control
 Immediate access to funds
 Ease of investing
 Savings on fees
 Limited liability protection from claims
 Disadvantages:
 Cost to create
 You maintain records
 May be subject to State taxes and filings – check with your
financial or tax advisor
With an LLC, the IRA account makes an investment in the LLC by
acquiring its member shares.

15. Growing Your Business
Enhance your clients’ ability to invest in
what you sell
 Introduce new ways to invest
 Show how to use alternative
funding resources
 By educating your clients that they can
invest with you using their IRAs, you
enhance their wherewithal to invest
and can attract new clients

16. Getting Started is Easy
Open an
Entrust
Account
Fund Your
Account
Purchase
Your Asset
Three Easy Steps
1 2 3

17. Gary Kowalski
555 12th Street, Suite 1250
Oakland, CA 94607
800-392-9653
gkowalski@theentrustgroup.com
www.TheEntrustGroup.com