This document discusses the benefits of self-directed IRAs for real estate investing. It explains that a self-directed IRA allows you to invest retirement funds in real estate and other nontraditional assets. Real estate invested through an IRA provides tax benefits like tax-deferred growth and can help maximize returns through leverage and compound interest over time. The document recommends choosing a custodian like Equity Trust that specializes in self-directed IRAs and makes the process easy.

1. Accelerating Wealth with IRA’s! Jeff Walker

2. Overview Challenges Real Estate Investors Have What is an IRA and How Does It Benefit Me? What is a Self-Directed IRA? What Can a Self Directed IRA Invest In? Power of Combining Real Estate and IRAs Types of IRAs and Retirement Plans You Can Self-Direct Huge Tax Savings Through Retirement Plans Make Your Child or Grandchild a Millionaire The Next Step

3. “ But I was Promised!” Social Security Company Sponsored Pensions The Social Security Trust Fund will begin to run a negative cash flow by the year 2016 and will be insolvent by the year 2038. Source: The 2001 Annual Report from the Social Security Board of Trustees

4. Your Silent Partner Real estate profits in 1 year $15,000 Less federal income tax 28% Less state income tax 6% Less city income tax 2% Total 36% Total amount owed in taxes $5400

5. What is an IRA? An Individual Retirement Account (or IRA) is a personal savings account that allows you to contribute annually for your retirement savings. Profits in an IRA allows growth either tax-deferred or tax-free!

6. How does an IRA benefit me? Tax-free or tax-deferred growth Power of compounding interest Huge tax deductions Protects your hard earned assets Essential estate planning tool

7. Compound Interest Begin at age one One time contribution of $3000 Assume a 10% rate of return At age 65, the account will be worth…

8. $1,471,000

9. What is a Self-Directed IRA? A self-directed IRA is any type of IRA that allows you to invest in assets other than just stocks, mutual funds and CDs. Most brokerage firms and banks don’t offer this service because they do not have a financial incentive to do so.

10. How Do I Beat Taxes? (um, legally) Open a Self Directed Retirement Plan Put Money in Identify an Investment Complete a “DOI” You’re Done!

11. What Can I Invest in? Raw land Single family homes Apartments/duplexes Condos Commercial property Hedge Funds Equipment Leasing Thoroughbred Horses

12. What Can I Invest in? Mortgages Deeds of Trust Real Estate Notes Real Estate Lease Options Tax Liens You are only limited by your own creativity

13. How Can I purchase real estate in my IRA? Outright Percentage Leverage

16. Prohibited Transactions Self Dealing Collateralizing your IRA Borrowing money from an IRA Collectables (artwork, antiques, rugs)

17. Which IRA is Right for Me? Do you want tax free income for the rest of your life or do you want a tax deduction today? Do you want to pay taxes on the seed or the crop?

18. If you said you want tax free income for life you want: A Roth IRA If you said you want a tax deduction today you want: A Traditional IRA

19. Can I put more than $6,000 per year into a Retirement Account?

20. Would you like up to a $46,000 tax deduction? SEP IRA SIMPLE IRA Individual(k) plan Roth Individual (k) CESA HSA

21. How can I put money in the account? Transfer Rollover Contribute

22. What if I have More Deals than Money? Maximize Contributions Create your own “Private Bank”

23. Benefits of IRA for Children & Grandchildren Children can have an IRA: Traditional, Roth, SEP or SIMPLE Make your child or grandchild a millionaire using compound interest Pay for education expenses with a tax-free Education IRA (known as the Coverdell Education Savings Account) Use your knowledge and expertise to earn higher rates of return than just the market and provide for their future

24. Additional Benefits for Real Estate Investors: Creating a Private Bank Borrow from other IRAs for inexpensive financing No closing costs Close deals faster, no time delays No red tape Free up personal money for personal needs

26. What Should I Consider When Choosing a Custodian? At Equity Trust… We do this a lot and we make it easy for you for one simple fee! We do what others do plus more Over 34 years of experience and 41,000 clients Extensively Trained Staff Handled over 348,000 calls in 2007 Process over 200 real estate deals a day Highly regulated Founded by a Real Estate Investor

27. We make it Simple No Hidden Fees! $50 set up fee Annual maintenance fee for most clients $190-$360 Unlimited: Transactions Checks Distributions

28. Your Silent Partner Real estate profits in 1 year $15,000 Less federal income tax 28% Less state income tax 6% Less city income tax 2% Total 36% Total amount owed in taxes $5400 Total put in your pocket $5,400

30. For More Information Contact Jeff Walker Retirement Plan Specialist (440) 323-5491 ext 169 You can also reach me by e-mail at: [email_address]