Self-Directed IRAs. Positioning Your Retirement CASH MACHINE. Jeff Tisza, LBT-21

Transcription

1 Self-Directed IRAs Positioning Your Retirement CASH MACHINE Jeff Tisza, LBT-21

2 Cash Machines Active Income - Expenses Living Passive Income - Expenses Freedom! Insufficient Income - Expenses Train Wreck!!

3 True or False? I.R.A. is an acronym for... Individual Retirement Account

4 Types Others... Educational IRA SEP IRA Simple IRA

5 Brokerage Firms... Fidelity Charles Schwab Vanguard Group Oppenheimer Funds Morgan Stanley Smith Barney American Funds Edward Jones ScotTrade E*Trade UBS Wells Fargo Janus Capital Group Merrill Lynch Ameriprise IRAs (Others... many others)

6 IRA SD-IRA Self-Directed IRAs Self-Directed Custodians Offer Traditional, Roth, Others YOU Manage / YOU Decide IRA to SD-IRA Funds TRANSFER Not a Distribution Not an Early Withdrawal No Tax Consequences

7 Opportunity Identification Custodian Selection Entrust Administration Pensco Trust Company Equity Trust Company IRA Services Others... many others Account Setup Funds Transfer Funds Allocation Opportunity Investment Account Maintenance SD-IRA Administrative Fees Project Maintenance Annual Contributions Sequencing

8 Direct Participation Prom Notes Real Estate Rentals (Cash Flow) Residential (Fix, Flip) Commercial (Tenant Revenue) Land Holdings (Patient Money) Oil, Gas (Mixed) Precious Metals (Hedge) Businesses Equity (Growth) Stocks (Various) Cannot be SELF-SERVING

9 Summary Cash Machines Today s v. Tomorrow s Active v. Silent Running Cash v. Patient Money IRAs Traditional Roth Others Roth Conversion SD-IRAs Direct Participation Seek Competent... and Trusted Advice

10 2010 Roth Special Taxed Up-Front... Not during Retirement Previously: AGI $100K Limit Lacked Critical Mass Effective 01/01/2010 AGI Income Limit: GONE! Conversion Opportunity Generates a Tax Burden Special 50% Deferred until % Deferred until 2012

11 2010 Roth Special $100,000 Conversion $100K 1099 $50K AGI Deferred to 2011 $50K AGI Deferred to 2012 Any Subsequent Increase? TAX FREE! $100,000 Conversion $100K 1099 Suppose Market Down to $25,000 Take a Mulligan Unwind the $100K Conversion Negate / Cancel the 1099 Wait 30-days Convert $25,000 to Roth $25K 1099 All Subsequent Increase? TAX FREE! 2010 ONLY

12 Self-Directed IRAs Positioning Your Retirement CASH MACHINE Jeff Tisza, LBT-21

13 Private Placements Understanding the Offer / Opportunity (SEC / Securities Law) Jeff Tisza LBT-21

14 Securities Cooperative Agreement Handshake Paper Napkin Prom Note Contract PPM Others... many others. Pre-Requisites Structure Message Application Performance What is Your SEC Compliance Strategy?

15 Pre-Requisites ISSUER - Educates & Informs Cannot Advertise, Promote or Solicit CANDIDATE - Must Initiate RFI Non-Solicitation Declaration Confidentiality Agreement Investor Suitability Declaration ISSUER - 30-day & 3-Touch Rule Compelled to Know Candidate BEFORE accepting Investment $$$ CANDIDATE - Obligated to Know... Where their investment funds will go How Funds will be Used When Funds are SUPPOSED to be Returned ISSUER - Informs Produces & Delivers PPM Controlled Distribution Serialized, Logged Proprietary & Confidential CANDIDATE - Does Due Diligence

16 Pre-Requisites ISSUER - Due Diligence Compelled to Always Qualify Candidate BOTH - Must Agree Must Activate Fail-Safe to Proceed

17 ISSUER S PRIMARY OBJECTIVES Full Disclosure All Material Fact ISSUER S SECONDARY OBJECTIVES All Reasonable Explanations as to: Why you Should... Why you Should Not... (including the UN-reasonable...) PPM Components Offering Memorandum / Overview Management Operating Agreement Subscription Agreement Exhibits, Supplements Signature(s) / Authorization

18 ISSUER Obligations DISCLOSE Tell Your Story Convey Your Message Share Your Vision CAUTION Be VERY Careful re: Commitments MOA BUSINESS PLAN Operations Plan Financial Plan Sales & Marketing Plan Exit Strategy - Clearly Defined Legal-eze... Lots of Legal-eze Applicable Contingencies Subscription Agreement I [CANDIDATE] acknowledge, understand, and agree to... I [CANDIDATE] acknowledge, understand, and agree that... THERE ARE NO PERFORMANCE GUARANTEES.

19 CANDIDATE Obligations BE PRACTICAL Do Diligence Due Diligence ASK QUESTIONS Keep a List There are NO Dumb Questions USE COMMON SENSE Be Educated / Get Educated Be Informed BE PRACTICAL Does it Make Sense? Does it Make Sense... FOR YOU???

20 SANITY CHECK Just the Facts, Please. Action Summary EMOTIONS CHECK Let Your Emotions DRIVE You, but... Make Sure the Numbers CONTROL You. YOUR ASSIGNMENT Define Your Money Rules Role Play Your Money Rules Follow Your Money Rules - FIERCELY RISK MANAGEMENT Asses Monitor Manage Always Ask... What Can You AFFORD TO LOSE?

21 Private Placements Understanding the Offer / Opportunity (SEC / Securities Law) Jeff Tisza LBT-21