sdira presentation 2012
TRANSCRIPT
Preface What is a self-directed IRA?
An industry term for an IRA that invests in non-traditional assets such as Real Estate, Private Stock, Precious Metals, etc.
About The Entrust Group
Administrators for self-directed retirement plans
Leader in our industry• Over 30 years of service• 14,000+ clients and nearly
$2 billion in investor assets
About The Entrust Group
Knowledgeable staff• All staff eligible have
earned CISP designation
Educators • National CE Program• National and local in-person
events and webinars
Local offices
Entrust is the premier provider of self-directed retirement plans:
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.
Single family and multi-unit
homes
Apartments
Condominiums
Commercial property
Developed & undeveloped land
Mortgages, lease/options
Foreign property
Trust deeds
Leveraged property
Precious metals
Limited liability companies
Limited partnerships
Unsecured/secured loans
Joint ventures
Life settlements
Investment Choices
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 Corps (S corporation tax laws prohibit IRAs to invest in them.)
* Exceptions: Gold, Silver, Platinum & Palladium bullion of certain purity
Prohibited Assets
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.
Examples of Acceptable Transactions
Remember the Self-Benefit Rule
Partnering with yourself ona new deal
Partnering with your spouse on
a new deal
Partnering with your cousin
Leasing the property to your siblings
IRA Purchase of Vacation Property
IRA purchases vacation 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
Rental property in Davis• Daughter cannot rent from your IRA even at
fair value
• IRA can borrow funds to purchase real estate
• Percentage of net income attributable to the loan may be subject to UBIT (Unrelated Business Income Tax)
IRA Purchase of Rental Property
LLCs
Advantages: Affords “checkbook” control Immediate access to funds Ease of investing Savings on check fees Limited liability protection from claims
Disadvantages: Cost to create You maintain records Single investment at inception 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.
Business TrustsWith a business trust the IRA account makes an investment in the business trust by acquiring its "beneficial interests."
Advantages: Affords “checkbook” control Immediate access to funds Ease of investing Savings on check fees Greater privacy of information
Disadvantages: Cost to create; more expensive than LLC May be subject to State taxes and filings – check with your
financial advisor
Funds from a Qualified Plan, including 401(k), 403(b), 457 plans can be rolled into an IRA.
Plan TypesTraditional IRA
Roth IRA
Individual (k)
SEP & SIMPLE
401(k) - Record keeping for defined benefit plans that allow for alternative investing. - Required plan documents (“Do your own”)
Other Special Plans:
Coverdell (ESA)
Health Savings Accounts (HSA)
Getting Started is Easy
Open an Entrust Account
Fund Your Account
Purchase Your Asset
Three Easy Steps
1 2 3
On Our WebsiteTake Action
Sign up for a class or webinar12
Schedule a meeting with an Entrust representative
3 Read about self-directed retirement accounts
4 Call our office
Calendar of events
E-newsletter
Due Diligence Info
5 Join us on Facebook & Twitter
Free Reports
FAQs
The Next Steps