Mortgages and Notes

Thoughts at Thirty Thousand Feet

October 5, 2012

There is something therapeutic about flying. No, not the shuffling through the TSA gauntlet, the detangling from the hordes of little ones returning home from Orlando with their skull caps adorned with plastic ears and clutching their furry souvenirs.

No, the respite comes once sufficient altitude is obtained, the drink order delivered, and the electronic device “all-clear” is sounded. For the briefest of moments, sanity is restored and reasonable quiet is returned to the cabin.

Such is the case now, as I hurtle away to an industry conference in Phoenix, sponsored by the Retirement Industry Trust Association or RITA. During the next few days, I will be learning about the latest governmental trends regarding self-directed (SD) IRAs and the likelihood of changes with the next Congress. Rest assured that I will be sharing that information in future blogs over the next few weeks so that you will be able to anticipate any changes along with NuView IRA.

Regardless, all of us continue to move another day closer to our retirement – and I’m quite proud that on Friday, I took another step. You might think that being a spokesperson for SD-IRAs and having thousands of clients taking control of their IRAs, that my retirement would always be my first priority. Not necessarily.

However, last week, I took the first step in investing my Health Savings Account (HSA) in a mortgage-backed loan. Although some people have HSAs and can put up to $6,250 per year tax free into these accounts, most just keep them in non-interest bearing accounts. They do not realize that they can invest these accounts just the same as an IRA, and with NuView, that includes private loans, mortgages, private companies and much more.

Join me in taking a look at your funds that are not working for your retirement future. Don’t be up in the air about your investments. Call our company of experienced IRA administrators in Florida at 407-367-3472 to discuss your choices and start building momentum toward the retirement you deserve.

As always, all the best with your investments.

Glen

Private Lending with a Self-Directed IRA

September 25, 2012

Over the last year, our industry has seen a growing number of retirement investors looking to use self-directed IRAs to engage in private lending transactions in order to improve their retirement fund potential. This is because a self directed IRA gives you the option to loan money, similar to a bank. You choose the borrower, amount, interest rate, length of term, payment frequency, and amount.

IRAs can issue both secured and unsecured loans. Secured loans are backed by collateral to ensure repayment of the loan amount plus interest. Unsecured loans are typically offered at higher rates than secured loans and have lower borrowing amounts because they are associated with higher risk and not backed by collateral.

Many investors choose to loan money through their IRA to individuals looking to purchase a home. When loaning IRA funds for a mortgage, you have the opportunity to secure the loan with that piece of property. This means that if the mortgage defaults, your IRA takes possession of that property and you can decide to sell it or lease it out, providing you with additional funds within your IRA.

One major advantage of private lending with a self-directed IRA is that all gains generated by the investment are tax-deferred until a distribution is taken (Traditional IRA distributions are not required until the IRA owner turns 70.5). However, with a self-directed Roth IRA, all gains are tax-free.

Private lending offers the opportunity for excellent investment returns today and the potential for even more profitable opportunities in the future. With NuView IRA, you have the opportunity to self-direct your IRA in notes, real estate, mortgages, private companies, and many other investment options that most financial advisors are unaware. Give NuView a call today at (407) 367-3472 or visit them at staging-wwwnuviewtrustcom.kinsta.cloud to find out all the options available to you.

Giving Our Clients Access (Online and Human)

September 21, 2012

My name is Radha Persaud and I am a founding member of NuView IRA, a Florida self-directed IRA administration company. It’s flattering to be known as a founder I must say. As I came on board, Entrust Administration Services was getting ready to change its name to NuView IRA. With the change, came many welcomed improvements and many challenges along the way, but I am so thankful that I am part of a cohesive team that always rallies together.

One of our biggest challenges during the name change was the switch to a different platform for online access. The system was new, very different and some our clients had a difficult time adapting to the new system online. I can understand their frustrations, as many of our clients had been with us since we first opened our doors in 2003 and were used to the old online platform. Our President and management team heard their frustrations and wanted to make the change a more positive experience. To that end, they elevated my title to include “the queen of on-line access”. They wanted to ensure our clients had a live person to connect with for help with online access, rather than be transferred to a call center.

So, if you are having difficulties with our new system, or just simply want to talk with someone, I’m here for you. From log-ons to password updates, or historical statements, your account history is either a click or a phone call away. Just call 407-367-3472!

I’ll be standing by……

Radha (on-line queen)

Women vs. Men – The Retirement Savings Battle

Did you know that 60% of working Americans have less than $25,000 put aside for retirement? Moreover, 30% of Americans have less than $1,000 saved for retirement!

Among the individuals who do save money for their retirement, men tend to have more in their retirement funds than women. According to a recent study by The Vanguard Group, Inc., the median retirement savings for men was $33,547, which is 56% more than the $21,499 accumulated by women.

There are several speculations about why men tend to accumulate more for retirement than women, with some people thinking that women may not fully understand the value of saving for retirement. However, statistics show that women do understand the value of retirement and even tend to contribute more (in terms of percentage of income) to their retirement accounts than men. The following are three myths regarding how women invest and the realties behind these misconceptions:

Myth – Women are less likely to take advantage of workplace retirement programs. The reality is that when women have access to workplace retirement plans, they often have higher participation rates than men.
Myth – Women contribute less to retirement plans. Statistics actually show that in general, meaning at every income level, women tend to contribute more to their retirement plans than men.
Myth – Women are more risk-averse. This is a common misconception, but the reality is that there is little difference between the sexes in exposure to stocks.

Therefore, as the above realities hold true, the real reason that men have more in their retirement accounts than women all comes back to earnings. Men are more likely to work in higher-paying jobs, more likely to work full- time, and less likely to have gaps in their employment (for example: to care for children or elderly parents).

Saving consistently and investing wisely is a simple formula for success, but challenging to put into practice. With NuView IRA, you have the opportunity to self-direct your IRA in real estate, notes, mortgages, private companies, and other ways that most financial advisors are unaware. Give NuView a call today at (407) 367-3472 or visit them at staging-wwwnuviewtrustcom.kinsta.cloud to find out all the options available to you.

The Power of IRAs

August 29, 2012

According to the Investment Company Institute, there are 46 Million US households with IRAs. What is remarkable is the difference in those households that have an IRA, and those that do not.

Assets of an IRA household were 8 times larger than those households that did not have an IRA. Eight times! While the IRA may not be the holder of all the wealth, there is little doubt that the discipline involved in saving and contributing to an IRA is likely illustrated by other choices made by the members of the IRA household.

Your ability to achieve your retirement dream is dependent on two variables: saving and contributing consistently, and investing wisely. For many, investing wisely is the most difficult challenge. The super investor Warren Buffet is often quoted as saying, “Never invest in a business you cannot understand.” Most of us that are invested in mutual funds and selected stocks seldom have any idea on what our investment dollars are doing.

If you are a bit frustrated with not being in charge, the answer may be to self-direct your IRA. We have thousands of clients who feel much more confident in their own choices that those brokered by others. Private placements, real estate, tax liens, and joint ventures are just some of the ways you can seize control of your retirement plan through NuView IRA, while earning tax deferred or tax free profits.

If you would like to learn more about your investment options with a self-directed IRA, contact our Florida self-directed IRA administration company by calling 407-367-3472.

What will happen to the tax rate once the Bush tax cuts expire?

August 24, 2012

Regardless of your political opinions, Congress agreeing to keep taxes low while we are experiencing the highest deficit in our nation’s history may be unsustainable. As the House and Senate pass versions of bills that neither will sustain, the taxpayer is left more confused than ever.

If you have already put funds into a traditional IRA account, the government may have given you a tax write-off on your contributions and let you defer the tax on any earnings. Now, the government may be changing the tax rate you have to pay when you withdraw the money in the future. In addition to this, when you turn 70 1/2, the government does require you to take at least the required minimum distribution (RMD) from your IRA each year to force you to pay that tax.

You can think of your IRA as if it has a mortgage on it and next year the government may be raising the rate you have to pay. However, converting to a Roth IRA is like paying off the mortgage on your IRA early, and at these lower rates.

Nearly everyone is a candidate for a Roth conversion this year. However, executing a Roth conversion requires professional assistance. Contact our Florida IRA administrators at NuView IRA today to learn how to convert your IRA. Call 407-367-3472 today!

Diversify!

August 13, 2012

Diversification is a strategy that should be deployed by anyone who cannot accurately predict the future – which is just about everyone. While the stock market provides an ability to spread investment risks over geography, company size, market sectors, and other categories, the fact remains that public exchanges cannot provide full diversification.

You cannot own titled real estate purchased from your broker in your IRA – instead, he will likely offer a choice of publically traded Real Estate Investment Trusts (REITS). You cannot own gold bullion in your IRA if you rely on the stock market – rather, the market will proffer equity interests in mining companies instead. Most business startups have no access to public markets at all, with investors unaware of the potential attractive returns to the early equity participants.

Without a self-directed IRA from our Florida self-directed IRA administration company, it is unlikely that full diversification can be achieved in a retirement account. Whether you are looking for cash flow from property rentals, private lending and investing in tax liens, or instead investing for future appreciation in precious metals, limited partnerships or new business ventures, the choice is yours with a self-directed IRA. Call us at 407-367-3472 to learn more!

True diversification lies with understanding you choices, taking time to know the market, and executing your purchases with confidence, then staying involved in your investments.

Self-Directed IRAs

August 3, 2012

Last week, the Romney team visited the Villages, a sprawling community of over 100,000 residents over the age of 55, only about an hour from the NuView headquarters in Orlando. What does this group have in common? And why do politicians consider this a critical stop to deliver their stump speech? These residents have an obsession with protecting their social security, Medicare, and retirement plans. Politicians use this group as a surrogate to prove their policies are “senior-friendly”. I’m told that until you are retired, you cannot understand the helplessness of relying on personal savings, which have been ravaged by low interest rates and stock market uncertainty.

If only those of us who are still working had the same obsession about saving and investing wisely! Most workers continue to rely solely on the advice of money managers, or mutual fund managers to ensure their retirement is adequately invested. When the market takes a dip, participants in employer sponsored plans often scale back their contributions, due to a lack of confidence in their investments or their advisors. Most professional financial advisors see lower stock market prices as a golden opportunity to buy, while human nature moves investors to become more cautious and withdraw.

It’s time that we all woke up to the fact that no institution, money manager, or even financial advisor has more at stake than you do – in the health of your retirement funds. Despite the droning platitudes of the politicians, their ability to ensure a stress-free retirement for you is limited by huge budget deficits, tax stalemates, and the burgeoning growth in the number of taxpayers moving into their retirement years.

If you feel inadequate in making good investment decisions, find several friends, associates and professionals who can serve as your advisors – and avoid being influenced only by one source. Just as you wouldn’t subject yourself to a critical medical procedure without a second opinion, don’t move forward with important investment choices without consulting with several advisors.

As stated in the Wall Street Journal, over the next ten years, private investment choices are likely to outpace the public markets. Ensure that you understand all your options, including a self-directed individual retirement account that can access those private investment choices. You may find that understanding your options for investing in rental real estate, private lending, or buying precious metals through your IRA may be easier than reading a 100 page disclosure on the latest IPO. The best result is one that results in making your retirement political proof, providing a greater insulation against the potential damages of future policy decisions, and less reliant on the governments “dividends”.

The Basics of Self-Directed IRAs

July 27, 2012

Vice president of NuView IRA, Jason DeBono, explains the basics of self-directed IRAs.

Bad News? What Bad News!

July 2, 2012

What a great time! Banks are no longer lending, no one wants to buy, and people are not paying their taxes. The Washington crowd is in disarray, the Federal Reserve is practically out of tricks, and the prospects of another recession, we are told, is a statistical possibility.

Certainly those thrust out of work or those underemployed are bearing a very painful burden during these difficult times. We do need policies and leadership in all branches of government to make the tough choices to rebuild our economy to one of sustained and steady growth.

But, to investors, the timing may never be more fortunate. Let’s take a few examples, including a personal illustration, to clearly see the opportunities that are available for those that can risk capital.

In July of last year, together with a partner, my retirement plan purchased 50% interest in a two bedroom, one bath 1200 sq ft home in Lake County. In a better economy, we could not have purchased this home, with a dock on a canal leading to Lake Dora for $27,000. A renter has signed a lease for $500/month, providing a gross return after property taxes and insurance of over 11%, even after we spend another $8,000 for a new roof. As the investment is in my retirement plan, all gains will grow tax free.

Recently, I was invited by Fox 35 news to do a piece for their newscast on unique assets that can be purchased with an IRA. Needless to say, the market had just dropped by 600 points and people were in a panic. Keith Landry came by our office and produced a piece explaining how tax liens can be a great way for an individual investor to diversify. Sandra Edmonds of CFRI often provides workshops on how this can be done, and we have many IRA holders that self-direct their IRA funds into these investments. According to a local expert, Doug Gale, President of REO-America, returns of 6-8% are what one can expect, but can fluctuate, according to the market and those showing up to bid on the on-line auctions.

The best news of all, however, is that self-directed IRA holders can lend their money, backed by real estate. This opens the powerful option of real estate investors utilizing private individual’s retirement accounts to fund their purchases.

This type of lending, at rates determined between the borrower and the IRA owner/lender, can provide a great return to the borrower’s IRA while providing much needed capital to the real estate investor. At our self-directed IRA administration company in Orlando, we have clients lending money at rates from 8-16% – all directed by the IRA holder. There is no better time to ask your friends and neighbors about their IRA and their desire to invest in your project or purchase. All lending can be backed by a first or second mortgage on the property.

With a self-directed IRA from our Orlando retirement plan administration company, you will start to see your options in a much different light. Invest in anything the IRS doesn’t prohibit, unrestricted by the limited choices available from your current administrator. From start-ups to LLCs to foreign currency, all can be available to you tax deferred, or in the case of a Roth IRA, tax free.

Just think – if the economy was booming, real estate prices would be double to triple today’s prices, banks would be lending regardless of risk, and everyone would be paying their property taxes. If you have a self-directed IRA, thank goodness it isn’t!

Glen Mather is President of NuView IRA, Inc., a leading self-directed IRA administrator in Orlando. He can be contacted at 407-367-3472 or gmather@nuviewira.com