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Self-Directed IRA AccountsOne of the newest trends in investing.Hello Rogue Investors, We are officially in the swing of 2008. Like everyone else, I am looking at my investing and business choices to see if I am staying ahead of the pack like we Rogues tend to do. I believe I am and you can, too. First, I want to tell you about an incredible resource that I listen to for updates on the economy and world events that affect my money. This is not an advertisement! There is no additional cost! This is a new benefit for Rogue Investors!
New Trends We have identified at least three trends that will make you a lot of money should you choose to listen and act. We will be profiling these trends at our Super Investor/Agent Workshop in Houston on January 26. Visit: http://www.rogueinvestor.com/newsletter/super-agent-RI.html for more details and to register. First, the tax lien and foreclosure market is heating up and you owe it to yourself to take advantage of this reinvigorated market. With mortgage foreclosures at an all time high, individuals and businesses are struggling to pay their mortgages and taxes. This is leading to fantastic tax sales and incredible deals that can be made with banks and mortgage companies. For example, if I told you that you can buy a house free and clear for under $10,000 and spend about $3,000 fixing it up, then rent that same house for $750 per month or sell it wholesale to the government for about $35,000, would that interest you? Second, the international markets are coming on strong. By now you may know that we are bullish on the Dominican Republic (D.R.) and southwestern France. These markets are poised to explode in value due to a couple of catalysts. In the Dominican Republic, the catalyst for growth is the Central American Free Trade Agreement (CAFTA), which includes the D.R. This agreement allows for fewer restrictions in commerce, resulting in more business activity and an increase in tourism. In southwestern France the bullet train is being connected to the area, resulting in small commute times and increased tourism. Third, the self-directed individual retirement account (SDIRA) market is poised to explode as many investors become disillusioned by stocks and mutual funds and look to find alternatives for their money. We have had many investors purchase our properties using self-directed IRA money. You can become part of this trend by helping educate others who are not aware of this trend. The following is a brief overview of the self-directed IRA basics. What you can do with your SDIRA: · You can legally purchase real estate, including international properties, tax liens, tax deeds, LLC membership units, partnerships, mortgage notes, businesses, and many other unique investments using your IRA. To find out all of the details, visit www.irs.gov and search for Publication 590. You must use a Trustee that is setup to handle self-directed IRA accounts. · You can rollover money from a previous qualified retirement plan, such as an old 401(k) plan. · You can contribute up to a certain amount per year. For 2007 the amount you can contribute is $4,000 if you are younger than 50 and $5,000 if you are 50 or older. For 2008, the amounts are $5,000 and $6,000, respectively. · You can only contribute as much money as you make. For example, if you only earned $3,000 in 2007, then you can only contribute up to $3,000. What you can’t do with your SDIRA: · You can’t withdraw your retirement money before age 59.5 or you will incur a 10% penalty. A few exceptions apply, such as qualified education expenses, disabled veterans and Roth IRA contributions. · You can’t mix your IRA account money with your personal money. · You can’t use your IRA money to buy, sell, or exchange investments with a disqualified person (e.g., you, your spouse, children, father, mother or anyone listed as a beneficiary). Roth versus Traditional IRAs: A Roth IRA allows you to set aside retirement money and the earnings will never be taxed. You get the benefits later. A Traditional IRA allows you to take a tax deduction now (see deductibility requirements in Publication 590) and defer paying taxes on the earning until you withdraw the money at a later time (after age 59.5). The decision on which one to use will be up to you and your financial planner or accountant. How to get started: 1. Contact a Trustee and get your account set up (Roth or Traditional). For a list of trustees and costs, look at the end of this newsletter. 2. Fund your account by either rolling over money or funding it with new contributions. It is always a good idea to start out slowly and only move over a portion of your existing IRA or 401(k) money. 3. Select your investment and contact your trustee to have it funded. If you need checkbook control, have your account fund a new manager-based LLC in which you are the manager and your IRA is the owner. 4. Make sure all money flows back and forth into the IRA. Your IRA is NOT you, it is a separate entity. 5. You can help others by being a facilitator and earning a fee. If you are interested in knowing more about becoming a self-directed IRA facilitator, please join me at the Super Investor/Agent Workshop in Houston, Texas on January 26, 2008. Happy Investing, Michael Williams
P.S. Here is a list of trustees and costs for setting up a self-directed IRA.
Equity Trust Company 225 Burns Road Phone: 440-323-5491 Toll free: 877-693-8208 see http://www.trustetc.com/company/contact.html for directory of departments Self-directed IRAs: http://www.trustetc.com/self-directed-ira/ira-faq.html Fee schedule: http://www.trustetc.com/investment/investment-fees.html
No transaction fee. Example: Fees for an IRA valued at $100,000 (standard fee) Set-up Fee = $50 Annual Fee = $440 Note: Other fees may apply. Pensco Trust Company 450 Sansome Street, 14th Floor Mailing Address: P.O. Box 26903, San Francisco, CA 94126 Toll free: 866-818-4IRA (4472) Client Services: 800-969-4472 Fax: 415-956-3016 Fees schedule: http://www.penscotrust.com/fees/ira_fees.asp
Example: Fees for an IRA valued at $100,000 Establishment Fee = $50 Annual Maintenance Fee = $200 + .20% (.002) of market value (This fee represents an annual rate, yet the Maintenance Fee is only charged one quarter at a time, always on the last day of each fiscal quarter.) Investment Costs Purchase/Sale or Re-registration of Real Property = $100 (This fee covers the entire purchase - i.e., it includes funding a deposit if necessary.) Purchase/Sale of Foreign Real Estate = $1000 (This fee is not incurred if purchasing foreign property through a domestic entity, such as an LLC.) Note: Other fees may apply. Sterling Trust Company 7901 Fish Pond Road Waco, TX 76710 Mailing address: PO Box 2526, Waco, TX 76702 Phone: 254-751-1505 Self-directed IRAs: http://www.sterling-trust.com/Default.aspx?tabid=389 Fee schedule: http://www.sterling-trust.com/Portals/12/PDFs/STC_IRA_Fee_Schedule.pdf Three fee schedules: The Precious Metals IRA, The Basic IRA, and The Flex IRA. Precious Metals IRA: May hold only allowable precious metals including -- American Eagle gold, silver, and platinum coins, other coins as allowed under Internal Revenue Code §408(m)(3), and other precious metal products that meet the minimum fineness requirements and are manufactured by a NYMEX or COMEX approved refiner/assayer. Basic IRA: May hold any number or combination of publicly registered or traded investments including – any asset permitted in the Precious Metals IRA as well as Mutual Funds, Public Stocks, Bonds, REITs, Brokerage Accounts, Perth Mint Certificates, Public Limited Partnerships, Annuities, Bank Certificates of Deposit, United Western Bank NOW Accounts, and U.S. Government Securities. Flex IRA: May hold any asset permitted in the Precious Metals IRA and/or the Basic IRA as well as Private Stocks, Private Limited Partnerships, Limited Liability Companies, Promissory Notes or Corporate Debt Offerings, Managed Commodity Trading Accounts, Trust Deeds/ Real Estate Contracts, Real Estate, or other private placement investments or non-standard assets.
Example: Fees for a Flex IRA valued at $100,000 Set-up Fee = $25 First Year Annual Fee = $75 Annual Renewal Fee = $100 Note: Other fees may apply. The Entrust Group Offices directory: http://www.theentrustgroup.com/locations Self-directed IRAs: http://www.theentrustgroup.com/benefits/benefits_investors Fee schedule for traditional IRAs, Roth IRAs, SEP IRAs, SIMPLE IRAs and Coverdell (ESA): Option One: fees based on number of assets Account Establishment Fee = $50 Annual Record Keeping Fee = $250 per asset, per year. This fee is paid when the asset is acquired. Option Two: fees based on asset value of account Account Establishment Fee = $50 Annual Record Keeping Fee = 125 to $1,850 per year
Purchase, Sale or Exchange of Any Asset = $95 Example: Fees for an IRA valued at $100,000 Account Establishment Fee = $50 Annual Recordkeeping Fee = $550 Note: Other fees may apply. Millenium Trust Company 820 Jorie Boulevard, Suite 420 Oak Brook, Illinois 60523 Toll free: 800-258-7878 Fax: 630-368-5699 Self-directed IRAs: http://www.mtrustcompany.com/services Fee schedule: http://www.mtrustcompany.com/pdf/forms/Self_Directed_IRA_Fee_Schedule.pdf Establishment Fee = $50 Annual Account Fee = $150
Investment Transaction Charges (includes purchases, sales, tenders, rollovers, etc.): Real Estate = $250 Example: Fees for an IRA valued at $100,000 Establishment Fee = $50 Annual Account Fee = $150 Annual Asset Holding Fees for Real Estate = $150 ($200 if debt financed) Note: other fees may apply Trust Administration Services Corporation, a subsidiary of First Regional Bank 5950 La Place Court, Suite 160 Phone: 760-602-3180 Fax: 760-603-0887 Self-directed IRAs: http://www.trustlynk.com/self_directed_ira_accounts.php Fee schedule for Individual Retirement Accounts (Roth, SEP, SIMPLE, Beneficiary, Traditional:
Example: Fees for a Flex IRA valued at $100,000 Establishment Fee = $50 Annual Fee: $200 Note: other fees may apply TruSource, a division of Union Bank of California, N.A. 3080 South Bristol Street, 2nd Floor Toll free: 800-274-8798 Self-directed brokerage IRAs: http://www.trusource.com/asp/services.asp#sdbira Request an information kit: http://www.trusource.com/basic_form/sdbira.htm Pensco Trust Company 450 Sansome Street, 14th Floor Mailing Address: P.O. Box 26903, San Francisco, CA 94126 Toll free: 866-818-4IRA (4472) Client Services: 800-969-4472 Fax: 415-956-3016 Fees schedule: http://www.penscotrust.com/fees/ira_fees.asp
Example: Fees for an IRA valued at $100,000 Establishment Fee = $50 Annual Maintenance Fee = $200 + .20% (.002) of market value (This fee represents an annual rate, yet the Maintenance Fee is only charged one quarter at a time, always on the last day of each fiscal quarter.) Investment Costs Purchase/Sale or Re-registration of Real Property = $100 (This fee covers the entire purchase - i.e., it includes funding a deposit if necessary.) Purchase/Sale of Foreign Real Estate = $1000 (This fee is not incurred if purchasing foreign propertythrough a domestic entity, such as an LLC.) Note: Other fees may apply. Sterling Trust Company
7901 Fish Pond Road Mailing address: PO Box 2526, Waco, TX 76702 Phone: 254-751-1505 Self-directed IRAs: http://www.sterling-trust.com/Default.aspx?tabid=389 Fee schedule: http://www.sterling-trust.com/Portals/12/PDFs/STC_IRA_Fee_Schedule.pdf Three fee schedules: The Precious Metals IRA, The Basic IRA, and The Flex IRA. Precious Metals IRA: May hold only allowable precious metals including -- American Eagle gold, silver, and platinum coins, other coins as allowed under Internal Revenue Code §408(m)(3), and other precious metal products that meet the minimum fineness requirements and are manufactured by a NYMEX or COMEX approved refiner/assayer. Basic IRA: May hold any number or combination of publicly registered or traded investments including – any asset permitted in the Precious Metals IRA as well as Mutual Funds, Public Stocks, Bonds, REITs, Brokerage Accounts, Perth Mint Certificates, Public Limited Partnerships, Annuities, Bank Certificates of Deposit, United Western Bank NOW Accounts, and U.S. Government Securities. Flex IRA: May hold any asset permitted in the Precious Metals IRA and/or the Basic IRA as well as Private Stocks, Private Limited Partnerships, Limited Liability Companies, Promissory Notes or Corporate Debt Offerings, Managed Commodity Trading Accounts, Trust Deeds/ Real Estate Contracts, Real Estate, or other private placement investments or non-standard assets.
Example: Fees for a Flex IRA valued at $100,000 Set-up Fee = $25 First Year Annual Fee = $75 Annual Renewal Fee = $100 Note: Other fees may apply. The Entrust Group Offices directory: http://www.theentrustgroup.com/locations Self-directed IRAs: http://www.theentrustgroup.com/benefits/benefits_investors Fee schedule for traditional IRAs, Roth IRAs, SEP IRAs, SIMPLE IRAs and Coverdell (ESA): Option One: fees based on number of assets Account Establishment Fee = $50 Annual Record Keeping Fee = $250 per asset, per year. This fee is paid when the asset is acquired. Option Two: fees based on asset value of account Account Establishment Fee = $50 Annual Record Keeping Fee = 125 to $1,850 per year
Purchase, Sale or Exchange of Any Asset = $95 Example: Fees for an IRA valued at $100,000 Account Establishment Fee = $50 Annual Recordkeeping Fee = $550 Note: Other fees may apply. Equity Trust Company 225 Burns Road Phone: 440-323-5491 Toll free: 877-693-8208 see http://www.trustetc.com/company/contact.html for directory of departments Self-directed IRAs: http://www.trustetc.com/self-directed-ira/ira-faq.html Fee schedule: http://www.trustetc.com/investment/investment-fees.html
No transaction fee. Example: Fees for an IRA valued at $100,000 (standard fee) Set-up Fee = $50 Annual Fee = $440 Note: Other fees may apply. Millenium Trust Company 820 Jorie Boulevard, Suite 420 Phone: 630-368-5600 Toll free: 800-258-7878 Fax: 630-368-5699 Self-directed IRAs: http://www.mtrustcompany.com/services Fee schedule: http://www.mtrustcompany.com/pdf/forms/Self_Directed_IRA_Fee_Schedule.pdf Establishment Fee = $50 Annual Account Fee = $150
Investment Transaction Charges (includes purchases, sales, tenders, rollovers, etc.): Example: Fees for an IRA valued at $100,000 Establishment Fee = $50 Annual Account Fee = $150 Annual Asset Holding Fees for Real Estate = $150 ($200 if debt financed) Note: other fees may apply Trust Administration Services Corporation, a subsidiary of First Regional Bank 5950 La Place Court, Suite 160 Carlsbad, CA 92008 Phone: 760-602-3180 Fax: 760-603-0887 Self-directed IRAs: http://www.trustlynk.com/self_directed_ira_accounts.php Fee schedule for Individual Retirement Accounts (Roth, SEP, SIMPLE, Beneficiary, Traditional: http://www.advisorsquare.com/new/trustlynkcorp/default.asp?storyid=2015878694
Example: Fees for a Flex IRA valued at $100,000 Establishment Fee = $50 Annual Fee: $200 Note: other fees may apply TruSource, a division of Union Bank of California, N.A. 3080 South Bristol Street, 2nd Floor Toll free: 800-274-8798 Self-directed brokerage IRAs: http://www.trusource.com/asp/services.asp#sdbira Request an information kit: http://www.trusource.com/basic_form/sdbira.htm |
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