Rebounding Real Estate and IRAs

June 26, 2013

Imagine taking advantage of the continual rebounds the U.S. real estate market is experiencing, all from the comfort of your retirement account.

“We have a continued, gradual recovery,” said Brian Jones, a senior U.S. economist for New York’s Societe Generale in a recent Bloomberg story. The article went on to detail specific data on property values, but stated home prices overall rose by the most in seven years as the recovery in residential real estate continues to gain momentum.

Shortly after that news, Yahoo! Homes quoted a RealtyTrac report that listed the top 25 U.S. markets for flipping homes — including some that offer more than 50% gross returns. Luckily for our local Floridians, Orlando and its neighbor Tampa made it to the top of the heap.

What exactly does this mean for you and your self-directed IRA? It means it’s time to earn some returns.

For years now people have been waiting to dive back into the realm of real estate investing out of fear of another housing bubble burst. In reality, we are far from it. According to Daren Blomquist of RealtyTrac, Orlando had one of the worst foreclosure rates in America throughout the past five years, but its average home price rebounded at a 12% annual rate during the beginning of this year. Now seems a better time than any to invest your self-directed IRA funds into something malleable like the recuperating housing market.

“There is a 2.68 month supply as of May left. That is if no new houses list and none expire or are withdrawn, we will sell through our inventory in 2.68 months,” said Andy Tolbert, a short sale specialist and the director of programing and membership for the Investors Resource Center chapter in Central Florida. Tolbert went on to explain that the numbers are proof of a strengthening market.

Here at NuView, we offer countless educational classes on how easy it is to introduce the booming real estate market to your self-directed IRA. Even if you are familiar with holding alternative assets and you just want to know more, our team is willing and able to help you understand every aspect of your self-directed IRA. Knowledge is power. Knowledge about the real estate market gives you an advantage that could help make investments more profitable. To learn more about your options, give our expert self-directed IRA administrators a call today at 407-367-3472.

Making a Dent with Community Service

May 29, 2013

How many times have you seen a bedraggled sign toting person at the end of an exit ramp and wondered, what is his or her story? If I hand them a dollar, will it help provide a meal or a bed, or be used for less honorable purposes. In traveling to my office in downtown Chicago, for the four block walk from the train, I’m accosted by a dozen needy citizens, each holding out a hand or cup and a sign. What is a caring person to do?

God gives us clear directions about how we are to treat those less fortunate: “Give generously to them and do so without a grudging heart; then because of this the Lord your God will bless you in all your work and in everything you put your hand to. There will always be poor people in the land.” (Deut 15:10,11)

It’s a bit confusing though, because we can run out of funds long before we make a dent in fulfilling the needs of others either with our dollars or time doing community service.

Serving others certainly embraces the idea of monetary contributions. Yet, true service demands much more of us; connection with the people that need our help. On that front, we all have an equal amount of capital to deploy.

Two years ago, the NuView staff spent several days defining the collective values that we share as an organization.  Particularly poignant was the idea that we have a desire to serve others – not just in the workplace, but in the community as well.

While some of the NuView staff were always first in line to sign up for the myriad of charitable community service activities in Central Florida, others held back a bit.  To provide a nudge, we decided to incentivize the behavior with a company- wide bonus if each employee donated at least 15 hours per quarter on any activity that benefited someone less fortunate.

How are we doing?  Well, it’s a bit embarrassing to confess that my staff is running laps around me, donating their time to the Wheelchair Foundation, Shephards Hope, Ronald McDonald House, Feeding Children Everywhere, and many more.

In the book of Matthew, Jesus said, when you give to the needy, do not let your right hand know what the left is doing.  What I have found is that public affirmation is unnecessary – the satisfaction of serving others seems to be quite enough.

So, we hope to see you at the next walk-a-thon, tutoring session, or at the local health clinic. We also enjoy hearing about the ways that our friends and clients serve others, and will be happy to join you in your ventures of community service as well.

Indeed, the poor will always be among us – perhaps just to teach us about ourselves. Although the needs are large, join us in helping make the dent just a little bit bigger.

Lars Houmann of Florida Hospital Joins NuView IRA Advisory Board

May 20, 2013

Article by Maria Hernandez, NuView IRA, Inc.:

Lake Mary, Florida – April 29, 2013

NuView IRA, Inc. a leading self-directed IRA administrator announced today the addition of Lars Houmann, President and CEO of Florida Hospital to the NuView Advisory Board. With more than 20 years of economic development experience and various leadership roles within Florida Hospital, Lars will provide insight on how to better serve clients, employees and community.

Houmann’s accomplishments include the addition of the state-of-the-art medical center near Disney – Celebration Hospital, providing a blueprint for innovative delivery of medical services that has inspired hospital administrators internationally.  Lars’ current projects include the development of a 172 acre Health Village in downtown Orlando.

Under his leadership since 2006, Florida Hospital has continued rapid growth, reporting revenues of over $2.2B for the last period. Florida Hospital has also set the standard for excellence and being named by US News and World Report as the the number one hospital in Orlando.

“We are extremely pleased and honored that Lars has agreed to be part of our advisory group,” said Glen Mather, NuView President.   “His innovative ideas and his legacy of service to his community are attributes that cannot help but be an inspiration to us all.” When asked why he serves on so many boards, including chairing the Florida Chamber Board of Directors as well as the Metro Orlando Economic Development Commission, Lars said “I do it because it makes a difference.”

Houmann will join three other business leaders on the NuView Advisory Board;  John Ritenour, Founder and Chairman of Insurance Office of America, Charles Gray, Founder and Chairman of Gray-Robinson law firm, and Jerry Ross, Director of the National Entrepreneurial Center.

About NuView IRA, Inc.

NuView is a leading administrator of self-directed IRAs based in Lake Mary, Florida, and through its  affiliates, holds over $600M in retirement funds.  Since 2003, thousands of NuView clients have been able to self-direct their IRAs and Individual 401(k) plans into real estate, notes, mortgages, private placements, precious metals, and much more.

Summary:

Lars Houmann, CEO of Florida Hospital, joins NuView IRA, Inc. Advisory Board providing insight and experience in customer service, employee development and community involvement.

Do You Enjoy DIY Projects? Try a Self-Directed IRA

May 2, 2013

People are always looking for the gratification of successfully completing a do-it-yourself (DIY) project. Even if it’s something as simple as painting an old bookshelf to look new, building something on your own often creates a satisfying feeling. If you’re on Pinterest, one of the most popular ideas among users of this inspirational social media platform is do-it-yourself projects. Users pin DIY project ideas ranging from how to modernize your kitchen to designing your own flower arrangements at your wedding.

According to an article in Psychology Today, building something yourself also increases the item’s value. “The act of building something, putting your own blood and sweat into a physical object, seems to imbue it with additional value above and beyond its inherent quality,” said Travis J. Carter, Ph. D., author of the article. In fact, this is rumored to be one of the reasons why IKEA requires customers to assemble their purchased furniture.

So, how does this relate to IRAs and retirement planning? Banks, brokerages, and mutual fund companies are able to open an IRA for you and act as custodian of your retirement funds, helping you invest in the traditional bank, brokerage, and mutual fund products. However, for those who would like to put their own personal stamp on their IRA and customize their investment choices to ones they are most familiar with, there is a do-it-yourself IRA known as a self-directed IRA.

A self-directed IRA opens up a whole range of investment products that can be purchased inside an IRA beyond the stock market. Since many of us have specialized knowledge that could help us make niche investments in a self-directed IRA, this type of IRA becomes very appealing to the DIY investor. The benefits that accrue may be far more than just psychological.

Give our Florida self-directed IRA administrators a call today at 407-367-3472 to learn more about your IRA options including self-directed IRAs and real estate IRAs! As always, we wish you all the best in your investments!

There’s an App for That…Simplify Your Business and Your Life with Google Drive

April 23, 2013

Guest article by Tom Jelneck:

About two years ago, my company had a problem.  We had way too many digital assets in way too many places.  Where’s that Photoshop file? Where did the press release draft get stored? This huge waste of time trying to hunt down digital files is not only a headache, but costs us money.  As our businesses create more and more digital files, the need for a one stop file repository is becoming mission critical in order to keep efficiency at peak levels. If you’re not crazy about housing power-sucking, maintenance hungry servers to store your data, keep reading.

Enter Google.  The search engine giant Google has developed some amazing tools that are making all of our lives much more efficient and manageable. Google has created a platform where you can create, collaborate, share, print and alter documents, spreadsheets, presentations and more through it’s cloud service Google Drive. All docs, email, calendars, etc., can be accessed from your desktop, your smartphone, your tablet, etc., which means you’ll never need to call your secretary back at the office to have them pull a file.  All of your files, emails, appointments, to-do lists, etc., all at your fingertips, 24/7.

Key Features:

  • Ability to upload and store multiple file formats in your Drive (you can upload Word docs, PDFs, Excel spreadsheets, etc., and store them in Google Drive).
  • Ability to manage who in your organization has access to what.
  • Ability to manage how much data space users in your organization are using.
  • Ability to collaborate and share documents in real time.
  • Ability to sync online Drive with your local PC or Mac.

The Bottom Line:

If you need to streamline and simplify your business, consider Google Drive. It’s free, easy to use, robust and, best of all, doesn’t require hiring an expensive IT pro to keep it running smoothly.

Setting up Google Drive is simple, and it offers solid tech support to get you up and running.  Google continues to expand with products and improvements on integral tools (like Search and Maps), and it will continue to innovate and create making it a robust technology partner for any business.

For more technology and Internet marketing tips, visit http://tomjelneck.com.

Land Trusts to Hold Florida Real Estate for a Self-Directed IRA

Guest article by Joseph Seagle:

One of the benefits of holding assets in an IRA is that the assets in the account are not subject to claims of the beneficiary’s creditors. This makes the IRA an asset protection tool in addition to its benefits as a retirement planning tool. Without careful planning, this protection may be thwarted.

A common scenario for lawyers: The client purchased a home directly into his self-directed IRA, using IRA funds. After renovating the property, he flipped it for a nice $27,000.00 tax-free profit within the real estate IRA. Frantically, months later, he calls his attorney who advised him during the purchase. His IRA custodian was just served with a lawsuit alleging that the seller-IRA failed to disclose latent defects in the property such as PB plumbing in the walls and asbestos ducts running under insulation in the attic. While facts are disputed, the IRA is going to have to defend the lawsuit at great expense. If it loses, the IRA’s other assets are up for grabs. The lawyer quickly reviews his malpractice insurance policy for coverage and notification requirements.

A prudent attorney will advise the client to never purchase real estate directly into the IRA’s name. Instead, an entity should be inserted between the IRA and the real estate. To do this, many attorneys will recommend that the IRA’s custodian be the sole member of an LLC. However, the asset protection abilities of the single-member LLC have been called into question by recent court decisions, and the lack of confidentiality may make the IRA a target nonetheless.

A Florida land trust holding title to the property would be cheaper, faster, and provides anonymity of ownership. A third party independent land trustee ensures the beneficiaries’ anonymity and confidentiality. The IRA custodian would be the sole beneficiary of the land trust, or it could be a co-beneficiary with other entities, individuals, or even other IRA custodial accounts. A simple co-beneficiary agreement would be used to spell out the sharing of responsibilities and profits. And, better yet, in this case, the lawsuit would have been filed against the land trust whose only asset was the property it had just sold to the buyers, negating the need to defend the lawsuit.

Keeping Your Money Working for Your Retirement

April 17, 2013

Each morning as our bare feet hit the floor beside our bed, we are in fact one day closer to retirement age.  Those of us who are W2 employees may have our employers set aside a portion of our earnings in our company retirement plans.  We choose the funds we are offered and then hope that earnings will outpace the expected inflationary future.

Trouble is, often our retirement savings don’t work as hard as we do – largely around the choices we make.  Many try to time the market, pulling their money out of stocks and bonds at “just the right time”.  The trouble with the market-timing strategy is that there are no earnings while on the sidelines.  With a self-directed IRA from NuView IRA, you have more ways to keep your money invested than simply riding the ups and downs of the stock market.

For example, one of our clients owns rental properties and lends money from his real estate IRA.  Both of those categories of investments produce a cash flow into his custodial IRA account. The $2,300 per month payments received by his IRA are aggregated into a $10,000 fund that is used, combined with a hard money lender, to purchase mortgage notes.

Another investor who prefers to purchase tax liens has addressed their use of cash differently. She has a brokerage account opened under the Administration of NuView and requests a transfer of the cash as it moves into her IRA. She can invest in the public markets, building funds for the next tax-lien auction.

Many of us have multiple IRA accounts, perhaps a Roth, Traditional or even an HSA.  The ability to partner those funds together into one investment can also be a great tool for smaller balance accounts.  For example, a NuView client can purchase real estate through a tenancy in common titling, partnering several accounts together. A property priced at $50,000 can be purchased with 10% of Roth IRA funds and 90% of traditional IRA funds (titling would be NuView IRA FBO Client Roth IRA as to an undivided 10% and Nuview IRA FBO Client Traditional IRA as to an undivided 90%).

Saving consistently and investing wisely is likely the only formula to achieve your dream of retirement.  Unless you are fortunate enough to be retired, you likely spend most days working for your present.  Make sure your IRA is working as well for your future.


Glen Mather is President of NuView IRA, Inc., a national leading self-directed IRA administrator based out of Orlando, Florida. He can be contacted at 407-367-3472 or [email protected]

Is Obama Capping IRAs?

April 12, 2013

It happens to me almost every presentation. Someone from the audience raises their hand during a seminar on self-directed IRAs and asks, “What is the likelihood that the government is going to take away my IRA?” Or, “will my Roth IRA indeed never be taxed again, or will Congress change their mind later when they are desperate for more revenue?”

Until this past week, I dismissed those conjectures as needless concerns from conspiracy theorists. Until the headline “Obama wants to put $3 Million Cap on IRAs” was found on the front page of the local paper. Maybe there is something going on that we need to pay attention to…

Now, of course, the political approach of making such a drastic move is first to reassure everyone that this will only target the rich, not you or I. And there is a slight inference that no one can gather such a large IRA together without some unfair advantage and extreme good fortune. In the article, recently failed GOP Presidential candidate Mitt Romney’s $100M IRA was trumpeted as the perfect example of how a large IRA is created based on insider knowledge and understanding tax law nuances.

Regardless, the rest of us in much lower tax brackets should be a bit uneasy. IRAs were created to help individuals have a shot at creating a retirement for themselves that industry and government had no stomach or ability to provide. Now over 47 million households have them, with almost $5 Trillion saved for retirement. It’s not unexpected that the government is eyeing those accounts with a great deal of interest, impatient for the tax revenues that will only come upon personal distribution of those largely pre-tax assets.

But wait, this won’t affect me – or anyone I’m likely to know. $3M is a huge IRA and not likely to be amassed by an ordinary person. Not true. For example, a person can, through a SEP IRA, contribute up to $51,000 annually. Through consistent savings and wise investing – many choosing a self-directed IRA, it is not impossible or even improbable of achieving a large balance in your IRA. We certainly have clients that would be taxed under this potential plan.

The concept of charging a tax on an IRA account which was created in the first place to provide a tax shelter to encourage savings is flawed policy. A bad idea is equally as bad regardless of whether or not it affects you or I.

Balancing the budget is something that both sides of the political aisle proclaim to be important for the future of our country. Doing it by taking it directly from retirement plans that were pledged never to be taxed is wrong.

Who knows, are Roth IRAs next?


Glen Mather is President of NuView IRA, Inc., a leading self-directed IRA administrator in Orlando, Florida. He can be contacted at 407-367-3472 or [email protected]

American Airlines’ Pilots Turn to Self-Directed IRAs for Investment Flexibility

April 2, 2013

In November of 2012, American Airlines declared bankruptcy and as a result, thousands of their senior pilots are now being forced to make decisions regarding their B-Fund retirement accounts. According to American Airlines, the pilots were given 3 options with their funds and were told to make a decision by early April, with the funds available to roll through June. These options include:

  • Roll it into a qualified IRA.
  • Roll it into the American Airlines Super Saver 401(k).
  • Take a taxable lump sum distribution.

Because the 401(k) offers only a restricted choice of potential investments and the lump sum would trigger tax penalties, most of these American Airlines pilots are seeking additional information regarding IRAs and in turn, becoming increasingly interested in self-directed IRAs because of the flexibility this type of IRA provides. In fact, it has been estimated that roughly 9,000 pilots will be rolling their funds over into a self-directed IRA during the coming months.

Self-direction drastically expands your investment options from a short list offered for traditional IRAs to a wide variety of investments including real estate, tax liens, stocks, bonds, notes, mortgages, precious metals, and other investments.

We at NuView are committed to helping investors learn all they can about self-direction and how to use it to invest in alternative investments and grow their retirement nest egg. Check out our Seminars and Webinars page on our website to discover the upcoming seminars, workshops, meetings, and webinars that can help you as you seek to make wise investment choices.

Want to Lower Your Tax Bill? Contribute to an IRA

April 1, 2013

Many think that their tax bill is set in stone at the end of the year. However, this is not necessarily true. Although most money saving options to defer income or increase deductions are limited after December 31st of the previous year, there are still a few things you can do to help lower your taxes. In fact, Turbo Tax listed “contributing to retirement accounts” as the number one way to lower taxes after January 1st.

In her recent article entitled “Claim This Last-Minute Tax Break”, Emily Brandon of US News explains, “If an employee who is in the 25 percent tax bracket contributes $5,000 to a traditional IRA, he will save $1,250 on his current tax bill. He is able to defer paying income on that $5,000 until the money is withdrawn… And if you drop into the 15 percent tax bracket in retirement, you will only pay $750 in taxes on that $5,000 later when you withdraw it.”

The deadline to fund your retirement account, both traditional IRA and Roth IRA, is April 15, 2013. Making a deductible contribution will help you lower your tax bill this year. Plus, your contributions will compound tax-deferred. For 2012, the maximum IRA contribution you can make is $5,000 ($6,000 if you are age 50 or older by the end of the year).

The tax savings from making an IRA contribution in April has the potential to be huge. Over time, you may even end up saving thousands on your taxes, depending on your contribution, income tax bracket, and the number of years you keep the money invested.

Give our Florida self-directed IRA administrators a call today at 407-367-3472 to learn more about your IRA options including self-directed IRAs and real estate IRAs!  We at NuView IRA are educators and administrators, not brokers or dealers, so call us today. And as always, we wish you all the best in your investments!