Former Hockey Coach Purchases Ice Rink through His IRA

October 11, 2012

A former men’s hockey coach at the University of Virginia recently decided to use his self-directed IRA to purchase real estate in the form of an ice-skating rink that was on the verge of closing. He got together with six other investors and contributed $300,000 from his own IRA in order to save the ice skating rink in Virginia where he had previously coached. In addition, the former coach also purchased several real estate properties in Florida and a mortgage on a medical building by self-directing his IRA.

With financial stress from the economy and unknowns in the stock market, it’s no surprise that people, like this former hockey coach, are looking for alternative ways to earn more money for retirement. Self-directed IRAs are a great option for this, as they allow IRA owners the ability to invest in what they know and understand. IRA owners can pursue a wide variety of investments including real estate, private placements, mortgages, tax liens, etc.

If you work in or know the real estate industry, you can self-direct your IRA into real estate. If you know the mortgage field, you can use your IRA as a lender. If you know a company looking to raise capital, you can invest in a note with that company. There are so many investment possibilities that most financial advisors are unaware!

If you’ve got experience or knowledge in a specific field, take the example of the former University of Virginia hockey coach and invest in what you know and understand. With a self-directed IRA from NuView, you can do just this, while taking advantage of the tax-advantaged growth of your retirement plan. Give our Florida IRA administrators a call at 407-367-3472 to learn more about the many ways you can invest in your retirement!

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

I Own a Small Business or am Self-Employed – What are My Retirement Plan Options?

October 4, 2012

As an employee of a large corporation, you most likely have a retirement plan option provided to you that is sponsored by your employer. On the other hand, if you are a small business owner or self-employed, you make think your options for a retirement account consist of simply the traditional IRA and the Roth IRA. However, you may have more options than you think. Consider the following choices as you make your investment decisions.

SEP IRA: With a SEP IRA, the employer (instead of the employee) makes all contributions. If you are a small business owner with few or no other employees, this may be an ideal option for you because you can make annual tax-deductible contributions of 20% of your earned self-employed income or 25% if you’re an employee of your own business up to $50,000 per year.

SIMPLE IRA: If your small business has 100 employees or less, a SIMPLE IRA can be an attractive substitute to a 401(k) plan. Unlike with a SEP IRA, the employee is the primary contributor to a SIMPLE IRA. A SIMPLE IRA encourages employees to take an active role in their retirement savings because the employer is required to match the contribution made by the employee up to 3% of their compensation.

I401(k): An individual 401(k) plan is an appealing option for a small business with multiple owners who work for the business, or for the solo practitioner. Not only does this retirement plan allow the employee to fund the 401(k), but also it enables the employer to make a profit sharing contribution. Other advantages of an I401(k) plan include the ability to accelerate contributions, to contribute on a pre-tax or post-tax basis, and to take a loan up to $50,000 from the plan.

Saving for retirement doesn’t have to be a challenge for the small business owner. Take the time to explore and understand your options because the right one will depend on the strategies and growth goals of your business. Contact our Florida IRA administration company to learn more about the many ways you can invest in your retirement. Give us a call today at (407) 367-3472 to find out all the options available to you!

Myths Regarding Roth IRA Conversions

October 3, 2012

Unfortunately, all of the attention lately on Roth IRA conversions comes with a flood of misinformation. The following are a few common myths regarding Roth IRA conversions and the realities investors should know:

  • Myth 1: A Roth IRA conversion is irreversible – This is not true, you have the right to change your mind later (up to October 15th of the following year) and get your taxes back that you paid for the conversion.
  • Myth 2: After you convert, you can’t touch the money for five years – To withdraw earnings from a Roth IRA tax-free, it is true that the account must have been open for at least five years OR you have reached the age of 59-1/2. It is possible to withdraw your earnings before this time, but you will incur a 10% early-withdrawal penalty.
  • Myth 3: Only one conversion is allowed per year – A traditional IRA can be partially converted into a Roth IRA multiple times in a year, providing significantly more flexibility for investors.
  • Myth 4: Roth conversions cannot be made by people who are under age 59-1/2 or over age 70-1/2 – There is no age limit for conversions. Individuals older than 70-1/2 must satisfy their Required Minimum Distribution (RMD) before converting the remainder of their assets to a Roth IRA.

Since 2012 when Congress lifted the income restrictions on Roth IRA conversions, myths about the new rules have spread like wildfire. The reality is that Roth IRAs are becoming increasingly popular because earnings accumulate tax-deferred and then can be withdrawn tax- free if the appropriate requirements are met.

Converting a traditional IRA to a Roth IRA is an appealing option for individuals who believe their retirement income will be taxed at a higher rate than their current income. As always, seek the advice and counsel of a financial professional before making investment decisions. Give us a call today at 407-367-3472 or toll free at 877-259-3256!

I’m Over 60 – Should I do a Roth IRA Conversion?

September 27, 2012

The answer is simple – it depends. The real answer has nothing to do with your age, but it may have everything to do with how long you want your money to survive. When it comes to accessing these funds, whose needs are greater, you or your IRA beneficiary?

When you convert your traditional IRA to a Roth IRA, you have to pay tax on that money. Therefore, you must have enough savings outside your IRA to pay the tax on the converted amount. If you use the IRA assets to pay the tax, the benefit of converting to a Roth IRA may just about evaporate.

The nice thing about a Roth IRA is that you will not have to face Required Minimum Distributions later, unlike with traditional IRAs. Once you reach the age of retirement, not having to worry about paying tax on withdrawals can make your life much less stressful. Also, anything left to your heirs goes to them tax-free, rather than being taxed in their top bracket.

Prior to 2010, Roth IRA conversions were forbidden for anyone with adjusted gross income over $100,000. However, this restriction is now gone and as a result, you can do a Roth IRA conversion even if you earn more than $100,000. Investors are now taking advantage of this.

At NuView IRA, we give our clients the opportunity to do a Roth IRA conversion, as well as options for self-direction. We let our clients invest in millions of ways they never thought possible. Contact our Florida IRA administration company to learn more about the many ways you can invest in your retirement. Call 407-367-3472 today to learn more about options for your retirement plan.

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 www.nuviewtrust.com 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 www.nuviewtrust.com to find out all the options available to you.

Are You Better Off Than You Were Four Years Ago?

September 19, 2012

Article by Glen Mather, President & CEO, NuView IRA, Inc:

Thirty two years ago, this question was asked during the 1980 presidential debates, and one that is often  reprised when the incumbent administration is faltering.  But I couldn’t help but translate it to, “ is your dream of retirement more secure today than it was four years ago”?

Politics aside, the economic challenges of investing wisely has undergone significant shifts in the past four years.  Stocks, as represented by the S&P 500, are at the same point now as they were in 2008.  Gold has more than doubled, while the average sales price of a new home has dropped by 20%, and of course existing home sales prices have dropped much more.  The US prime rate has remained unchanged at 3.25% with the target rate of fed funds at 0-.25%.  Meanwhile, the Federal Reserve continues to artificially drive rates down by buying debt and increasing the inevitability of future inflation.

It’s difficult to make sense of it all, yet the inevitability of being one more day closer to retirement is a drumbeat that none of us can ignore.  The professional money managers are moving to alternative investments as a way of increasing diversity and yield.  According to Research Magazine (Oct 2011), 78% of all advisors are now using alternative investments in their clients’ portfolios.  Morningstar also reported that in the ten year period from 2002 through 2011, alternatives outpaced stocks by over a three to one margin.

The attraction of a NuView self-directed IRA permits the alternate investor the broadest range of choices, even beyond the Wall Street offerings of Real Estate Investment Trusts (REITS), hedge funds, and oil leases.  Our clients take advantage of bank lending constraints to gain yields of 6-15% or more on their self-directed loans.  Instead of a stock-based real estate investment, they  may prefer buying a duplex and having the rent accrue tax-free to their IRA.  Others find entrepreneurs  and help fund start-ups, gaining future profit potential.

No matter whether you watch Fox News, MSNBC, CNN or avoid the news altogether, no one will care more about your retirement than you.  Get involved, make good choices, and your retirement dream will be much better four years from now.

To take control of your retirement future, contact NuView IRA at (407) 367-3472. With a self-directed IRA from our Florida self-directed IRA administration company, you’ll have the opportunity to invest in many ways you may have never thought possible!

Retiring – Then Living with your Kids: The New Reality

My household situation is not as rare as it may seem.  My wonderful 91 year-old mother lives with me,  a very patient daughter-in-law, and four grandchildren.  While God has blessed her with great health and vitality, I’m not sure that living with her son would have been her dream several decades ago when she was in the workforce.

According to the MetLife Mature Market Institute, there are over 10 million adult children taking care of their aging parents.  Still others are contributing to assisted living care, which averages about $3,500 per month.

While having my mother with us is an incredible blessing, many senior parents would choose, if financially able, to be on their own.  Indeed, the financial fall-out of the past five years has robbed many seniors of a healthy retirement nest egg and resulted in very limited choices for the years that were to have been “golden”.

At NuView IRA, our clients think every day about their view of retirement and what choices they need to make to achieve their dream of retirement.  Unlike others, they not only think and dream, they act.  We have clients that lend their IRA to investors secured by recorded mortgages, with note rates ranging from 6-15% and more.  These types of investments are particularly attractive to seniors who may need to live on the interest earned.

Through joint ventures, a rollover IRA holder can partner with a real-estate rehabber to purchase a wholesale property, fix it up, and put a renter in the home, with all the net proceeds due to the IRA deposited tax-free.

Fact is, the choices with a self-directed IRA are considerable, and the potential returns may be far more attractive than what is offered by the stock market.  So do your homework, make good choices, and plan for a retirement that will allow plenty of visits to your relatives – but not force you to move in!