Precious Metals

As We Roll into the New Year, Seize the Opportunity to Take Control of Your Retirement with Self-Direction!

December 27, 2012

As we head into the New Year, many people will likely be looking at their bank accounts and then making it their New Year’s Resolution to save more money. While this resolution is admirable for anyone, why not take it one step further and have your New Year’s Resolution be to take control of your retirement! Mentioned in an article from Fox Business, George Papadopoulos seized the opportunity to take control of him and his wife’s retirement when his wife’s employer made significant changes to her company’s 401(k) plan.

In addition to offering an extensive list of mutual funds that employees could choose to invest their money in, his wife’s company began offering a self-directed 401(k) option for employees. Papadopoulos, being an experienced investor looking to take control of the couple’s retirement, jumped at the opportunity for self-direction. “Self-directed 401(k) options are great for experienced investors like myself,” Papadopoulos said.

Even though a traditional 401(k) plan and a self-directed 401(k) plan offer the same pre-tax benefits and automated payroll deductions, the true difference between them is the investment choices you have with a self-directed 401(k). Self-direction dramatically expands your investment options from a short list provided by your employer to a variety of investments including real estate, tax liens, stocks, bonds, mortgages, notes, precious metals, and other investments.

The percentage of employers offering self-directed retirement savings plans in 2011 was 29% and this number is growing. Who knows – maybe your employer will be next to offer a self-directed 401(k) option to employees? Give our Florida self-directed IRA administrators a call today at 407-367-3472 to learn more about your self-directed retirement plan options!

Crowd Investors

December 14, 2012

In the 1978 movie “Midnight Express”, the sympathetic protagonist Billy, a US citizen,  is caught trying to smuggle several kilos of heroin out of Turkey, and is sentenced to four years in a prison under horrific conditions.  His hope for extradition seemingly dashed, he is resigned to living out his life in the mundane routine monotony of the incarcerated.  His sentence is extended due to an aborted escape attempt and is later transferred to the prison ward for the criminally insane.

For a brief one hour each day, he is afforded the opportunity to exercise in the yard with his fellow prisoners.  In a pivotal scene, instead of plodding along clockwise in formation with the crowd, something prompts him to move in the opposite direction, facing the crowd.  This unorthodox move is met with raised voices and fists, the group insisting that he return to the slow, methodical clockwise shuffle.  His singular intransigence in breaking from the crowd marks a metaphorical turning point, leading to his eventual escape from his sadistic jail-keepers.

This may be an apt metaphor for investors who choose to self-direct their retirement.  When real estate prices decline and buyers are timid, our clients start to step in and seize the opportunity to secure cash flows unheard of several years ago.  When banks no longer have the appetite to lend to investors, self-directed IRA holders emerge, meeting the need through private loans, securing great returns for their retirement plan.

Yet even within investment classes, the herd mentality of crowd investors is alive and well.  For example, in 2011, investors flocked to gold in record numbers, including those using IRAs, pushing the spot price well over $1900 per ounce.  Many of those buyers were looking to find a safe haven to protect against uncertain economic times and the Spector of looming inflation.

Since then, prices have retreated below $1700, with new investors turning their attention back to other markets.  It seems like crowd investors have moved on, yet have the fundamental reasons changed?  If gold was attractive at $1900, why is it less alluring when it costs less?

Now to be sure, I am not an investment advisor, nor would I ever pretend to be.  Yet I can’t help but think that the majority of investors, and yes, those that advise those investors, are guilty of group-think.  Why else would someone embrace the concept of owning a CD that yields 1.3% when so many other options exist that may provide better returns within their own risk tolerance?

For those of you self-directing your IRA, congratulations, you are moving away from crowd investors.  For the rest of you, think about your choices, your outcomes, and come join us – just not so many of you that it becomes a crowd.


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]

Required Minimum Distributions – You Can’t Afford to Miss This Deadline!

December 7, 2012

Don’t let the little issue of RMDs or required minimum distributions get lost in the blur of the holiday season.  The IRS makes it painfully clear that they are envious of those of you that are over the age of 70.5 and have an IRA or other retirement plans.  Interestingly, the Roth IRA holders are spared the indignity of the government telling them how to manage their finances, but more about that later.

If you hold a non-Roth IRA and had your 70th birthday before July 1 of 2012, you must take a minimum distribution from your plan.  In other words, make what was tax deferred, now taxable.  How much must you take out?  It is based on an IRS provided table that calculates your estimated life expectancy.  How much is it?  Well, if you turned 70.5 this year, you will be forced to take a distribution of a little over 3.6% of your holding.  My mother, age 92, is required to take out 9.8%. For those of you yearning to know more, consult IRS publication 590 for the rules and tables.

All non-Roth IRAs are added together to calculate the RMD, and distributions can be made out of any of the held IRAs to meet the distribution requirements.

IRA holders that are in or near their RMD years should plan for sufficient liquidity in their plans to permit the easy withdrawal of funds as required.  This withdrawal can take place anytime during the calendar year – but if not done by December 31st, a penalty of 50% of the undistributed amount will accrue to the IRA holder.

Those that have contributed or converted to a Roth IRA are not forced to take any distribution during their lifetime, as all taxes have already been paid.

So, two end-of year reminders:  If you are nearing or over seventy years of age and have pre-tax IRAs, get prepared, and take the distributions as required.  If you wish to convert to a Roth this year, you must do so before December 31st.  Talk to your tax professional before the end of the year so you make all the best moves.

As always, all the best in your investments,

Glen

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)

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!

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.

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.