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Meet the trusted experts of the Self-Directed Investment world!

Tyler Carter – NuView IRA – Episode 22

Tyler Carter

Tyler Carter

 

NuView IRA

I help raise awareness of the benefits of self-directed IRAs. I seek to educate seasoned investors, professionals, and novices alike through regular in-office workshops as well as certified continuing education courses. Through CPE for CPAs, CLE for Attorneys, and CE for both CFPs and Realtors, I have successfully broadened the local knowledge base on self-direction.As a resource to prospect and current clients, I ensure investors understand the rules and regulations of IRAs as well as the investment opportunities available for retirement plans. On the wholesale side, I work with Broker-Dealers, Sponsors, and Registered Investment Advisors to help them access their investor’s IRA funds for current offerings.

SELF-DIRECTED STRATEGY

IRA Custodian

WEBSITE

https://www.nuviewtrust.com

EMAIL

info@nuviewira.com

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About NuView IRA

Trust has always been part of our DNA, now it’s part of our name! NuView is excited to announce the launch of NuView Trust Company, Inc.

The vast majority of IRA holders invest in public equities through mutual funds, while others select individual stocks to hold in their retirement portfolio. However, there is a growing segment of investors who wish to access investments not offered by Wall Street brokers or the traditional markets.

Since our formation more than 10 years ago, NuView Trust has strived to provide our clients with the broadest possible choices in their IRAs. While other custodians tend to reject non-traditional investments, NuView’s administrative platform was designed with alternatives in mind.

With a self-directed IRA, the client serves as the account fiduciary, and as such, NuView Trust does not render tax, legal, accounting, investment, or other professional advice. If tax, legal, accounting, investment, or other similar expert assistance is required, the services of a competent professional should be sought.

Our positioning as a smaller, private firm gives us a distinct advantage in the marketplace because we’re able to hand pick the best opportunities and harvest only the best opportunities for Prime Pinnacle Members.

Mahir Allan – MJS Think Tank – Episode 21

Mahir Allan

Mahir Allan

MJS Think Tank

Mahir is head of business development at MJS Think Tank, He assists companies and beneficiaries with addressing issues that arise from NPNs, liquidity concerns, and workout strategies. Marhir simultaneously manages multiple departments involving operational, financial, borrower, and beneficiaries difficulties or inefficiencies. In addition he assists in acquisitions and sales of distressed REOs, 1st and 2nd mortgage assets.

SELF-DIRECTED STRATEGY

Notes

WEBSITE

https://www.mjsthinktank.com/

EMAIL

info@www.mjsthinktank.com

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Attend The Distressed Note Expo

September 16-17 In Orange County California



Seats are going fast

Spend two days with industry professionals to learn all of the in’s and out’s of the ‘Paper’ business. We will have panels and speakers covering everything from non-performing loans to creating ‘Partials’ to originating your own loans or seller financed notes and performing loans.

SIGN UP





About MJS Think Tank

MJS Think Tank’s purpose is to build a well rounded group of individuals that will succeed in the note business. We educate investors the RIGHT way in order to understand distressed mortgages. Our primary goal is to teach investors the proper way to analyze a single loan or a large tape. The money is made in the analysis and with our years of experience and success we want to pass our knowledge down to others.

At MJS Think Tank, we provide many options for you to get started in the distressed mortgage industry. Some of the features are our videos, slides, webinars, coaching calls, message forums, news letters, live events, and so much more.

With MJS Think Tank you have the ability to learn at your own pace with information that no one else will share in the industry.

Chris Urso – URS Capital Partners – Episode 20

Chris Urso

Chris Urso

URS Capital Partners

Christopher Urso is managing partner of URS Capital Partners and since 2007 he has been committed to the company’s growth.
Christopher has been responsible for cultivating the firm’s strong relationships via its industry partners, private investors and real estate professionals. From 2008-2009, Christopher led a multi-state team to acquire, renovate and sell over 60 single family homes. In 2010 he directed the firms efforts towards multifamily with the purchase of a vacant 40 unit building and has since taken a very systematic path to acquiring over $100,000,000 in multifamily assets.

SELF-DIRECTED STRATEGY

Real Estate

WEBSITE

http://www.urscapitalpartners.com/

EMAIL

info@urscapitalpartners.com

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About URS Capital Partners

URS Capital Partners is a highly focused multifamily firm with a combination of institutional and entrepreneurial leadership. With over 1,800 units acquired in strategic growth markets throughout the Southeast and Midwest, URS has proven its ability to generate double digit yields on both leveraged and unleveraged investments.

Our firm’s primary focus is creating value. The opportunity for value that URS targets is often derived from distressed sellers, inappropriate capital structures, significant capital needs and/or poor management resulting in underperformance in rent growth and operations.

By investing with URS, you can rely on our team to thoroughly stress-test opportunities before we offer them to our investors. We leverage our extensive experience in both acquisitions and operations to provide you with opportunities that most investors never have access to.

Clay Malcolm – New Direction IRA – Episode 19

Clay Malcolm

Clay Malcolm

New Direction IRA

Clay oversees most avenues of marketing, teaches Continuing Professional Education and informal classes and webinars, and facilitates the training of our business development and client relations teams. Clay has more than 20 years of management experience in various roles, including as the vice president of Jersey Films and as a director for Princeton Review. Clay draws upon his teaching background – including instructor roles with Colorado Outdoor Training Initiative and Ivy West Education – to develop the educational aspects of New Direction IRA and impart knowledge about self-directed IRAs to its clients and prospective clients. Clay received his Bachelor of Science degree in Communications from Northwestern University.

SELF-DIRECTED STRATEGY

IRA Custodian

WEBSITE

https://newdirectionira.com/

EMAIL

info@newdirectionira.com

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About New Direction IRA

Today, New Direction IRA employs over 70 employees and holds 1.7 billion dollars in IRA assets under administration. One of the founding principles of New Direction IRA, Inc. is to bring information about self-directed IRA investing out of obscurity and into the arena of common knowledge. New Direction employs an education-based business model with the goal of making the details of self-directed IRA investing transparent and accessible.

In addition to our industry-best educational webinars, specialized videos, and cutting-edge blogs and articles, New Direction provides live presentations for investors of all asset markets, and offers continuing education courses for CPAs, attorneys, and real estate professionals. We pride ourselves in consistently being a leading provider of self-directed IRA education and administrative services. We believe in empowering our clients with the education they need to confidently make knowledgeable investment decisions for their individual retirement account.

Edwin Kelly – Specialized IRA Services – Episode 18

Edwin Kelly

Edwin Kelly

Specialized IRA Services

Edwin Kelly is America’s leading expert on Self Directed Retirement accounts and self-directed investment strategies. He has more than 24 years of experience in the Financial Services Industry. He worked for such notable companies like UBS and BISYS. Edwin is a Founder and currently serves as CEO of Specialized IRA Services.Edwin is an avid educator, adding value to clientele by developing significant knowledge assets at every company he has worked with. His passion for helping others learn about their Self Directed IRA options has made Edwin a popular and engaging speaker who is frequently invited to speak at seminars and workshops, in webinars, and as a radio guest. Edwin has made several special appearances on the Money Show, and his work and ideas have been featured in major national magazines and newspapers throughout the United States.

SELF-DIRECTED STRATEGY

IRA Custodian

WEBSITE

https://specializediraservices.com/

EMAIL

info@specializediraservices.com

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About Specialized IRA Services

Specialized IRA Services is a boutique financial services firm that specializes in allowing clients to self direct their retirement, education, health savings and 401(k) accounts into alternative assets like real estate, notes, mortgages, trust deeds, precious metals, FOREX and virtually anything the
government allows.

Our positioning as a smaller, private firm gives us a distinct advantage in the marketplace because we’re able to hand pick the best opportunities and harvest only the best opportunities for Prime Pinnacle Members.

Josh Manier – Red Rock Capital – Episode 17

Josh Manier

Josh Manier

Red Rock Capital

The President of Red Rock Capital, Joshua Manier has been involved in all aspects of real estate investing for the past 10+ years. He has processed, underwritten, brokered, financed, rehabbed, and sold investment properties and has managed a private mortgage fund since 2012. Mr. Manier is responsible for operational aspects of the company including management of marketing, underwriting, loan servicing, and administration. He currently serves as a strategic adviser to a select number of privately held companies.

SELF-DIRECTED STRATEGY

Real Estate

WEBSITE

http://www.fundwithredrock.com/

EMAIL

josh.manier@fundwithredrock.com

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About Red Rock Capital

Red Rock Capital provides financing to real estate investors around the country on 1-4 unit investment properties and select commercial properties. We source new loan opportunities, underwrite, fund, and manage loan servicing.

We provide these comprehensive services on behalf of funds we manage directly, family offices, institutional investors, and high net worth individuals. We diligently vet each loan to match the risk-reward profile that most accurately appeals to the investment objectives of each investment pool funding the loan. Red Rock also serves as delegated underwriter and strategic adviser to the investors we sell and manage loans on behalf of.

Our positioning as a smaller, private firm gives us a distinct advantage in the marketplace because we’re able to hand pick the best opportunities and harvest only the best opportunities for Prime Pinnacle Members.

Chase Thompson – Note MBA – Episode 16

Chase Thompson

Chase Thompson

NoteMBA

I host a weekly podcast with Robert Woods called the Note MBA podcast. Our aim is to provide honest insight into the note investing business from the ground up as we develop our companies and compete in the marketplace for deal and dollars.
I was the previous Mortgage Banker and Host of the Real Estate show The Ticker.

SELF-DIRECTED STRATEGY

Notes

WEBSITE

http://www.notemba.com/

EMAIL

chase@notemba.com

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About Note MBA

The Note MBA Podcast aims to show you an inside story of two guys who have jumped head first into the defaulted note business.

Follow us as we share our grassroots education in this expanding community of investors.

Learn all while one half travels the world in pursuit of every location independent entrepreneur’s dream and the other expands his love for business and family enough to fill the great state of Texas.

We’re here to show you that you’re never alone in the note business. Join us every Wednesday to find out what we’re up to now.

Josh Moore – New Standard IRA – Episode 15

Josh Moore

Josh Moore

New Standard IRA

Josh Moore is a Self-directed IRA LLC pioneer and driving force behind business development, marketing, sales, operations and quality client support at New Standard IRA. People trust me with their life savings! Josh has ten+ years as a logistical facilitator for thousands of retirement portfolios and an aggregate sum over 1 billion dollars.

SELF-DIRECTED STRATEGY

Checkbook IRA Investing

WEBSITE

http://irallc123.com/

EMAIL

info@irallc123.com

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About New Standard IRA

Want more security, more opportunities, flexibility and simplicity in your retirement? New Standard IRA has the solution you need to succeed.

Our mission is to help individuals benefit from ALL the freedoms allowed under IRA law and we have been accomplishing this mission since 2006. Our proven IRA LLC strategy puts you in the driver’s seat and our self-directed IRA experts keep the engine running – we don’t regulate our clients, we support them.

Most IRA and 401(k) participants feel like retirement funds aren’t really theirs, and can only hope they chose the right investment advisor or picked the right fund. The old standard is dying – Welcome to the New Standard IRA.

At New Standard IRA we believe a TRUE self directed IRA must have the following features:

— IRA Checkbook Control – You make the decisions, you write the checks

— Unlimited investment opportunities, including real estate, precious metals, private notes and loans, etc…

— Fast Transactions – Opportunity is around every corner, so are other investors. Those who strike while the iron is hot secure the best investment opportunities.

— Limited Custodian Intervention – Self Directed IRA Custodians make a point to say they aren’t your legal, tax or investment counsel. So they shouldn’t hold your money, determine how to structure your investment or demand unnecessary paperwork.

 

Our positioning as a smaller, private firm gives us a distinct advantage in the marketplace because we’re able to hand pick the best opportunities and harvest only the best opportunities for Prime Pinnacle Members.

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Recent Self-Directed Retirement Investing news, blog posts, and more!

SDIRATV Shows You How To Prepare Investment Properties For A Hurricane

via PR Web

How can real estate investors prepare and protect their properties from hurricanes?

Hurricane Harvey has been devastating for many in Texas, and across the south. More storms are on the way, and experts forecast this will be a far more active Atlantic Hurricane Season than average. How can investors be prepared, minimize risk, and be best positioned to bounce back after a major storm?

Plan

Minimizing risk, and creating a sustainable real estate investment strategy is all about advance planning. You’ve got to have a plan well ahead of these storms. This should layout the moves you’ll make, when these steps will be taken, and what you’ll do after a storm. This includes factors like; protecting paperwork, getting contractors out to secure properties, planning backup lines of communication, and having the financial reserves to navigate all of this.

Insurances

Insurance is critical during times like these. Select a sound insurance company. Make sure that you have all the types of insurance you need. Note that in Houston, only around 15% of properties in the path of the flooding had flood insurance. You may need to add this, and windstorm too. Reevaluate the amounts of your coverage. Does it just cover any loans you have on the property, or full replacement cost? Do you have enough cash to cover your deductible?

Non-Recourse Financing

Using financial leverage is a great way to help minimize risk in investing too. Having a loan or line of credit can engage another party in sharing your risk. The extra cash you don’t have to put in can be used to diversify in number of units and geographically so that your portfolio and income is insulated from the impact of natural disasters. For those who don’t particularly like debt, consider a non-recourse loan while means you are not personally on the hook.

Experienced Asset Managers

Your asset and property managers can make all the difference in a storm. Investors need savvy managers who know how to prepare, have plans, and have the crews to get out and prep, secure, check on, and repair properties fast. Visit sdira.tv to learn more about financial strategies.

Get Out of the Way

It’s always better to be safe than sorry. Storms can change in strength and direction quickly. It can be too late to escape if you drag your feet. There may be no airline tickets or gas. Get out of the way, take your important documents, and stay safe until things are back to normal.

 

SDIRA TV Offers New Strategies Amidst Massive Equifax Hack

via PR Web

 

Financial experts provide new money strategies in wake of Equifax hacking scandal

Experts deliver new alternative investment advice and resources for individuals being impacted by the giant 2017 Equifax data breach. This includes all new episodes of SDIRA TV with national finance experts and investment advisors, as well as a side by side comparison white paper on retirement investing options.

The record breaking data theft at Equifax which was revealed in early September 2017, is the largest, and potentially most devastating hack yet. The credit bureau originally announced that 143 million Americans had their personal information stolen. Other cybersecurity analysts have since put this number closer to 300 million, or 75% to 100% of the entire population.

Deeper concerns have surfaced as it was discovered three Equifax executives sold off substantial amounts of personally held stock before making the breach known.

With individuals or corporations in control of such sensitive data, and the ability to steal identities, it is quite possible millions of Americans will see their credit take serious damage in the next few years. With credit now a pivotal factor in investing, qualifying for jobs and career promotions, and finding housing, there are significant concerns over the future of their finances.

One of the few solutions available may be investing with current capital already in 401ks and IRAs, which may need to be wisely restructured given the current threats. Experts featured in new episodes of SDIRA TV also highlight the option to use non-recourse loans to expand and accelerate portfolio growth, without personally guarantees that show on their individual credit.

Access these resources, and learn more about alternative investing with a retirement account at SDIRA.TV.

  

SDIRA TV Offers Irma Victims Insight On Using 401k Money To Recover

via PR Web

Web-based SDIRA TV channel offers key knowledge from financial experts on using savings in 401k and IRAs to rebuild and recover from recent hurricanes Harvey and Irma. The channel has just released new video interviews with retirement investing specialists, and a must read side-by-side comparison guide to 401ks and IRAs.

Chief financial analyst for Bank Rate, Greg McBride, came out on Fox on September 5th, 2017 to warn that tapping cash from 401ks should only be a last resort due to the high taxes that could be involved. This could be true for many who are currently out of work and are waiting on insurance claims. Yet, a panel of advisors from SDIRA.TV also note that there are many ways to rollover these funds to invest and rebuild their finances, without penalties. This also includes the Solo k, which may provide penalty free loans to business owners and the self-employed.

In addition to the new side by side comparison resource to evaluate retirement account options, individuals will also find the site offers a substantial lineup of experts; including leaders from MJS Think Tank, URS Capital Partners, Specialized IRA Services, and Growth Equity Group, as well as leading finance professionals like Chase Thompson.

Some residents of Southern Texas, Florida, Georgia, and South Carolina, as well as those with investments there, may have little choice but to access from of their retirement funds to stay afloat and cover the immediate cash crunch. However, there may be smarter ways to do it, without incurring double digit tax penalties. For others it may just be a need to find more profitable and safer investments to put their retirement funds into.

Find out more about your options and access these critical and tax saving resources at SDIRA.TV.

 

 

SDIRA.TV Educates Those Who Want To Invest Like Warren Buffett

via PR Web

Tampa based, SDIRA.TV has launched a menu of new investment education tools including self-directed retirement investing episodes, live events, video tutorials, and eLearning guides. Through these channels, and a member forum of tens of thousands of peer investors, those looking to make smart money moves will find advanced tax saving strategies, real estate investment opportunities, and how they can find long-term vehicles for generating passive income in retirement.

For at least the second time this year, legendary investor Warren Buffett has been in the news for making a major real estate play. According to National Real Estate Investor in June 2017 it was announced that Berkshire Hathaway was taking a near 10% stake in Store Capital for $377M. This follows Buffett’s personal investment in 2 million shares of Sears related real estate. Other recent real estate related investments include Canada’s Home Capital, and Berkadia Commercial Mortgage. This is all in addition to his other plays which most notably include Clayton Homes and Berkshire Hathaway Realty.

Home prices have been rising according to the latest data from the National Association of Realtors, and real estate continues to be a strong income play for those seeking passive income, and stable long-term investments. Bank of America Merrill Lynch reports that billions are being plowed into this sector, even after Fed Chairwoman, Janet Yellen’s recent prediction that we are unlikely to see another financial crisis during our lifetimes.

Self-Directed IRA TV (http://sdira.tv) is a platform which educates investors on how they can invest in real estate precious metals, and private equity, through tax protected retirement accounts. The head of SDIRA.TV, Cynthia Faulkner, says, “Self-directed retirement account investing can give individuals the freedom to invest in real estate and other income producing assets, with a strong long-term outlook.”

Those who hope to mimic Buffett’s success in investing for their own financial futures, and who want to learn more about controlling their retirement investments can get a free copy of The Investor Success Toolkit at https://sdira.tv

7 Ways To Start Saving For Retirement Right Now

via Forbes

It may seem easy to put off until later in your career, but saving for retirement needs to be a priority as soon as you start earning income. At least if you want to have a say in what your retirement looks like. No one wants to reach 65 and be forced to keep working, or rely on the welfare system or their children to get by.

It’s important to keep in mind that there are government-issued limits on how much you can contribute to tax-advantaged accounts each year, so there’s a missed opportunity cost every year you don’t contribute. And unless you’re expecting an exorbitant inheritance (which is never a guarantee!), preparing for retirement will require some effort.

There’s no secret amount of retirement savings or strategy that will work for everyone. Except for getting started. That is a strategy that everyone needs to employ and the sooner, the better. Here are 7 strategies to get your retirement saving started.

Create a Debt Repayment Plan

Tackling your debt as soon as possible will allow you to be more in control of your finances in general. If you are working on paying down debt, whether student loan or car loans or something else, it doesn’t mean you have to hold off on saving for retirement. In fact, waiting until you’re debt-free before saving for retirement can put you in a precarious position and even delay your retirement age. Look at your monthly income and order your debts by priority to make a smart repayment plan. It’s a good idea to create a debt repayment plan while also setting aside some money for the future. In the beginning this can be a very small amount.

Make the Most of Your Employer-Sponsored Plan

It’s a good idea to start by seeing what retirement plans your employer offers. Whether it’s a 401(k), 403(b) or 457, these vehicles can help you reach your retirement goal. This could mean establishing automated contributions from your paycheck each month, as well as maxing out company match programs, where employers provide a percentage or each retirement contribution up to a certain amount. This is generally an easy way to get started and if you have any questions, your Human Resources department should be able to help.

Open a Low-Stress IRA

If your company doesn’t offer a retirement saving program, or if you want to save somewhere else, consider an Individual Retirement Account (IRA). Once you choose the IRA that’s right for you, contact the appropriate bank, broker, mutual fund representative, or other investment account holders to get started. Find an account without minimum contributions so you’ll enjoy the returns without feeling the pressure.

Look into the Roth

When it comes to IRAs, a Roth account can be a great option – so long as you qualify. With a Roth IRA, your investment comes from after-tax income, so you won’t have to pay taxes on the Roth funds you withdraw in retirement. It means you don’t deduct your contributions when you file your tax returns and get the break now, but you will reap the benefits later. This means it can be especially helpful for those who believe they will be in a higher tax bracket in retirement. Plus, Roth IRA don’t have Required Minimum Distributions, which means you won’t have to start taking that income when you hit a certain age.

Budget Better

It may seem obvious, but being aware of your finances can be the best way step to take immediately. It’s important to know where you currently stand, for both your income and your spending. You may think you have it all together financially, but seeing your breakdown on paper – or screen – will make it much clearer. This can help you see the areas you can cut back to make sure your spending matches your priorities. If saving for retirement is a goal for you, make sure it’s reflected in your budget.

Make a swap

When you asses your spending, it can sometimes be really clear that there is a category you can cut back on. If that’s not the case, it may require a bit more work from you. For example, can you up your income by working towards a promotion, switching jobs or even careers. Small changes can certainly help – cutting out daily coffees, cigarettes, expensive lunches or frequent clothing purchases – but the biggest impact can come when you adjust spending on the big categories. This includes housing and transportation. Can you find a cheaper place to live? Can you reduce the amount you are spending on car payments by swapping out your expensive car for a more modest model? Once you’ve made some changes, it’s important to immediately earmark that savings for your retirement.

Use an App

If bank branches and wealth managers give you stress, you may want to turn to online tools. You can even start saving for retirement right from your phone with apps like Acorns and Motif. This technology makes it easy for anyone to compare plans, keep track of retirement savings and make regular contributions. Find a tool that you feel comfortable with and that helps you reach your goal.

The sooner you begin saving for retirement, the longer your money has to grow. Compound interest works in your favor. This is where your money earns interest and then that money earns interest. Having your money work for you means you don’t have to work to earn it. No matter where you are in your life or career, you can choose to make retirement a priority right now.

 

Surprise! Qualified retirement-plan sponsors are fiduciaries

via CNBC

The S&P 500 has suffered a 7 to 10 percent decline in each year since 1995. I believe this year is no different — and that, in fact, such a decline is around the corner.

First of all, the market’s strength appears to be flagging. Sure, the S&P is up 9.2 percent this year, but more than half of that advance came in the first two months of 2017. It is striking to note that right now the index stands almost exactly where it found itself at the beginning of June.

This is odd, because the fundamentals have proceeded quite well. The improvement in earnings we saw in the first and second quarters, and the recent better-than-expected economic data, have all become evident after most of this year’s rally had already taken place. In other words, this is yet another example of when the market moves differently than the way fundamentals tell us it “should” move.

But this distinction isn’t encouraging; quite the contrary.

Beyond the stalling in the level of the S&P 500 itself, it is interesting to note that the number of stocks above their 200-day moving average has declined markedly. This tells us that the market is becoming more “narrow” in leadership.

Even worse, we’re also seeing a divergence in the breadth of the market on days in which the S&P sees a big move. Last Tuesday, when the S&P 500 enjoyed a 1 percent rise, 4.5 stocks in the index advanced for each that declined. Yet two Thursdays ago, when the market slid 1.5 percent, 20 stocks fell for each that rose.

And let’s not forget about the macroeconomic backdrop.

The Federal Reserve plans to begin to shrink its balance sheet, which means there will be less liquidity in the system than there has been in many years. As we have shown many times in the past, this liquidity has been the key fuel for the rally over the past eight to nine years — so the fact that it’s going to be less plentiful going forward makes us quite cautious.

With monetary policy changing, we need to see fiscal policy pick up the slack. Although we do think we’ll get some sort of tax package and other fiscal stimulus before next year’s election, it’s going to be a lot less than people were hoping for, and won’t be enough to make up the difference.

In other words, the improvement in fundamentals is already behind us. Looking forward, several catalysts would seem to suggest that a drop is more likely than a rise. And for close watchers of the charts, the market’s “internals” are telling us that already.

 

 

The cost of tapping your retirement accounts early

via CNBC

Tapping retirement account balances before age 59½ can result in tax obligations and penalties.

When money is tight and times are tough, it can be difficult for retirement savers to ignore the money they’ve stashed in a 401(k) plan, IRA or other retirement savings account. Still, while it may make sense in some situations to tap into those accounts early — for example, if a job loss has put you at risk of losing your home — it should always be the very last resort.

Here’s why: Not only will you pay significant taxes and penalties for an early withdrawal, you’ll also reduce the amount of savings in your account that are available to enjoy market gains. And those market gains may make the difference between a successful, leisurely retirement and one that’s a struggle.

Taxes and penalties

 

First, let’s consider those taxes and penalties. Let’s say you’re not yet 59½ (that’s the age at which the early withdrawal penalty no longer applies) and you withdraw $20,000 from your 401(k) plan. Let’s assume you have a 25 percent effective income-tax rate, including state taxes, and add the 10 percent penalty for early withdrawal (this is assuming you don’t qualify for an exemption, some of which are detailed below). That $20,000 is now just $13,000.

 

In addition to taxes and penalties, don’t forget the lost investment gains. Consider a 30-year-old worker who, rather than withdrawing $14,000 out of his retirement account instead leaves that money in his 401(k) plan to grow. Even if he never contributes another penny, that $14,000 would grow to $152,147 by age 62, assuming an 8 percent average annual return. Of course, that’s not going to happen if the worker withdraws that $14,000 at age 30.

Early withdrawal exceptions

 

Still, there are situations in which one can pull money out early from a retirement account without triggering the 10 percent penalty, though you can’t avoid paying income taxes on the money. Note that the rules for these exceptions vary, depending on whether you have an IRA, 401(k) or other type of retirement plan. For example, you can avoid the 10 percent penalty on early withdrawals from both IRAs and 401(k)s if you use the money to pay medical expenses that top 10 percent of your adjusted gross income.

But while early IRA withdrawals are exempted from the penalty if the money is used to pay health insurance premiums while you’re unemployed, that particular exemption is not available to 401(k) plans. Similarly, while an early IRA withdrawal to pay for qualified higher-education expenses or to pay up to $10,000 for the purchase of your first home won’t be subject to the penalty, an early withdrawal from a 401(k) for the same purposes affords no such relief.

Meanwhile, people who institute a process of withdrawing a series of “substantially equal payments” over time from either account type, under a provision known as the 72(t) rule, can avoid the early withdrawal penalty.

It’s important to note that if your employer offers hardship withdrawals from the company 401(k) plan, and if you qualify for such a withdrawal, you’ll still owe the 10 percent penalty (assuming you’re under age 59½) plus income taxes on that money.

 

Another way to pull money early from a 401(k) is by taking a loan, assuming your plan allows them. To avoid the penalty and taxes, you’re required to pay the loan back, with interest. A word of warning: If you happen to lose that job while you have a loan outstanding, you’re required to pay back the balance in short order or risk getting hit with the penalty and taxes on the amount that you haven’t paid back.

Roth IRAs

 

Meanwhile, Roth IRAs offer a somewhat different approach, because the money you’re putting into the account is after-tax rather than pretax. Thus, once you own the account for five years, there is no limit or penalty on the withdrawal of the contributions you’ve put into the plan (though withdrawing any investment earnings does trigger tax consequences), because you’ve already paid taxes on that money.

That makes Roth IRAs to some degree more flexible in terms of pulling money out before you’re ready to retire. In fact, some finance experts suggest using a Roth IRA as a place to stash longer-term emergency savings. That said, others argue that the best use of such accounts is what they were designed for: saving for retirement. As with all things retirement, it makes sense to discuss the ins and outs of various account types with a professional financial planner.

SDIRATV To Be Featured at Distressed Mortgage Expo Sept 16 & 17

We’re taking our show on the road and are excited to announce that SDIRATV will be participating California’s Distressed Mortgage & Private Lending Expo 2017. This event takes place at The Double Tree on 100 The City Dr. Orange, CA on September 16/17 This two day event offers some of the biggest names in the note industry all looking to further the education of investors and reshape way people save for retirement. The event will have panels and speakers covering everything from non-performing loans to creating ‘Partials’ to originating your own loans or seller financed notes and performing loans.

In attendance will be Cynthia Faulkner providing guidance and portfolio insight to all attendees. The time has never been better to learn to become a lender. Whether you have your own capital or not, there are literally trillions of dollars looking for safe real estate secured investments offering above average returns. We will teach you the tricks on where to find the money and how to structure the deals.


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