How To Double Your Retirement and Create A Fortune: Secret Strategies of Retirement Accounts

Hello, hello. Hey guys and gals, Happy Thursday. About 2pm Here, we're gonna get started about two and a half minutes and I'm super excited to be here with you guys and gals today. Thank you very much for being here. My name is Mark Evans, dmdn. We've got a lot of cool stuff to cover today and how to double your retirement and create a fortune with a special guest that's going to rock your world in a positive way, teach you how a lot of cool stuff, things that I'm constantly learning about and I'm very excited to share this information with you. As you guys are coming on here, just give me a big quick shout out of your name, city and state. I'll give you a shout out here before we get started again. We're going to be starting here in about one and a half minutes from now. Let me know you guys can hear me loud and clear by giving me your name, city and state. We've got a lot of folks here, so please, please do not be jumping on and off because if you jump off, I'm guessing you might not get back on and then you guys email me and all that good stuff, which there's nothing I can do. So again, if you guys are here, give me your name, city and state, let me know you're here and we're going to be getting started here in about a minute or so. Hey, Paul Alexander, Minnesota. Nice and cool there, I'm guessing. Steve in Goose Creek, S.C. roger Wilmington, Ohio. Ed Roanoke, Va. Thanks a lot Ed for being on. Haven't talked to you for a while. Thanks for being here. Bill in Columbus, Ohio. Thanks for being on here. Got a lot of people coming on. All right, Joe from New Jersey, thank you very much for being here. Paul, Albuquerque, NM I always loved on this. As you guys know, we got people from Canada, Australia, Singapore, China and all over the United states and all 50 states. And it's super exciting that you guys are here and I appreciate you being here. This information is 100% can change the way you do your real estate business well as double or triple your retirement or more to create a fortune. Skippy, Michigan.

Hey Tom.

Alright guys and gals, so without further ado, I want to stay on schedule. I like to be punctual on this stuff because I know everyone's super busy. Again, my name is Mark Evans, dmdn. Thank you very much for being here. This is a live Q and A call on how to double your retirement and create a fortune with using these very Cool tools and techniques that will allow you to just do some neat things. As I'm talking here today, I have a special guest here that's hanging out. He's in Las Vegas, Nevada right now. Him and I've known each other for a very long time, years and years and years. He's the most trusted authority in this space. He has a lot of knowledge that will just. I'm always amazed every time we talk. As many of you know or may not know, I was recently in Nevada at a private mastermind group where everyone pays a lot of money to be there. And my special guest was there sharing information that just, you know, again, I do this every day and I'm always mind. My mind's blowing because of the information he's able to share with us because we're here to help create a legacy and a long term financial foundation for myself, my wife, now Dina, and my nieces and my parents and everyone I care about. And I know that's why you guys and gals are here because you truly do take, you know, you know, responsibility for your financial future. So I have my great guest and friend here, Edwin Kelly, you there?

I'm here, buddy. How are you doing?

I'm doing awesome, Edwin. How you doing, man?

I am fantastic.

Awesome, buddy. So you have, you have the controllers. I'll interject once in a while. We do have the question line open, so people are going to be asking some questions, I'm sure. I know we got a lot to cover up here in the next 45 to 60 minutes. How do you want to go about it? You just want to get in there and just get started?

Yeah, let's just jump into it. And if questions come up and you want to just chime in there. Mark, since you're kind of managing the questions, that would be terrific. You can save them for the end. You can do them as we go. Doesn't matter to me. I'm happy to roll however you want to roll.

All right, man.

Yeah, let's go.

I'm excited. I'm taking notes.

All right, perfect. All right. Well, hey, welcome to this, this webinar. And like Mark said, I know that we have a limited amount of time to go over a lot of information. So I hope you have some pen or a pen and some paper handy because I'm going to go pretty quick. I want to give you a lot of information, a short period of time because as Mark said, this is absolutely life changing. So a little bit about what we're going to talk about in the next 60 minutes is that we're going to talk about how to make more money in the next 30 days and never ever pay taxes again. Now, I say that, and I know that we have some people who are a little skeptical. Is it really possible never to pay taxes again? Here's what I'll tell you. I source everything in this presentation. I will show you the actual sources, where I pulled the information from. You can make a decision for yourself whether or not that is actually possible to accomplish. I'll show you how to pay yourself instead of paying the government. Because the reality is we have two choices. A lot of people don't view this as a choice, but the reality is we do have a choice. We can pay ourselves or we can pay the government. I'm betting that you'd rather pay yourself. I'm going to walk you through my simple three step process. That's a great thing about this, is that this is very simple and there's only three steps to it. And when you walk through these three steps, it basically allows the money to roll in while the freedom rolls out. I will show you how to double your monthly retirement income. You're going to be amazed at how simple and effective this particular strategy is when you have the right people on your team. And finally, we'll wrap up. I'll show you how you can use this to absolutely rewrite your entire family legacy. So without that, without further ado, let's just jump into it. So I'm a prolific researcher and I'm going to share some of that pertinent research with you right now. There's a Social Security study done or conducted, and here's the interesting thing about it. So do you know when IRAs were introduced? They were introduced back in 1974. Okay. And so we just wrapped up 2014. So we have about 40 years of history. And so the Social Security Administration said, okay, so IRAs and retirement accounts have been around since 1974. So what's happened? Right, we've got 40 years of history. And here's what they found. Here's what the study found. They said if you take 100 people at the start of their working career and follow them to the age of retirement, which Social Security defines as age 65. For purposes of this study, they found out that only 5 in 100 people are financially secure, meaning they have enough money to pay their bills and live the lifestyle they want. Only five out of 100. Now that's a real number today. But here is the question that we really want to ask why is that the case? Well, here's what I'll share with you. I do this, I deal with this a lot. This is my life. And what I find out is that there's a lot of people using outdated vehicles. Now I'm going to use some metaphors to kind of make this simple. And this is. And we're going to be talking about vehicles. So this is how, if I think of a picture in terms of how most people go about things, this is what comes to my mind. Now you and I can draw a couple conclusions looking at this picture. At one time, this car might have been state of the art. At one time, it might set all kinds of speed records. At one time, this car might have turned heads in the right way. But my guess is neither you or I would want to be caught dead driving down the street in this car. So, so what are the vehicles that we got to use and what are the challenges that people face that led to this problem of only five people having enough money being financially secure by age 65? Well, there's three problems and we're just going to take them one at a time. The first one is the trouble with taxes. So here's how taxes work. When we make something called earned income, right? We are subject to federal tax, state, local, Medicare, Social Security. And these are the ranges that you can see current tax brackets currently. So let's put this in dollars and cents for. So we understand the impact that this has. If you make $100,000 this year, you could pay $42,200 to various taxing authorities. Now does that make you mad? Because it makes me mad. Because who put forth the time and the effort to make that money? You and I did. And yet we're giving most of it away to the government and so or significant portion to the government. Here's the reality of it. If you don't have a plan to manage your taxes, it's going to be impossible to create any kind of real wealth in this world. So taxes are the first challenge that people have. The second challenge is what I refer to as the investment challenge. Now, when it comes to investing, and particularly using tax advantaged accounts like retirement accounts, there are two things that people typically do. They put it in something called fixed income or they put it in something else. So let's start with fixed income. So what do a lot of people do with their money? They put it in something that doesn't risk their principal.

Right.

And gives them a stated rate of return. So as an example, one of the most Common vehicles used is something that is based on a cd. So here are CD rates, right? And these are from Chase. And what you can see is that if you had $100,000 that you could, if you locked your money up for 12 months, make 0.05%. Now, are you going to be able to create any kind of wealth with a return like that? And the answer is obviously no. There's no way. In fact, it doesn't even keep up with inflation. Now, I also want to just let you know, I want to be absolutely fair about the different investment options that are out there. So I'm not showing you crappy rates that the banks offer. I'm showing you their great rates that the banks offer, okay? For customers. And so this is the first challenge. It's the investment challenge. And this is a strategy that I refer to as going broke slowly. And going broke slowly is a choice, alright? Because we choose where we put our money, we choose what we do with it. So the question is, why do people choose to go broke slowly? Well, here's the answer. Because they're afraid of going broke quickly, right? Which is the other thing that people do typically with their money. They put it in the stock market, usually via a mutual fund. Now, if you've ever talked to a financial advisor, here's the interesting thing that financial advisors will tell you, right? Slow and steady wins the race. Slow and steady wins the race. Have you ever heard that before? Let's break that statement down for a second because I believe that slow and steady can work. But here's the challenge. Let's start with the study part. Look at that chart. Now, that chart could be from any point in time. But the stock market chart always looks something like this, right? It goes up, it goes down, but it's never consistent. And so this is the problem with the stock market. There's no predictability, okay? It can be very volatile. And so mine just bounces around once the money is in these mutual funds now. So it's not steady at all. What about the slow part? Well, let's go back to our friends at the Social Security Administration. They said that IRAs have been around for 40 years. I don't know how you get any slower than that. So the investment problem is problem number two. Here's the third and final challenge we're going to talk about right now. Most people don't know what they're paying for their investments or their retirement accounts or anything else like that. As a matter of fact, this is what Jason from Minnesota told me when he, when he moved his account over to us, he says, I've been trying to find out how much Vanguard is charging me on my ira. And it is not obvious on any of my statements. To me, it doesn't make sense. And that's the whole thing. They don't have to tell you how much they're charging you in actual dollars every year. There's no requirement that any financial firm does that. So when you get your statements, you don't know how much you paid this year. Right. Nobody really does. That's why there's a company called the Investment Company Institute. And the Investment Company Institute is an industry research organization. They do all kinds of research on the financial services industry. And so here's what they basically found. This is from their 2014 investment company factbook. And what you see, this is a chart that I pulled from their report. It says, maximum front end sales load. And so what it shows you here is if I can move my cursor around a little bit, if you can see, that is for the most current year that they evaluated that the average fee or sales load that someone pays is about 5.3%. Now, again, let's put that in dollars and cents. What does that mean to you and I? Well, here's what it basically means. If you have $100,000 IRA and you move it to a traditional financial institution and they invest your money with $100,000 IRA, you could pay $5,300 in commissions, okay, Your first year, plus ongoing fees of $1,500 a year, according to the ICI, that's a 6. That's $6,800 in fees your very first year. Think about how much the stock market has to go up just for you to get back to zero. And that's the third and final challenge we're going to talk about. So what happens when we take the problem of taxes and the government taking a lot of money from us, when we layer in the problem of the volatility, unpredictability and uncertainty of the stock market, and then we throw excessive fees and commissions on top of that? What do most people's retirement plan look like? Well, welcome to Walmart. And this is what it really looks like. And I don't mean that as a joke, because it's a pretty serious problem. You and I know when we walk into Walmart, we see gentlemen like this greeting us at the door. Right? This is the reality for most Americans today in retirement. So we want to avoid this. So how do we fix this problem? Well, the first Thing we got to do is change the vehicles we're using. So when you think about the kind of vehicle you would want that we would want to use, what vehicle comes to mind? When I think about it, I want something that's going to be fast, effective, reliable, and I'd like to do it with a little style and panache along the way. So here's my wealth building vehicle, right? We buy houses in our ira and that is a Ferrari.

So here's how I want to explain.

This just so it makes sense, because I like making things simple. So I get it. So we're going to be talking about kind of two things here today. The first is the vehicle. The vehicle we're talking about is a self directed retirement account. Now I'm saying retirement, there's actually other types of accounts. But just for the sake of discussion, to make it simple, I'm going to say self directed retirement account. I'm just going to abbreviate it SDIRA or self directed ira. So when I say self directed ira, I want you to think about this Ferrari, okay? Because this Ferrari is the self directed ira, right? Now the question is though, what does it take to make that Ferrari go? It takes fuel, right? And not any kind of fuel. It takes the right kind of fuel. What is the fuel we put in the Ferrari? Or that, what is the fuel that we put into the self directed retirement account? The fuel we put in is, are the investments, right? Real estate, things of that nature that are predictable, certain and secure to generate consistent income. Alright, so let me just real fast, before we move on, give you my definition of a self directed ira. Because if you're new to this concept, question is, well, what is a self directed ira? Edwin? Well, here's how I define it. A self directed IRA is an IRS approved vehicle that allows us to get complete control over our money, invest in what we want to invest in, and spend it all 100% tax free. Okay, I'll say that one more time. It's an IRS approved vehicle that allows us to get complete control over our money, invest in what we want to invest in and spend all our money tax free. That's what a self directed IRA is and that's the power of this. So let's just cut to the chase. Because what everybody wants, right, what you want and what I want is the exact same thing. We want a result. More specifically, what do we want? We want passive monthly income. So here's the question, right? Why don't we just look at what it is ultimately we want to accomplish, what does it take to generate $100,000 a year for the rest of your life? A lot of people think that's kind of a tall order. You know, they're not sure about how to go about that. But let me just give you an illustration to show you how simple this can be. If you contributed $5,000 a year for the next 30 years and you earned 10% on that money. Okay. By the way, Mark, let me just chime in and ask you a question real fast because depending upon people's experience in real estate Investing, is a 10% return a fair return someone could expect investing in real estate?

Yeah, I mean, I got a couple of questions actually, I'd like to ask you guys as the listeners. Edwin, this is all awesome information. I mean, I think the big thing, I got a couple questions. The main one being who here even has a self directed ira? That would be a question I would ask or an IRA or 401k or something that they have just put in the box there, like I do or I don't. Either way is fine. I'm just trying to gauge the level where we're at today as well, Edwin. I mean, 10% on any kind of return consistently is a fair. It's a really, you know, very sustaining number.

Okay, so that, so in other words, I just want to make sure, make sure we're all on the same page that whatever, whatever I'm sharing, I want it to be. I want you to understand that. That it's, it's accurate or that. That it's very possible. And so, Mark, you're the real estate expert, and you're saying that's very sustainable over a period of time.

Absolutely. Yep.

Okay, so if we contribute $5,000 a year, 30 years, and we make 10% on our money, what will that grow to? Well, it grows to $991,964 right now. One of the problems that a lot of people have when they start thinking about what they want to accomplish is that this is not uncommon. I'll ask clients. I do a little bit of consulting. I have a lot less time to do it lately, but I do a fair amount of consulting. I've done it in the past. And when I ask people, what do you want to accomplish? What's your goal? How do we know when we've won? People will tell me things like, well, I want to have an IRA with $2 million or a million dollars or 3 million, whatever they say. And I. And my next question is, okay, you want you want $2 million in a retirement account, why not two and a half? Why not one and a half? And the answer I typically get is, oh, I don't know, it just sounds like a good number. Okay, let me tell you what the most important thing is. What's most important is that we have consistent predictable monthly income because that's how we pay our bills, that's how we live. So if our account grows to $991,000 and we're making a 10% return on that money, how much could we spend every single year without drawing down on our principal? Well, we can spend the income we're making. So 10% on $991,000 is $99,000 a year.

Year.

And oh, by the way, I can show you how to make that $99,000 and not pay any income tax whatsoever ever again. Alright? So I just wanted, I just wanted to show you that it really is possible. It's. These things are not complex, they can be very simple. Okay. It's just knowing how to put it all together. So I'm not going to spend a lot of time on myself. You know, Mark introduced me, but my name is Edwin and I am founder of Specialized IRA Services. I've been in the self directing industry, investment industry for 23 plus years now. I used to update that number every year, but when my hair turned gray, I just put a plus sign after 23 because it starts to date me too much. And I said I'm not changing that fight ever again. I write a lot, I publish a lot, we do a lot of stuff in this space. So at any rate, a lot of my experience in the consulting I've done, you're going to be able to benefit from because I'm going to be sharing a lot of that information with you. So here's what really motivates me though. And this is my daughter here you can see us. One of the things we love to do and I always look forward to is one of my favorite times of year is the Daddy daughter dance. Right? So Mark, you have this to look forward to at some point in the future. But the thing is that this is my daughter Katie. And being very involved with my children, what I learned very quickly was is that school systems don't teach kids how to do these things. They don't teach them about investing, they don't teach them about tax, they don't teach them about anything that's really financially important. And so one of the reasons why we got into really training and educating people on These types of things is because I had to have a way to teach this to my own children so that they could implement and do these things. And you heard Mark talk about his nieces. So we're all motivated by the same thing. We're trying to impact our families. And so that's where I said, you know, there's got to be a better way. There's got to be a better way for people to get control over their money and create a legacy for themselves and their family and not worry about this financial stuff anymore. And in fact, there is. And what it turns out is, is that it's, it's three simple steps to create long term wealth. Okay. This is what I refer to as my 3P process, right? And we're just going to take it 1P at a time. The first piece is profit, right? We have to generate money consistently. And when we're doing that, when we generate money, what is that going to trigger? It's going to trigger taxes, right? So we have to simultaneously protect our money, our income, our profits from taxes. Once we've done those two things, that's when the prosperity kicks in and that's how this comes together. So like I said, it's a simple three steps. We're just going to take it one step at a time. Now, I'm going to explode some myths here today. And the first one is that you can't do that inside of an ira. Now, who can you typically hear that from? You can hear it from a financial advisor. You might hear it from attorneys or CPAs or tax advisors, family members, friends, right? You can hear this from a lot of places. But here's the magic question. Who is it that that writes the rules or oversees the rules when it comes to retirement accounts and IRA specifically? Now, I know it's Congress and the government, but those who are in charge of enforcing the rules are the irs. And this is their website. And if you go to their website and there's a page on there, FAQs regarding IRAs, and if you scroll to the bottom, okay, you'll see a question in bold right there in the middle of your screen, it says, are there any restrictions on the things that I can invest my IRA in? Right? And it goes on to say, yes, as a matter of fact, there are. But look at this. The IRS is kind enough to give us an example. And here's what they said. They said, finally, IRA trustees. Who is an IRA trustee? Well, it's whoever holds your retirement account right now. Okay? IRA trustees are permitted to impose Additional restrictions on investments, for example, because of administrative burdens, not to you, the client, but but to the IRA trustee, right? Many IRA trustees do not permit IRA owners to invest IRA funds in real estate. But look at this last sentence. IRA law does not prohibit investing in real estate. But trustees are not required to offer real estate as an option. The IRS spells out front and center on their website that you can do this, and yet how many people will tell you that you can't? They're just flat wrong, okay? You just got to send them back to the source. Now, I will tell you that there are a few things that we can't do, all right? In fact, there's specifically three things that you want to make sure that you avoid. And so I'll just walk you through them one by one. Here's the first one. Do you know what that is, Mark? You and I had one of those not too long ago. That's here, right? And believe it or not, this is not a joke. The IRS says you can't buy beer in your ira, okay? They actually made it a little bigger than that. They call it alcoholic beverages. So for you wine connoisseurs, that's not going to work either. And it actually falls under a little larger heading called collectibles. So we can't invest in alcoholic beverages, collectibles, things of that nature. Now, just so you know, what I will tell you is that although you can't buy be here in your ira, I can show you how to buy the brewery that makes it. Okay? So that's the first thing we can't do. Second thing we can't do life insurance, okay? Life insurance is important. It's good that you have it, it's good that I have it. We just don't buy it in our ira. That's the second thing we're not allowed to do. Third thing we can't do is self deal. What is self dealing? Well, I'm going to make this simple. If you own something already, let's say you own a piece of real estate in your own personal name. Well, then you can't put that in your IRA to avoid the taxes on it. That's an example of self dealing. So basically, anything that you own or control right now is off limits to your ira. Any new type of investment that you want to do once you have a self direct IRA set up is a great investment for your ira. And that's really the core of what self dealing is all about. So those are the three things that we can't do. So the Next question then is, well, okay, if that's what we can't do, what can we do? Well, I like to tell people that you can do virtually anything that you can imagine. Alright. But people want a little bit more to go on than that. So having been in this business for 23 plus years, what are the most common investments that we see people using their self directed Iraq to accomplish? Well, it's really on the left hand side of the screen. Real estate and notes and mortgages. Those are the most common things that we see clients using their IRA to invest in. And that's how they're getting these 10% plus returns in many cases. Okay. So the options are basically limitless. Now what I'll touch on here, and I actually need to upgrade this picture mark, because the website's changed since I looked at it the last time. But what you see here, and I just want to expand your horizons on how these things work. So we're talking about shifting from a traditional type of investment mindset to what I refer to as the self directed mindset. So one of the questions I like to ask people is, well, do you think there's a lot of money to be made in the Internet? And the answer is, well, most people tell me yeah. Well, how do most people go about investing in the Internet? Well, they buy a stock of an Internet based company. So an example, a good example is Facebook, right? When Facebook did their ipo, a bunch of people invested money in that. But the question is, did they make money or lose money on that ipo? Most investors lost a lot of money on that ipo. That's the problem with the traditional way of doing things. By contrast, this is a website that I actually purchased inside of my ira. And this is a way that you can actually make money. It cash flows every month, right? It runs off of ads on the website and all that money goes back to the IRA. And for me it goes 100% tax free. Okay. So I just want to give you, I just want to plant some seeds on the differences. You can invest in the same types of strategies. We just want to go about it differently. So here's the question. How do you buy and you can fill in the blank. How do you structure a deal inside of your self directed ira? How does that work? There's three basic deal structures that I like to share with folks. So and for purposes today, we're going to be talking about real estate. So the first way is an outright purchase. Second way is leverage. And the third way is by partnering on a deal and so I'll break those each down for you. In fact, what we'll do is we'll look at a couple case studies of clients that have done these things. So here's the first case study. John bought real estate and paid cash. So we're going to look at some actual transactions here in a second or opportunities. But John, so let me show you with you what happened with John. So John lives in Michigan and when he retired, he retired and had about $94,000 in a retirement account. Now what happened was he called when he's getting ready to retire, right? They're going to, he participated in his company sponsor, 401K, got $94,000 in there. And so he called and he said to TD Ameritrade, he said, what can I do with this money and what could I expect to make long story short, they said that basically he could make about 3 to 4% a year on his money to spend. All right, so on $94,000, that's about 300 bucks a month. So instead John looked at self directing into real estate as an alternative to that. We'll look at how that works here in a second. But here's what happened. Basically, John set up a self directed IRA, moved money into that self directed IRA. He had $94,000 in there and he bought two properties, one for 42,000 and one for about 44,000. Okay. Now since he had enough money in there, he paid cash. So this is an outright purchase. Now there's a couple rules that I want you to be aware of or just things to be aware of. When you buy property inside of your IRA in an outright transaction, all expenses on your IRA investment, so he owns two pieces of real estate, have to be paid from the ira. Okay, according to the irs. So when the real estate bill or the real estate tax bill comes, who pays the real estate taxes? Well, John's IRA pays it. Now those properties are rental properties. So he's got some pretty good cash flow going back to his retirement account. So now when the tenant writes the check, who do they write it to? Do they write it to John or do they write it to his ira? Well, they write it to his ira. So rule number two on an outright purchase is that all income, all profits return back to the ira. By the way, how much does John owe in taxes on that income or the profits that he's making on that real estate? The answer is zero, not a nothing, because the IRA is a tax protected environment. So that's an outright purchase. Just keep those Few things in mind. All expenses are paid from the Iraq, all income and profits returned to the IRA tax protected in this scenario. Now, the second deal structure, Mike and Jennifer. So interestingly enough, we work with a lot of families because it's about endowing the family and rewriting that legacy like I like to talk about so much. So Mike and Jennifer are a couple. And what happened was Jennifer wanted to purchase an investment property that was priced at $85,000. Okay, here was her challenge. She had $50,000 in her IRA. So she says, well, is there any way to do this deal or to structure this deal to make this work? Because I really want to get this property. So when she brought this to me, I asked her a question. I said, jennifer, is Mike a keeper? Because based on how she answers that question is going to determine my next response. And so she said, well, yeah, Mike's a good guy. He's a keeper. And I said, okay, does he have an IRA? She said, he absolutely does. Mike had an IRA with about $48,000 in it. Well, he doesn't have enough money to purchase the property either. But here's the interesting thing. When they partner the two IRAs together, which is one of the benefits of self directing, okay, they now have more than enough money to acquire that property. And that's exactly what we did. We partnered the two IRAs together and they purchased that property. So I just want to plant a seed here because if you're married, if you have kids, you know, if you have a business, there's all types of accounts that can be set up. We can show you how to take more money off the table, push it into these types of accounts, get all these huge tax benefits, and then you actually have, you can have access, depending upon how you want to structure it, but you can have access to all the money. It's like one bucket of money. And so Mike and Jennifer are great example of how they made that work. Okay, let's talk about that third final deal structure. So that's partnering. Oh, by the way, let me just say one more thing on that before I forget, Mark, because I almost forgot. So here's the thing on the partner aspect of this, and let's just assume for the sake of ease of discussion that each IRA owned half of the property. Okay? The key thing to remember is that all expenses are split equally between those two accounts. In other words, Mike can't pay the real estate tax bill this six months and the next six months, Jennifer pays the next one. Each one needs to be split same Thing with rent. So. Okay. Or any income or profits, they get split in the percentage of ownership. Okay. On, on, on those investments. So just remember that when you partner accounts together and they both participate in an investment, okay. Those profits are split in the percentage of ownership and the expenses are split that way as well. Okay, so that's pretty simple.

No, Edwin, real quick, if you don't mind, like, we got a lot of people asking questions, like going to get to the questions here towards the end, folks. But you know, as you're sitting here listening, some people are active investors and some are just straight passive investors. There's no right or wrong to this. What, Edwin, sharing with you though. I hope if you're an investor, you're starting to see endless amount of possibilities, not just with your own accounts, but there's so many other accounts, Edwin. For example, how many, how much money is sitting in the IRA 401k space right now? That's just sitting around.

There's about $20 trillion in retirement accounts as of the end of last year.

$20 trillion.

Big, big number. Big number, right?

It's a massive number. The reason I bring that up, a.

Lot of people think, well, you know.

There'S not that many people out there as, you know, I mean, we're on the other side of it. You see a lot of people, just money sitting in the account, not sure what to do with it once they move it.

Right. All the time.

So us as investors, like, what we do every day is we want to educate, like we're doing today, on how to make this a reality and then put that money into play and start getting amazing returns on your money. So, Mike and Jennifer, this is a cool concept, like you said, going in partnership to 50, 50, 60, 40, however it's structured and just making sure, again, this is high level stuff, but a very simplistic way to go about it. So that's it, Edwin. I just wanted to make sure people are reading between the lines at a.

High level here today. Yeah, yeah, very good. And just as one other comment on that, one of the big stopping points for people implementing strategies like this Mark, that I've seen when I've talked to people, that they feel like self directing means going it alone. And that is absolutely not the case. The truth of the matter is that our most successful clients usually are incorporating other people or resources into their strategies. And that's where they're achieving the highest level of success. So what you just pointed out about thinking about other people's money, putting money that you have cash Laying around in the passive investment strategies. There's a lot of different ways to do that. But this is a really important point.

Yeah. Edwin, real quick, we're getting a lot of questions, a lot of questions. Now, one question that keeps popping up a lot is, can I partner with my own ira?

Like, pay half cash and pay half with the ira? It is possible to do that. Actually, one of the things we always recommend is that there's other resources, like attorney, that you might need to come into play to draw the contract up or something along those lines. It's possible to do that. What I tell people is that you can do that. It's cleaner if you don't do that. But it is possible under certain circumstances to set those transactions up as well. Yeah, yeah.

And I think the main thing is here today with Edwin and I, you know, guys and gals, there's a lot of people here. And the truth is, every single person has a different situation or different objective. We're sharing with you the big picture. And there are so many other cool things that we can do. And Edwin's going to talk about some other neat things here still. But, like, there's a lot of ways at higher levels. Again, Edwin, we have people here that are brand new, and we have people here that have done millions of dollars in real estate. So what we're doing is we're sharing this in generalizations of stuff that we see constantly. And then every single person. We'd love to be able to talk to you and figure out where you're at, where you want to go and.

How you want to get there. Because it's different for everybody.

Right. Because I have five nieces. They all have accounts. I have my parents, I have my wife. I have all these accounts. But I have a different objective, maybe, than you may. Even though our goal is to create residual income and all that, there's a lot of different ways to be active and passive. And how we're splitting them up and chunking them out and all the good stuff. And we'll get to more of that later. But I just want to be clear with everyone. And let's talk about Bruce.

All right.

Yeah.

So, by the way, you know, the people. The people that I'm sharing with you, these are all clients that, you know, we worked with on a one. On one basis. Because the questions that they're probably asking right now, Mark. That you're seeing. Right. This is what it's all about. It's. Well, okay, this is great information. How do I put it into practice? For myself.

Right, right.

So each of these scenarios is different because they all, they all had different, they all have different goals, they have different amounts of money, they have different situation. And so really what it takes is a customized approach to looking at where you're at, what you want to accomplish, where you're starting from, and then what's the quickest way to get you there. And so that was actually exactly what Bruce kind of came to us with. So here's what happened. He had an IRA at Wells Fargo. And one of the things that Bruce says is when we met, he says, well, I already have the self directed ira. It's at Wells Fargo. And if you, just so you know, if you call your bank or brokerage, whoever holds your retirement account right now, and you say, hey, I, I want a self directed ira, guess what they're going to tell you. They're going to say, great, that's what you have. But what they mean is when they say self directed, they mean something very different, vastly different than what I mean when I say self directed ira. What they mean is that you can take any commissionable investment that they have to offer you. Okay? And that's what they mean by self directed. So I gave Bruce a different question to ask his financial advisor at Wells Fargo. And, and the question was, okay, I found a property at the end of my street that's in foreclosure. I want to use my retirement account to buy it, I want to rent it out, and I want all the rental income to go back to my ira. Can I do that? Well, that's when Wells said, no, you can't do that. Right, exactly. It's not really a self directed IRA from what we mean. So what he did was he transferred his IRA at Wells Fargo over to Horizon Truck. Now, by the way, just so you know, sorry I said that, that stuff's the right company, but he transferred his money over to us and it was not taxable, it was not penalized as long as we do the transfers for you. And that's one of the things we help you with. You always want to work through your IRA provider to get those things done. Now here's what happened. He had money for three properties, but his goal was to acquire ten. All right, well, he only had money for three. So what did he do? Well, what we did was we used his IRA money as a down payment and his IRA borrowed the rest. So believe it or not, your ira, according to the rules, you're allowed to borrow money inside of your ira if you don't have enough money to do a transaction. Okay, there's pluses and minuses to that. But here's, here's what Bruce had figured out. He knew how much each property was going to spin off. He knew how much income he wanted to generate. And since he was about 15, 20 years from retirement, what he also knew was, is that he could buy the properties, borrow the money, take the rents, pay off the mortgages. So by the time he retired, he was ready to take that money out. The properties would be owned free and clear by his ira. Pretty cool strategy. And so that's what we did with Bruce. You know, Mark, I just, I don't know if you want to make any comments on this or not, but I put this in here specifically because you brought it up. You know, a lot of people we talk to business owners, real estate investors are looking for cash to fund their deals. And that's where, you know, you just brought up, you know, how much money is in retirement accounts. Well, there's 20 trillion as of the end of last year in retirement accounts. So here's the reality of it is that a lot of people don't know how to invest. So they're looking for investment opportunities. And you know, you help a lot of investors place cash from retirement accounts, investments, don't you?

Yeah, absolutely. But the truth is, at the end of the day, Ed, when everyone that's listening to our voice, they're all super mega wealthy, they don't need cash. They're just sitting on the beach listening to this for entertainment purposes only. Oh, absolutely. I mean, as any business, I don't care who you are or what level you're at, you always need more affordable cash, always to grow your business. Either for operations, inventory, and for us in real estate, inventory can be, you know, it's not a $20, you know, printer, it could be a 50, 60, 80, hundred thousand or more dollar house that we have sitting in inventory. So yeah, absolutely. I think this is like a massive opportunity to be able to tap into this side of things for cash.

Yeah. And so just keep that in mind. There's two ways to make money with healthcare IRAs. One is to make a lot of money in your own account. One way is to use other people's IRA accounts to help fund your transactions. So there's some different opportunities there. Let's talk about, let me show you a real simple strategy to double your monthly retirement income. So this is where I get really excited, you know, when people ask me about what are the real benefits of self directing. Well, There's a lot, right? You save a ton of money in fees. You know, we talked about fees and commissions before. People save a lot of money when they self direct their retirement account. The moment they move money into a self directed ira, incredible tax savings, which we've talked about a little bit. We'll look at that more here in a second. But to me, one of the ultimate benefits of self directing is the ability to get the result you're ultimately looking for, which is basically predictable, certain and secure monthly income for the rest of your life. So, so here's a real simple strategy. And this is what John did that we talked about earlier when he did those two outright purchases. Here's what happens. So does anybody know, have you ever looked at the numbers and know what the average Social Security retiree gets every single month? This is the 2014 average monthly benefit paid to a retiree in 2014. $1,328.58.

Wow.

Now here's the thing. So when, when John retired, right, he's looking at what his average monthly benefit is going to be. And he says, I can't live on that. So that's when he called the, the financial advisor and they said, well, you can spend, you know, you can basically spend 3 to 4% on your assets. Remember he had about 94,000 in his account, right? So that's about $316 a month. And he says, yeah, that's not gonna cut it. So what do I do? And remember at this time he's about 60 years old. So he's at that point he needs to do something and he needs to do it fast. So what he did was he opened up the account, he transferred the money over, he bought two properties. Now as an example, let me show you and Mark, I don't know if you want to touch on this a little bit more here when I'm done, but let me just give you the high level numbers. This is a pretty typical scenario that we see clients invest in to implement this type of strategy. So what John did was John, by the way, was not an active real estate investor. He had never been to a real estate investment seminar in his life. He just started looking for options on the Internet and that's when he found us. But here's the interesting thing about it. This is an example, right? Here's a property that could be purchased for $40,000, generates about $700 a month in rent. And so think about this. He bought two properties, $700 a month in rent on average, right? That's $1,400 come in every single month. He doubled his retirement income because he more than doubled. He actually more than doubled it. He more than doubled what he was going to get from Social Security. Right. He was going to do far better than if he kept his money at a traditional type of financial institution. And so the reality is, is that from the time he retired to 90 days post retirement, when he was able to unlock his company 401k and move that money over to us, he doubled his retirement account or double retirement income in just 90 days by putting this kind of stuff into action. And it really is that simple. I mean, you know, it's funny when I tell people how to, that I'm going to teach them how to do this.

Mark.

People think that it's impossible, but the reality is that you just need to know the right people have the right access to the right resources.

100%, Edwin. I mean, again, this is what you and I do every day. So, you know, we've, we've worked really hard, many, many years. You know, I've been at the business for 19 years in the real estate world. And every day, you know, the biggest problem like you're sharing with people is like, it's not necessarily about having a million dollars in the bank, even though that's great, but it's really what you're seeking, especially when you start getting to retirement, is how much monthly cash flow can I create? And that's why I love. This is known as turnkey investing.

By the way, there's a lot of.

People listening here about turnkey investing as well. Well, turnkey investing for me is a great tool, a great path for the average person that's sitting there, that doesn't want to be hands on, that wants to hang out and just collect checks without working. I mean, Edwin, where else can you take $80,000 and double because it's 100% tax free if it's in a Roth, but double your income. So like when we share the net ROIs, there's no taxes. I mean, you're not paying taxes on the income. That's straight cash in your pocket. So in essence, it's like adding an extra 30 or 40% in your pocket.

On top of what you're already making.

Based off of not paying tax on the income. So for me, this is what myself and my team, we every day excited to work with folks that realize, like.

I have some cash.

My biggest fear is running out of it. And if you spend down your principal on stuff, wake up 1012 years, 15 years from now and you have no cash, you're kind of in trouble. You will be at Walmart, unfortunately. And that's what our clients seek out to do. They know how important that cash flow is to them to help them to.

Take the burden off worrying about how.

They'Re going to pay their bills next month. So it's awesome. Yeah.

And these are my favorite kind of deals, truthfully, inside of a self directed ira, because as you said, Mark, it's turnkey, meaning it's passive to the IRA owner. And oh, by the way, one other thing I'll point out on that that's important is the, you know, we talked about self dealing. We just touched on that earlier. The great thing about doing a transaction like this where you're truly hands off, you won't have any self dealing issues or concerns. So it's very, very clean with the ira, which is really, really important.

I'm sorry, I see a lot of people that do self deal and they don't think they are, but there's a lot of dealing going on on us. You know, I'm not saying they're doing it blatantly and on purpose. I'm just saying a lot of people don't understand the roles 100%. So the protection that they're trying to set up for themselves, you know, they think they're doing everything right. You know, one, one bad move and it could really be a big deal.

Yeah, well, you know, it's interesting. Yeah, it really is. And I'll tell you, one of the, one of the things is, it's interesting is that I hired a new graphics design firm for the company a couple weeks ago. And I was really excited because when I met with the firm, the owner of that graphics design firm, she had opened up a self directed IRA not with us, she hadn't heard of us before, but she'd opened up a self directed IRA and she bought a piece of real estate in it. And when we were talking, she says, you know, the biggest challenge I had was, was that this company said, you know, it's a self directed ira. We basically follow your instructions, you tell us what to do and that's what we do. She said. But it took me a while to really get going because she said they didn't. That's really all they did. She said there was so much to think. She said I just had to figure all this stuff out on my own. And so. But that's where people run into the risk of doing a self dealing type of transaction. Which you don't want. We're not going to get into that today. We don't have time. But point is, you want to avoid that kind of stuff because the IRS doesn't like it. And so, you know, by doing certain types of transactions, you basically eliminate the risk of those types of things. So I'll leave it at that. So now we move on to our second P in the process, protect. And this next piece is going to go pretty fast because it's pretty easy. There's three easy steps to pay yourself instead of paying the government. And you heard me say that at the beginning. You know, we have two choices. We can pay ourselves, okay. Or we could pay the government. And so what does it take to pay yourself? Well, the first step is you want to open. What are you going to open? Well, you're going to open up a self directed ira. That's the tax protection vehicle that we're talking about. Okay? Now once we have an account open, which by the way, that's pretty quick, pretty simple to set those up, you've got to deposit money in that account. How do you put money in a self directed ira? There's basically three ways. First one is a contribution. So if you don't have a retirement account yet, you need to get one started, right? You're allowed to take money from your earned income and deposit it into the ira. So if you have money in a savings account right now, other types of things, right, you can put that into a self directed ira. Another way to do it is that if you, if you have IRAs just like you read about with Bruce, like at a bank, you know, or brokerage, or Mike and Jennifer, you're allowed to transfer those IRAs to a self directed IRA. No tax, no penalties, to move that money. And the third way you could put money in that account is something that we call a rollover. So if you have an old 401k from a previous employer or a 403 or some other type of company sponsored plan, you're allowed to move that money from that old company plan into a self directed ira. Okay? So those are the ways that you get money into this account to work with. And then the third and final step is you make an investment, right? And that's it. That's the three easy steps to basically implementing a self directed approach to retirement and starting to generate these kind of dollars and returns and that consistent predictable income we're talking about. So we open the account, we put money in the account, we make an investment, and that's all there is to it. Now, one of the things that people will ask me is Mark, and this is kind of funny, people will ask me, they'll say, well, how hard is it to go through this process? And so what I always like to tell people is that it's so simple that even a child can do it. And as a matter of fact, that's my child Andrew, at age 6, real estate direction form for his Roth IRA. But now here's the thing, that's my son. I'm going to make him work for it a little bit, okay? You on the other hand, I'm not going to do that to you. So here's what we've done. When you work with a company like Specialized IRA Services, all you got to do is pick up the phone and call, okay? And you can say, hey, look, this is what I want to do and I want you to help me go through the whole process and make this investment or help with the paperwork. And guess what my staff is going to say? They're going to say, okay, so literally, if you know how to use a telephone, you know how to self direct your retirement account. That's how simple we want to make it for you. So the next question is, and then we're going to, we're going to start to wrap this up. I know we're starting to come up on time. By the way, Mark, is this on point for everybody, you think? I mean, what kind of. Are we getting some good questions in at this point?

Yeah, I mean guys and gals, I mean, there's some questions in the queue. If you have questions and you're sitting here thinking, definitely shout them out over there on the chat box, let me know, we'll get them in the queue. We'll make sure we answer your questions here today, for sure. I'm here for you guys. Evelyn and I here to serve you guys today. So again, we appreciate you guys being here. So go ahead, Evelyn, do your thing. We got.

All right, coming in, so. All right, perfect. So there's three environments that you can try to create wealth in. Okay. And the first one is a taxable environment. That's the one that we all are familiar with. Right? We even sleep in that one. The second is a tax deferred environment, which just for the sake of discussion here, there's other types of accounts available, but just want to make it simple and kind of introduce. This is the traditional ira. How does a traditional IRA work or how does a tax deferred environment work? Well, let's just make, let's just say that you take $5,000 and contribution limits are different year by year. We can go over those with you, but let's just say you take $5,000 and you deposit it into a traditional self directed IRA this year. Okay? You take that $5,000, you subtract it from your taxable income. Okay? So right off the bat, just by making a $5,000 contribution, depending upon your tax bracket, you could easily keep an extra $1,500 this year by making a traditional IRA contribution that you will otherwise give to the IRS.

Wow.

So right off the top, you put money in your pocket the moment you make that contribution. Now the way it works is you get a deduction, right, from the, the contributions in the ira. Then you take that money and you invest it. Let's just say that you end up doubling your money this year. How much do you owe in taxes at the end of the year? The answer is nothing, right? Because it's a tax protected environment. Then what happens is, let's fast forward to the age of 59 and a half because that's the magic age that the IRS says that we can take the money out of the account. By the way, there's lots of ways to deal with that too, if you want to do it earlier. But that's the black and white of it. And at that point, when we take money out, we pay taxes, right? So tax deduction going in, tax protection on all our earnings and growth, so it grows faster and larger exponentially. Okay? And then we pay taxes at the end. The third and final environment is what we call a tax free environment. And this is the one that Mark and I get the most excited about. And this is typically referred to as a Roth IRA or a Roth type of an account. And the way this one works is that we put, when we put this, we make a contribution, this account, just like we do before, right? We put 5,000 in, but instead of getting it, we're going to not ask for a tax deduction on this. Okay? So we've already paid taxes on the money. It's already sitting in our bank account. All we're going to do is take it from our bank account and drop it into the Roth ira. Now, since we don't get a tax deduction, why would we want to do that? Well, because when we take that money, let's say we take that 5,000 and we invest it and we double our money this year, what do I pay at the end of the year in taxes? Nothing. Right. Because it's a Tax protected environment. But here's where the magic comes in. When we take money out of that Roth ira, every dollar we take out to spend, okay, comes out 100% tax free. There's only two requirements we have to meet. 59 and a half, like I said on the traditional. And the account needs to be open for five years. Five years, 59 and a half. As long as we meet those two requirements, every dollar we take out of the Roth IRA comes out 100% tax free. Okay, so those are the three types of environments. Now let's look at how that plays out. So here's an illustration again to just kind of give you a concept on how these numbers can work and help you identify which is the best avenue for you. So if we have $100,000 invested at 10% and we run that over 25 years, what does that look like in a taxable environment or what would that grow to? Well, in a taxable environment, that would grow to $609,834. Okay, so that's paying taxes along the way. But now what happens when we step into a tax deferred environment like that traditional self direct IRA? Well, instead of having 609,000, because remember, we're not paying taxes on any of our earnings as we go, what does that money grow to? Well, take a look at this. It grows to $1,083,000. Big difference. Okay, what about with the Roth IRA? Well, remember, we get the same tax protection on our earnings and profits once the money's in that account. So we end up at the same place. So here's the thing. What does that number mean to us? Well, as Paul Harvey likes to say, here's the rest of the story, right? Because what you and I want is money to spend. That's really ultimately what we want. And so what we know is this. If we're making 10% on our money, right, which we've already established this very reasonable rate of return in the real estate world, we what do we have to spend now in a taxable environment? Right? 10% on $609,000 is about 61,000. But we have to pay taxes on that income that year we generated, don't we? So after tax, you'll see the number in blue there. That's the number we actually get to spend, right? So $45,675 is what we get to spend in a taxable environment. Now what about from that, that traditional self directed ira? How does that work? Well, remember, our number grew to 1,083,000. So what's 10% on that? 108,000. But didn't I say we have to pay taxes on the money we take out of our self directed traditional ira? Yes, we do. So what does that look like from the traditional self directed IRA? After you pay the taxes, you have $81,000 to spend. Now, I want to stop there for a second because if you miss this, you miss it all, okay? We didn't do anything different other than where we held the investment. That's the only difference between those two numbers. Those are two completely different lifestyles, okay? One person is getting by. One person is getting by taking vacations, visiting the grandkids, going to the beach, buy a new car, right? Those are two completely different lifestyles. Just because we use the traditional self directed IRA to eliminate the taxes. Now, the third environment is the Roth self directed ira. Now remember, that amount of money grew to the same level, right? 1 million, 83,000. So 10% on that is 108,000. But here again is the magic of the Roth. Because, because remember, we didn't take a tax deduction on the front end, which means we never have to pay taxes again on our money from the Roth. So we get to spend all $108,000. Is that incredible? But that's how it works, and that's how these numbers work. And this is, more importantly, this is how it can work for you. So those are the three types of tax environments. Now, one of the questions that people ask, and I said at the beginning, I'd show you how to make money and never pay taxes. And again, and so the question is, is making money truly tax free really possible? So I said, you don't have to pay taxes. But how do you know that? Well, and a lot of people think, well, you know what, Edwin, maybe you've got some weasel words in there. And there's, you know, you're leaving something out. So let me be very specific. When I say tax free, what I mean is that you would not pay federal income tax, no state income tax, no local income tax, no capital gains tax, no Social Security tax, no Medicare tax, no AMT tax, no tax at all. Okay? I'm not giving myself any out here. So again, we have to go back to the source. And who's the source when it comes to taxes? Well, our friends at the irs. Can I refer to them as our friends at the irs, Mark? Is that okay? If this is being recorded, they're definitely our friends at the IRS. So at any rate, this is IRS Publication 590. Now, publications are something that the IRS produces every year and they update them based on changes and tax rules and laws and all that fun stuff. And so this is the source, Publication 590, you can see here distributions from individual retirement arrangements. Okay? So what I did was I went in here and I made this simple. And I pulled out a paragraph for you and it says, what is Roth ira? Now if you drop down to that third paragraph, right, and if you look at that second sentence, it says if you satisfy the requirements, qualified distributions. What is the qualified distributions? Well, you got to meet those two requirements. I told you, five years, age 59 and a half. You meet those two requirements. Look at what it says. It says qualified distributions are tax free. They just. It's that simple. It's that straightforward. There is no tax of any kind. The IRS spells it out in their publications and they tell us this is exactly how the Roth IRA works. So the reality is, what does a Roth IRA allow you to do? It basically allows you to say you're fired to the irs and that's the benefit. This is how you truly begin to pay yourself instead of paying the government. This is the vehicle you want to use to do it. So that takes us through our. Why does it work, by the way, right here. Because when you take title to real estate and other types of assets in the name of your ira, right? Specialized Area Services, fbo, that says for the benefit of and your name ira, okay? That's why you get these incredible tax benefits, okay? That's how the government set up the rules. Which takes us to our third and final step. And then we'll jump into some questions, right? Which is the prosperity mark, alluded to it earlier. You know, you can self direct all types of accounts. Traditional IRAs, Roth IRAs, Roth 401ks, education accounts, health savings accounts. There are so many different things and strategies that we can help you implement. And like I said, remember all these accounts, if you had them all for yourself and various family members, they can partner together. So you have one big bucket of money to invest and grow those accounts exponentially faster. Really cool strategy. I'll just touch on it real fast. You can access your retirement account. You know, I keep talking about 59 and a half and those ages, a lot of people, there's some people who will come to me and say, you know what? I'd like to have access to my money before retirement age. Well, there's different strategies we can implement. But the interesting thing about it is a self directed 401k or a rock allows you to access your retirement money. Today. You can get tax free access, penalty free access, and zero cost of capital to your money. When you borrow money from a self directed 401k, lots of cool things that you can use. You're allowed to borrow up to $50,000 and you can pay yourself interest instead of the credit card company. Let me give you a quick strategy. Actually, I have two quick strategies. And then, and then we'll take your question on creating legacies. Okay, so one of the things that you heard Mark say is that he set up accounts for his nieces. And so why would we want to do that? Your kids, somebody that you care about. Kids, grandkids, nieces, right. Can have an account too. They only need one thing to contribute and set up an Iraq. That's earned income. So if your children, right, have. If you have kids or grandkids and they have a job, right, they work at McDonald's or they do something, well, then they have earned income. They can have an ira. If your kids don't have a job, well, can you pay them in your real estate business?

Right?

Can they mow lawns at some of your properties? Can they do something along those lines? Because if the answer is yes, well, then you can pay them for that. But I know what some of you are saying, you're saying, but Edwin, you don't understand. My kids are completely useless and I can't get them to do nothing. That's okay. I have four useless kids of my own. And I have a strategy for even useless kids. And here it is, our dad buys houses, right? Now, those are my three sons. And you saw Andrew, he's my oldest. He's on the left. Josiah is on the right. And I swore that God would never give me an ornery boy than Joe until Johnny Patch came along. But the funny thing is that when I'm out on the road and I'm doing presentations and whatnot, and I come home from a long weekend working with clients or doing something like that, the kids, when I walk in the door, they're like, dad, we're so happy to see you. Now pay us. Why do they say that? Because they believe that they're professional, professional models. And they make me pay them for the right to use their likeness and image in my presentations. But guess what? They've got. They've got earned income. So why would I want to do that for my kids? Because it allows me then to set up that Roth IRA and get them started early. Now here's the reason why I want to do this. And here's the reason why you want to think about doing this too. Einstein said it, the most powerful force on earth is compounding interest. So let me just give you a scenario. Let's say that you open up a Roth IRA for a child at age 1, okay? You make a one time contribution of 5,000, right? Not 5,000 a year, one time. All right? And you get 10% on that money. At age 65, what would your child be worth? You ready for this? Almost two and a half million dollars. Think about that. 10% income on that a year is $250,000 coming from a Roth IRA that they will never, ever, ever pay income tax on. Is that incredible? But this is how you really begin to rewrite that legacy for your kids. You can, you can, we can accomplish so much. Now here's, here's the problem, though. Most people aren't aware of these strategies. They don't know how to implement them. They don't know how to use them. So if we took the retirement account, self directed retirement account, out of the equation and somebody tried to do this for their child by just setting up a regular old account, a brokerage account, and paying taxes as they go, how much do you think the IRS and various taxing authorities would take from your child over their lifetime? And how much would they be left with? You ready for this? Over that period of time, the government would take $1.9 million. Your child would be left with 550,000. Now, this is why I said at the beginning, if you don't have a plan to manage taxes, there's no way to create any kind of real wealth in this world. It's just too darn hard, okay? And with these simple strategies, everyone can put that money right back in their pocket. This is what I mean by paying yourself instead of paying the government. This is the last slide here. And so let me just share this strategy with you because this is where I get really excited. Really cool. And then I'm going to turn it back over to Mark. So what you see here across the top is real life. Okay? That's my life. What you see at the bottom is a chart or a timeline, okay. That I got from my friends, the actuaries at the insurance company. Right. And so here's what we want to look at is how does this play out over your lifetime, your spouse's lifetime, and your children's lifetime. So at age 35, right. The actuary say I could set up a Roth IRA and start contributing to it. Now that's 30, 35 years of investing and growing that money. They say I'm going to pass away at age 70. Now I'm going to do better than that. I know you're going to do better than that, but we're just going to go with the actuary sellers for right now. What happens when I pass away? What happens to my Roth ira? Well, it goes to that lovely lady right there. That's Jennifer and that's my wife. Now here's the interesting thing about it. When she inherits that Roth ira, she gets all the same advantages that I have. And by the way, I solved a huge problem in life. Because one of the biggest challenges that families have today, okay, is that when one spouse dies, and it's typically the husband, right, because the wives outlive us husbands, who ends up taking care of mom. It's those four kids. But guess what? By having a self directed Roth IRA that owns 2 or 5 or 10 or 20 pieces of turnkey real estate, when my, when I pass away, that account goes directly to her. And guess what happens? Those monthly distribution checks just keep going to her every single month, okay? She is secure, knowing that she doesn't have to be dependent on the kids. She can maintain her independence. She has her own money coming in. That's the power of this stuff, really. Okay? So I've already solved that problem because that real estate doesn't go anywhere. It doesn't matter what happens in the stock market, she's still going to get her monthly checks. So then what happens is the actuary says she's going to live 10 years beyond me. Then what happens when she passes away? Well, then that Roth IRA goes to those four hoodlums right there. And guess what? Those are my four kids. Right? But here's the great thing about an inherited Roth ira. The retirement age goes away. So literally the day that they inherit that Roth IRA, they get to spend all that money 100% tax free over their lifetime, which again, according to the actuaries, is 55 years. So if you add up those three time frames, that's 100 years of tax free compounding and 100 years of tax free spending. Now, I used to have a chart in here that showed you the math and what that looks like. But the numbers were so big, it's hard for people to wrap their mind around it. So I took it out. I want you to just grasp the concept because that's really what's important here. What's important and the takeaway right here is that you can rewrite your family legacy with something as simple as a self directed Roth IRA piece of real estate or two or more. And you can completely change the outlook for your future. So with that mark, I'm going to turn it back over to you.

That's awesome, man. I'm ready to set up more accounts as I always am. Every time we talk, I get more excited.

I mean again guys, I've been like I said back to this.

I've been at this game for 19 years and every single time I have the aha moments. Let's just reiterate what Edwin shared with you about the legacy piece. Our average client age that we work with daily is around 52 years old. That's on average. We have some younger, we have some older, which is great. But at the end of the day, what's very awesome about when they're purchasing, let's say if they have 200,000 in an IRA and they purchase 4, 5, 6 properties through turnkey investment strategy and out of those six properties it's producing 3,000 or $4,000 net a month. We all know we're not going to live forever. It's very, you know, that's a given. Just ideally we're living longer than what they say we're going to. But what's neat about this is we get older and you're making money as a business person and or in your job or whatever. I mean again, this is just another way to create a long term legacy piece. Could you imagine the best gift that you could do for your spouse or your loved ones is to be able to set them up, to live the life that you might not have ever been able to have, but you're able to give it to them because you're seeing and learning today what we're sharing with you. So when we're dealing with clients and they're 55ish years old or 52 or whatever, we know that our goal is to set them up so they have thousands of dollars a month coming in residually without them doing any work, knowing that their objective with that is to create cash every month for themselves while they're around retired and when they pass to take care of their spouse and.

To take care of their children.

When that goes, when that happens. So to me, I mean Edwin, I don't know why. The truth is everyone should have this type of account.

I think that's my personal opinion.

I don't know why you would not have it truthfully. But at the end of the day we have a lot of questions and Again, I'm, I'm always excited about this stuff. So I'll quit talking for a few minutes so we can answer people's questions.

You cool with that? Let's go for it.

All right. On average, Sylvia is asking, what is the annual fees to have money in a Roth ira? On average?

Okay, so that's a good question, Sylvia. And the way that fees work with a self directed IRA provider like Specialized this is that there's basically two fees to be aware of. There's a setup fee and then there's that you pay that one time to get the account set up, money moved over, you know, make that transfer happen, and then you have an annual fee. Alright. And so the setup fees typically range from $50 on the low end, you can do it for yourself, or 150 where we can't hold you by the hand and do that and you never pay that again. The second fee, the annual fee, is really the bulk of what you pay for your self directed ira. And to put that in perspective, if you remember, According to the ICI, $100,000 IRA, you can be paid $1,500 a year in fees. Even if we exclude the first year commissions, about $1,500 a year in fees. What do you pay at a self directed. For self directed, Roth IRA, specialized? Well, instead of $1,500, right. This is where the cost savings comes in. Your annual fees would be right around $400 on $100,000 account. So that at least gives you some kind of feel for how the fees work. If you have less than $100,000, obviously the fee is lower. If you have more than $100,000, it could be higher. But just to put it in perspective, that's about what you'd be looking at.

Pretty much nothing. Quick question on that, Edwin, just so we can share with people, if I remember correctly, so if you have $100,000 and you move into an IRA environment, let's say if I have an old.

401K, I don't work there anymore, and.

I move it into a self directed.

Environment.

I can pay those fees on my credit card. They don't have to extract it from my ira.

Is that correct or not correct? That is correct.

In fact.

Like I said, most financial institutions hide their fees. They don't give you a statement, they don't show you what their fees are. My philosophy is very, very different. We feel like if you're going to pay for a service, if I'm paying for a service, I want to know what I'M paying. I think that's just fair. And so the reality is, is that we don't hide anything. We fully disclose it. And not only that, we actually would encourage you to pay those fees from outside your IRA for two reasons. One is that instead of paying that $400 a year in fees, you can keep that $400 in your account and you can invest that money and grow it. The second reason is, is that if you pay your fees outside the Iraq, our fees are tax deductible to you. If you pay them from inside the ira, you forfeit the tax deduction. Because the IRA is a tax protected environment, you don't file a return for your ira. So really the fees are probably two thirds of what you see on paper if you pay them outside the account. So we allow you to do that. We encourage you to do that. You can do it either way, though. Up to you.

Right. Well, again, please, you know, what Edwin.

Just shared with you is huge.

So I don't want to skim over that like it's no big deal. The fees are not, you know, nothing compared to what the opportunity is. And some people were asking about if it could be a tax deduction if they paid for certain things to set up the account. You just answered that, Edwin. So I appreciate that. Do you offer solo 401ks, Edwin?

I'm sorry, what was that again?

Do you offer solo 401ks?

We do. So we offer the solo 401k and you can set it up as a Roth solo K, a traditional solo K or you can have both Roth and traditional type of buckets set up under the NEFAT plan. In fact, truthfully, the self directed 401k or solo k people call it different things. Some people call it an ndk. It's all, all basically the same thing. It is one of my favorite accounts and offers the most benefits to clients. One is that you can put more money in it. Two is that you can make Roth contributions to it. In fact, if you're over 50 this year, you could put $23,000 in Roth contributions regardless of your income. There's no income limitations on the 401. Also, there's some real advantages to the rules and how they work in the 401ks. Another advantage is, like I said earlier, you get access to your money today. You can take out tax free, penalty free loans and pay interest to yourself. So I say it's like setting up your own personal line or business line of credit and you can fire the bank and the credit card company and pay yourself back. So the Solo K is one of our favorite types of plans. And we've seen, partly because we talk so much about it and we educate people on the benefits, we've seen huge adoption of solo 401ks recently.

Absolutely. And just so we're all crystal clear, I'm in the process. I'm going to be working with Edwin to set up some of ours with the solo 401k. Again, being in Vegas, he was sharing this information. That's just one slice of it. We haven't even Talked today about HSAs for, you know, dealing with insurance and dealing with long term care and all these other amazing, amazing things. Let me just ask you guys a quick question. There's a lot of people here and I'm going to answer all your questions. But I want to ask a question from us to you. And that question is really like, what is the biggest takeaway you've gotten so far? What's your aha moment? Go ahead and just post that in there. I don't need to share it out loud or anything. And I might, and if I do, I won't say your name, if that's okay. But like, what has been your biggest aha moment? See, a lot of times people are out there every day trying to figure out how to save money when what Edwin and I are sharing with you can make you millions of dollars implemented and deployed correctly. Most people are trying to figure out how to save pennies, but we're sharing.

With you how to just place it.

In one type of environment that can grow to millions of dollars tax free. So to me, this is the kind of stuff that excites me. I would pay 5, 10, 20, 30, 50,000 or more to learn these strategies as you're developing into this side of the business. Not only that, Edwin, everyone understands what hard money loans are and bridge loans and all that. There's a big, massive opportunity for us as investors that understand how to tap into these types of clients that have all this money sitting around to be able to pay them 8 to 10% on their money. But if you use hard money loans, you're going to pay three to seven points up front. You're going to pay 12 to 18% per six months, sometimes a year. They'll extend it for 12 to 18%. But you're going to lose more money than you're making because you're not being proactive. I commend every one of you guys here being proactive. I think you're a proactive investor I think you're being proactive for yourself and your family's future, which is so powerful. Paul Edwards is asking a question. You said money invested in return to IRA is not taxable. Is that true for a traditional IRA as well as a Roth IRA, when you turn 65 or whatever age, mandatory withdrawal? I think there's two questions in that one.

Yeah. So when you take money from a Roth, you don't pay taxes. When you take money from a traditional. If I'm answering that question, the first part of that question mark correctly, you pay taxes on your distributions. Was that the question? Okay. And that's where we looked at that before. Right. So if you remember that slide that I showed you, I know I covered a lot in a short period of time, but remember the tax benefits when you take the money out of traditional Iraq? Remember in that one scenario, you had $81,000 to spend after tax taken from a traditional IRA versus 45,000 in a taxable environment without any IRA. So, yes, you pay taxes on the distributions and you come out way ahead getting the tax protection along the way. The second part of that question was the RMD question. You have to start taking. And by the way, there's so many benefits. You know, Mark, I wish we had more time because there's so many benefits that I didn't even touch on.

Like, I just.

We skimmed the surface. In fact, I don't even know if we skimmed it really well. But as an example, with your traditional IRA, yes. At age 70 and a half, the IRS says you have to start taking money out of account.

Right.

And so that's called a required minimum distribution that they require you to take out every year. One of the advantages to the Roth IRA is that There are no RMDs, so you have more control over your distributions and your income using a Roth versus a traditional. Another advantage to the Roth ira.

Wow, cool stuff. I mean, again, guys, when he says we haven't even scratched the service, we barely even. I mean, there's so many. So many things. I mean, Edwin, you've been doing this 23 years and you're still learning new stuff. 23 plus years. I mean, it just never ends. Powerful.

It's never ending. You just keep learning new and new stuff.

So Jack asked, I think we already answered this. What's the startup fees to get involved? And are those startup fees taxable? Yes, the startup fees are taxable. And Edwin shared with you on those numbers. Gary said, would you be able to take out funds from a 401k for a 30 day period. When I put it back, would there be any penalty?

The. Okay, so that's referred to as a 60 day. There's a 60 day rollover rule that the IRS has, which basically means you could take money out of a retirement account and put it back within 60 days and not pay taxes or penalties. Okay. Here's, here's the trick of that though, and be very, very aware of this, that you're only allowed to do one rollover in a 12 month period, okay? So it's not something you can do multiple times. So, so that's true. Now if you want to take money out of a 401k and go beyond 30 days or 60 days, that's where the 401k loan comes in. Because you can borrow the money for up to five years, okay. And you can pay back early. There's no prepayment penalty. You're borrowing it from your own account. So the answer is you can access your money today, okay. And avoid taxes and penalties. The thing that I always would tell you is this is just from a practical standpoint, I don't like 60 day rollovers because people think they're going to do something and put the money right back. And if something happens and they can't put it right back now, it's a taxable distribution to you and it's taxes plus a 10% penalty if you're under 59 and a half. So if the money doesn't make its way back in the account, you just gave away a significant portion of your retirement account. But if you do a 401k and you take a loan, you're not under a 30 day or 60 day time limit. So you have five years to pay that money back. So you give yourself a lot of options by again, this is what you know, Mark. This is where the really, where I said, like the consulting comes in. Let me know what you want to accomplish. If I knew why you wanted to take the money for 30 days, you know, I could give you a very specific answer on what's the best way to structure that deal. But, but, but as an example, just off the top of my head, what I can tell you is most of the time, best option, set up a solo K, okay. And take the money as a loan from that solo K. By the way, just so you know, a lot of people don't know this, Mark, this is, this is something very, very important. If you have an IRA now, a traditional ira, we can take that traditional ira, move it into a self directed solo K and Then you can put borrow the money from it. So even if it's IRA money, currently, we can put it into a 401k.

Wow. This is good stuff, Edwin. I don't think they're ready for it. I don't think I'm ready for it sometimes. It's awesome. Claudia, can you self direct IRA purchase a rental property that you currently own in your name?

Not without putting on an orange jumpsuit and spending a little time in Leavenworth.

Exactly. Yeah. That's self dealing, Claudia.

That's self dealing. Yep.

That's.

That's exactly what the IRS is trying to avoid.

And you don't want to go down that path. There's no need. Actually, there's really no need to go down that path. However, depending what the objective is. Again, this is. The thing is like every situation is different. Maybe you sell that property and buy another one and use your IRA for the new one. There's a lot of ways you can.

Go about this, Arlene.

How much money do I need to even set up a Roth IRA or an ira?

Well, here's the answer to that. Basically, you pay your first year fees, which we talked about, which is very little. So if you don't have a Roth IRA currently, you can start an account with the small as a $500 contribution. Contribution limits this year are 5,500 if you're under 50, 6,500 if you're over 50, but so you're allowed to contribute up to that amount just as an FYI. Because Mark, what you said earlier is really important and I hope everybody gets that point. Everyone should have a Roth ira. If you don't have a Roth ira, start a Roth ira. Now, let me give you one other tidbit of information that will help you get started perhaps is that you might say, well, I may not have all that cash laying around right now, or, you know, you're not sure how you're gonna do it. Here's a question for you. Do you have an emergency fund set up? Because I know a lot of people have emergency funds set up. They might have five or six thousand dollars sitting in that emergency fund, just sitting in a savings account at the bank because it's there for emergencies. But here's the really cool thing about the Roth ira, because the money goes in after tax. When we talked about contributions going after tax, you can withdraw your money from a Roth ira. Your contributions specifically, tax free, penalty free, anytime you want. So literally, you could set up a Roth IRA right now, take your emergency fund money, deposit that in the ROTH that gets your five year clock started, you've got money now that you can work with. And if an emergency popped up in three months, guess what? You can call us and say, hey, I need that $5,000 back. And we just send it to you. No tax, no penalty.

That's awesome information, guys and gals. Any more questions? We've got some more here. I'm just making sure. I want to make sure I answer your questions here. This is kind of cool, Edwin. Arlene, she's been around a long time. She's awesome. She said, I bought a short sell, made $54,000, me and only me. That's awesome. So it's one of her deals in her ira. I believe Paul Edwards is asking a great question. Can income earned from a single member LLC be used to put in a Roth ira?

Okay, ask me that one more time. I want to make sure I understand the question.

Can income earned from a single member LLC be used to put in a Roth ira? Just real quick, guys and gals, before.

You answer that one.

And I'll say it again if you need me to. Edwin and I are not giving any kind of tax advice, legal advice, or anything here. This is for educational purposes only. And we should always, always consult. Because every situation is different in many, many levels. So I just want to be crystal clear on that. Edwin, you're cool with that, right?

Yeah, absolutely.

Okay. So again, can income earned from a single member LLC be used to put in a Roth ira?

Yeah. The two magic words you used there were income earned. If you got income, the IRS doesn't care where your income's coming from. What they care about is that you have it to document the contribution. And just so people just be aware of this, I mean, there's little things that people get hung up on sometimes that really don't exist. If you have earned income this year, it's not like you have to take it out of your current paycheck to put it in the Roth or any retirement account for that matter. If you've got a savings account or you got money in a brokerage account, you can take the money from that account that you already have and deposit it that you. They just want to know that you have your reporting income in the year that you're making your contribution. So where you pull that money from, savings account, brokerage account, checking account, doesn't matter. And yes, you can do automatic deduction out of your paycheck, too, if you want to do that. Or any income you receive.

Right. Great stuff. Another question. Can you buy in a foreign country?

Yes, you can buy real estate in Ohio, California, Michigan, South America, Central America, Europe. You could buy real estate anywhere you choose.

Awesome.

Okay.

Larry Culver, long time no here. I have a rollover ira. If I move this to a Roth, would the distribution from the Roth be taxable? This could be multiple part question, but Edwin, what's your thoughts or takes on that?

Yeah, so here's how it works. And you said that was Larry that asked that question, right?

Yep.

So, Larry, here's how it works. Is that so? Traditional IRAs were introduced in 1974. Roth IRAs were introduced in 98. And what they knew was, what the government knew was that there's gonna be some people that accumulate all the money traditional and they might want to have it in a Roth instead. So what they did was they allowed something called, they put something in the rules called a conversion. A conversion is where we take money from a 401k traditional IRA SAP simple, something like that, tax deferred money, and move it into a tax free environment like the Roth. Okay, now, but keep in mind, what do we say? All the money that goes into a Roth has to go in after tax. You got a tax deduction on the money you put into your traditional, when you took, when you, when you made those contributions. So yes, you can move the money from a Traditional to a Roth. However, it is a taxable event. So if you move over money from a Traditional to a Roth, it is taxable. Now what I will also tell you is that there are some people who say, oh man, well, I don't want, you know, I have a $100,000 IRA. I don't want to pay taxes on $100,000 this year. There's all types of strategies that we help clients use to get in a Roth environment to minimize, lower and reduce those taxes. Unfortunately, we don't have time to get into all that right now. But that's where that customization comes in. If that's something you want to do, we can tailor a conversion strategy or a Roth IRA strategy for you going forward.

Absolutely. Larry's been around a long time. He's a great guy. Larry, knowing you, I have an idea in my head of what would be a great strategy for you that could probably get you a higher level protection and everything and just do some really cool stuff. So, guys, we have a couple more questions, but a lot of people, Edwin, are like, what's Edwin's contact information? This and that. So what I want to do is share with you guys something today? Edwin. I mean. Well, not today, but Edwin and I have been talking about what I want to do. There's two things. One, everyone listening here can get Edwin's contact information. You need to be using Edwin. There's no reason not to.

He's.

He's the best at what he does. And he can assist you all the way through. And I'll share with you how to get that information. But more importantly, we live in a crazy world. We've been together on the phone today for an hour and a half. And when I say we haven't scratched the surface. We're like.0001% to the 100% mark. I mean we're very very, very at the beginning stages of what could the possibilities of what's in front of you. We haven't talked about how you can take this strategy and 5, 10, 12, 20 fold your income or your account quickly with a couple strategies and techniques.

As a passive.

Excuse me, as an active set of an investor. We haven't talked about tapping into other people's money. About private lending and this and that. So what Edwin and I are going to be doing in April, I believe we're going to have a small group, 10 to 20 people at a high level. These are people that want to get serious about their financial future. That want to get in charge of the next step with their life and be able to take this investment. Because there is going to be an investment to get there and be there. Because I want to make sure that you are high quality. I want you to participate at a high level. And more importantly we want to be able to help you so we can help you as you are moving forward.