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Recommended *
The
Only Three Ways to Grow a Business
Did
you know that there are only three ways to grow a business?
1. Increase
the number of customers.
2. Increase
the average transaction value.
3. Increase
the frequency of repurchase.
Find
a way to maximize each one, and your business will experience
an astonishing rate of growth.
In
his "9 Pillars of Business Growth" program, acclaimed
consultant Jay Abraham outlines hundreds of proven, frequently
unrecognized, and almost totally underutilized ways to grow
these three key areas of your business. If you own a business
(or would like to), be sure to take
a look at Jay's program.
"Retirement
beckons. I enjoy my sailing and good music and I would
like to enjoy more of them."
-
Warren Mitchell
Upgrade
Your Sluggish 401(k) to a $2.5 Million Cash-Cow
By
Tom Phelan
Self-Directed
IRAs - which allow you to invest in non-traditional instruments,
such as real estate - are the fastest growing segmentof the
$3.7 trillion IRA market. Some experts estimate that roughly
75 percent of new retirees roll their 401(k) accounts into
IRAs where they can diversify beyond stocks and bonds.
But
why wait until you've retired to put a workhorse IRA in your
stable? A careful evaluation of your current plan could reveal
that, by simply changing the structure of your
IRA, you could reach your financial goals
and retirement much faster.
Let
me tell you the story of how WS, a gentleman from California,
did just that ... and show you how you can do the same.
Today's
IRA Choices
You
can set up your Self-Directed IRA in many forms, including
a traditional IRA, a Roth IRA, or the Simplified Employee Pension
plan (SEP IRA). Most IRA custodians that hold real estate will
usually allow you to purchase raw or vacant land, residential
properties, or commercial buildings for your portfolio.
WS
made full use of this opportunity and is now part-owner of
a very profitable commercial property. His story is not unlike
that of many I run across every day.
WS
had about $30,000 under-performing in two IRAs and a 401(k).
He had the chance to buy into a $2.5 million apartment complex,
but he needed to come up with $50,000 cash as his portion of
the down payment. For most people, that might have been the
end of the story. Deal lost.
But
not for WS. He rolled his retirement funds into a Self-Directed
IRA, raised the additional $20,000 from private sources, and
became a partner in a 104-unit apartment that makes him as
much as $2,200 a month in cash flow.
Self-Directed
retirement plans are remarkably flexible. So I'd like to go
a little deeper into the possibilities, including how you could
potentially sock away as much as $88,000 in tax-advantaged
retirement money in the next four months.
But
more about that in a moment.
As
I said, there are several forms your Self-Directed IRA can
take, depending on your personal situation. Today, I'd like
to introduce you to the SEP (Simplified Employee Pension plan).
Just remember that if this particular structure doesn't work
for you, there's another out there that will. (Consult with
a qualified Self-Directed IRA custodian.)
The
Powerhouse SEP IRA
There
are six major benefits to a SEP IRA that you won't find with
a traditional retirement plan.
1.
Simplified Paperwork
The
SEP IRA is for the self-employed or small-business owner. Basically,
the SEP is a written plan allowing you to make contributions
toward an employee's retirement plan - or, if you're self-employed,
toward your own retirement plan. And you can do this without
becoming involved in the typical tedious and complex retirement
plan process.
2.
Flexible Investment Choices
The
SEP also functions as a low-cost pension plan for individuals
who own small businesses and want to purchase non-traditional
investment products (including - but not limited to - investment
real estate).
3.
Larger Contributions Allowed
The major appeal
of the SEP is that it gives the taxpayer the ability to put
away much more money each year than either the traditional
or Roth IRAs. Those have a maximum annual contribution of $4,000
(plus modest catch-up provisions if you are over age 50).
As
of 2006, employers can contribute a maximum of $44,000 or 25
percent of the first $220,000 of an employee's eligible compensation,
whichever is less. And you can be both the employer and the
sole employee.
In
other words, you could sock away $44,000 before the end of
this year ... and, beginning in 2007, you could sock away another
$44,000. That gives you an IRA nest egg of $88,000 in just
a few months!
Wait,
it gets better.
4.
The Advantage of Leverage
Your
SEP could invest in an LLC that buys commercial real estate
(including apartment buildings, strip malls, office towers,
and more) and uses "non-recourse" financing for mortgage
leverage. That means instead of having a $30,000 retirement
account with $30,000 worth of stocks and bonds, you can use
that $30,000 as a down payment and control an asset worth $100,000.
5.
Partnerships Allowed
Buying
a property may require more funds than you currently have available
in your IRA - but with a SEP IRA, you can purchase an interest
in the property in conjunction with other individuals, such
as a spouse, a business associate, or a friend.
Let's
say you've found a $3.5 million medical building that requires
you to come up with a 30 percent down payment. With the proper
structure, you can bring in partners (who may or may not be
using IRA monies) to help fund the deal. And because your SEP
could invest in an LLC that buys investment real estate, people
who would otherwise be construed as "Disqualified Parties" by
the IRS (Mom, Dad, Grandma, Grandpa, sons, daughters, grandsons,
granddaughters, and especially your spouse) can invest in the
same LLC with or without their IRA funds.
6.
Immediate Access to Your Cash
One
of your options when you set up a SEP IRA is to have "Check
Book Control." A Check Book Control Self-Directed SEP
is established by having your SEP form a single-entity LLC
(you) and then having the LLC elect you as its manager.
A
Check Book Control Self-Directed SEP gives you "investment
spontaneity." In other words, you can immediately write
checks for real estate deals without having to submit the traditional
IRA custodian "Buy Direction Letter," wait for it
to be approved, and then wait again for the same IRA custodian
to fund the purchase ... a process that could take weeks.
I
never cease to be amazed by how few people know about or understand
the SEP IRA - yet it's one of the most powerful savings tools
on the market.
Today's
Action Plan: Take a look at your current retirement savings
vehicles and see
if you could benefit from a SEP IRA or another
form of Self-Directed IRA.
[Ed
Note: Thomas Phelan is a financial author, an active real estate
investor, and a contributing editor to ETR's "Million
Dollar IRA" special report. He is also
a consultant who specializes in helping investors set up Self-Directed
IRAs and tax-deferred real estate sales through 1031 Like-Kind
Exchanges.]
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Are
Your Investments Paying You $70,000 Cash a Year?
According
to a recent report from Pepperdine University, you will need
70% of your pre-retirement income to maintain your current
standard of living.
To
trigger a steady flow of $2,000.. $5,000... or even $10,000
a month in privately funded "pension checks" please
read on...
Notes
From Michael Masterson's Blog: The Discipline Question
On
the flight home from Paris, I had to ask the five-year-old
behind me to stop kicking my seat. Several times, in fact,
as his oblivious mother flipped through her US Weekly. That
little incident reminded me of a recent Wall Street Journal
article in which writer Jeffrey Zaslow raised the question
of whether it's appropriate to reprimand strangers' children
when they misbehave. Seems there's a drastic divide over what
people think.
Take
Zaslow's three examples ...
[Ed.
Note: Read the rest of this article on Michael Masterson's
blog at http://michaelmasterson.net.]
Lick
Your Sugar Habit
By
Al Sears, MD
A
few months ago, a concerned mother asked me about her teenage
son. He was having trouble concentrating in school and his
grades were suffering. Her family doctor said the boy had ADHD
(Attention Deficit and Hyperactivity Disorder) and prescribed
drugs to "fix" the problem.
When
I asked her about her son's diet, she admitted that he loves
soda - drinking as many as four a day. I suggested that he
cut out sugar entirely.
Now,
three months later, her son feels much better and his grades
are improving. Best of all, he doesn't need prescription drugs.
For
years, I've been telling all my patients (not just teens) that
sugar is deceptively dangerous. And new studies are backing
me up. One, in the American Journal of Public Health,
shows that teens in Norway who drank the highest amounts of
sugary sodas suffered the highest rates of mental disorders,
including ADHD.
Over
the years, I've reviewed dozens of studies on the dangers of
sugar. So far, sugar has been related to 76 clinically proven
health consequences. A few:
- Sugar
can cause premature aging.
- Sugar
can impair the structure of your DNA.
- Sugar
feeds cancer cells and has been connected with the development
of cancer of the breast, ovaries, prostate, rectum, pancreas,
biliary tract, lung, gallbladder, and stomach.
- Sugar
can produce a significant rise in total cholesterol, triglycerides,
and bad cholesterol, and a decrease in good cholesterol.
- Sugar
can cause a decrease in insulin sensitivity, thereby causing
abnormally high insulin levels and, eventually, diabetes.
Needless
to say, limiting your sugar intake is essential to good health.
If you're considering a sugar substitute, stay away from products
like NutraSweet, which are full of a dangerous toxin called
aspartame. Stevia is your best bet.
[Ed.
Note: To find out which foods will spike your blood sugar,
get your free copy of Dr.
Sears' Glycemic Index.]
Just
for Fun: How to Find Your Soul Mate on Halloween
By
Suzanne Richardson
If
you're single and searching for a spouse, tonight's the night!
Apparently all those spirits floating around get a kick out
of turning matchmaker.
Halloween
originated with the Celtic people of Ireland - and it turns
out Irish immigrants not only brought the tradition of the
jack o'lantern with them to the United States (see
yesterday's issue), they also brought several
Halloween customs aimed at giving people a sneak peek at their
soul mates. If you want to give it a try, here's how.
1. Toss
a handful of nuts into an open hearth. As they burn, you
should be able to read the initials of your future mate in
the ashes. (I'm not sure which nuts work best, but you probably
don't need to make a special trip to the store. Just use
whatever you have on hand.)
2. Peel
an apple. Throw the peels over your shoulder, and they will
form the initials of your intended.
3. At
midnight tonight, throw a ball of yarn into a barn, an old
house, or a cellar, holding on to the free end. (Might want
to get permission if you're doing this on someone else's
property.) Re-wind the yarn while repeating, "I wind,
I wind, my true love to find, the color of his/her hair,
the clothes he/she will wear, the day he/she is married to
me." This little incantation will cause your true love
to appear ... in some form or another. (Maybe you'll see
an orange cat and end up marrying a redhead.)
You'll
let us know if any of these methods work for you, right?
(Source: Natural History Magazine)
* Highly
Recommended *
Put
Thousands Of Extra Dollars Into Your Bank Account Every
Month
21
percent of adults surveyed said a lottery would be the most
practical strategy for accumulating several hundred thousand
dollars, according to a recent survey of about 1,000 Americans
by Opinion Research Corporation.
Don’t
fritter away your life away waiting to win the lottery. It
ain’t gonna happen.
If
you'd like a much more reliable new source of income - a way
to put thousands or even tens of thousands of extra dollars
into your bank account every month, we’ve found a formula
that has worked over and over again.
If
you'd like to spend the rest of your life the way you deserve
to, you owe it to yourself to look
into this opportunity.
-
Patrick Coffey
Word
to the Wise: Gonfalon
A "gonfalon" (GON-fuh-lun)
is a banner used in heraldry that represents the owner's coat
of arms. It's rectangular, suspended from a crossbar, and usually
has several streamers or tails. Gonfalons were often carried
into battle in medieval times. (You've seen them in historical
movies and paintings.)
It's
a fun word to say ... though not exactly easy to fit into conversation.
Here's how James J. Kilpatrick recently used it in his column "The
Writer's Art" (about the way English usage is evolving): "Face
it, fellow fogeys, our gonfalon is a gone gonfalon. The old
order has indeed yielded, and now, everyone has their own cup
of tea."
