GetPaidTopDollar.com - High Yield Investment Notes and Options Secured Against Real Estate – Specializing in Roth IRA's and 401k's
2010 Roth IRA Income Limit and Rollover Loop Hole
Tuesday, 12 January 2010 02:07
Kevin
The Tax Loophole Everyone Will Miss
Even though Obama is in office we have Bush to thank for this 2010 tax loop hole. I think most people will miss out on this one.
The Bush tax cuts, when he was in office, contain a unique clause regarding the Roth IRA in 2010. Specifically, it contains language that makes the Roth IRA available to anyone regardless of their income, but only for one year (2010). This is a huge advantage for people who know what to do with a Self-Directed Roth IRA.
**In another article I will focus just on the Self-Directed Roth IRA and why I use it myself.
In an effort to extend his tax cuts, the last President agreed to a number of oddities in tax legislation effective this year. One of the strange clauses is a single year cap exemption. In 2010, the income cap of $100,000 will not apply to the Roth IRA. Put in simple terms, you can convert to a Roth in 2010 regardless of how much you make. You can only do it in 2010, not 2009 or 2011.
So what does this mean for you?
If you are making more than $100,000 a year, you now have the privilege to open a Roth IRA or even better the Self-Directed Roth IRA. But the most important advantage is you can now roll your existing 401(k) or traditional IRA over into a Roth IRA or Self-Directed Roth IRA account.
FYI, if you convert a traditional IRA or 401(k) to a Roth IRA, you must pay taxes on the moved money. However there is another important part of this bill - you can defer half the taxes of that rollover to 2011 and another half to 2012. So please consult your CPA or Tax Attorney. Some say you can do part or some but I believe the more money you can cram into a Roth, the better off you will be in the end. Pay the little tax now on a smaller amount or pay a ton of tax later on a lot of money. I bet the government would want you to wait so do the opposite.
Roth IRAs
A Roth IRA is a retirement account that offers a lot of advantages. The primary advantage is found in the gains and distributions from the account. Simply put your account is TAX FREE (did I put enough emphasis on that?). So the money is yours Free of Taxes which includes all the GAINS you have made from your investments over the years. This coupled with Real Estate Notes and Real Estate Options in a Self-Directed IRA is an incredible tax advantage. Just think if you didn’t have to contribute to your 401(k) or IRA anymore for the rest of your life and still make Millions. With a Self-Directed Roth account that is easier than you may think.
The only criticism of Roth IRAs has to do with income caps. Simply put, a person with a modified gross adjusted income of $100,000 or more cannot convert an existing IRA to a Roth.
So Why Would They Do This?
Ask yourself, “Why would the government put a cap on income like this on a Roth IRA?” Do they think that people will take advantage of this retirement account? Do they not want a lot of people using this account as retirement? My guess – Because they know what they are doing and they know how powerful a Roth is. They pay top dollar for the smartest PhD’s to make sure the government gets paid. They know that the Roth IRA is a powerful retirement plan for someone that knows how to use it. They don’t want to give this power to smart people who already know how to make a lot of money. The Roth IRA is your way to get out of the system and become wealthy in a short period of time.
So now that this hurdle with the Roth IRA is gone lifted in 2010, what are you going to do about it? Now is your chance to open one or roll your funds over. Do it now, you will thank me later.
What if You Make Less?
You are not left out if you make less than $100,000 a year. You can still open a Self-Directed account or roll your existing accounts over into a Roth IRA and take advantage of deferring the taxes for 2 years. They could start messing with the income limits at any time so I would rush and get one now in order to get grandfathered in.
Conclusion
Just think if you never had the problem of paying taxes on your retirement. If that was the case, then you really wouldn’t have to make as much money in that account. Which means - you can retire early.
Think about it: There appears to be no reason why the politicians would create a one year exemption to the Roth IRA income cap. It certainly seems a bit fishy, but you might as well take advantage of it, now is your chance.
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The Rule of 72
Wednesday, 06 January 2010 01:28
Kevin
Rule of 72
This is a great trick I have learned along with investing and you can apply it to your own investments now and in the future.
The Rule of 72 is a great financial tool and shortcut to estimate the effect of any growth rate or how compound interest can help you or hurt you.
Here’s the formula:
- Years to double your cash = 72 / Interest Rate You Earn Now
- Interest Rate You Need To Earn = 72 / Years to double your cash
This formula is useful for financial estimates and understanding the nature of compound interest.
Examples:
- At 3% interest, your money takes 72/3 or 24 years to double.
- To double your money in 6 years, get an interest rate of 72/6 or 12%.
You can also use the rule of 72 for expenses like inflation or college tuition:
- If inflation rates are 3%, your money will lose half its value in 24 years. (SCARY!!) (So you need to earn way more than 3% just to keep up!!)
- If college tuition increases at 5.5% per year (which is faster than inflation), tuition costs will double in 72/5.5 or about 13.1 years!! Which if you have kids now that is any easy calculation for you to understand that you have to make a lot of money if you want your kids to go to college. I have a 4 year old and a 1 year old as I write this.
The rule of 72 shows why a “small” 1% difference in inflation or expenses has a huge effect on you (positively or negatively)
The questions to ask yourself: are your investments going in the right direction? Are your investments consistently beating inflation? If they are not then you need to act now to make enough in order to retire when you want.
For example - if your investments on average have been making 5 to 8% (which a financial advisor at some large company thinks is a good rate) you need to ask yourself, are you getting to your retirement goals fast enough (including inflation)? My guess is you are not. You really need to be making well over 8% (on average) to be reaching your retirement goals. I am no financial advisor but do you think your investments, on average, have been giving you returns of 8% or more per year this last decade? I can probably guess NOT.
Even if you don’t invest with us you need to take action now. Use the Rule of 72 to your advantage. Time is on your side if you do something now. Don’t wait and be working at Wal-Mart or the Supermarket because your investments didn’t give you the return you needed.
We consistently have opportunities for people at not just 8% but at 12% fixed (not variable) interest secured by a deed of trust on a house (so there is security). And many people are lending directly from their IRA, 401k or pension plan.
We have several happy lifetime customers who will be with us forever. If you have any questions on how to lend from your IRA or 401(k) you can visit the Self Directed IRA custodian that we use personally at http://newdirectionira.com. Another highly recommended Self Directed IRA company is http://www.trustetc.com or you can just contact us directly and we will point you in the right direction.
We are always here to help.
Good luck in 2010!
Kevin
Denver First Position Note For Sale
Wednesday, 09 December 2009 23:12
Kevin
GONE
1st Position Income Property Located In Denver
Your Price: $35,000
Original Loan Balance: $45,000
Principal Loan Balance: $45,000
Payments: $269.80
Interest Rate: 6%
Original Term: 10 Year Balloon Amoritizing at 360 Months
Term Left On Loan: 120 Months
Notes: This is a safe note because the Value of the building and land is well over $100,000 - total cash flow of $795 a month.
For more information Contact Us
Tuesday, 02 January 2007 06:52
Who is TopDollar?
We use private investors and lenders to purchase our houses cash. This allows us in turn to get great deals on single family cash flowing homes. If you're interested in getting both a high yield and secure investment on well-collateralized real estate notes paying 10 to 13% -> you have come to the right place. We specialize in using IRA's, ROTH IRA's, Pension Funds and 401k's but if you have a CD that is not getting you the yields you want we can help.
You Can Download Our Investing Packet Here -> 2010 TopDollar Capital Private Lending Program (Guide For Investors)
Littleton Note For Sale
Tuesday, 26 May 2009 09:13
Kevin
GONE
2nd Position - Single Family Home in Littleton
Your Price: $9838.20
Original Loan Balance: $15,000
Total Principal Loan Balance: $16,275.94
Late Payments: $1273.93
Late Fees: $84
Payments: $181.99
Interest Rate: 8%
Original Term: 120 Months
Term Left On Loan: 112 Months
Notes: 7 months behind -> Only made 1 payment, good terms on first note and plenty of equity in the house, 83% LTV, Family situation doesn't want to foreclose on them. You can foreclose and assume the first (without Due On Sale Clause Problems with the first lender). If you don't know how I will tell you how. Call for more info.
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MUTUAL FUNDS ARE A SURE PATH TO THE POOR HOUSE!
Wednesday, 23 December 2009 00:34
Kevin
By rolling or transferring your IRA or abandoned 401(k) (some of my friends don’t even look at their 401(k)’s anymore because it is too painful) to a self-directed IRA or 401(k) account you have not only the ability to continue to invest in the same investments you are in now (which, if it is mutual funds, you are dying a slow death) but also alternative investments such as Notes, Real Estate Options and Real Estate itself. Even if you choose not to invest in our opportunities here at TopDollar -> this is something you need to do.
I am a big believer in investing in 'Private Money Loans' secured by a Deed of Trust. I loan money from my Self-Directed ROTH IRA now and have been for a couple of years. You can easily receive up to 15% returns annually and your principal is secured by real estate at a very low loan-to-value (LTV). Meaning, if you loan $100,000 the property must appraise much higher than your loan with a true appraisal, not a fabricated one. If you can stay at 75% LTV, when you loan $100,000 the property must be worth $133,000 or more. If the borrower doesn't pay you simply foreclose and fire sale the property and probably make a better profit by doing so. You get your investment back! Who would of thought of that in the Stock Market.
Of course there are ways to eliminate the foreclosure process but I will save that for another article or video down the road.
Folks, receiving 15% returns, heck, receiving just a 12% consistent, safe and secure return will make you rich and I can prove it. You will simply blow your neighbors savings away and safely. I do this everyday and I will loan money until the day I die. It just makes sense. I have no money in the stock market or even Gold. Because both of those will come crashing down someday. However my loans keep paying no matter what is going on in the investing world.
Of course this is just one example of an alternative investment, there are many more but I am a BIG advocate of being the bank with security.
You don’t get security with normal investments like a Mutual Fund. Your fund could be worth much less someday. You also have no control over those gains.
Ask yourself the question “why is there a bank on every corner?” Because they make a killing on single family real estate even in today’s market, don’t kid yourself. They are still lending at 97% LTV today! I am telling you to only lend at 85% LTV max (if you love the house cause you could get it).
So hopefully you can see why I believe Private Money Lending is the real way to get rich no matter how much money you start with. If you are the bank, you can just pick your interest rate, lend and secure it against a good property and ride the wave and retire in style!
Denver 2nd Note For Sale W/ Profit Share
Tuesday, 24 November 2009 01:25
Kevin
Have Takers - Taken Off Market
2nd Position Profit Share Opportunity With Me On A House I'm Buying (SEE BELOW)
Cost To You: $10,000
2nd Position Loan Balance: ~$25,000
Total Amount of Note With Late Fees and Payments: ~$32,000
First Loan Balance: $211,000
Total Amount of First Loan With Fees Etc.: $239,000
Total Balance Of Loans (With Second Purchased At 5K): $244,000 (70% of LTV)
I'm Buying The House Subject To Those Loans - No Fix Up Cost
House Is Worth: $350,000+
How Do You Get Paid? You Get Half of the 2nd Loan Balance plus your investment back when I sell the property in 6 Months
Contact Me For All The Information: Contact Kevin
Denver Option 4 Sale
Monday, 01 June 2009 01:07
Kevin
This Option SOLD Quick Sorry
I have an $13,600 Long Term Option For Sale On a Single Family Home Located Here In Denver
Details:
In exchange for a $40,000 loan at 6% (Secured against another property that you agree on) I will give you a 20 Year 15% Option secured against another home. That Option today is worth ~$13,600. You will not have to exercise that option for 20 years if you chose to. That Option will be worth a lot more then and in turn your note will be paid in full at that date.
Call me with any questions.
Denver Note For Sale
Wednesday, 07 January 2009 11:07
**GONE
2nd Position - Single Family Home Located in Denver
Price: $20,383 (18% yield)
Original Loan Balance: $30,000
Principal Loan Balance: $29,515.18
Payments: $308.58
Interest Rate: 12%
Original Term: 360 Months
Term Left On Loan: 315 Months
Notes: Performing
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