MFM Live: How To Create A Lifetime Of Tax Free Wealth With Self-Directed IRA

Developing a strategy in order to appropriately save for retirement is a necessary action in today’s world. For the past 30 years, Americans have been following a method to save for retirement that is growing outdated. From this webinar, you will learn about the almost endless possibilities with self-directed IRAs, as well as learn about the risks and benefits of investing in tangible assets like real estate, notes, loans, private placements, precious metals and much more.

VIDEO TRANSCRIPTION

00:00
and we’re about to get this party
00:01
started tonight we have 70 plus meetups
00:04
across the globe
00:05
we’re looking to expand if you’re
00:07
interested in hosting a meetup we’re
00:08
here to help you we want to help you
00:10
host a meetup we want to help you learn
00:11
this business
00:12
inside and out it doesn’t matter if your
00:14
goal is to buy
00:15
three apartments five apartments 500
00:17
apartments or like jeff
00:19
a thousand plus apartments it’s not a
00:21
race it’s not a numbers game it’s all
00:23
about your bank account don’t care how
00:24
many units you have
00:26
it’s all about doing the right thing and
00:27
grabbing everyone around you and
00:28
everybody winning together
00:31
with that being said we have uh
00:34
multifamily masters live
00:35
every two weeks different topic every
00:37
week tonight we’re going to be talking
00:39
about
00:40
401k self-directed iras how to turn your
00:43
retirement account into a real estate
00:44
portfolio
00:46
and we have special guest speaker quest
00:48
ira is here
00:50
that is someone who i personally have
00:51
used for the last four to five years i
00:53
refer all of my coaching students
00:56
all of our mastermind students everyone
00:58
i know to quest ira
00:59
and i will call them out um i switched
01:02
from equity trust company
01:03
because they were extremely hard to deal
01:05
with extremely expensive
01:07
it was more of a headache than it was
01:08
worth and quest ira has been
01:10
absolutely wonderful phenomenal out of
01:13
houston texas
01:15
this will be recorded tonight it’ll be
01:16
on our youtube channel
01:19
multifamilymasters.com also check out
01:21
our facebook group
01:23
multifamilymasters.com we’re up to about
01:24
6 000 members
01:26
our goal is to deliver as much free
01:28
valuable content
01:30
as possible we also have a mastermind
01:33
if you’re looking to learn share network
01:35
and grow in this business
01:36
you’re looking to surround yourself with
01:37
the right people you’re looking to have
01:39
someone look over your shoulder who has
01:41
been there done it and wants to hold you
01:42
accountable
01:44
you want to hang out with us um if you
01:46
want to partner up with deals with
01:48
my and my two business partners we own
01:50
control 3000 plus apartments
01:52
and i have the two best business
01:54
partners in the world mr pal chi
01:56
mr Feras Moussa go ahead and introduce
01:59
yourselves and take it from there
02:02
awesome awesome appreciate that Garrison
02:04
well hey
02:05
hey everybody my name is Powell Chee i
02:08
live in los angeles
02:09
um entrepreneur real estate investor uh
02:12
all my i like to say i live in los
02:15
angeles but all of my
02:16
investments are out of state so far out
02:18
of state so i don’t really have anything
02:19
inside of california
02:21
my first property that i bought
02:22
multi-failing property that i bought was
02:24
in indianapolis and that was 2017 so
02:27
that was just like three and a half
02:28
years ago that i bought that
02:30
um since then i purchased another one in
02:33
indianapolis a 61 unit with a small
02:36
group of people
02:37
so i went from buying one myself to one
02:39
then buying
02:40
one in a small group of people then 2019
02:44
got involved in about five different
02:45
syndications
02:47
um thousand units in dallas atlanta
02:50
jacksonville san antonio phoenix
02:53
um and so that’s a little about me
02:55
started this
02:56
multi-family meetup group about two and
02:58
a half years ago with a small group of
03:00
eight of us inside of a hotel lobby uh
03:03
since then
03:04
worked with a number of different
03:05
partners to grow this to from my little
03:08
one chapter of eight people to
03:10
to three chapters to eight chapters to
03:12
you know now we’re at
03:13
i don’t know what we would say 50 plus
03:15
we have a lot and we’re global now so
03:17
it’s kind of nice to say global it’s a
03:19
it’s a big accomplishment to do that so
03:22
um and another thing here is i i i think
03:24
everybody here is you’ll get a sense of
03:26
the more that you
03:27
hear uh some of our webinars that we
03:29
have
03:30
you’ll get a sense of community that’s
03:31
really what we’re all about is the
03:32
community and the networking
03:34
and we we love to see everybody we enjoy
03:37
seeing everybody in person
03:38
nowadays we can’t do that in person so
03:40
you know now it’s all over zoom
03:43
but we love having audience
03:44
participation so if you
03:46
can take a chance to write into the chat
03:49
box
03:50
uh let’s see is it this way oh this way
03:53
this way there the chat box so right
03:55
into the chat box let us know where
03:56
you’re from
03:58
who you are where you’re from and maybe
03:59
what you or where you invest in so like
04:01
we know what cities and things like that
04:03
right and if you get a chance definitely
04:05
stay to the end because we will get a
04:06
chance to do some networking as well
04:08
right well so that said Feras
04:11
all right so hello everyone hopefully
04:14
everyone here knows me by now but
04:16
hopefully you guys aren’t tired of me
04:17
but for those that don’t know my name is
04:18
Feras Moussa of a company called
04:19
disrupt equity
04:21
we are based here in houston uh we’re
04:22
vertically integrated we have our own
04:23
management company as well
04:25
and as pal and Garrison said we kind of
04:27
helped really push
04:29
and kind of have been building up nfm
04:30
over the past i guess over the past year
04:32
and a half so
04:33
it’s been exciting to see the growth and
04:35
you know it’s part of covid and really
04:36
before coving we have these mfm lives
04:39
that get started
04:40
right but we’ve really since accelerated
04:42
it kind of you know rather than doing
04:43
once a month really trying to do but
04:44
once every two weeks and so
04:46
you know we try to add value for you all
04:48
so if anyone is looking for a specific
04:49
topic definitely let us know
04:51
right we do a variety of bringing on
04:53
guest speakers putting together content
04:55
ourselves putting on panels
04:56
a little bit of everything so as people
04:58
you know as we’ve kind of been growing
05:00
this we’d love to hear people’s feedback
05:02
and you know with that said Garrison
05:04
does not work for quest ira but
05:06
his you know he’s clearly vouching for
05:09
them right they’re obviously
05:10
you know well-known group for us
05:12
personally disrupt equity many of our
05:14
investors use them
05:15
and more importantly right they’re you
05:17
know they’re in our backyard right
05:18
they’re literally about
05:19
five minute drive from our office and so
05:21
really glad to have anne-marie kind of
05:23
come speak to us about
05:25
really self-directed iras and what you
05:27
can kind of know about them and so
05:28
for for this session right we’ll do
05:30
about a 30-35-45-minute presentation
05:33
anne-marie feel free to use as much as
05:34
little as you want and then we’ll open
05:36
it up to some q a at the end so if
05:37
anyone has some really hard integral
05:39
derivative questions definitely send
05:41
them to ann marie uh
05:42
you know we’ll answer them at the end of
05:44
it and then after that we typically will
05:46
stop and kind of do breakouts and so
05:48
we’ll do
05:48
you know a really quick we’ll break the
05:50
room up what do we have about
05:52
70 people plus the facebook live so
05:54
probably break out to about you know
05:55
groups of eight people or so
05:57
and let people get to know each other
05:58
right multifamily is all about your team
06:00
all about your networking from you know
06:02
partners to
06:04
other vendors on your team et cetera so
06:06
the more you know
06:07
the better you kind of be able to grow
06:08
this business and so it’s really a fun
06:10
part of it i think most people like that
06:11
so definitely
06:12
for those of you tuning in for the first
06:13
time definitely stay and check it out
06:15
you’ll get to meet somebody new
06:16
somebody local and if anne marie sticks
06:19
around maybe you can kind of have her in
06:20
your group as well
06:21
and so with that said anne marie i
06:23
wanted to go ahead and toss it over to
06:26
you
06:26
feel free to kind of run with it feel
06:28
free to uh yeah i know your presentation
06:30
kind of run with that as well
06:31
and you know introduce yourself i’d
06:33
rather typically like to let you
06:34
introduce yourself as well so
06:36
you know with that said go ahead and
06:38
let’s show them how you know how awesome
06:39
houston people are right
06:41
thank you thank you so much Feras it’s
06:44
a pleasure to be here with everyone
06:45
thank you also to
06:46
Powell and Garrison for including me um as
06:49
i said i work with uh
06:51
what we used to be quest ira we actually
06:53
just very recently
06:54
uh changed our name got our texas trust
06:57
charter and we’re now quest trust
06:58
company
06:59
uh so we’ve been doing self-directed
07:01
iras since 2003
07:03
uh been around for quite a long time now
07:06
and we are based throughout texas
07:08
i’m based in our corporate headquarters
07:10
which is houston
07:11
uh that’s how i’ve gotten to know Feras
07:13
through lots of the great events that
07:14
they put on and also
07:16
coming out to some of ours but we also
07:18
have offices
07:19
in dallas as well as austin but you know
07:21
truthfully we have
07:22
clients nationwide uh pre-covered days
07:26
back in the the old days
07:27
um of about seven eight months ago uh we
07:30
were actually doing about 600
07:32
to 650 events across the country every
07:34
single year
07:36
um now a lot of those we were already
07:38
doing virtually so we have continued
07:40
with that
07:41
um so it wasn’t a huge change for us
07:43
except that we weren’t actually getting
07:45
out there and you know getting that
07:46
face-to-face time
07:48
in person with everyone but today i’ll
07:50
kind of be talking about
07:51
how you can learn about self-directed
07:53
iras begin choosing all of your own
07:55
investments
07:56
and then afterward kind of talk to you
07:58
guys a little bit about some of the
07:59
questions that you may have
08:01
and some of the opportunities that we
08:03
have at quest um you know we really have
08:05
seen
08:05
a lot of you know as Garrison said a lot
08:07
of virtual events that have come about
08:09
um but so many of them you know they’re
08:11
just bringing content to you without
08:12
really that opportunity to still
08:14
network be able to find those deals find
08:17
money you know find the things that you
08:18
need to make those things possible so
08:20
something new that we’re doing that
08:22
we’ve added on to our events that we do
08:24
about four times
08:25
every single week is we’ve added uh
08:27
actual as
08:28
they’re doing you know breakout sessions
08:30
and things of that sort so you guys can
08:31
actually
08:32
network together so with that i will go
08:35
ahead and
08:36
share my screen can you guys see that
08:37
okay
08:39
yes we can awesome
08:43
okay so the presentation for today
08:47
is
08:50
so the presentation for today is called
08:52
laying the foundation for
08:54
a tax-free future uh so for those of you
08:56
that are not familiar with
08:58
quest or with self-directed iras uh
09:00
basically what we do
09:01
is we allow americans to use the
09:04
retirement accounts that they may
09:05
already have
09:06
elsewhere that are probably in you know
09:09
more traditional style investments your
09:11
stocks bonds
09:12
you know mutual funds things of that
09:14
sort and really allow you to take
09:16
control
09:17
and move it over to a company like quest
09:19
where you can
09:20
self-direct it so what you’re able to do
09:22
is to begin choosing
09:24
all of your own investments in what’s
09:26
considered a private asset
09:28
so things like real estate of course
09:30
things you know just residential
09:32
properties
09:32
all the way up to you know larger scale
09:35
commercial deals multi-family deals
09:38
as well as other things being in texas
09:40
we see a lot of oil and gas
09:42
investments all types of private company
09:44
investments
09:45
tech investments as well as notes just
09:48
to name a few of the things that can be
09:49
done
09:50
and the best part is that as you begin
09:52
doing these investments and generating
09:54
profits off of your deals
09:56
your profits do all return back into the
09:58
account
09:59
but you’re not taxed on your earnings so
10:01
when we’re talking about something
10:03
especially something like multi-family
10:05
investments where you can have such a
10:07
great amount of growth
10:09
such exponential growth at often a very
10:11
rapid rate
10:12
it’s really important to be doing that
10:14
inside of a vehicle where it’s going to
10:16
be
10:16
tax-free for you for the future um
10:20
as i said uh my name is ann marie i have
10:23
worked at quest
10:24
trust company for over seven years now i
10:27
am one of our certified ira specialists
10:29
and as i said i met Feras in houston
10:32
where i’m located
10:34
um a little bit about um
10:37
you know something important before we
10:38
dive into it is you know before we talk
10:40
about
10:41
you know self-directed iras the
10:42
different accounts kind of what you can
10:44
and cannot do
10:45
i think it’s important to really start
10:47
off with the end goal
10:48
and i always kind of like to bring this
10:50
up because you know
10:51
obviously you know we talk a lot about
10:54
investing we talk a lot about different
10:56
strategies and things that you can do
10:58
but really what’s the end goal the end
11:00
goal especially when we’re talking about
11:02
using a self-directed ira is that we’re
11:05
trying to
11:06
retire right we’re trying to save money
11:08
for the future so we don’t have to work
11:10
anymore
11:11
right and so i think it’s important to
11:12
start there and kind of talk about well
11:14
what is that magic number that you need
11:16
to retire
11:18
and so from you know my years of quest
11:20
from the research that we’ve done at
11:22
quest as well as other experts in the
11:24
financial space
11:25
you know the magic number truthfully it
11:27
depends right
11:28
there’s no magic number i can say well
11:30
this is what you need to get you to the
11:31
finish line
11:32
because obviously for each person it’s
11:34
going to be different and the reality is
11:36
is that what it may take for
11:37
Feras or myself in houston texas to be
11:40
able to retire
11:41
may be drastically different than
11:43
someone on the east coast the west coast
11:45
or in a different
11:46
region in the country obviously there’s
11:48
other factors like your standard of
11:50
living now
11:51
other things of that sort but from our
11:53
research
11:55
you need in the state of texas to retire
11:57
at about 65 years old
11:59
and get you to roughly 92 to 93 years of
12:01
age
12:02
for you and a spouse you need about 1.7
12:05
million dollars saved up for retirement
12:08
and what’s interesting is that that 1.7
12:10
figure is actually not
12:12
everything that you would need in order
12:14
to be able to retire
12:15
so it’s definitely not factoring in you
12:17
know the way that retirement is shown on
12:19
tv
12:20
with you know these white sand beaches
12:23
and vacations right it’s not
12:25
being factored out that way uh debts
12:27
that you may still have
12:28
or something important that we will
12:30
touch briefly on today
12:32
is medical costs that may come up in the
12:34
future
12:35
is also not being factored into that now
12:38
for those of you that don’t live in
12:40
texas and you might be thinking that 1.7
12:42
doesn’t sound like the figure that you
12:44
may be needing
12:45
the department of labor about two little
12:48
less than two years ago now
12:50
put out a statistic and by the way the
12:52
department of labor is who oversees the
12:54
irs
12:55
but they put out a statistic that said
12:57
that on average americans need about 70
12:59
percent of their pre-retirement income
13:02
about 70 percent of their pre-retirement
13:04
income in order to get
13:06
them through to the end of their days so
13:08
after the presentation
13:09
take a look at your number and try to
13:11
figure out what that may be for you
13:13
because again it may
13:14
vary from person to person but most
13:16
importantly we’re going to talk about
13:18
today how you can lay the foundation for
13:20
the future
13:21
and do this in a tax free manner in
13:23
addition to that i am also going to talk
13:25
a little bit about how
13:26
yes of course you can supplement you can
13:28
prep for the future you know have that
13:30
future nest egg
13:31
but also really how you can benefit
13:33
today and start paying for everyday
13:35
expenses for
13:36
your kids education as well as your
13:39
family’s health expenses
13:40
completely tax free so who are we at
13:44
quest as i said we are a self-directed
13:46
ira company we’re based in texas
13:48
when i started a quest about seven and a
13:50
half years ago
13:52
we were a much much smaller company we
13:54
only had about 30 employees
13:56
we’ve now had such rapid growth we’re
13:58
now well over 120 employees
14:01
with three different offices we
14:03
currently hold two billion in
14:04
non-traditional assets
14:06
so we’re definitely you know as Garrison
14:08
shared we are definitely not the largest
14:10
though we are one of the fastest growing
14:12
competitive companies
14:14
in the country but what this allows us
14:16
to do is that we have
14:17
the best quality customer service when
14:20
you call quest you’re not getting an
14:21
automated phone line you’re talking to a
14:23
real person
14:24
we have a highly highly educated staff
14:26
attorneys cpas
14:28
certified ira services professionals
14:30
among other designations so
14:32
um you know we’re very very
14:34
knowledgeable about iras but what makes
14:36
us unique
14:37
is that we’re all investors too myself
14:39
i’ve never invested
14:41
directly into a multi-family deal but
14:43
personally i’ve done a variety of note
14:45
investments throughout my career so we
14:48
are investors we see thousands of
14:50
investments every single month and so we
14:52
really understand what investors need
14:54
and are constantly looking to improve
14:56
our systems and things like
14:58
that because we understand what
14:59
investors need
15:01
now before i really start guys our
15:02
disclaimer request is just that we don’t
15:04
provide
15:05
tax legal investment advice endorse or
15:07
sell any products or services
15:09
really everything i’m going to talk
15:10
about is just for educational purposes
15:12
we encourage you to consult with your
15:14
attorneys accountants advisors you know
15:16
everybody on your team
15:18
um really what this is breaking down to
15:19
saying is it’s just an explanation of
15:21
what our role is at
15:22
quest so you know legally as a custodian
15:26
we cannot provide any tax or investment
15:29
advice and you’re never going to hear us
15:30
selling any types of investments
15:32
so if you call us on the phone um you
15:34
know we’re never going to say hey we’ve
15:36
got this great fund that’s going to give
15:37
you x return or we’ve got this asset
15:40
that you can invest into
15:42
we’re completely neutral hence it being
15:44
a self-directed ira
15:46
so really our role is that we’re going
15:47
to hold the retirement account
15:49
and we’re going to help you to once you
15:51
have the investment in mind that you’ve
15:53
selected for the account
15:54
we’re going to help you to move forward
15:56
and purchase that investment we’re going
15:57
to help you to maintain the investment
16:00
and you know potentially pay expenses
16:01
receive profits back
16:03
hold that asset for you but it’s up to
16:06
you guys to
16:07
find the deal so of course along with
16:08
that goes you know consulting with
16:10
attorneys
16:11
cpas other people on your team to make
16:13
sure that that’s a good investment and
16:15
you know do your due diligence
16:18
so for those of you that are not
16:19
familiar with self-directed iras
16:22
um it’s really common question is you
16:23
know what exactly is the difference
16:25
between
16:26
a regular ira that you know i might
16:28
already have somewhere
16:29
kind of you know your traditional style
16:31
company your charles schwab your
16:33
fidelity
16:34
edward jones right the kind of
16:35
mainstream financial companies
16:37
you know what’s the difference in the
16:38
ira that they have versus the ira that
16:41
we have at quest
16:44
the answer is nothing so it’s kind of a
16:47
misconception that people think that
16:49
there’s a special type of account called
16:51
a self-directed ira
16:52
and that’s actually just not true and
16:54
there is no legal distinction between
16:56
the accounts that we hold
16:58
and the accounts that any other company
17:00
out there that has iras holds
17:02
so what’s the difference the difference
17:04
is not in the accounts right
17:06
so the irs sets the rules for iras so if
17:10
i have a traditional ira
17:12
quest or i have a traditional ira
17:14
fidelity or i have a roth ira
17:16
at one and i have a roth ira rate
17:18
another whatever you may have
17:19
right those accounts are standard how
17:22
much i can contribute
17:24
what the tax you know implications are
17:26
when retirement ages
17:28
all of that is standard no matter where
17:30
you go the difference is
17:32
actually in what the companies allow you
17:33
to invest into
17:35
so at your fidelity or charles schwab’s
17:37
your mainstream financial companies
17:40
they’re going to give you the
17:41
opportunity and they’re going to sell
17:43
you some type of publicly traded
17:45
investment
17:46
so it’s all publicly traded right these
17:47
are the things that you know most
17:48
americans are into
17:50
they’re in the stock market they’re in
17:52
mutual funds annuity
17:54
cds bonds right just name of the few of
17:56
the things that can be done
17:58
with the exact same type of account at
18:00
quest what we’re doing is we’re one
18:02
we’re allowing you to choose all your
18:04
own investments right we don’t sell any
18:06
investments it’s up to you guys to be
18:07
the entrepreneurs go out there
18:09
find the investment but all the
18:11
investments that you’re able to do at
18:13
quest
18:13
are the other side of the coin so not
18:15
the publicly traded investments
18:17
but the private alternative types of
18:19
assets
18:20
so really again the difference is not in
18:22
the accounts but it’s really in what the
18:24
company
18:24
at quest what we’re going to allow you
18:26
to hold within the account
18:29
um real quick some of the benefits so
18:31
the first one is true diversification
18:34
you know if you speak with any type of
18:35
financial advisor out there
18:37
you know of course they’re going to tell
18:38
you to diversify we hear this all the
18:40
time and you know unfortunately
18:43
most americans think that they are
18:45
diversified
18:46
you know and with the best intentions
18:48
they’ve maybe got a variety of different
18:50
investments
18:51
in their portfolio currently but we
18:53
would argue that
18:55
for the most part a lot of americans are
18:57
really not as diversified as they
18:59
think so if you’ve got a variety of
19:01
different stock investments
19:03
maybe some higher risk investments right
19:05
maybe some
19:06
more secure types of investments maybe
19:08
you’ve got some you know fixed rate
19:09
return
19:10
like annuities or cds things of that
19:13
sort
19:13
right some mutual funds right a lot of
19:16
americans think that they’ve
19:17
segmented their risk and they’re
19:19
diversified
19:20
but as we’ve included seen this year
19:23
right as things
19:24
fluctuate in publicly traded investments
19:26
that can be very detrimental to a
19:28
portfolio
19:29
so for us at quest we absolutely think
19:31
that you should have your publicly
19:33
traded deals have your stocks have your
19:34
mutual funds
19:35
but then in addition to that also have
19:38
your real estate assets
19:40
have your private companies have that
19:42
kind of flip side so that you have your
19:44
foot on both sides
19:46
um really guys the whole reason to do
19:48
this the whole reason to not
19:50
cash out your retirement account and do
19:52
it with your own money
19:53
is the tax savings that you’re gonna get
19:55
by moving over an existing retirement
19:57
account into a self-directed ira
20:00
it allows you to use the funds in there
20:03
and choose all of your own investments
20:05
so you’re not taking a tax hit for
20:07
taking a distribution because you’re
20:08
simply transferring it from one account
20:10
to the other
20:11
and then all profits that you make off
20:13
the deals that you do
20:15
all of those go back into the account
20:17
and they’re not taxable
20:19
so imagine all of the income that you’re
20:21
receiving off of your investments as you
20:23
generate cash flow
20:24
as the assets appreciate all of that is
20:27
all going to be within the ira
20:29
and you’re not paying taxes on that and
20:32
on the next slide we’ll kind of talk
20:33
about the different accounts that we
20:34
offer
20:36
the last one is obviously just the you
20:37
know ability to invest in what you know
20:39
best
20:40
um you know you’re here uh you’re part
20:42
of the multifamily
20:43
network you are you know likely
20:46
knowledgeable about real estate you have
20:48
expertise in multi-family deals right
20:50
it’s something you know
20:51
likely something you enjoy to do right
20:54
and often when you’re investing in
20:55
something that you know about something
20:57
that you’re enjoying doing
20:59
right you’re personally involved in
21:01
likely you’re going to have a better
21:03
rate of return on that
21:06
so we have seven different accounts that
21:07
we offer at quest
21:09
break them down into the three
21:10
categories of personal plans employer
21:14
plans and special plans so first off our
21:17
traditional and roth iras
21:19
so traditional iras they’re going to be
21:21
the most common type of plan that a lot
21:23
of americans have
21:25
they’re going to grow tax deferred tax
21:27
deferred
21:28
so what this means is if you have an
21:30
existing perhaps
21:31
ira or maybe a 401k
21:35
any type of plan that maybe you had from
21:37
a previous employer like a pension
21:40
you were a teacher you worked for the
21:42
government any type of work sponsored
21:44
plan
21:44
these go over into a traditional ira
21:47
without any type of tax consequences so
21:49
you can immediately move it over
21:51
and use the traditional ira funds at
21:53
quest
21:54
to now go out and choose your own
21:56
investment the ira will then
21:58
purchase that and your funds grow what’s
22:00
called tax deferred
22:02
so your funds from your investments all
22:04
do go back into the account
22:05
and they’re not taxed now it’s called
22:08
deferred because eventually one day you
22:09
are
22:10
taxed on it when you start taking those
22:11
distributions out
22:13
so you’re really just deferring the
22:14
taxation to the future with the hope
22:16
that one day
22:17
you know hopefully you’ll be in a lower
22:18
tax bracket and when you take your
22:20
distributions out
22:21
you’re going to be taxed at a lower rate
22:24
so
22:24
it is a very popular account because a
22:27
lot of times people will say well i want
22:29
to move over my 401k
22:30
or my rollover ira or whatever i may
22:33
have
22:33
and that’s going to go right into a
22:35
traditional but
22:36
the roth ira is a very very popular
22:39
account
22:40
specifically when we talk about in
22:41
self-direction because this is the
22:43
account
22:45
kind of the attractive account everybody
22:46
really wants to talk about because
22:48
unlike the traditional ira where one day
22:50
you will be taxed
22:52
you’re never going to be taxed with the
22:53
roth ira you’ll never be taxed on
22:56
all the profits that you generate off of
22:58
your investments
23:00
now the catch is that when you move
23:02
money into the roth ira
23:04
from a traditional from a 401k a pension
23:08
any account that’s pre-taxed so it
23:10
hasn’t been taxed yet
23:11
when you move money over you are taxed
23:14
on it
23:15
so i’ll put in an example let’s say i
23:17
have a 500
23:18
000 traditional ira
23:22
if i convert over 500 000 into my roth
23:25
ira
23:25
i’m going to pay taxes on that full
23:27
amount so
23:28
i may not want to convert the entire
23:31
balance over
23:32
right because it might be a big tax hit
23:34
for me in one year
23:35
though you can absolutely can do that
23:37
and i’ll show you a quick case study at
23:39
the end
23:39
of someone that did this so instead you
23:43
can
23:43
convert just simply partial amounts so
23:45
i’ve definitely worked with some of our
23:47
clients before that they have a sizable
23:48
you know ira
23:50
and they don’t want to take the tax hit
23:51
of converting over 500 000
23:53
in one year and so perhaps instead they
23:56
convert over
23:57
50 000 100 150 right whatever your
24:00
comfort level is
24:02
or threshold you want to stay under yes
24:04
you pay tax on the amount that you
24:06
convert into the roth
24:08
but now let’s say you have 150 000 in
24:11
your roth and you invest that
24:13
all future profits made off the 150 are
24:16
completely tax-free so you can really
24:18
see that you know by
24:20
moving the acorn paying tax on the acorn
24:23
you know you can have the future
24:25
um you know wealth that’s in there be
24:27
completely tax-free
24:29
we have a really great class it’s
24:30
totally free it’s all about how to
24:32
analyze roth conversions
24:33
uh strategies of when to do it uh real
24:36
examples that are taught by the uh
24:38
the owner the founder of quest h quincy
24:40
long um who’s very very sought after
24:43
self-directed expert in the country so
24:45
check it out it’s at questtrust.com
24:47
or shoot me an email at the end and i
24:49
can always link you to that one as well
24:52
other plans we have are our employer
24:54
plans sep simple
24:55
solo 401k these are great if you’re
24:58
self-employed
24:59
so if perhaps you didn’t work in
25:01
corporate america maybe you don’t
25:03
already have a plan that you can move
25:04
over right these let you make very very
25:07
large contributions to them
25:09
each year and do the exact same thing so
25:12
you’re able to
25:12
self-direct them choose all your own
25:14
investments and for the most part these
25:17
plans all grow
25:18
what’s called tax deferred so the same
25:20
concept as the traditional ira
25:23
where your profits are returning back
25:25
into the account
25:27
but you are not being taxed until the
25:29
future when you take them out again we
25:31
have another great class on employer
25:33
plans
25:34
that you can check out as well if you
25:35
visit our website questtrust.com
25:37
and then you go to our education tab uh
25:40
previously recorded self-directed videos
25:42
but again i’m happy to link you guys to
25:44
that one at the end
25:47
and last but not least our special plans
25:49
so we call these our special plans
25:51
because they have very specific uses
25:54
but we also call them our special plans
25:56
because if these are the two
25:57
of the seven accounts that we offer that
26:00
they can be used
26:01
right now to pay for things immediately
26:04
tax free
26:05
you know when you’re investing your
26:06
traditional ira your sap ira your roth
26:09
ira whatever
26:10
your profits are going back into the
26:12
account with the intention that you’re
26:13
going to leave them in there right
26:15
if you take your funds out before 59 and
26:17
a half which is retirement age
26:19
you’re going to be penalized 10 right
26:21
and in some instances
26:22
you might be taxed on them as well so
26:25
the idea is
26:26
it’s a long-term play right you’re going
26:28
to leave the funds in there you’re going
26:29
to let them grow
26:30
and one day you’ll take them out but
26:32
these two plans allow you to actually
26:34
start immediately taking distributions
26:36
out
26:36
to pay for education expenses and health
26:39
expenses
26:40
completely tax free so in the same
26:43
manner
26:44
that you would direct your traditional
26:45
your roth ira to go out there
26:47
purchase an investment invest in an llc
26:50
however it may be structured in the same
26:53
way
26:53
you can direct these accounts to do that
26:55
as well and even
26:57
partner them all together so i know for
26:59
me for example i’ve done an investment
27:01
before
27:02
where i partnered together my ira along
27:04
with seven other iras right
27:07
so there’s no end to how many that can
27:09
be put together
27:10
uh for the purpose of doing the deal and
27:13
basically the way it works is as you
27:15
begin
27:15
generating profits your profits go back
27:18
into
27:18
your child’s education account and can
27:21
immediately be withdrawn completely
27:23
tax-free
27:25
and it’s very broad in terms of the
27:27
things that it’ll cover so
27:28
the account can be used for kids from
27:31
birth all the way up until the age of
27:33
30. so it’s used for you know your
27:36
elementary school middle school high
27:37
school and college and beyond so if your
27:40
kids
27:40
choose to go to college postgraduate
27:42
degrees it can be used all the way until
27:44
age
27:44
30. and it pays for a wide wide variety
27:48
of investments it pays for things like
27:50
education you know certainly tuition
27:52
types of payments
27:53
it also pays for things like school
27:55
supplies or books
27:57
so i know we’ve really seen a big spike
27:59
in these types of plans
28:00
really just in the last year as people
28:03
are homeschooling
28:04
right some of the supplies equipment
28:06
things like that that they may not have
28:08
otherwise had
28:09
a lot of times people are having to buy
28:11
these for their kids
28:12
or if you’ve got multiple kids right
28:14
maybe you have one home computer
28:16
but maybe you need now an ipad for
28:18
someone else right or maybe you need a
28:20
webcam or you need
28:22
headphones right all those sorts of
28:24
equipment school supplies
28:26
maybe you need books and pens and
28:27
notebooks and all the things that it
28:29
takes to school kids these days
28:30
all of those things can be paid for
28:32
completely tax-free it can pay for
28:34
tutoring expenses
28:36
it can pay for room and board it can pay
28:38
for
28:39
um you know bus fees my favorite one of
28:43
all
28:43
and very applicable again to this year
28:46
is it can actually pay for
28:47
on a monthly basis the wi-fi in your
28:49
house
28:50
if your kids are coming home from school
28:52
and they’re writing a paper or they’re
28:54
doing research
28:55
and they’re using the internet in the
28:56
house then that is a school expense and
28:59
that can be paid for
29:00
tax free so you can see by just taking
29:03
some of the everyday things that
29:05
a lot of us are paying for with taxable
29:08
money
29:09
and by just doing a few deals a year
29:11
inside of these types of accounts
29:13
you begin paying for things with tax
29:15
free money
29:16
right so it can have a really big impact
29:18
on your life um
29:19
over the course of an investment
29:21
lifetime uh last but not least was our
29:24
health savings account
29:25
this is one of my favorite accounts i
29:28
think one of the most underutilized but
29:30
very very powerful
29:31
it lets you pay for your health expenses
29:34
completely tax
29:35
free completely tax-free so in the same
29:38
manner you can deposit funds
29:40
into the account you can invest it again
29:42
and your profits go back
29:44
into the account and when you have some
29:45
type of health expense come up you go to
29:47
the account you can take a distribution
29:49
so it pays for again a really wide
29:52
variety of things
29:53
it pays for just your everyday medicines
29:55
like your tylenol or your advil
29:57
it also pays for prescription medicines
30:00
surgeries
30:01
it pays for holistic types of medicine
30:05
it could pay for like acupuncture or
30:07
massages
30:08
right it pays for all sorts of things
30:12
a very very popular type of account and
30:14
it can even pay for
30:16
expenses later in life too so i was
30:19
reading an article a couple years ago
30:21
and it was talking about you know the
30:22
number one reason
30:24
why americans now go bankrupt you know
30:26
certainly not something that we want to
30:27
talk about
30:28
um but something important to be aware
30:31
of
30:31
and you know previously there was a
30:33
whole list of reasons like the top 10
30:35
reasons on there
30:36
it was things like foreclosure credit
30:38
card debt
30:39
but the number one reason now why
30:41
americans go bankrupt
30:43
is because there are medical expenses
30:45
that they’re not preparing for they’re
30:46
not saving for
30:48
and that when something happens to
30:49
themselves or to someone in their family
30:51
that they’re not prepared for them right
30:53
and that they are very costly
30:55
and so it’s a great thing that you can
30:57
do to set up a health savings account
30:59
for yourself
31:00
for your family it can pay for all the
31:02
expenses
31:03
from everyday things all the way up to
31:05
the very large types of expenses
31:07
completely tax-free
31:11
so all the plans can be self-directed
31:13
you can choose all your own deals for
31:14
them
31:15
there’s a couple different ways to
31:16
structure it guys so one of the
31:18
things that can be done with
31:19
self-directed iras is that you can
31:22
actually direct the ira itself to go out
31:25
and take
31:26
title to a real estate asset the ira
31:28
itself is its own entity
31:30
it can actually directly go out and buy
31:33
a house
31:34
right the buyer’s name on the contract
31:36
would be quest trust company
31:37
for the benefit of you know your name
31:40
and your ira account number
31:41
or if you used multiple accounts it’s
31:43
going to be this partner vesting so
31:45
quest for the benefit of one person’s
31:47
name
31:48
with their ownership percentage and
31:49
another person’s name with their
31:50
ownership percentage
31:52
and so going back to that investment
31:53
that i had mentioned that i did
31:55
um you know we had eight different iras
31:57
together so it’s a really great way to
31:59
get
32:00
not only multiple people involved um in
32:02
the investment but also if you
32:04
yourself have multiple different
32:06
accounts right like you have an account
32:07
your spouse has an account
32:09
maybe you have an hsa for your family
32:11
right you can use multiple accounts
32:13
together
32:14
with each with a percentage of ownership
32:16
and then funds go
32:17
back in addition to that investments can
32:20
of course also be held in some type of
32:23
you know entity certainly we see a lot
32:26
of llc investment
32:27
c-corps things like that as well now in
32:30
addition to that you know obviously
32:32
we’ve talked a whole lot about how
32:34
you can directly take title you know you
32:36
can
32:37
purchase your own assets um but
32:39
certainly another
32:40
a big component of self-directed iras is
32:43
that you know we’ve got a lot of clients
32:45
that like to
32:46
take a more passive approach right about
32:48
48 percent of our clients
32:50
like to invest more passively rather
32:52
than directly investing into
32:54
real estate uh they like to you know
32:56
often loan funds right or be passive
32:59
investors
33:00
in these types of investments too so
33:02
just be aware that that’s certainly an
33:04
option if you’re raising funds also
33:08
real quick just to kind of go through
33:10
some of the restrictions on iras
33:12
we break them down into the three
33:14
categories of people transactions
33:16
and investments um you know as a
33:19
disqualified person to your ira
33:21
as the owner of the account you’re the
33:24
primary disqualified person
33:26
and there’s some real specific things
33:28
that you’re not able to do
33:29
with the account so we kind of joke and
33:33
we call it mr ira but it’s really to you
33:35
know conceptualize the use of your
33:37
account
33:38
you as the account owner you are a
33:41
disqualified person to the ira
33:43
and there’s real specific things that
33:45
you’re not able to do with the account
33:47
um so we like to joke and we call it mr
33:49
ira so that you’re thinking about it you
33:51
know
33:52
not as your own ira as you and your ira
33:55
are one of the same
33:56
you know yes it’s your money yes one day
33:58
that’ll be something that you live off
33:59
of
34:00
but for the purpose of investing you
34:02
really want to think about it as a
34:03
separate person a separate entity than
34:05
you
34:06
you are two separate people and you
34:08
directly the human being
34:10
and the ira account are prohibited from
34:12
doing some really specific things
34:14
together
34:15
in addition to you being a disqualified
34:17
person there’s a group of other people
34:19
called disqualified people too
34:22
now nobody except maybe me and some of
34:25
the other people at quest would ever
34:26
want to memorize this chart i know
34:28
it um you know looks pretty long and
34:30
complicated right
34:31
so we have a really easy way to remember
34:33
who the disqualified people
34:35
are to your ira and then i’m going to
34:37
tell you what they cannot do
34:39
the people that are disqualified are
34:41
firstly you
34:43
you the account owner the fiduciary
34:46
you are a disqualified person in
34:48
addition to you
34:50
there’s also your spouse your lineal
34:53
ascendance or descendants
34:54
so anyone up or down in your family tree
34:57
so your parents your grandparents
34:59
your kids your grandkids and any of
35:01
their spouses
35:02
all disqualified right so pretty much
35:04
anyone in your immediate family
35:06
in addition to that it’s also any
35:09
companies
35:10
right so if someone has an llc or
35:12
company or something like that
35:13
it’s any companies of those people that
35:16
they
35:17
own control manager highly compensated
35:20
by right
35:20
so all of the immediate family members
35:23
as well as their entities are all
35:25
disqualified
35:26
to the ira and so because you’re
35:29
considered what’s called a disqualified
35:30
person
35:31
there’s some very very specific things
35:32
that you’re prohibited from doing
35:35
and that’s the second category the
35:36
transaction restrictions
35:38
so you’re not able to buy sell trade
35:41
loan extend a service or benefit
35:43
directly or indirectly
35:45
with the ira what does this mean
35:48
i’ll put it in real example so you can’t
35:52
buy and sell between any of the
35:53
disqualified people that we mentioned
35:56
and the ira so i often see a situation
35:59
where maybe an
36:00
investor already has um you know an llc
36:04
set up they’ve already got some assets
36:05
in there
36:06
and they think okay great um i want to
36:09
now put this inside of a self-directed
36:10
ira
36:11
and start making tax-free profits
36:14
unfortunately you cannot
36:15
do that why because you can’t buy
36:18
from a disqualified person and have that
36:21
be bought by the ira
36:23
right you also can’t sell the investment
36:26
right
36:26
so if you were to purchase an investment
36:29
with the ira
36:31
you personally or your personal company
36:33
or any of the other disqualified people
36:35
or their companies
36:36
also could not come and sell or
36:40
sell that right so either way we can’t
36:42
buy or sell
36:44
we also can’t loan money right we cannot
36:46
loan money
36:48
so for example i would be able to loan
36:52
funds from my ira to any of you
36:55
for the purpose of doing an investment
36:56
right because none of us are family
36:59
but if my child was a multi-family
37:02
investor
37:02
and they had an entity established i
37:04
would not be able to
37:06
loan funds to my son a lineal descendant
37:09
or his company right because that would
37:12
be prohibited
37:14
okay basically this is all coming down
37:16
to saying is
37:17
you cannot have any type of direct or
37:20
indirect benefit back to you
37:22
what are some other scenarios that could
37:24
be right
37:25
um you know uh this may not be as
37:27
applicable necessarily
37:29
for a multi-family investment that could
37:31
but you would not be able to have any
37:33
type of personal benefit
37:34
so a lot of times at quest we’ll see
37:36
people that they own real estate
37:38
investments
37:38
um you know we’ve seen people that they
37:40
own like a duplex or quad plugs
37:42
things of that sort right and perhaps
37:45
they
37:46
want to go stay in it or they want to
37:48
have a family member come and rent it
37:50
out from them
37:51
right that would be clear direct or
37:54
indirect benefit right so remember
37:56
there’s not supposed to be any type of
37:58
personal benefit that
37:59
you or any of the disqualified people
38:01
are receiving
38:02
based on the investment the purpose of
38:05
doing investments inside of your ira
38:07
is to benefit who you or the ira
38:10
it’s to benefit the ira your benefit
38:14
as the account owner as a fiduciary to
38:16
the account
38:17
your benefit comes one day when you get
38:19
to live off that money
38:20
so right now while you’re investing it
38:22
you’re not supposed to be getting any
38:23
types of personal kickbacks right
38:25
so if you own some type of investment in
38:27
your ira you can’t go stay in your ira
38:29
right your family can’t stay in it you
38:31
can’t loan your ira funds to your family
38:33
members you can’t buy investments that
38:35
you already own
38:36
right everything has to be at that arm’s
38:38
length
38:39
another thing that you cannot do really
38:41
quick is extending a service to the ira
38:45
one thing that we often see in the real
38:47
estate space is you know sometimes we’ll
38:49
hear people say
38:50
um you know especially as they begin to
38:52
start out
38:53
that maybe they want to do some of the
38:55
work themselves right maybe they want to
38:56
go out there and fix up
38:58
properties themselves right you can’t do
39:01
that that’s considered extending a
39:03
service you have to hire someone
39:04
outside of your family about a year ago
39:08
i was giving this presentation in her
39:09
dallas office
39:11
and a lady in the back of the room
39:12
raised her hand and she was like okay
39:14
well i have a i have a scenario
39:17
so let’s say i have an investment
39:19
property
39:20
owned by my ira and my son has a
39:23
construction company
39:25
can my son’s construction company come
39:27
and rehab
39:29
the ira owned asset no
39:32
right because that would be a
39:33
disqualified person
39:35
coming and extending a service right so
39:38
remember you really have to keep
39:39
everything at arm’s length those are the
39:41
main things that you you can’t do
39:43
with this type of account now in terms
39:45
of investment restrictions
39:47
there’s only two things that the irs
39:49
says that you cannot invest into
39:51
life insurance contracts and things
39:53
considered collectibles
39:54
antiques cars gems coins
39:58
wine collections beer collections things
40:00
of that sort
40:03
so if you’re wondering well hey what can
40:04
i invest into remember
40:06
all types of private assets things like
40:08
real estate notes private entities
40:11
these are a few of the kind of common
40:12
examples that we see
40:14
broken down into the three categories of
40:16
real estate
40:17
all types of private entities as well as
40:22
nodes
40:24
but so much more
40:28
okay so let’s walk through an investment
40:30
um so
40:31
in this example the client actually took
40:33
title directly to the real estate
40:35
themselves
40:36
with the ira right but do you remember
40:38
that of course you can invest into an
40:40
entity and that is commonly what we
40:42
would see
40:43
um but for this investor what they did
40:45
was they rolled over their
40:46
former uh employer 401k
40:49
they had left their job and so for that
40:53
reason they were now eligible to move
40:55
their 401k
40:56
over and they were going to be getting
40:57
into real estate full-time
40:59
so initially they did move the funds
41:01
into a traditional ira
41:03
the 401k went to the traditional no
41:06
taxes were paid
41:07
and they fully intended on purchasing it
41:09
with the traditional ira
41:11
but later on they actually before doing
41:13
the investment they decided to convert
41:15
the funds into a roth
41:17
and so they were going to be purchasing
41:20
the 10 unit property
41:21
outside of houston in a very affluent
41:25
now
41:25
a very now affluent suburb of the
41:27
woodlands
41:28
some of you may be familiar with it but
41:31
this was a number of years ago that they
41:32
were going to be purchasing it
41:34
over 10 years ago now and so you know
41:37
what they decided to do was that they
41:38
wanted to purchase this in the roth ira
41:40
because they wanted
41:41
all of the investment profits that were
41:43
made to be completely tax-free for them
41:46
in addition to that because they had
41:48
left their job you know they were going
41:50
to be in a lower tax bracket
41:51
but fully intended to get into real
41:54
estate to get into investing
41:56
you know as their kind of second career
41:58
now they’ve had their corporate career
41:59
and now they’re going to go into
42:01
investing full-time
42:03
and so they really anticipated that it
42:05
was possible that their income you know
42:06
for the following year
42:08
was going to be higher than what it was
42:09
like in in that year that they’d left
42:12
and so they decided to kind of just bite
42:14
the bullet and convert converted over a
42:15
sizeable amount
42:16
so they converted over 330 000
42:20
and now that was in the roth ira and now
42:23
purchased the property with the 330 k
42:27
in the roth account so they did have to
42:30
pay taxes
42:31
on the 330 that was converted over that
42:34
being said
42:35
that 330 did not have to be paid until
42:38
the time that they filed their taxes
42:40
and so basically what happened was the
42:42
amount added to their adjusted gross
42:44
income and was just taxed as ordinary
42:46
income
42:46
so for example if they made a hundred
42:48
thousand dollars now they had
42:50
330 000 that they converted right they
42:53
made 430
42:54
right so it may affect your tax bracket
42:56
so definitely something to
42:58
you know watch that roth conversion
42:59
video um consult with a cpa and kind of
43:02
talk about
43:02
um when the timing might be right to do
43:04
something like this but
43:05
you know they thought it was going to be
43:07
a good deal they thought it was going to
43:08
be worth their while which
43:09
you know don’t we all think it’s going
43:10
to be a home run every time
43:12
but for them it really did make sense so
43:15
they converted the 330
43:17
purchased the property um for that
43:20
amount
43:21
and it was again owned by the ira itself
43:25
so the owner of the investment is quest
43:27
trust company fbo
43:29
for the benefit of your name and your
43:31
ira account number
43:34
and so uh once it started having renters
43:37
in there
43:38
now the property is owned by the ira and
43:40
all of the rents were being drawn
43:42
directly deposited back into the ira
43:44
account
43:45
um so it was about 5 200 coming back per
43:48
month
43:49
in this scenario where quest would own
43:51
the asset any types of
43:54
expenses things of that sort that would
43:55
need to be paid
43:57
those would also come from the ira so as
43:59
perhaps things would need to be fixed up
44:01
or there’s a property manager whatever
44:04
types of expenses that may be associated
44:06
with the asset
44:07
those two would be paid from the ira as
44:10
well
44:10
and we would take care of that and pay
44:12
that now if it was owned by the llc
44:15
um it’s a little different because at
44:17
that point it’s going to be the llc
44:18
that’s disbursing those funds
44:20
and so that would not be quest doing
44:22
that for you so a little bit of a
44:23
difference
44:24
there that i just wanted to point out
44:27
now
44:29
in the end it was a very very good
44:30
investment
44:32
it was a 19 annual return on the money
44:35
invested
44:36
you know obviously the cash flow is
44:38
great right the 5235 that they’re making
44:40
on a monthly basis
44:41
is all going back into the account it’s
44:44
not taxable to them
44:46
right so a very very good investment but
44:48
really the important
44:50
thing to bring your attention to as i’m
44:51
sure you guys know is of course the
44:53
appreciation right and so Feras will
44:56
for sure be able to speak to this
44:58
um but the woodlands you know just even
45:00
in the last 10 years has been booming
45:03
it’s always been a very nice affluent
45:05
suburb
45:06
outside of houston but really in the
45:08
last 10 years it’s had such
45:09
exponential growth exxon mobil their
45:13
you know one of their corporate
45:14
headquarters was in houston
45:16
obviously there’s a lot of oil and gas
45:18
that that is industry here
45:21
they moved from downtown houston out to
45:23
the woodlands
45:25
and so what ended up happening is with
45:26
the woodlands being about 45 minutes
45:29
outside of town lots of people were
45:32
having to move
45:33
and so the woodlands became a very um
45:36
fast
45:36
growing uh type of area a lot of people
45:39
were trying to move there a lot of
45:41
businesses opening there
45:42
right a lot of restaurants a lot of um
45:45
you know stimulation of their economy
45:47
out there
45:49
my husband works in the medical industry
45:51
there’s a lot of
45:52
medical facilities that are being built
45:54
out there right all of the things that
45:55
are popping up because just
45:57
one of many businesses that have moved
45:59
out to that
46:00
area right and so long term when bill
46:03
was um would be able to sell that
46:05
investment right whenever he’s ready to
46:07
actually
46:08
retire he doesn’t want to have that
46:10
investment in there anymore
46:11
when he eventually sells that you know
46:14
10 plus years now
46:15
down the road the woodlands has had a
46:18
lot of exponential type of growth in the
46:20
area
46:20
and when he sells the property for you
46:22
know i’m sure of significantly higher
46:25
amount than
46:25
the 330 that he purchased it for all of
46:29
the appreciation
46:30
all of that benefit is going to be
46:32
completely
46:33
tax free so you can really see that yes
46:36
he did have to pay taxes on the 330
46:39
000 but for the future opportunity um
46:42
when you’re doing something like real
46:43
estate this can be a really really
46:45
powerful type of account to do it in
46:48
so what can quest trust do for you um as
46:51
i shared with you tonight you know we
46:52
can help you to grow your wealth tax
46:54
free
46:55
allow you to choose your own alternative
46:57
investments for these types of accounts
47:00
provide networking opportunities as i
47:02
said we’ve got a wide variety of
47:05
you know educational networking events
47:07
that we do
47:08
you know truthfully now um we do more
47:11
virtual events than
47:12
you know we have done in a very long
47:13
time we were always doing events
47:16
you know about twice a week virtually uh
47:18
and showing them live
47:20
now we do them almost four times a week
47:22
so almost every single tuesday wednesday
47:24
thursday
47:25
as well as every single saturday we have
47:27
self-directed saturday
47:29
free online virtual events and then we
47:32
also have networking events with them as
47:34
well
47:35
so we give you guys the opportunity
47:36
before the event
47:38
in breakout rooms to network and be able
47:40
to talk about different investments
47:42
picture deals talk about money that you
47:44
may need
47:46
from investors so these are great and
47:48
they’re all completely free so highly
47:49
highly recommend you guys
47:51
to check out our website we’ve got a
47:53
bunch coming up we’ve got one coming up
47:55
tomorrow
47:55
uh thursday and saturday just of this
47:58
week alone so
47:59
highly encourage you guys to check those
48:00
out they’re they’re very very
48:02
beneficial and we do love to talk about
48:05
all different types
48:06
of things um you know multi-family is
48:08
one of the things we love to talk about
48:10
um i know you know Feras is based in
48:11
houston i know another gentleman on
48:14
today was saying that he was investing
48:16
in houston so you know it’s very very uh
48:18
booming here
48:20
um with multifamily but we love to talk
48:22
about all different other types of
48:23
investments too we love to talk about
48:25
node investments we love to talk about
48:28
private company oil and gas minerals all
48:30
sorts of things so
48:31
you know with us not being able to pitch
48:34
investments we love to bring in
48:35
educators that can talk about all the
48:37
incredible things
48:38
that can be done in these types of
48:40
accounts um we provide high quality
48:43
education as i said uh three to four
48:45
times a week i’ll show
48:47
our social media pages on the next slide
48:49
as well as our website so you can
48:51
go and check those out and of course
48:53
fast and friendly service with no
48:54
expedited fees
48:56
guys one of the things that has grown
48:58
quest at such a
48:59
fast rate you know there are certainly
49:02
other self-directed companies out there
49:04
is that we are the fastest in the
49:06
country we fund investments twice a day
49:09
and we fund investments within 24 to 48
49:11
hours
49:12
we are very quick like i said we are
49:14
investors we understand what you guys
49:16
need and we’re always shaping and
49:17
improving the company
49:18
uh based on those sorts of things that
49:20
you know we know investors need
49:23
uh this is my contact information as i
49:25
said my name is annemarie
49:27
uh questrust.com is our uh
49:31
website our phone number is 855 fun
49:34
iras so we try to make it fun easy to
49:37
understand
49:37
i know it’s a lot of heavy tax talk iras
49:40
uh investing kind of conversation
49:43
this late in the day but i hope this was
49:45
beneficial for you guys hope you learned
49:46
how you can really take control of your
49:48
retirement for yourself and
49:50
check us out on facebook linkedin our
49:52
social media we have an awesome
49:54
youtube page we have little like 10
49:56
minute instructional videos about lots
49:58
of different topics so check those out
50:00
as well
50:01
thanks for having me guys thank you very
50:04
much anne-marie
50:06
definitely appreciated it was uh
50:08
definitely insightful i didn’t realize
50:09
you guys actually had the
50:10
hsas as well so i will probably be
50:12
signing up for that one soon
50:14
kind of in the back of my head i need to
50:15
take care of that so always informative
50:17
um yeah
50:19
so right now i think we have some
50:20
questions right now we’re gonna do a
50:21
thing that we like to call the gauntlet
50:23
no i’m kidding i mean it’s people ask
50:25
easy questions i promise
50:26
and so um you know if anyone has any
50:28
questions please go ahead
50:29
and write them in the chat and i will
50:31
basically kind of help moderate them and
50:33
you know hey marie if there’s something
50:34
you don’t know or not comfortable
50:35
answering feel free to kind of tell
50:37
people how they maybe get that answer so
50:39
yeah for sure i think i see it so with
50:42
that said i will go ahead and just kind
50:43
of go top down so
50:45
first question and i’ll let you answer
50:47
this one i’ll answer it for you if you’d
50:48
like but is how is quest different from
50:50
other custodians
50:51
yeah so there’s a lot of things that you
50:54
know differentiate us obviously kind of
50:56
talked about a few of those already
50:58
um some of the things that i think
51:00
differentiate us are of course going to
51:02
be our speed
51:02
like i said right we fund investments
51:05
quicker than anyone else
51:07
i think another thing that has really
51:09
helped us grow at such a big rate and
51:11
you know Garrison shared this is that
51:12
you know we’re not the largest company
51:14
out there but we are one of the biggest
51:17
companies and continuing to grow because
51:19
we have
51:20
a highly trained staff and we really
51:22
make them um you know very easy for you
51:24
to get access to
51:26
so it’s not abnormal that if you call
51:28
quest that you’re talking to someone
51:29
that has
51:30
you know been with the company for a
51:32
decade they are certified in their field
51:34
right they’re an attorney they’re a
51:36
certified ira services professional
51:38
right
51:38
we really understand um you know the
51:41
trade we understand what we’re doing
51:42
we’re highly knowledgeable
51:44
and so i think that that’s something
51:45
that is unique um to quest
51:48
in that regard um of course our
51:50
education
51:51
um have to plug that it’s uh you know
51:53
lots of other self-directed companies of
51:55
course do education but ours
51:57
is all completely free um it’s uh we’ve
52:00
got a lot of different types of topics
52:01
multiple times a week
52:03
um and we are competitive in terms of
52:05
our fees as well you know we’re
52:06
constantly
52:07
bringing new systems new advances and
52:09
things like that while really still
52:11
staying
52:11
you know competitive with the industry
52:14
yeah and i mean
52:15
even being on kind of you know my side
52:17
right the operator
52:18
side i mean i’ll i’ll vouch for that i
52:20
mean it’s just that
52:21
from our experience quest is definitely
52:22
one of the easiest ones to work with
52:24
they just they just get real estate
52:26
right they understand what that
52:27
what that world looks like and so you
52:29
know we’ve also had great success with
52:30
quest
52:31
and so it’s kind of maybe from our side
52:32
there you know things are just buttoned
52:34
up and it’s funny to see the investors
52:35
that
52:36
ask us for stuff that are quest
52:38
investors versus the investors that
52:39
aren’t as well you can kind of almost
52:41
tell
52:41
which ones are more sophisticated or
52:43
kind of you know more ahead of the curve
52:46
um let me chime in real quick there from
52:49
a user perspective
52:51
um like i’ve never met anne marie before
52:53
this is not a plug of any sort
52:55
other than from a user perspective us
52:58
being self-directed ira
52:59
clients extremely extremely extremely
53:02
easy to deal with when i call
53:04
the problem gets resolved within five
53:06
minutes or so
53:07
um i’ve used probably four other trusts
53:10
or
53:10
four other ira companies and it’s been
53:13
an absolute nightmare you got to call
53:14
back three times you got to follow up
53:16
you never talk to the same person
53:18
everything takes days and the fees are
53:20
ridiculous you have to
53:22
you have to pay expedited fees if you
53:23
want your money within a couple weeks or
53:25
whatever that time frame is
53:26
with quest it’s been an absolute godsend
53:29
absolute i was
53:30
i was shocked whenever he got quest
53:33
lined up for this um i didn’t have
53:34
anything to do with it
53:35
but thank you very much anne marie and
53:37
definitely someone i refer 100 of the
53:39
time
53:40
thank you all right so let’s keep going
53:43
then
53:44
um next question is can you use the
53:46
combined funds from both the traditional
53:48
ira
53:49
and roth ira to establish a
53:50
self-directed ra account
53:52
yeah absolutely there’s no limit to how
53:55
many accounts
53:56
that you can have so i know between me
53:58
and my husband we have
53:59
uh traditionals we have roths we have
54:01
hsas right and we use all of them we
54:03
partner them all together
54:05
um each one you know we’ll have a
54:07
percentage of ownership and the deals
54:08
that we do um
54:10
and then we have profits you know
54:11
flowing back and those percentages back
54:13
you know to the different accounts for
54:14
their uses so yeah this is a really good
54:16
strategy to use because
54:18
um you know that way you’ve got some
54:20
money going back and some of it’s tax
54:21
deferred and then maybe you’ve got some
54:23
of it you know going back to your roth
54:25
where
54:25
it’s going back tax-free yeah i’d like
54:28
to imagine you guys do it
54:29
oprah style you get an ira and you get
54:31
an ira
54:35
all right let’s keep going then so i
54:37
know this question was actually
54:38
regarding i think the multi-family
54:39
example
54:40
that you had given but basically in this
54:41
case uh will the
54:43
will you be when i think it’s really
54:45
will you apply and when will it apply
54:47
right it’s probably the
54:47
maybe the bigger question there yeah for
54:50
sure so
54:50
um you know the whole reason why a lot
54:52
of times people are doing investments in
54:54
iras is that they’re you know doing them
54:57
because they want to
54:58
avoid the tax right that’s the whole
55:00
reason to do it is that you’re not
55:01
paying taxes on the profits that you’re
55:03
making
55:04
um but there are some really specific
55:06
types of investments where you still do
55:08
incur a type of taxation um it’s often
55:11
called
55:12
ubit ubti it’s unrelated business income
55:15
tax
55:16
so for investing in often entities
55:20
or buying debt leveraged properties
55:23
you may still potentially have tax on
55:24
that depending on how it’s structured
55:27
we do have a really good class where we
55:28
talk about the different
55:30
um you know situations when ubit can
55:32
apply and that’s something that i’d be
55:34
happy to talk on a kind of more
55:35
case-by-case
55:36
basis with you about the specific deal
55:38
that you’re doing but truthfully it kind
55:40
of depends on how it’s going to be
55:41
structured
55:42
if you’re directly taking title to the
55:44
real estate um you don’t have a loan on
55:47
it you’re outright purchasing it
55:49
uh you know likely you’re not going to
55:50
have it if you’re investing through an
55:52
entity or you have debt on it
55:54
you may very likely have it so it’s
55:56
going to kind of depend on what you’re
55:58
doing
55:58
um so you know feel free to um contact
56:02
me my emails annemarie at questtrust.com
56:05
or call us at 855 fun iras we can set up
56:07
a time and chat about that
56:09
directly i’d be happy to do that with
56:11
you guys
56:12
it looks like that’s the kind of the
56:13
next question too yeah and i think it’s
56:16
a deal was leveraged i believe udfi and
56:18
ubid apply
56:19
so um did you want to say anything that
56:21
wasn’t going to skip that one keep going
56:22
yeah so kind of the same thing so um
56:24
sort of something sort of
56:26
under ubit is there is uh unrelated debt
56:28
finance
56:29
income so basically it’s a taxation
56:31
again
56:32
um based on the amount of debt that you
56:34
have um
56:37
all righty let’s keep going then so
56:40
next question as this indicator who owns
56:43
part of the gp
56:44
can i invest an ira as an lp or is that
56:47
a conflict as described
56:49
the ira needs its own needs to own the
56:50
llc or property directly
56:54
no uh there’s kind of two different ways
56:56
that you can go about things the ira can
56:58
directly take title to the investment or
57:00
you can direct
57:01
it into um you know owning shares in a
57:04
company
57:05
loaning to an entity things of that sort
57:07
so either one
57:09
you’d be able to do but i think the
57:12
question is
57:13
can the syndicator right the managing
57:15
member of that
57:16
property invest with their ira
57:22
so um as far as like raising funds would
57:24
you be able to invest into your own
57:25
entity
57:26
exactly so for you know excuse me as an
57:28
example right i found an apartment we’re
57:29
raising money with our investors can i
57:31
also invest with my self-directed ira
57:33
into
57:33
my own asset yeah usually you cannot
57:36
usually you cannot so it’s considering
57:38
the fact that you’re a disqualified
57:40
person um you can’t buy sell trade loan
57:42
or extend a service
57:44
usually you’re not going to be able to
57:46
um you know directly
57:48
um you know have an entity that you’re
57:51
managing and then having your ira
57:54
you know invest shares or loan funds to
57:56
that entity yeah usually that’s not
57:58
going to be something that you’re able
58:00
to do
58:02
all right next question what kind of
58:05
fees are associated with opening and
58:07
maintaining self-directed ira with your
58:08
company
58:09
yeah so fees are something that really
58:12
vary
58:12
um widely with self-directed companies
58:16
so as far as the setup fee it’s a
58:19
hundred dollars usually per account
58:21
we do have an offer going on right now
58:23
where it’s basically a hundred dollars
58:25
for
58:25
unlimited accounts and it’s not only for
58:27
yourself
58:28
uh it’s also for all of your family
58:30
members as well so kind of by
58:32
setting up the account and paying your
58:34
100 bucks if your spouse your children
58:36
other family members may also want to
58:38
set theirs up
58:39
theirs is all completely free um one of
58:42
the great things that we do at quest
58:44
that’s a free service that i know other
58:45
companies don’t offer
58:48
is that we uh you know we help you and
58:51
kind of do all the leg work as far as
58:52
getting the funds moved over
58:54
um so if you have an existing ira or you
58:57
have a 401k
58:58
something of that sort we actually do
59:00
all the legwork as a free service and
59:02
we’ll help you to get that moved over
59:04
so that’s a nice perk of working with us
59:07
as far as actually maintaining the
59:09
investment in the account
59:11
you know truthfully it kind of depends
59:12
on how much you’re moving over
59:14
as well as you know what types of deals
59:16
that you’re doing how many deals that
59:17
you’re doing in the year
59:19
but kind of on average for our clients
59:21
they’re paying about 295
59:23
on an annual basis for some it could be
59:26
as low as 99
59:28
possibly even lower for some but on
59:30
average it’s about 295 annually
59:33
um we do have our fee schedule posted on
59:35
our website or i’m happy to
59:37
uh if you shoot me an email i can link
59:39
you to that so you can check it out as
59:40
well
59:41
um one of the things that’s different
59:42
about us versus some of the other
59:44
companies
59:45
um is we’re pretty straightforward we
59:47
really charge a minimal amount of fees
59:50
other fees like for transferring funds
59:52
or you know when you get profits back
59:54
from your investments when you’re doing
59:56
conversions you know we’re not charging
59:58
you fees for anything of that
60:00
sort and that that’s again something
60:01
that you know keeps us kind of
60:03
competitive all right
60:07
next question uh can you do 1031
60:09
exchange within an ira
60:10
property um no so basically you know
60:14
like with the 1031 exchange
60:15
obviously the purpose is to you know not
60:17
pay the the
60:19
tax right so you have to you know find
60:20
another investment to put it into
60:22
um doesn’t work like that with an ira um
60:25
you’re getting the tax benefit
60:26
regardless of if you you never do
60:28
another investment again
60:30
um so no yeah like it doesn’t make sense
60:34
to get double
60:35
no taxes right
60:39
all right next question any difference
60:41
if the normal income i’m receiving is
60:43
from a foreign company and i’m living in
60:44
a foreign country
60:46
but investing in the us syndication i
60:48
knew that question was coming from eddie
60:50
i’m going to be honest i actually don’t
60:52
know the answer to this that being said
60:54
maybe i can grab your contact
60:56
information eddie and i can find out for
60:58
you
60:58
um maybe nathan or our ceo something
61:02
like that would be a little bit more
61:03
knowledgeable on that
61:06
sure no problem thank you all right um
61:10
next question is when you say tax-free
61:11
is the tax deferred i’ll let you answer
61:14
that one
61:16
yeah so kind of two different um
61:19
terms so tax deferred is going to be
61:22
eventually that you’re going to pay the
61:23
taxes so your traditionals
61:26
your 401ks your pensions sets simples
61:29
all of those are going to be tax
61:30
deferred meaning that you know when you
61:32
do your investments
61:34
profit goes back in you’re not taxed on
61:36
it
61:37
but it’s deferred till the future so
61:40
it’s deferred until you take it out
61:42
the idea is that you’re going to be
61:43
deferring it all the way until hopefully
61:46
one day you know maybe in your
61:47
retirement when you’re 59 and a half or
61:50
when you’re 72 when you’ve got to start
61:52
taking money out of those pre-tax
61:54
accounts
61:55
that hopefully you’ll be in that lower
61:56
tax bracket and so you’re paying less
61:58
tax
61:59
um that being said that doesn’t always
62:00
happen for a lot of people right
62:02
taxes are you know likely going up um so
62:06
for that reason a lot of times people
62:08
are interested in something like a roth
62:09
ira hsa they’re going to be
62:11
actually tax free in order to get all
62:14
your profits out of the roth ira
62:16
tax-free you just got to make sure you
62:19
meet two requirements
62:20
you’re 59 and a half which is retirement
62:22
age and you’ve had the account for five
62:24
years
62:25
as long as you meet both of those all
62:26
the money that you’re making in there
62:28
you can immediately start taking that
62:29
out
62:32
all right next question can our name be
62:35
hidden as quest trust
62:36
cfbo ira number without our name
62:40
mentioned in legal documents
62:41
yes there is a way to remove your name
62:44
um off of there and obviously you know
62:46
if you go the route of investing into an
62:48
entity you know you probably get a
62:50
little bit more anonymity if you go that
62:51
route as well
62:55
all right next question for a passive
62:58
investor using their
62:59
self-driving ira on a leveraged
63:01
multi-family deal
63:02
and when deal exits from sell or refi
63:05
with capital gains won’t that generate
63:07
ubid that’s so kind of i’ll skip that
63:09
one we’ve already kind of talked about
63:10
that
63:10
yeah exactly and we have like i said
63:12
we’ve got a great class on that and you
63:14
know
63:14
uh can definitely talk to you about kind
63:17
of how the taxes work in
63:19
in various situations for that
63:21
one-on-one
63:22
so the next one um any contribution
63:25
limits
63:26
yeah so there’s contribution limits for
63:28
each of these types of accounts
63:31
basically the contribution limits
63:33
usually change each year they’re set by
63:34
the irs
63:36
the contribution limits are specific to
63:39
whenever you personally are depositing
63:41
funds in
63:43
so i’ll tell you what they are but i
63:44
think it’s important to kind of you know
63:46
distinguish this
63:47
if you’ve already got an ira somewhere
63:49
else or you’ve already got
63:51
an employer plan somewhere else these
63:53
contribution limits do not apply
63:55
so if you’ve got half a million dollars
63:57
or something like that right they’re not
63:58
capped at moving that over you’re also
64:01
not capped at the profits that you make
64:03
either so if you make million dollars
64:05
off a deal whatever
64:06
you are capped at the personal deposits
64:09
that you make each year though into the
64:11
account so just money that you make in
64:12
the year you know your income
64:14
you’re capped for traditionals and roths
64:17
you’re capped
64:18
at six to seven thousand dollars so
64:20
while you’re under 50
64:22
it’s 6 000 when you’re over 50 it’s 7
64:25
000.
64:27
for your seps symbols and 401ks it’s
64:30
much larger
64:31
it can be anywhere from 56 to upwards of
64:34
62
64:35
000 each year for those accounts
64:38
for your esa account the education one
64:41
it’s about 2 000
64:42
per year per child it’s kind of on the
64:44
lower side
64:45
and then for hsas it’s 35.50
64:50
for single plans so like if you’re only
64:52
covered by you at work it’s a single
64:53
plan
64:54
whereas if it’s a family plan it’s 7
64:56
100. right so it’s like maybe you and
64:58
your spouse you and your kids and your
64:59
spouse whatever
65:02
all right so we’ll just do two more
65:03
emery i appreciate you taking time i
65:04
know we’re probably gone
65:06
a little bit long so definitely i’ll
65:07
wrap it up we’ll just do two more so
65:09
yeah
65:10
next one is uh what’s that i was just
65:12
saying if we don’t get to anyone’s
65:14
questions um feel free to shoot me an
65:16
email
65:16
i’m happy to connect with you guys
65:17
tomorrow all righty
65:20
um and then for those that are watching
65:22
we’ll send we’ll put out the recording
65:23
as well as
65:24
kind of the anne-marie’s content
65:25
information after this as well so
65:27
um so let’s see the next question do you
65:29
set up eqrps if so i want to set up feed
65:31
annual fees
65:32
we do not no and then the next question
65:36
is as a development company can we
65:37
accept an ira or 401k as private equity
65:39
for the 20
65:40
portion of the loan will the
65:42
distributions or refund io pay back to
65:44
the ira 401k
65:45
account yeah definitely you can accept
65:48
private equity we see that a lot
65:50
this type of investment exactly and
65:51
that’s exactly what we do right so you
65:53
know we
65:53
raise money with our investors some of
65:55
them invest with their eyes with their
65:57
self-directed ira some of them invest
65:58
you know
65:59
straight cash and you know we pay back
66:01
out to their iras in the case if
66:03
they are in the south american ira and
66:04
so if you are a syndicator right you
66:06
have to kind of just keep in mind about
66:08
you know what that looks like to you
66:09
right we have to pay out into their
66:11
self-directed ira not their personal
66:12
bank accounts
66:13
right and then there is a document you
66:15
know each year that we have to file as
66:17
well
66:17
just to help the investor kind of get
66:18
evaluation
66:20
um and then i guess here we’ll answer
66:22
the last one
66:24
um and andrew do you mind just typing in
66:25
your email actually just so people can
66:27
see it that’s probably a good idea
66:28
and then the last question is any
66:30
advantage of a self-contained ira versus
66:31
self-directed 401k and vice versa
66:34
so many i could talk about that for an
66:37
hour by itself
66:38
um so the solo 401k is
66:41
very very good type of account it’s
66:44
kind of interesting because all the
66:46
rules that we know about iras
66:48
we kind of take them and we throw them
66:50
all out the window um it’s got a lot of
66:52
things that you can do with the account
66:54
um you know like we’ll be talked about
66:56
um udfi
66:58
for example that does not apply so
67:01
for specifically when we’re talking
67:02
about doing you know multi-family
67:04
investments where perhaps you do
67:05
have um debt on the property this can be
67:08
a really good type of account to do it
67:10
in
67:10
because the tax that you would normally
67:12
pay in iras you don’t
67:14
in a solo 401k it’s got very large
67:17
contributions that’s the account where
67:19
you can do upwards of 62 000
67:22
every single year into it you have
67:24
checkbook control in this type of
67:26
account
67:27
you can take loans against it just to
67:29
name a few of the things that can be
67:30
done
67:31
but there are some real specific
67:32
qualifications for that type of plan
67:35
um so if you’re interested feel free to
67:37
give me a call or shoot me an email and
67:38
we can set up a one-on-one for that
67:41
awesome all right well then we will call
67:44
it a wrap so anne-marie thank you very
67:45
much really appreciate you bearing with
67:47
us we’re
67:47
you know we’re doing this in the middle
67:48
of a tropical storm outside and so who
67:51
knows what the world looks like there
67:53
but appreciate it you know we are going
67:54
to do breakouts so you’re welcome to
67:56
stick around
67:57
but also if you got to go i mean you’re
67:58
welcome to kind of take off and so thank
68:00
you very much