Wealth & Legacy Notes - Wealth & Legacy Planning Issues for Real Estate

Tuesday

Jun292010

San Diego Food Bank Event Provides Perspective

On June 23, 2010 the Center for Wealth & Legacy organized it’s annual trip to the San Diego Food Bank to provide an opportunity to give back to those in need in our communities. We often go about our busy lives and don’t realize that many people here in our own back yard are struggling and wondering where their next meal is going to come from. The San Diego Food Bank meets the needs of thousands of people every day and they can’t do it without the help of the community (that is us!).

This was my first trip and our group was in charge of boxing up groceries for our needy senior citizens who live on a very limited income. We worked in an assembly line packaging various items (I was in charge of the grape juice) and my man Jacob (8 years old) across from me had the cereal. Others packed canned goods, made boxes and sealed them up.

I believe we finished the day making over 350 boxes of groceries. It was hard work which I wasn’t expecting, but well worth it. I plan on volunteering as often as I can! Thank you to Center for Wealth & Legacy for remembering those in need and providing us the opportunity to serve them.

Greg Sallee
Gatto, Pope & Walwick, LLP

Tuesday, June 29, 2010 at 11:59AM

1 Comment

Print Article |

Permalink

Monday

Jun282010

Federal Reserve is Winding Financial Bailout/Rescue Package Down

Today, just two (2) years after a financial meltdown threatened the United States and the world, with the collapse of Bear Stearns and Lehman Bros., and Fannie Mae and Freddie Mac heading down under as well…The Federal Reserve's financial rescue programs are winding down. The final cost to the U.S. Taxpayers: a cool estimated $300 billion to $450 billion.

Parts of the financial rescue plans are already wrapped up or will be soon. A money market fund guarantee from the Federal Reserve disappeared months ago. Programs for purchasing commercial paper, lending to securities firms to keep them afloat, loaning dollars to foreign banks to help thaw credit and purchasing debt backed by small business, car and other loans have all served their purpose and will end shortly, with little cost to taxpayers. Other changes will be permanent…a hike in FDIC insurance of bank deposits, for example.

And many big-bucks programs will linger. Subsidies for Fannie Mae and Freddie Mac to keep home mortgage funds flowing will continue through at least 2013, for example. So far…about $145 billion. And the final tab could climb to as much as $400 billion by the time the quasi-governmental institutions wring out all the bad loans made.

Washington has $13 billion left to help homeowners avoid foreclosures. A total of $50 billion is dedicated to the program, which has been operating for a year. The Federal Reserve holds a total of $2 trillion in long-term bonds…mortgage backed securities, Treasuries, Fannie Mae and Freddie Mac bonds…bought to hold down mortgage rates.

Monday, June 28, 2010 at 11:13PM

Wealth Legacy Series |

When Investment Choice Matters; Not all Self Directed IRA’s Are Equal

As a real estate investor today, a Self-Directed IRA can be a good choice if you start with the end in mind. Begin by deciding what type of assets you wish to invest in and then select a Self-Directed IRA Trustee or Custodian that will permit those types of investments inside of an individual retirement account.

All IRAs Are Self-Directed IRAs

All IRAs are Self-Directed IRAs. Why do I say this? It's because an "account owner" always has the right to choose where to put his or her IRA. You can choose to place a Self-Directed IRA at a commercial bank, independent trust company or trust department at a bank, a securities broker dealer, life insurance company, or other Treasury Department authorized IRA Trustee or Custodian.

What is a Self-Directed Real Estate IRA?

Self-Directed Real Estate IRA allows the real estate investor to make his or her own real estate investment decisions for their IRA. You can buy, hold, manage and sell real estate investments, in addition to the more traditional investments such as stocks, bonds, and mutual funds, inside of your Self-Directed Real Estate IRA.

How flexible is the Choice You Get?

The real question is how much flexibility the Trustee or Custodian of the individual retirement account will permit you, the real estate investor, to have in the selection of your own investments to be made inside of the Self-Directed IRA. What type of assets will the Trustee or Custodian of your Self-Directed IRA permit you to acquire and hold inside of your Self-Directed IRA?

IRA Trustees or Custodians

IRA Trustees or Custodians allow different types of investments or assets. Bank IRAs permit various types of bank deposit products, independent trust companies and securities brokerages permit publicly traded securities, etc. The majority of IRA Trustees and Custodians limit account holders to bank deposit products and/or publicly traded securities such as stocks, bonds, and mutual funds.

Financial institutions or Third-Party IRA Administrators ("TPAs") that market their IRAs as "Self-Directed IRAs" generally permit a greater range of investment options or choices above and beyond the traditional publicly traded securities, including real estate, notes secured by deeds of trust, promissory notes secured by mortgages, franchises, partnerships, private equity, limited liability companies ("LLCs") and tax lien certificates.

Be sure you know your desired investment options before selecting your Self-Directed IRA Trustee or Custodian. You can avoid the limitations that hinder your real estate investments by being proactive when searching for your Self-Directed IRA Trustee or Custodian,” according to William L. Exeter, president and chief executive officer, Exeter IRA Services, LLC. The Center for Wealth & Legacy™ provides a wealth of knowledge with many specialists available offering your family and business assistance in areas of taxation.

Thursday, June 17, 2010 at 03:22PM

Lydia Monchak |

Disclaimer

All information contained in this Web site is for general guidance on matters of interest only, may not reflect current developments, and is provided with the understanding that the authors and publishers are not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional advisers. In no event shall The Center for Wealth & Legacy^TM or any of its affiliates be responsible or liable, directly or indirectly, for any damage or loss caused or alleged to be caused by reliance on information on this site.

The Center for Wealth & Legacy^TM Web site may contain information that is created and maintained by a variety of sources both internal and external to The Center for Wealth & Legacy^TM. The content of this site reflects the personal opinions of the persons who post the entries. The Center for Wealth & Legacy^TM does not control, monitor or guarantee the information contained in this sites or information contained in links to other external web sites, and does not endorse any views expressed or products or services offered therein.