Many businesses are generous during the holidays when it comes to providing necessities for those less fortunate. However, employees at Equity Trust Company demonstrated a ton of generosity by collecting – literally – a ton of food for a local Cleveland, Ohio charity, the SCAN Food Pantry. In just more than a week’s time in December, employees showed their holiday spirit by donating more than 2,000 pounds of canned food, bottled water and other non-perishable items for the pantry.

In addition to donating more than 2,000 lbs (a ton) of food, during the Holiday’s Equity Trust participated in Toys for Tots, and prepared and gave-away turkeys to a local church.

Committed to helping clients grow their wealth tax-free, Equity Trust Company also believes in helping area organizations and families who may not be as fortunate.

Find out more about Equity Trust’s holiday giving…

Filed under: Uncategorized on January 5th, 2009 | No Comments »

While you were enjoying the holiday season you might have missed an important update by lawmakers to existing rules that could affect investors – especially those investors that have to deal with required minimum distributions (RMDs) from their IRA.

A one-year moratorium on IRA RMDs was enacted by Congress in mid-December and signed by President George W. Bush last week. Why did lawmakers suspend RMDs for a year? The government is trying to help investors and retirees whose retirement accounts have suffered from the stock market’s dismal.

A large portion of IRAs are heavily invested in the market and have suffered from the volatility. Suspending RMDs for 2009 could help investors recoup losses if the market rebounds in 2009.

While many self-directed IRA investors are invested in assets other than the stock market, a year without RMDs is also welcomed news.

Learn more about the suspension of 2009 RMDs here.

Filed under: Uncategorized on December 29th, 2008 | No Comments »

While news reports may paint a dreary picture for new college graduates, companies in Ohio are hopeful about the future and are courting graduates from Ohio colleges. Equity Trust Company attended a “Meet the Recruiters” night at Ohio University in Athens, Ohio, and was excited about what the school’s business students have to offer. Find out what Equity Trust Representatives said about the event.

Filed under: About Equity Trust on December 18th, 2008 | No Comments »

The Internal Revenue Service (IRS) announced a new expedited process that will make it easier for financially distressed homeowners to avoid having a federal tax lien block the refinancing of a mortgage or the sale of a home.

If a federal tax lien has been filed on a property that a taxpayer wants to refinance or sell, the taxpayer or his or her representative, such as the lender, may request that the IRS make its tax lien secondary to the lien of the lending institution that is refinancing or restructuring the loan.

Under certain circumstances, the taxpayer or representative also may request that the IRS discharge its claim if the home is being sold for less than the amount of the mortgage lien. Find out if the new process could have an effect on your self-directed IRA investment strategy.

Filed under: Investing in Real Estate, Self-Directed IRA Distributions, IRA Education on December 18th, 2008 | No Comments »

You’ve heard the old adage “When everything turns to lemons, make lemonade.” The current real estate market provides opportunities to make good on a bad situation.

Whereas real estate deals – specifically foreclosures – used to be reserved for moderately experienced to advanced investors, the current market has provided an opportunity for everyone to bite off a little piece of the pie. As a result, the number of foreclosure deals has jumped within the past six months, and more and more people are turning out for county foreclosure sales across the country.

This is good news for people who have a self-directed IRA, as industry sources say the best is yet to come. They expect the value of properties to increase next year – especially in markets that were hot prior to the bursting of the real-estate bubble. So anyone who can acquire property now and maintain or rent it for a year could reap the rewards as early as next year. Read more to see if the timing is right for you to turn some lemons into lemonade.

Filed under: Investment Opportunities, Investing in Real Estate, Self-Directed IRA Distributions, IRA Education on December 17th, 2008 | No Comments »

As the holidays approach, the last thing on many people’s minds are income taxes. However, the Illinois CPA Society thinks the festive season of late December is the perfect time to evaluate and take action to reduce tax liability for 2008.

The Illinois CPA Society reveals five items to add to your “to-do” list that could give you a tax savings present come April. One tip is to maximize your retirement accounts.

“…see if you can contribute to a deductible Individual Retirement Account (IRA) - limits may apply. You have until April 15, 2009, to open an IRA and make a deductible contribution for 2008. The maximum IRA contribution for 2008 is $5,000; $6,000 for workers over 50.”

Beyond the tax benefits, retirement accounts such as self directed IRAs allow you to invest in a full range of assets – not just stocks, bonds and mutual funds.

Review the full list here.

Filed under: Managing Your IRA, IRA Contributions, IRA Education on December 12th, 2008 | No Comments »

It might just be the perfect storm for companies that provide financing to real estate investors. With the economic turndown making buyers hesitant to take the leap into a new home, sellers are sitting on homes for longer periods of time.

As bleak as the picture may seem, business is booming for companies that can supply real estate investors with financing to purchase some of those properties that have been sitting on the market.

It’s also the best of times for companies in the residential real estate turnaround industry, such as HomeVestors®, which trains and supports franchisees that specialize in buying properties and building upon the company’s reputation, “We Buy Ugly Houses,” according to a recent Realty Times article.

Equity Trust Company was a sponsor of the recent HomeVestors conference in Las Vegas, where attendees learned that November has been one of the best months for the company. HomeVestors looks for this trend to continue – and get even better.

Because real estate investors’ two biggest concerns are 1) finding houses to buy and 2) finding money to buy them, a valuable piece to the puzzle is the self-directed IRA. Self-directed IRAs provide investors with another funding option that can allow them to purchase homes from companies like HomeVestors.

With it being “the best buying market in a lifetime,” according to speakers at the HomeVestors conference, companies that service investors should make sure their potential customers understand the benefits of using their IRAs to invest in real estate. Suddenly, 100 deals per year may just be the tip of the iceberg.

For franchisees or business owners looking to self-direct their own retirement plans, a Simplified Employee Pension (SEP) plan could offer a viable solution. For more information on small-business plans, talk with your tax professional or attorney.

Filed under: Investment Opportunities, Investing in Real Estate, Self-Directed IRA Distributions, Small business plans on December 9th, 2008 | No Comments »

If you have kids, you’ve undoubtedly read some of the articles or listened to news reports about the skyrocketing costs of college. The figures are shocking to say the least. Parents used to realistically be able to plan ahead in order to put their kids through college so that their children would not be burdened with hefty school loans after graduation. Now, it seems, the dream has faded – not to mention any hopes of actually achieving the dream.

Based on recent reports, some private four-year institutions charge a total of $33,000 a year or more! If you do the math – and you’re still conscious – that amounts to a whopping $132,000 per child. If you have two children, you’d have to dig deep into your pockets for $264,000. Rack that up – along with the cost for the extra year or two that it might actually take your child to complete a supposed four-year degree – and paying for your child’s college might seem far from reach.

So if your kids are young – or if they’re just a mere twinkle in your eye – you might want to consider some options now to help you save for such a large expenditure in the future. By the way — did we mention that those costs don’t even include books, food expenses, a car, gas or other incidentals that your kids might need?

A great way to start saving for your children’s education is to open a Coverdell Education Savings Account (CESA). This is a great option – especially because funds that are put into the account are tax-free. If one of your children decides college is not for him or her, you can transfer the account to another family member – a more academically inclined child. Since the account is really for your children, you also can use the funds for any eligible elementary or secondary school, be it a public, private or religious institution.

CESA guidelines are outlined in IRS Publication 970, or you can talk with your financial planner or tax professional to find out how a CESA can benefit your family.

Filed under: CESA on December 1st, 2008 | No Comments »

Once you become interested in self directing your IRA, your next question probably will be “Where do I start?” While there is a wealth of information available online regarding different types of non-traditional assets, it’s difficult to know where to start – especially when you don’t have six-figures – or even four or five-figures – to invest.

It’s easy enough to find case studies about people who made millions off their first property investment, but that’s easier to do if you have a nice chunk of change in your pocket to start.

Unfortunately, we can’t all be that lucky – or that financially stable. So why should we even bother considering a self directed IRA? One of the benefits of self directed investing is that you don’t have to land a windfall in order to get started and begin growing your wealth. There are quite a few options available that are perfect for beginning investors or for individuals who simply don’t want to put all of their eggs in one basket.

A few of the more common investments include promissory notes, real estate and lease options, and tax liens. All of these are viable first investments because the amount needed to purchase them is negotiable – and usually under $3,000. If you have friends who might also be interested in self-directing, you can explore the private bank concept in order to build your investing power.

So even if you don’t think you fit the idea of the prototypical self-directed investor, you can still benefit from what a self directed IRA has to offer.

Filed under: Investment Opportunities, Investing in Real Estate, Managing Your IRA, IRA Education on November 21st, 2008 | No Comments »

Does global real estate icon and wealth generator-extraordinaire, Donald Trump, use self directed IRAs to invest or to raise money?

Tough to say exactly, but if a recent blog entry on his Trump University web site is any indication, he is a supporter of people using self-directed IRAs to generate wealth.

And why shouldn’t he?

Self-directed IRAs are an exceptional tool for investors looking to generate wealth – they allow you to invest in assets you know and understand best. You aren’t limited to just stocks and mutual funds (and right now, who wants to be). You can use your self directed IRA to invest in real estate, tax liens, foreclosures, promissory notes, cattle, equipment leasing, and just about anything else you can think of.

A self-made man, who relies on his own experience and knowledge to invest, it’s easy to see why Donald Trump could be a self directed IRA fan…and why you might want to become one yourself.

Filed under: Uncategorized, Investing in Real Estate, Self-Directed IRA Distributions, Managing Your IRA, IRA Consultation on November 14th, 2008 | 1 Comment »