1. More Business with IRAs
Keller Williams - Blue Bell, PA
January 2012
Investing In Traditional & Non-Traditional Assets
Using Self-Directed Retirement Plans (IRAs/401Ks)

2. Disclosure
CAMA Self-Directed IRAs, LLC, does not provide
investment advice or endorsements.
All information and materials contained are
provided for educational purposes only. All
parties are encouraged to consult with their
attorneys, accountants and financial advisors
before entering into any type of investments.

3. Too Good to Be True?
• Increase sales and commissions
• Additional tools few others use
• New clients you already know
• Little or no cost to you
• Bypass bank loan problems
• Use your expertise to grow your wealth and
your clients wealth

4. Agenda
• What is Self-Direction?
• Types of Assets or Investments Allowed
• Plan Types & Why People Use It
• Step By Step Summary
• IRS Rules and Regulations
• The Role of CAMA
• Who Can Use Self-Direction?
• What to do next? Push back?

5. What is a “Self-Directed” IRA?
An IRA in which the IRA owner directs all investments in the
account. There is no legal distinction between a “self-directed
IRA” and any other IRA except with a truly self-directed IRA the
account agreement allows the broadest possible spectrum of
investments.

6. Statement Comparison
Assets:
Cash
Fidelity Freedom Fund
Fidelity Growth Fund
Assets:
Cash
Real Estate
Secured Notes

7. Allowable Investments
• Real Estate
• Precious Metals
• Notes/Mortgages
• Private Placements
• Other

8. Allowable Assets & Investments
Real Estate •Single family and multi-unit homes
•Apartments
•Condominiums
•Commercial Property
•Improved or un-improved land
•Leveraged and un-leveraged property
•Foreign property investments

9. Real Estate

10. Allowable Assets & Investments
Precious Metals •Gold
•Silver
•Palladium
•Certain coins and bullion
(see restrictions)

11. Precious Metals

12. Allowable Assets & Investments
•Mortgages
Loans & Notes
•Promissory Notes
•Trust Deeds
•Leases
•Convertible Notes
•Discounted Notes
•Secured/Unsecured Notes
•Short-term/Long-term Notes

13. Loans/Notes

14. Allowable Assets & Investments
•LLC’s
Private Placements
•LP’s
•Trusts
•Corporations (S-Corp prohibited)
•Joint Ventures
•Investment Clubs
•Structured Settlements
•Hedge Funds

15. Other Allowable Assets
• Tax Liens
• Commodities/futures
• Securities, certificates of deposits, stocks, bonds
• Mutual funds
• Oil & gas rights
• Contracts of sale
• Accounts receivable financing
• Auto/commercial paper
• Other – Boat, car, trailer, sports tickets, etc.
• Anything the IRS does not prohibit

16. Prohibited Investments
Collectibles & Life Insurance
• Any Work of Art
• Any Rug or Antique
• Any Metal or Gem
• Any Stamp or Coin
• Any Alcoholic Beverage
*Exception
• US Government Minted Gold Or Silver Eagle, Gold and
Palladium Bullion

17. How can I profit NOW?
More sales

18. How can I profit NOW?
Create your own private financing source

19. How can I profit NOW?
Partnering with OPI

20. How can I profit NOW?
Raising investment capital

21. How can I profit NOW?
There are TRILLIONS of dollars in
retirement accounts!

22. How can I profit NOW?
At every gathering there are MILLIONS of
dollars available for investment.

23. How can I profit NOW?
Spread the knowledge about self-directed plans,
then help them invest their money!

24. Types of Plans That Can Be
Self-Directed

25. Plans That Can Be Self-Directed
IRAs Retirement Other
Plans Accounts
Roth IRA & 401Ks HSA (Health
Traditional Pre & Post Tax Savings Accounts)
SEP & SIMPLE Defined ESA (Educational
Contribution Savings Accounts)
Spousal & Defined Benefit = Tax Free
Custodial

26. Types of Self-Directed Plans
Tax Deferred Tax Free
• Traditional IRA
• Roth IRA
• Spousal IRA
• Simplified Employee • Health Savings Account
Pension (SEP) (HSA)
• Savings Incentive Match • Roth like 401k (2006)
for Employees of small
employers (SIMPLE) • Coverdell (Educational)
• Defined Benefit Plan
• Defined Contribution

27. “Invest in what you know,
understand and can control” Vs.
Using “Hope” as your strategy.
Key Benefit of Having a Self-Directed IRA/401K

28. Account Comparison
$2,500,000 $2,262,963
$2,000,000
$1,584,074
$1,500,000
$1,000,000 $872,470
$748,723
$610,729
$50,000 $336,375
$380,613
$500,000 $50,000 $235,462
$50,000 $129,687 $193,484
$110,589
$98,358
$0
Start 10 yr 20 yr 30 yr 40 yr
Tax-Free Tax-Deferred Taxable

29. Types of Money You Make Taxes
Types of Money
$60,000
W2 – Salaries, 1099 Fed: 0—35%
State: 0—10%
Local: 0—4%
SS/Med – 7.65% (you) + 7.65% (employer) =
15.3%
Passive – Rent, Royalties, Interest, Dividends
and Capital Gains
$75,000
0—49%
Tax Deferred – Traditional, etc.
$100,000*
0% - taxed when taken
Tax Free – Roth, HSA, ESA
$100,000
0%

31. IRS Rules and Regulations

32. Prohibited Transactions &
Disqualified Persons

33. Disqualified People / Parties
Business Parents Spouse
Entities
owned 50%
or more You Spouse
by a
“Related
Party” Kids Spouse

34. IRA
Fiduciary “F”
(includes IRA Owner)
Member of F’s Corporation “C” if F 10% or Partnership “P” if F 10% or Trust or Estate “T” if 10% or
Family owns more owns more F owns more
(directly or indirectly) partner or (directly or indirectly) partner or (directly or indirectly) partner or
50% or more of vote or joint 50% or more of joint 50% or more of joint
value of stock venture capital or profits venture Beneficial interest in venture
F’s Spouse with C interest in P with P T with T
F’s Ancestor Officer or Director of Person with
Trustee of T
C management
or administrative
functions of P
F’s Lineal
LD’s Highly Compensated
Descendant
Spouse Highly Compensated Employee of T (10%
“LD”
Employee of C (10% Highly or more of wages)
or more of wages) Compensated
Employee of P
(10% or more of
wages) 10% or more
beneficial interest
10% or more owner of T
shareholder of C
10% or more
partner of P

35. Disqualified People/Parties
• Cannot receive a current benefit from the
IRA/401k investment
– No personal use of property, assets or amenities
– Payment to disqualified persons for services rendered
• Considered contributions per the IRS
– Personally performing repairs, maintenance,
improvement that increase the value
– Pay for services from any account other than IRA

36. IRS Rules and Regulations
Prohibited Transactions
Some examples of prohibited transactions
between a disqualified person and an IRA are:
• Selling, exchanging or leasing property to them
• Lending money or extending credit to them
• Furnishing goods, services or facilities
Two key points with IRAs and real estate:
NO self dealing and NO personal use!

37. What Does CAMA SDIRA Do?
• The IRS requires you to use a neutral 3rd party to open a self-
directed IRA – we provide that service.
• No investment advice or products to sell.
• We specialize in the legal (IRS-approved) use of tax-free and
tax-deferred retirement and savings plans for traditional and
non-traditional investments.
• Relieve the administrative burdens associated with
transactions.
• Keep records of all transactions and report to the IRS.
• Part of your professional advisory team.

38. Who Can Use Self-Direction?

39. Does she care about an IRA or ESA or HSA?

41. Who are these untapped resources?
• CD Holders returns
• Retirees-baby boomers
• Unemployed- with 401K’s
• State and local government employees with
pensions
• GM, Chrysler, state of NJ, Delta, USAir, pension
plan owners, etc
• People in your REIA, network groups, etc
• People scared of the market wanting control &
better returns

42. What Next? (Free)
• Talk to investors – let them know
• Add information to your collateral material
• Link to CAMA SDIRA website
• Publish article in your newsletter – ask me for one
• Put SDIRA collateral material in your office
• Set-up a class with your investors
• Give me your contact information and receive
newsletter you can forward to clients.

43. What Next? (Minimal Cost)
• Attend webinars, workshops, seminars – see
attached
• Invite your clients to attend classes.
• Read books on the subject – see attached
• Open an account ($50 one time)

44. Additional Reading
Books
• How to Purchase Real Estate with Your IRA/401K and
Pay Little or No Taxes - Hubert Bromma
• We Buy Houses Sometimes - Michele Gorman and
Mark Halpern
• How Not To Go Broke At 102 - Adriane Berg
• Real Estate Investment Using Self Directed IRAs an
Other Retirement Plans - Dyches Boddiford Quincy
Long, George Yeiter

45. Additional Reading
Court Cases
– James H. Swanson, et ux. v. Commissioner, 106 TC 76, Code Sec(s)
4975; 7430 - LLC’s and checkbook control
– Tax Court & Board of Tax Appeals Memorandum Decisions Joseph R.
Rollins v. Commissioner, TC Memo 2004-260 , Code Sec(s) 4975 -
Control and ownership of LLC’s
• Adler Advisory Opinion Letter2000 - 10A ERISA Sec. 4975(c)(1)
- Family ownership
• Investing in Entities - General guidelines -- call CAMA for an
emailed version

46. Sessions to Attend
• Upcoming events - Webinars, Seminars, Meetings:
– Every Wed at Noon: Webinars on multiple subjects
– Mon & Thu 9:00am – Office visit and information
exchange
– Visit our website for other events recorded free
For you or your clients

47. What does your advisor think?
• Accountant/Financial Planner/Attorney/Spouse
• About Self Direction
– Legal?
– Risky?
– Complex?

48. IRS Info for the Doubtful
• Publications & Regulations
– Prohibited Transactions - IRS Reg. Sect 4975, Pub 514
– Unrelated Business Income Tax Pub 598
– IRA’s Pub 590 and 5305
– Retirement Plans Pub 560
– Education Pub 970
– Pub 969HSA, Form 8889
– Form 990T
• Private Letter Rulings (www.camaplan.com)
• Court Cases (www.camaplan.com)

49. Thank You!
Contact Information:
Carl Fischer, Principal
toll free 866.559.4430
info@camaplan.com
www.CAMAPlan.com
-List of CAMA events and seminars.
-Educational webinar recordings.