Roth on Roids for IRA – Investing in Retirement Plans – CPA or Lawyer Point of View
With a Roth IRA at Roids, you could contribute $5,000, $20,000, $50,000 and $100,000 depending on how much money you have and how much you want to contribute and when you want to start withdrawing your money.
It is a powerful wealth building tool. When I heard about this from Roccy DeFrancesco, I was completely overwhelmed because I’ve spent my life looking for tax-advantaged products that are safe, legal, can be used with very little risk. You will not get this from your attorney or your accountant. His lawyer’s stock response is “possibly, maybe or I’ll look into it.” And even if he knows, he won’t tell you because, traditionally, he works on both sides of the fence.
Typically, your accountant and attorney would not consider any of these products because you could become a target of the IRS. Whenever there’s a criminal investigation, your papers would be the first thing they’d look for, subpoenas. I work with accountants and teach them and this is their usual stance on it. I teach classes of lawyers and accountants for credits. They are generally intimidated. For the price of preparing your taxes, they are not going to look at these types of wealth building tools. The wealth-building strategies of this retirement investment plan are completely legal. You don’t have to hide your money. You don’t have to go to the high seas. You don’t have to provide a lot of documentation and you don’t have to report your requirements to the feds.
With a Roth IRA at Roids the following basic information would be required: your age; how much money you want to deposit into your account; when you want to withdraw money from the account. Based on this information, a specific financial picture can be drawn for you.
To summarize the main benefits of this wealth building tool: your money never goes backwards; you will be able to withdraw your money tax-free; there is a guaranteed return. So let’s discuss how you can fund your account with other people’s money.
Roccy DeFrancesco wrote a book, “Home Equity Management.” The book is very well written. Roccy is a very meticulous guy and I have a lot of respect for him. The book describes how he can reposition the equity in his home. Let’s discuss the equity in your home for a moment. If you are in your home with a 95% mortgage, does your mortgage decrease the value of the home? The answer is no.” If your home is fully mortgaged, it would not decrease in value. But, if you live in an area like California with mudslides or Florida with hurricanes and tornadoes and you own 100% of your home ( that is, it is not mortgaged), whose problem would it be if their house slides down the hill or goes under water? It would be your problem. On the other hand, if it is heavily mortgaged, then it would not be your problem. insurance and it would be a mortgage company problem.
So what is the relationship of your home equity to your Roth on Roids? If you leverage the equity in your home and reposition it to fund your IRA, then yes, your money is in this account and in investment opportunities and it’s safe. Real estate is the only asset class that can be leveraged. Everyone understands that you buy real estate with a 5% down payment, 10% down payment, depending on how well financed you are. It is the only leverage that is recommended, people accept it, people understand it, banks do it. Therefore, by repositioning your home equity for you to fund your account, you are financially using other people’s money. And this could also be achieved with commercial real estate. If you have equity in commercial real estate, refinancing it so you can reposition your assets definitely makes a lot of sense. At the end of the day, you still have the same assets. If you have equity in your home or business property, that’s an asset. If you have shares in Roth on Roids or other investment opportunities, together they are the same number. You’re just repositioning yourself. You are relocating your assets. That’s all you’ve done.
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