The Power of IRA Choice

1. The Power of IRA Choice FreedomControl Opportunities Get Started with Self-Directed IRAs

2. About AdvantaIRA Since 2002… Kevin Collins, Regional Sales Manager AdvantaIRA has been helping investors reach their retirement goals since 2002. Services Self Directed IRA Administration 1031 Exchanges Offices Throughout Florida Miami/Fort Lauderdale Fort Myers Gainesville Freedom Control Opportunities

3. The Choice is Yours Advanta IRA does not Give Investment Advice AdvantaIRA, and its offices do not provide investment advice or endorse any products. All information and materials are for educational purposes only. Please consult your attorney, accountant or financial advisors before entering into any type of investment. AdvantaIRA reserves the right to accept or reject the asset, based upon our review for administrative liability. Freedom Control Opportunities

4. Our Goal at AdvantaIRA 3 Simple Goals • To educate you about the different types of IRAs that can be self-directed • Help you learn about the diverse investments options available to you in Self Directed IRAs • Highlight the benefits of tax free strategies • Learn the Benefits of Roth IRAs • Learn about Alternative Assets options • Learn about Checkbook Control Freedom Control Opportunity Freedom Control Opportunities AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

5. What is an IRA? Individual Retirement Account • Set up in 1974 for your Retirement by tax code section 408 • Vehicle provides tax free grow in the account. • Eligible for distributions at age 59 ½ • There are penalties for early distribution • Current Year contributions can be Tax Deductible for most IRAs Freedom Control Opportunities AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

6. Why Invest with an IRA Account? Benefits of Tax Free Investing • Certain IRA contributions can be tax deductible • Gains & income produced inside a retirement account are tax free • The Roth IRA might never be taxed • BUILD YOUR RETIREMENT Freedom Control Opportunity AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

7. Three Primary Advantages of IRAs Time Value of Money (For Illustrative Purposes Only – Please consult tax advisor for detailed results) Freedom Control Opportunities AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

8. Traditional versus Roth Pay taxes now or pay taxes later • The Traditional • Established in 1975, this IRA provides for pre-tax saving for most individuals. All investment earnings grow tax-deferred until withdrawal. This option is available to you whether or not you or your spouse is covered by an employer's plan. • Eligibility: Everyone under age 70½, with earned income, is eligible to contribute to a Traditional IRA - there's no income limit. • Contribution Limits: $5,500 + $1,000 catch-up provision if age 50+ Nonworking spouse may be eligible for equal contributions based on working spouse's income • Deductibility: Based on the following factors. Consult your tax advisor to • determine if your contributions are deductible. • Tax Filing Status • Active Participant Status • Modified Adjusted Gross Income • Distribution Rules: All withdrawals are taxed at the ordinary income tax rate of the IRA holder. Withdrawals before the age of 59.5 are normally subject to an additional 10% penalty. • Required Minimum Distribution: The IRS requires that you withdraw at least a minimum amount - known as a Required Minimum Distribution - from your • retirement accounts annually, starting the year you turn age 70-1/2. • The Roth IRA • Passed into law in 1997, this unique saving plan provides for post tax savings with the advantage that all the income growth is tax deferred until withdrawal. If withdrawals take place at least five years after funding, and after the age of 59.5, there is no taxation. • Eligibility: Everyone with earned income, not exceeding the following Modified Adjusted Gross Income (MAGI) limits is eligible to contribute to a Roth IRA. • Married Filing Separate: $10,000 • Single: $120,000 • Married Filing Joint: $176,000 • Contribution Limits: $5,500 + $1,000 catch-up provision if age 50+ Non-working spouse may be eligible for equal contributions based on working spouse's income • Deductibility: Contributions are not deductible • Distribution Rules: Withdrawals for IRA holders who have had their Roth IRA funded for at least 5 years and reached the age of 59.5 are not taxed. For early withdrawals, a ten percent penalty and ordinary income tax will apply to the Roth IRA earnings. The contributed portion of the Roth IRA is not taxed. Certain • additional rules apply to Roth IRAs which have been converted from pre-tax retirement plans. • Required Minimum Distribution: None required

9. Other Types of Tax Advantage Plans • Simplified Employee Pension (SEP) • Savings Incentive Match for Employees of small employers (SIMPLE) • Spousal IRA • Coverdell (educational) • Health Savings Account (HSA) • 401(k) Plan Freedom Control Opportunities AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

10. What is a Self-Directed IRA? Unlimited Choices • A Self-Directed IRA allows the investor to choose the assets they know and they feel comfortable investing in • Unlimited Choices • Why is this not more popular? • 99% of IRA Custodians will only hold investments that they sell; therefore, They only promote these investments (Stocks, Bonds, Mutual Funds) Freedom Control Opportunities AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

11. Your Investment Choices What do our clients buy • Real Estate (all types) • Unsecured/Secured Notes • Futures/FOREX • Gold & other precious metals • Private Stock • Limited Liability Companies • Limited Partnerships • Joint Ventures • Checkbook IRAs Freedom Control Opportunities AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

12. IRS Rules and Regulations • What assets are prohibited? • Collectibles & Life Insurance • any work of art, • any rug or antique, • any metal or gem, • any stamp or coin, • any alcoholic beverage Freedom Control Opportunities AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

13. IRS Rules and Regulations • Examples of Disqualified Parties • You and your spouse • Lineal ascendants (and their spouses) • Lineal descendants (and their spouses) • Any fiduciary of IRA • Anyone providing services to your IRA • Corporations, partnerships, trusts, or estates in which you own, directly or indirectly, at least 50% Freedom Control Opportunities AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

14. IRS Rules and Regulations • Prohibited Transactions (IRC Sec 4975) • An IRA cannot engage in any transaction (direct or indirect) with anybody or anything considered related to the IRA • Some examples of prohibited transactions • between a disqualified person and an IRA are: • Selling, exchanging or leasing property • Lending money or extending credit • Furnishing goods, services or facilities Freedom Control Opportunities • Two key points with IRAs and real estate: • NO self dealing and NO personal use!

15. Tenants-in-common / Partnerships • IRA doesn’t have to own the whole asset entirely • IRA pays its share of expenses and receives its share of income • Example of vesting • AdvantaIRA Trust, LLC FBO Client Name, IRA as to an undivided 50% interest and John Smith as to an undivided 50% interest Freedom Control Opportunities AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

16. Prohibited Transaction Pop Quiz • IRA purchases Apartment building in Gainesville, Florida and IRA beneficiary rents (at fair market value) to multiple parties including a son attending college at UF. Prohibited? • IRA Lends (via 1st mortgage note) to an LLC in which IRA beneficiary own 67%. Prohibited? • IRA purchases a condo from IRA beneficiary’s Brother. Prohibited? Freedom Control Opportunities

17. Prohibited Transaction Pop Quiz • Geri buys a house in need of rehab in Fort Myers, Fl. 6 Months later, her fiancé, Dale, wants to invest in the project by purchasing half of the equity with the 100k he has in his IRA. Prohibited? • Your IRA and your Father purchase a condo as 50/50 tenants-in-common ownership. Prohibited? Freedom Control Opportunities

18. Real Estate Real Estate is the most popular asset we hold • Single family and multi-unit homes • Fix & Flip (REO & Bank owned OK!) • Buy & Rent • Apartments • Condominiums • Commercial property • Improved or unimproved land • Foreign property investment • Land Trusts Freedom Control Opportunities AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

19. Real Estate • IRA takes title to the property directly • AdvantaIRA Trust LLC FBO John Q. Client IRA # 123456 All income and expenses must flow through the IRA account No personal use or self dealing

20. Case Study - Buying Real Estate Getting Started • Dr. Jones transfers $35,000 to a self-directed IRA • Dr. Jones directs the IRA to execute a contract to purchase a parcel of land in Northport • The IRA purchases the land for $30,000 in May 2008 • Dr. Jones directs the IRA to sell the property for $48,000 in November 2012 • The original $30,000 plus the gain of $18,000 goes back in Dr. Jones’s retirement plan tax-free Freedom Control Opportunities AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

21. Private Lending - Notes • Lend money on a Mortgage or Promissory note • Generally command higher interest rates 8-15% • You negotiate and ultimately decide the terms • IRA can foreclose in event of default Freedom Control Opportunities

22. Case Study Lending Money in your IRA You can Be the Bank • Bill Smith decides to invest in note with his IRA and hold a note & mortgage for an individual purchasing a rental property. $100,000 5 Year balloon • The note is secured by the property and the interest rate is 12% • Subsequent monthly interest only payments of $1000 are made to the IRA from the individual. • Benefit - tax free income to the IRA Freedom Control Opportunities AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

23. Private Companies • Via Subscription Agreement • Hedge Funds • Real Estate Funds • Private Stock/PPM • As Partner/Member • IRA is a member on Operating Agreement

24. Single Member LLC “Checkbook Control IRA” • Freedom & Responsibility • IRA is sole 100% member • IRA holder is manager • File LLC with state • Prepare IRA compliant Operating Agreement • Establish bank account for LLC • Advanta then funds business bank account All investments are made in the name of LLC

25. Single Member LLC “checkbook Control IRA” Advanta IRA Account $$$ Single-Member LLC SM LLC Bank Account Investment A Investment C Investment B

26. How to Get Started with Self Directed IRA Take control of your Retirement Now Freedom Control Opportunities AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

27. How to Fund your IRA There are Three Ways to Move Money • Annual Contribution (limits based on the type of plan you have) • Transfer from another IRA • Rollover from a pension plan or 401k Freedom Control Opportunities AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

28. Quick Review AdvantaIra Benefits We Do • IRS Reporting • Receive investment income and pay investment expenses • Request all required forms for transactions • Accept contributions and process distributions We Do NOT • We Do Not provide any investment advice • We Do Not sell or endorse any investment products • We Are Not regulators, nor do we approve transactions Freedom Control Opportunities

29. AdvantaIRA is a Resource Do you Need More Information Learn more about self-directed retirement plans: • Weekly educational seminars • Special Continuing Education sessions for Brokers, Realtors, Financial Planners, CPAs and Attorneys • Sign up for our free monthly newsletter • Visit our website: www.AdvantaTRUST.comfor a large collection of articles, applicable IRS code, and answers to FAQ • Just call us – we are a local resource and look forward to serving you and your clients Freedom Control Opportunities

30. Thank you from AdvantaIRA We are Here to Help…Call Anytime Contact Information AdvantaIRA Trust, LLC Offices in Fort Myers Miami Gainesville Phone: (786) 275-5870 www.AdvantaTrust.com Freedom Control Opportunities