May 2009

Silver Lining

When people hear we are in the "financial/retirement" services industry, the first thing they do is offer their condolences. We are quick to assure them that our clients are in a better position than most because they are investing their IRA funds outside of the stock market. We are very happy to provide services to self-directed retirement plans.

Every market has its opportunities and our clients are the savviest investors in the game. It is sad that many individuals have lost their homes; without going into the "whys" or pointing fingers, our clients are seeing these low-priced properties as a way to get under-priced real estate in their retirement plans. In fact, the demand for foreclosed properties has increased to the point that it is slowly driving prices up again.

For those who are not interested in real estate itself, mortgages have become popular. Many individuals have been shut out as borrowers in this market because of stricter lending guidelines. Some of these individuals have discovered that our clients' IRAs will happily lend, no matter the financial landscape. Many of these opportunities have come to our clients from people they already know, making due diligence easier.

The demand for gold in IRAs has reached an all time high for our company. Many did not know that gold, silver, platinum and palladium can be legally owned by an IRA, or that the rules allow some gold coins (but not collectible coins). Our newly established relationship with First State Depository in Delaware provides secure and affordable precious metal storage services although clients are free to choose other storage facilities.

It is said that in hard times people get creative. We have found this to be true. The number of startup companies looking for IRA funds has increased lately. It is encouraging to see that people are willing to set out on new courses in this market. The optimism expressed by our clients and those companies in which they are investing is a boost for everyone.

The bottom line for our clients has always been about control of their retirement assets, but now, more than ever before, it's about choices. Our motto is "invest in what you know" but our mission is education. The more you know about self-direction, the more likely you will recognize an appropriate investment when it comes along. We now have live, web-based information sessions that reach out to everyone, everywhere. Our website has the calendar for these events.

We wish all of you the best with your retirement plan.

Bill and Catherine

How Your Health Insurance Can Cut Your Income Tax, Right NowHow Your Health Insurance Can Cut Your Income Tax, Right Now

Nobody likes to pay taxes. Maybe you're paying more than you should. Consider an HSA for federal tax deductions and you will pay less money to the IRS. An HSA, or Health Savings Account, is essentially that - a savings account, albeit one which allows you to deduct all your contributions to the plan. For a single person, the tax year 2009 contribution limit is $3,000, or $5,950 for a family.

You may invest the money in this account just like a self-directed IRA, or along with your self-directed IRA. All earnings on your HSA investments are tax-exempt. You can make withdrawals from the HSA tax-free at any time as long as the withdrawal is used for medical purposes. In HSA terms, medical purposes includes basics like X-rays and physicals, but also the not-so-obvious like eyeglasses and psychotherapy (See IRS Publication 502 http://www.irs.gov/publications/p502/index.html).

An HSA must be combined with a High Deductible Health Care Plan (HDHP), also called a "catastrophic" health insurance plan. The HDHP is inexpensive compared to other plans but obviously requires a high deductible, at least $1,150 for single and $2,300 for family coverage.

News and Notes

"Opt-in" for Mailings

We receive over 300 pieces of snail mail for IRA assets every month. We currently forward these homeowners' association notices, financial disclosures for private funds and all other mail on to the individual client. The volume has had a big impact on our staff. Some of these mailings are time sensitive and bulky, and each one costs us materials and labor as well as postage. We have found that about 75% of these items are of no interest to the account holder.

In order to save the paper, time and postage related to these items, effective July 1, 2009, we are implementing a new policy of forwarding mailings ONLY if you specifically request this service. There will, unfortunately, be a small charge for forwarding based on the size and quantity of the mailing. Many times you have alternate methods to get the information included in these mailings. Please contact the HOA or the investment representatives and ask that they include you on their distribution list, or sign up for online notices from the organization or visit their website.

One important reminder: Do not pay any invoices that might be included in any mailings you might receive, as IRA expenses must be paid by the IRA.

If you want us to continue forwarding investment information please email us at forwarding@ndira.com and let us know.

5305

For clients who have been with us a while, you may want to familiarize yourself with the current IRS 5305 disclosure form pertaining to your account. We have kept you informed of the changes to this form along the way but the 5305 contains answers to many basic questions about IRAs in general and our services in particular. This form can be found on our website under "Forms".

New Blog

Newdirectionira.com is finally joining the online social media set and we have a new web log. We will be updating a few times a week with insights into self-directed IRA investing, financial news and tidbits, as well as fun nuggets from life in the office.
Check it out at http://newdirectionira.com/blog/

New Payee for Incoming Checks:

In an effort to add an additional layer of security for our clients, we are changing how funds credited to your IRA are made payable.

Effective immediately, all checks, wires and ACHs should be made payable to:

(#11, International Bank & Trust, FBO (Your Name and IRA #)

Funds credited to the IRA are payable to International Bank and Trust and not Entrust New Direction, Inc. Making the funds payable to International Bank and Trust helps protect your IRA in this ever changing economic environment. The assets held within your IRA will still be vested in the name of Entrust New Direction, Inc. FBO (Your Name and IRA #).

We will send a separate mailing with the new delivery instructions, so you can provide them to the necessary parties that send funds to your IRA. We sincerely appreciate all of your continued support and understand that this change will have to be implemented over several months.

If you have any questions about the new delivery instructions, please feel free to contact us.

We Want Your Story

Have you had success with self-directed investing? Have you had a steep learning curve with self-directed investing? Have you learned a thing or two about investing with your IRA/HSA/401(k)? We'd love to hear from you about anything you've invested in - all varieties of real estate, private companies, loans - anything!

We do not provide investment advice, and we are not looking for investment advice - we are looking for investment stories. You may remain anonymous, if you wish, or we can use your direct quotes in articles, press releases and other media material.

Please email jsheflin@ndira.com with your thoughts, or if you want to be interviewed.

Employee Spotlight - Katie Tripp

Katie is the pleasant voice you hear when you call Entrust New Direction, and she's sure to brighten your day before she directs you to your specific destination. Seriously. Call us if you don't believe it.

Born and raised in Arvada, Colorado, Katie likes to dance (ballet and modern), bicycle (road), cook and work out. A lefty ("lefties do it right"), Katie spent 8 years as a professional rescue lifeguard, which fits since we consider her a lifesaver around the office. A creative and artistic person, Katie appreciates self-directed IRAs in that "people can take a passion of theirs and put a twist on it to make it in this economy."

We're glad Katie fought the odds as a 2 pound newborn to contribute to our office chemistry. Remember to say hi before your phone call is directed elsewhere.

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