2. Alternative Investments and Non-correlated Investments : How to Use IRA, 401(k), and other Qualified Funds

3. Aubrey Morrow, CFP Financial Designs, Ltd. San Diego Larry Steinberg The Steinberg Financial Group Scottsdale, AZ Neal Greene Newbridge Securities Playa Del Rey, CA.

4. In my 5 minutes, I don’t need to remind anyone that: RETIREMENTS ARE CHANGING People are retiring later but living even longer People are retiring earlier and living longer Sources of income are changing Retirement investments are changing The 4% Rule No Longer Works for Retirees These changes have implications for the presence of alternative investments in retirement accounts. The reasons are obvious – the risk is too great of having all retirement assets in traditional cash, stock and bond portfolios

5. WHAT ARE INSTITUTIONAL INVESTORS SAYING ABOUT PORTFOLIO ASSET ALLOCATION INTO ALTERNATIVES? 76% consider the use of alternative investments essential to diversify portfolio risk. 25% say they are increasing their allocations to alternative/non-correlated assets 91% say that alternatives are key to risk reduction Natixis Global Asset Management survey July 2012 Institutional investors will increase their allocations to real estate and infrastructure from 5-10% to 25% within the next decade. JP Morgan report

6. WHAT WE DO AT OUR FIRM Our firm has always recommend a blend of real estate – generally not to exceed 20% - 25% max in qualified plans – mainly for diversification, income, appreciation potential and not correlated with the traditional stock market. Investor Profile Questionnaire to determine: Investor Goals, Objectives, Risk & Time Horizon NON-ACCREDITED 70% - 80% Fee-Based Assets Under Management 20% - 30% Mix of REITs and Business Development Companies ACCREDITED 60% - 70% Fee-Based Globally Diversified Assets Under Management 20% - 30% Mix of REITs and Business Development Companies 10% - 20% Reg. D Private Real Estate Equity and Debt (Bond Substitute) and Oil and Gas Royalties - Energy Linked Income Annuity like investments

8. For Current Retirement Income “ A new Money For Life Strategy Creates Guaranteed Income and Growth Potential” Featured in Kiplinger Personal Finance Bottom Line Magazine Income for Life Model software from www.Wealth2k.comwww.Wealth2k.com

9. RR RESPONSIBILITIES 1.Due diligence a. Beyond that of broker dealer b. Issues unique to qualified plans 2.Product selection a. Importance of diversification b. Cash flow (yield) to satisfy RMD’s (older clients) 3.Monitoring a. Reports from sponsor b. Analysis by Broker Dealer c. Communication by the RR

10. Unrelated Business Taxable Income 1. Corporate rates & NOW (deductions are allowed ) 2. Debt financed property (any time during the taxable year) 3. Not required to be direct nor recourse (acquisition or improvement ) 4. Total TAXABLE income x (average acquisition indebtedness / adjusted basis). 5. At sale, use the highest average indebtedness within the preceding 12 months before the sale.