Main Phone The Power of IRA Choice GET STARTED WITH SELF-DIRECTED IRAS Freedom Control Opportunities

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

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. The Choice is Yours ADVANTA IRA DOES NOT GIVE INVESTMENT ADVICE Freedom Control Opportunities

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 Our Goal at AdvantaIRA 3 SIMPLE GOALS Freedom Control Opportunity AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only. Freedom Control Opportunities

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 What is an IRA? INDIVIDUAL RETIREMENT ACCOUNT AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only. Freedom Control Opportunities

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 Why Invest with an IRA Account? BENEFITS OF TAX FREE INVESTING Freedom Control Opportunity AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

Three Primary Advantages of IRAs Freedom Control Opportunities AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only. Time Value of Money (For Illustrative Purposes Only – Please consult tax advisor for detailed results) Rate of Return15% Tax Rate19% YearYR BeginGainYR EndYearYR BeginGainTaxYR End 1$10,000$1,500$11,5001$10,000$1,500$285$11,215 2$11,500$1,725$13,2252$11,215$1,682$320$12,578 3$13,225$1,984$15,2093$12,578$1,887$358$14,106 4$15,209$2,281$17,4904$14,106$2,116$402$15,820 5$17,490$2,624$20,1145$15,820$2,373$451$17,742 26$329,190$49,378$378,56826$175,785$26,368$5,010$197,143 27$378,568$56,785$435,35327$197,143$29,571$5,619$221,096 28$435,353$65,303$500,65628$221,096$33,164$6,301$247,959 29$500,656$75,098$575,75529$247,959$37,194$7,067$278,086 30$575,755$86,363$662,11830$278,086$41,713$7,925$311,873 Total Taxes Paid$70,810

PAY TAXES NOW OR PAY TAXES LATER Traditional versus Roth 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

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

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) What is a Self-Directed IRA? UNLIMITED CHOICES AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only. Freedom Control Opportunities

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

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 IRS Rules and Regulations Freedom Control Opportunities AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

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% IRS Rules and Regulations Freedom Control Opportunities AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

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 IRS Rules and Regulations Freedom Control Opportunities Two key points with IRAs and real estate: NO self dealing and NO personal use!

-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 Tenants-in-common / Partnerships Freedom Control Opportunities AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only.

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 1 st mortgage note) to an LLC in which IRA beneficiary own 67%. Prohibited? IRA purchases a condo from IRA beneficiary’s Brother. Prohibited? Prohibited Transaction Pop Quiz Freedom Control Opportunities

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? Prohibited Transaction Pop Quiz Freedom Control Opportunities

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 Real Estate REAL ESTATE IS THE MOST POPULAR ASSET WE HOLD AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only. Freedom Control Opportunities

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

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 Case Study - Buying Real Estate GETTING STARTED AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only. Freedom Control Opportunities

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 Private Lending - Notes Freedom Control Opportunities

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 Case Study Lending Money in your IRA YOU CAN BE THE BANK AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only. Freedom Control Opportunities

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

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 “CHECKBOOK CONTROL IRA” Single Member LLC

Single- Member LLC Advanta IRA Account Investment C Investment B Investment A SM LLC Bank Account “CHECKBOOK CONTROL IRA” Single Member LLC

How to Get Started with Self Directed IRA TAKE CONTROL OF YOUR RETIREMENT NOW AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only. Freedom Control Opportunities

Annual Contribution (limits based on the type of plan you have) Transfer from another IRA Rollover from a pension plan or 401k How to Fund your IRA THERE ARE THREE WAYS TO MOVE MONEY AdvantaIRA does not endorse or promote any investments. This presentation is for educational purposes only. Freedom Control Opportunities

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 Quick Review ADVANTAIRA BENEFITS Freedom Control Opportunities

Learn more about self-directed retirement plans: 1.Weekly educational seminars 2.Special Continuing Education sessions for Brokers, Realtors, Financial Planners, CPAs and Attorneys 3.Sign up for our free monthly newsletter 4.Visit our website: for a large collection of articles, applicable IRS code, and answers to FAQwww.AdvantaTRUST.com 5.Just call us – we are a local resource and look forward to serving you and your clients AdvantaIRA is a Resource DO YOU NEED MORE INFORMATION Freedom Control Opportunities

Thank you from AdvantaIRA WE ARE HERE TO HELP…CALL ANYTIME Contact Information AdvantaIRA Trust, LLC Offices in Fort Myers Miami Gainesville Phone: (786) Freedom Control Opportunities