1. Presents: David Duggan Senior Account Executive 855-499-1653 d.duggan@trustetc.com David Duggan Senior Account Executive 855-499-1653 d.duggan@trustetc.com Assembling Your Private Bank: Leveraging Self-Directed IRAs

2. This material is presented with the understanding that Equity Trust Company/Equity University (“ETC”), its representatives, officers affiliates and clients have not been engaged in rendering specific planning, investing, or professional services. Questions relevant to your specific tax, investment, accounting, legal, estate or planning needs should be addressed to practicing members of those professions only after fully disclosing all relevant and material facts regarding your specific situation. ETC does not endorse any speaker or presenter before you today. Nor does it endorse any printed materials belonging to any third party and provided herein. The information, ideas, suggestions, and strategies contained herein have been developed from sources, including publications and research, that are considered and believed to be reliable, but cannot be guaranteed insofar as they apply to any Particular taxpayer or individual desiring to establish an asset protection, estate planning, investment, retirement, education or tax plan. Moreover, because of the technical nature of the material and the fact that the laws and the markets are never static, but ever changing, the assistance of a competent, qualified professional is recommended when implementing any ideas discussed today. ETC and all its representatives specifically disclaim any liability, loss, or risk, personal or otherwise, incurred as a consequence directly or indirectly of the use and application of any of the techniques or contents of this material. ETC, all its affiliates, representatives, officers do not provide any legal or tax advice. We provide education on topics, such as building wealth through Self Directed Retirement Accounts, and recommend that you work with a professional as to specific guidance for your investments. Disclaimer

3. What You Will Learn Today 7 Tax-Exempt Accounts – Compounding Interest Real Estate and Alternative Investment Options Financing Options – Partnering Strategies Assembling a Private Bank of IRA Investors Getting Started – Transaction Process/Case Studies

4. www.IRS.gov

5. P = principal amount (the initial amount you borrow or deposit) r = annual rate of interest (as a decimal) t = number of years the amount is deposited or borrowed for. A = amount of money accumulated after n years, including interest. n = number of times the interest is compounded per year

6. IRA vs. Non-IRA Investing Tax Savings $141,074 Calculator Access: www.TrustETC.com

7. Individual Accounts Traditional IRA Roth IRA Small Business Plans SEP SIMPLE Solo 401(k) Alternative Accounts Coverdell Education Savings Account (CESA) Health Savings Account (HSA) The (7) Tax-Exempt Self-Directed Account Types

8. Alternative Investments REAL ESTATE Single Family Homes Buy and Hold Rehab and Resell Apartment Complexes Mortgage Notes/Trust Deeds Non-Performing Notes Tax Liens/Deeds Real Estate Options Wholesaling Subject-to’s

9. Commercial Real Estate Vacation Rentals Raw Land – Developed, Undeveloped and Pre-Developed Mobile Homes LLC LP, C-Corp - Real Estate or Non Real Estate Private Placements: Debt and Equity Oil and Gas Precious Metals Factoring FOREX Equipment Leasing Show Horses Alternative Investments

10. Funding the Account: 1) Rollover from 401(k), 403(b), 457, ESOP 2) Transfer from an existing Traditional IRA 3) Out-of-pocket contribution 2014 $5,500$5,500 contribution when under 50 $6,500$6,500 when 50 and over Irrespective of earnings/rollovers/transfers IRA Traditional IRA Tax -Deferred Distributions for personal use may begin at 59 ½ - premature distributions result in a 10% penalty

11. Inception Year: 1998 After tax Individual Retirement Arrangement (IRA) Eligibility Requirements: Earned Income Modified Adjusted Gross Income (MAGI) : Single Filer Phase Out: 116k-131k Married Filing Jointly Phase Out: 183k-1913k Solution: Contribute to a Traditional/SEP convert to the Roth IRA Solution: Contribute to a Traditional/SEP convert to the Roth IRA IRA Roth IRA Tax-Free William V. Roth, Jr. Senator from Delaware

12. Funding Your Roth IRA Roth IRA Contribution: $5,500 $6,500 - Cannot exceed $5,500 when under 50 and $6,500 when 50 and over (2014) Roth IRA Transfer: - Partial or full trustee to trustee transfer Conversion from tax-deferred account: - NO MAGI limits for conversions (100k pre 2010) - Convert from Traditional IRA - Convert from 401(k) - Convert from SEP IRA - Convert from SIMPLE IRA

13. Internal Revenue Service Please note: Amount converted is added to your ordinary income $100,000 Roth IRA $100,000 $20,000 20% effective tax rate Traditional IRA/401(k) Transitioning Traditional IRA assets (tax-deferred) to a Roth IRA (tax-free)RothConversion

14. Internal Revenue Service Please note: Amount converted is added to your ordinary income $100,000 Roth IRA $50,000 $10,000 20% effective tax rate Traditional IRA/401(k) Partial Conversion Convert In Stages

15. In-Kind Asset Conversion Internal Revenue Service Please note: Amount converted is added to your ordinary income $50,000 Roth IRA $50,000 $10,000 20% effective tax rate Traditional IRA/401(k)

16. Finance the Deal Methods to 1)Sole Ownership 2)Partner/Undivided Interest 3)Debt Finance – (Non-Recourse Loan)

17. Disqualified Persons and Prohibited Transactions Your IRA cannot transact business with a disqualified person What constitutes a transaction? Defined in the internal revenue code as a: Sale…,lease…,lending of money or other extension of credit…, furnishing of goods, services, and facilities…

18. IRC 4975 Account Owner (Fiduciary) Spouse Decedents Ascendants Spouses of children Entities - LLC, C-Corp, LP owned 50% or greater by disqualified persons An officer, director, or 10% or more shareholder, or highly compensated employee (earns 10% or greater of the companies wages) of a company owned by the IRA owner or other disqualified persons Disqualified Persons

19. Placed property under contract for $105,000 May 16, 2013 - requested earnest money check for $1,000 from her Roth IRA to open escrow June 7, 2013 – sold property to an investor buyer she met at her local REIA Jan’s IRA received a check for $38,960.93 (after expenses) $38,960.93 - $1,000 Deposit = $37,960.93 TAX-FREE Duration of Investment: Less than 30 days Jan - St. Louis, MO Wholesale

20. Wholesale Overview 16688 Kehrsgrove Placed property under contract for $406,173 - Equity Trust Company Custodian FBO Act#ZXXXXXX, Roth IRA or Assigns to… July 11, 2014 – requested earnest money check for $1,000 from my IRA to open escrow August 28, 2014 – sold property for $450,000 to investor/buyer IRA received a check for $44,589.21 (after expenses) $44,589.21 - $1,000 Deposit = $43,589.21 TAX-FREE Duration of Investment: less than 60 days

21. 55 Ladue Estates Project Overview July 24, 2013 – bought property for $310,000 July 29, 2013 to January 27, 2014 – scheduled 5 payments to contractor June 13, 2014 – sold renovated property for $767,000 IRAs received $163,806 (after all expenses) - duration of Investment: 11 months

22. 55 Ladue Estates Purchase Gary’s Roth IRA – 55% EMD: $1,650 $168,705.86 Brittany’s Roth IRA – 3% EMD: $90 $9,202.14 Jan’s Roth IRA – 42% EMD: $1,260 $125,829.92 $306,737

23. 55 Ladue Estates Renovations Gary’s Roth IRA – 55%$163,051.35 5 Checks Brittany’s Roth IRA – 3%$8,893.71 5 Checks Jan’s Roth IRA – 42%$124,511.94 5 Checks Renovation Cost: $296,457

24. 55 Ladue Estates Sale Gary’s Roth IRA – 55% $421,850 $90,093.30 TAX FREE Brittany’s Roth IRA – 3% $23,210 $4,914.18 TAX FREE Jan’s Roth IRA – 42% $322,140 $68,798.52 TAX FREE Proceeds from Sale: $767,000 IRAs received $163,806 (after all expenses)

25. CESA Coverdell Education Savings Account Contributions $2,000 Maximum (Non-Deductible) Until Age 18 Growth is 100% Tax-Free Withdrawals Qualified Higher Education Expense (By Age 30) Tax & Penalty Free Accredited College, University, Vocational or Private Grade School

26. Cincinnati, OH Purchased using daughter's CESA account Bob – CESA Investment

27. Purchased in daughter's CESA account in Dec 2012 for $5,000 Sold in February for $15,600 with owner financing on a land contract with $695 down Annually $180.84 PI/month for 10 years 8% interest ($15,600 sale price $225PITI) – $2,170 Annually IRR = 48.57% Bob – CESA Investment

28. Individual Accounts Traditional IRA Roth IRA Small Business Plans SEP SIMPLE Solo 401(k) Alternative Accounts Coverdell Education Savings Account (CESA) Health Savings Account (HSA) The (7) Tax-Exempt Self-Directed Account Types

29. Step: 1 Step: 2 Step: 3 Transaction Processing

30. FILL OUT THE APPLICATION Tax FREE & Tax Deferred! To Be Considered For This Exclusive Program You Must Serious Inquiries Only