Guaranteed Life Settlements Zero Coupon Bonds & Mortgaging Home Equity

A new tool for IRA retirement plan investing called zero coupon bond is available for you. The maturity is 5 years. So if you were to buy a zero coupon bond callable in 5 years, at the end of the fifth year, if you invest $100,000 they will guarantee you a return of $150,000. That’s 10% a year. You put in $100,000 you get $150,000 over a five year period.

In order to get you to invest in this, they will give you the following: if the guy dies in year one, and you invested $100,000, you will get the $150,000. What if he dies in year 2? You’re going to get the $150,000. In year 3, 4, and certainly at the end of year 5, you will get your $150,000 guaranteed. It’s a fantastic little tool; it’s a wealth building tool for growth that you can use and it is so much better than even the best IRA. You need to qualify for this, it’s not for everybody. You need to make sure that you have the right type of plan, give us a call. If you have that kind of money, you may have already set up an IRA retirement plan, but you want that kind of guarantee on your money, we’ll put you together with the right people. They hold the right licenses to be able to discuss this matter with you. It is not for everybody. But, let’s use the example of equity in your home. Let’s say you have an equity position in your home of $300- $500 thousand. If you reposition $100,000 the interest is tax deductible. If you borrow more than $100,000, it depends. I hate to say that it depends, but it does. It all depends on the acquisition cost of your real estate.

Let’s put a bunch of rules in to complicate things so that you don’t get the tax deduction. Obviously, they’re targeting the rich who, according to Mr. Obama, are going to be paying for these trillion dollars they are giving away. I have news for him; the rich themselves are going to be filing tax returns with negative numbers this year. They have the best IRA or they too have lost money – either way, they will not have to pay taxes in 2008.

But for this new potent, wealth building tool, you need to qualify. Give us a call; we’ll put you together with the right people. Let us take another example. You may borrow from your home or other real estate such as commercial property to fund your Roth IRA on Roids. Let’s say you borrow from your home, and invest $300,000 to $400,000, or invest $100,000 from, say, your leveraged commercial property to your IRA account and then invest another $100,000 to your zero coupon bonds. By a simple calculation you may earn 10% on the bond yet you have a mortgage of 5%. You are making a profit so this is good. This strategy makes a lot of sense. Eventually, you will be able to pay back the money that you borrowed with this zero coupon bond. You are making more money, you are paying it back and you end up with a free and clear Roth on Roids. When you combine the two, it makes great financial sense and it beats any standard IRA retirement plan.