Secure Act 2.0 Impact on Real Estate Investors
Secure Act 2.0 What it Means for Investors
As real estate investors it’s critical to pay attention to legislative changes – on a state, local, national, and sometimes even International level. These changes are moves on the chessboard, and we need to figure out how to react to those moves effectively.
There have been some changes currently – with the recent Secure Act 2.0 – It’s important you stay informed about what’s going on so that you don’t learn about it when the impact of the changes like a tsunami starts sweeping you away.
We went to the experts to find out.
Here’s a conversation eQRP had with The Real Estate Guys!
The Real Estate Guys 0:06 A change that’s going to affect a lot of our listeners. And even if it doesn’t affect you, you’re going to want to be aware of it because you’ll know people in your real estate world that it is going to affect. And to help guide us down this road, let’s welcome back to The Real Estate Guys radio program, our good friend, Damion Lupo.
The Real Estate Guys 0:28 Hey, Robert, good to see you guys.
The Real Estate Guys 0:29 Well, good to see you. And we appreciate you reaching out to let us know about the Secure Act 2.0. This is going to affect real estate investors, but even bigger picture than that – it’s going to affect folks with retirement accounts or folks that are employees. Take us through the cliff notes of the changes, and why it’s so important people understand it.
What is Secure Act 2.0 and why is it so important to Real Estate Investors?
Damion Lupo 0:48 Well, the big picture of what happened is, Congress said, well, let’s try to shore up retirement in America. And because basically, people don’t have money, the average American – as you guys talked about, has less than…they can’t even afford a $400, maybe $1,000 emergency, and that’s including their retirement. Retirement’s becoming an emergency with all the people that are retiring, and they don’t have any money. And so the government said, and this was one of those like… you know, middle of the night type of passage in December, they said, “Let’s pass this thing called Secure Act 2.0.” And basically what it did is – it said “we’re gonna force Americans to have retirement accounts”, kind of like they do in Australia and in different places. And so it’s pushing at a federal level, what a lot of states are doing. There are 14 states right now that have required a 401(k), or some type of retirement plan if you have five employees or more… and the federal government is saying, “Okay, we’re going to push more and more people into this.”
And we can kind of guess why, because Wall Street said, “This is good if you push more money into our fee system”. But this also means that people are going to have different options… And small business owners are going to have some different options to have the government pay for it. And that’s one of the biggest overhauls as the government is saying, we’re going to put up a ginormous amount of money, which basically, I mean, we’re talking tax credits that can be 50 to $60,000 per year, we’ll get into those. But basically, what this is doing is – it’s pushing people into a system, pushing part-time employees into it, and it’s making some changes for people that are retiring when they have to pull money out. And as we know, there are some options for people to do stuff outside of Wall Street. So there are a lot of different things that’s changed. And really, it’s touching on almost the entire population in some way.
The Real Estate Guys 2:20 Well and it’s going to be better for some and not as good for others, there’s going to be opportunities, but there’s probably some threats in there too. And I think the big picture is you have to understand why the government is interested in this, and you hit on some of the high notes.
But I think there’s also this idea that if you look at some of the countries where there is what we call a forced retirement plan, people kind of begrudgingly go into that. But in their later years than that, at least they have something, we tend to look at the world in the way that we’re going to make our moves dependent upon how we want to live our lives. And then we’re going to navigate around these kinds of things. But I would say it’s not all bad. I mean, there are definitely folks who are going to benefit from this, who maybe haven’t put money away for retirement, but then it’s also going to make changes to some of the folks.
What are some of the big changes? How does it affect people that have already made key decisions based on previous laws?
So I guess let’s first talk about what some of the big changes are. And then to the degree that you have insight on this, Damion, you know, how does it affect people that have already made key decisions based on the previous laws?
Damion Lupo 3:21 Well, here’s one of the biggest ones. There are a lot of small business owners that have maybe a couple of employees or 5 or 10. And they’ve hesitated on setting up retirement accounts because they feel like this is going to be a pain that’s going to cost a lot of money.
But the government has said – now we’re going to create some tax credits, not only for setting up a plan, the cost of setting up a plan year after year, but also we’re going to incentivize you by paying what you’re going to contribute to your employees up to $1,000 per employee per year.
And so this goes on for up to five years. And so effectively, what we’re talking about is tax credits, which can be up to $55,000 per year, not just deductions, but tax credits. And so what they’re saying is, “we want you to set this up, and we’re gonna pay for everything.” So the average small business owner – and when we talk about small business owners, real estate investors become small business owners when they hire a part-time helper, and the government’s also pushing to have small business owners that have part-time people, not just full-time people, are required to include those people.
So basically, they’re saying, we’re going to fund everything. And in effect, if you’re saying, “Well, I’ve not really had one because I didn’t want to have the expense” Now the government is saying “we’re going to take on the burden of the expense.” And so when you’re thinking about the economy now and you’re saying, “Well, it’s a downturn in the economy, that’s a great time to start growing your business when there’s a downturn a lot of people get washed out, so you have a better opportunity to hire people.”
And one of the things people ask is, “do you have a benefits package?” And we say, “yeah, we have a 401(k) and we have a unique one because you can actually control your retirement account. You can have Wall Street stuff and you can also have things like real estate, you can invest in syndications or gold.”
You can do all these really cool things, then all of a sudden you’re a better option for them to work with you. And so this legislation is giving people an opportunity to set up retirement accounts really effectively at no cost.
The government is picking up the tab and then it gave people some other options for when they take money out, and how they operate within the retirement accounts. The biggest change here is that the government is trying to get people involved, and in many of the states that are out there, whether it’s California, Illinois, New York, or New Jersey if you have five employees, you’re required to have a retirement account. And so you either take on the state, and I’m thinking, do I really want to have a California retirement account or do I want to have one I control? So this gives you an option – if you’re being forced to do something why not have control of it?
And the federal government is saying “we want to pay for this with our made-up printed money.”
But the bottom line is, they’re pushing people to do this because they know people are entering retirement without money right now.
The Real Estate Guys 5:52 So since this is something we’re not necessarily gonna have a choice of. I love the perspective that now a business owner can have a competitive advantage because they don’t have to say “well in the past we were too small to have a benefits package. I would say that most real estate investors don’t start off viewing themselves as small business people expecting to have employees or an office right … just kind of investing on the side.
But if you do it well, pretty soon you’ll need that help that you talked about. And then folks that we both work with, the syndicators of the world. I mean, by their very nature, they’re setting up a business and if you’re bringing people on they absolutely positively do ask for benefits. A lot of entrepreneurs don’t think that way. But employees do. So it sounds like it’s not all bad news.
Damion Lupo 6:40 No. And in fact, it’s really exciting news, because of the way the legislation is set up, even individuals – maybe a couple of spouses and a kid can set up a small business plan, and have the government pay for all of it, including some of the contributions made to the kids. So you start thinking about this, and you realize, wow, this is good for everybody!
You know somebody who leaves a job, and they have a rollover account, they’ve got $100,000, or $200, and now they can have a small business, they can kind of start the entrepreneurial journey. And they have money in this retirement account that can then be used for their business and investing. There are ways to pull money out of your retirement account that you control without penalty, at any age, there are all these things that people don’t know about because Wall Street’s never going to tell you how to get your money out, or how to control it outside of stocks.
They’re going to keep it controlled so that they can maintain those fees. And the reality is you can go away from those fees, you can go away from those paper assets, whatever those things are, and you can start putting things in your hands.
And the government has said one of the things that they changed starting in 2024, for the RMD is the required minimum distributions that used to be required for 401(k) … the Roth was one of those things, you were kind of stuck, you had to pull money out, well, they those are going away in 2024.
So people don’t have to move a 401(k) into an IRA if they have a Roth. And that’s a pretty big deal for a lot of people that were investing their retirement money in real estate. And the problem is, when you have an IRA investing in real estate, usually, there’s a debt and when you have debt, you end up with Ubit tax. So one of the cool things here is now you can just avoid Ubit until you’re dead and beyond. And that was like one of those things that I’m sure Congress was really thinking about the real estate investors — that’s sarcastic, it was a great benefit.
And you just look at the legislation and you go oh that was good for them. And ‘them’ being the humans in America, like the actual mainstream investors. And so there’s a lot of really fun things here, we get all these benefits to individuals, and then you guys provide the training and the education, to be able to take those dollars and do things that are really within the power and the hands of the investor versus just the opium that people smoke when they hand their money to Wall Street.
How you can become a better investor with those hard-earned retirement funds!
The Real Estate Guys 8:44 Before we get into some of the specifics, which I know you have researched, you hit on some really great points, So I don’t want anyone to miss it. If you have not before been introduced to the alternative world of what you can do with your retirement funds. I think people that go to work for a big company, they’re given a few options, and they check a box and they say I’ll do that and they set it and forget it. And you know, that’s probably better than no retirement whatsoever. But as soon as you realize that you’re actually in most situations, you can take better control and manage this process yourself with the proper custodial help. There’s a world of possibilities.
It’s not just one or two options that the company provides. But you mentioned Wall Street, and Wall Street is very much aware of this game. And it’s not just the fees, they want all of your money to be controlled through their mechanisms. And so they’re part of the reason that big companies set up these plans and your choices are.. this set of stocks or this set of stocks or this mutual fund or that mutual fund.
In reality, you can hold almost anything in your retirement funds and this is an area that you spend a lot of time talking to people about. Give us some of the mindset on how you can become a better investor with those hard-earned retirement funds.
Damion Lupo 10:07 We’ve all been trained to just hand over our money and then hope that when we hit age 60 then it’s bigger, and really, truly, so many of our clients at eQRP that have come back and said I did the math and it turns out I made like 1.8% Over the last 30 years every year, and that doesn’t really work.
The model says 8% and I may end up with 1.8. But it’s too late. And what we did with eQRP – The enhanced qualified plan– so basically it’s a retirement account that gives people the ability to say “okay, maybe I want stocks, but maybe not”, and really with this you have the ability to choose and that’s it’s meant for people that wanted to have control and responsibility.
I think a lot of times people say “well, I wish I could do something”, but they don’t realize they can. They’re just sort of like checking that box as you said, and then they say “well, I guess I’m young so I should do a high-risk mutual fund or aggressive mutual funds versus bonds.”
And the reality is they can invest in real estate, they can invest in syndications. They can invest in physical gold. That’s one of the fun things people can do with retirement accounts and they don’t realize it. You know, a financial advisor would say sure, you can have gold just have a gold ETF, so that’s like pirates’ gold. It’s fake gold. And so there are all these different options for investing in Main Street. Truly you can invest in businesses, like we know there’s one of the investments we’ve seen people invest retirement accounts in is; manufacturing in America. That’s a very cool thing to be doing now, as we build back America in the right way, you know where it’s Main Street investors in Main Street projects with their retirement accounts instead of just hedge fund managers or mutual fund managers.
So really anything you can imagine, almost anything under the sun you can invest in, and then all of a sudden the whole world is opened up. It could be international stuff. It’s not just the paper stuff that you really don’t understand and you don’t feel like you could influence. Its people you’re investing in that you can pick up the phone and talk to which is why we love SOS we like the syndication events because you get to meet the people that are creating the investments and you get to invest with them, and you you’re one of the people putting those investments together and people with their retirement accounts can then invest in your deal so it’s really people working together and it’s a redistribution of wealth in the right way in my opinion.
Maxing Out Your Retirement Contributions? Here’s How The New Legislation Can Help You Save Even More.
The Real Estate Guys 12:15 Anyone who’s been working for a while and has a retirement account of some kind somewhere knows that there are some limitations. One of those limitations is how much you can contribute to your retirement fund every year. And that varies, kind of depending on the plan and so on. Does this new legislation affect that? And can you speak to this idea if I wanted to get more money in my retirement program for all the myriad reasons? How do I do that?
Damion Lupo 12:42 Yeah, so the limits are always changing. And one of the amazing things about the eQRP system that’s different than every other system out there is that system allows, let’s say a family, can potentially put like $700,000 A year into their retirement system, and we’re talking about deductions for $700,000 profit. Some people think I make $150, how am I gonna put in $700? But let’s just say you make %150 You can literally put $66,000 into a plan and then never pay taxes on all the growth for the rest of your life.
So you could have that same thing for your kids, your spouse, It’s almost unlimited, what we look at is we look at these things and say, “Oh, I can put $21,000 or $20,000 a year” and that’s where the education stops for most people because that’s what Money Magazine or the – you know-, the professional advisors that are actually journalists… That’s what they’re saying.
And the truth is, when you go a little bit deeper, you realize that the right team and you guys are all about the right team, the right people around you with better information. And what we’re doing is we’re compressing timeframes, and we’re not saying we’re going to contribute $20,000, we’re saying we can actually contribute potentially hundreds of thousands per year, have the government pay for all of the cost of doing everything, and then get a tax deduction and potentially never pay taxes on this, again with the Roth accounts, so the limits keep going up.
And if you use an enhanced system, the eQRP specifically allows you to really put in as much money as you want. I mean, $700,000 is a pretty big chunk of change. And if you aren’t making that much, then probably you should show up at SOS in the spring and the fall, figure out how to make that much, and then really never pay taxes on it again.
Who qualifies for the enhanced qualified retirement account?
The Real Estate Guys 14:13 Well, and of course, anytime you’re looking at a Roth, which is the opposite side of the traditional account, then you do have that tax benefit in terms of growing tax-deferred, or I guess we could say tax-free. I’d be careful with that, of course. But there are different strategies people have depending on a variety of things. Not everybody qualifies for the enhanced qualified retirement program, but a lot of people probably wouldn’t have thought they could. Can you talk about that? What does it take to be able to qualify for one of these unique plans?
Damion Lupo 14:47 Yes, the enhanced qualified retirement plan, this retirement account is set up for people that have some type of business activity, something that they’re doing, and there’s a lot of misunderstanding about this. People say, “Well, I don’t have a business. I’m an employee, I’m a doctor or I’m doing something and I don’t have a business.” Well, really any business that’s out there, is business activity.
And so qualifying for it means you have something, that can be a side hustle, that can be something that you’re doing a few hours a year. And so when people say well, what does that look like? Well, it could be an eBay store, it could be that you’re putting real estate deals together and you’re a general partner, you’re getting some fees from that, there are a million things that you could be doing, you could be painting somebody’s house, it doesn’t really make any difference what it is, you can be consultant, you can be a doctor and doing some 1099 income.
If you’ve got anything that has the potential to create a side income, doesn’t mean you actually have to have the income. It just means you have to be doing the activity. And that’s the big misnomer. People say well, I haven’t made any money. And so we actually have a lot of accountants, and they get confused. They say, “well, my client isn’t qualified because they don’t have any 1099 income”, then that’s not correct. What’s correct is that you have to have activity. The government says this is for people that are doing activity, as we know, many businesses don’t make money for a number of years and they’re still qualified.
So if you have activity and this could be your kids too, your kids could be working. They could be working for you. There are so many ways to qualify.
Here’s a little secret: we’ve never met anybody that couldn’t be qualified. We just had to think about it with them and work as a team. But nobody’s ever come in and we’ve said, you there’s no way for you to do this. It’s never happened in the last 12 years where somebody was not able to do it.
The Real Estate Guys 16:21 That’s such a good point. You go to a professional of any kind of legal or tax professional and you say can I do this? And sometimes they read the law and they say, well, the spirit of the lies. No, well, that’s the wrong question. It isn’t can I do this? It’s, how can I do this?
Given my situation and what I’m trying to accomplish? How can we figure it out? And you guys are great at this because you’ve seen so many different instances. Sometimes it’s obvious someone has a business, they have employees, it’s clear, it’s there’s no question about it. But other times people do have to think about what that business activity might be and love the consultant angle. If you do something to live, thrive and survive and get your paycheck from somebody else. You probably have a lot of knowledge and you could put that knowledge to work speedily seeking training or consulting, and these are all things to consider. Now it is a lot and normally at the end of the show, I would say hey, Damion’s got a great report for you, which he does.
And I’m not going to tell you how to get that yet. But just know that if you’re not taking notes, it’s okay. Not only is this a complicated topic, but these changes are going to affect that as well.
The government is going to pay for it partly because that’s really intriguing. What are the changes in Secure Act 2.0 that says the government is going to pay for a portion of this?
What are the changes in Secure Act 2.0 that says the government is going to pay for a portion of this?
Damion Lupo 17:41 Well, what they did is they really targeted the smaller business owners because when you talk about companies that have hundreds or 1000’s of employees, it’s very natural for Amazon or for Lockheed Martin or one of these companies. They typically will all have one case, but the small business owners were saying this is too expensive. We just were not going to do it because we can’t afford it. We’re already trying to just survive. And the government said okay, “well, we’re going to kick in all sorts of tax credits and tax deductions in tax credits of $5,000 a year if you’re planning expense to set up we’re going to kick in $1,000 per employee that you’ve contributed as your employer contribution up to $50,000.
Literally dollar for dollar up to $1,000 per employee. So right there, we’re talking about $55,000 in tax credits, and then beyond that, if you have additional expenses, you’ve got tax deductions, this is new stuff. This wasn’t there before they did. But the heartbeat of America, I think was a Chevy commercial at some point. But anyway, the heartbeat of America, I mean, it’s small businesses and they’re they get that that’s the engine of America. So they said, “well if we put this money out there”, and so they’re thinking clearly was lobbyists from Wall Street that we’re going to, they’re pushing us to put more money so they could have the assets under management fees.
What we’ve said is “there’s an even better option”, because yes, your employees are going to still get all those mutual funds mutual fund options. But as an employer, your employees also get some really cool options. And you as the employer, are going to get all those options too including all the self-directed options and the government’s paying for all this. So at this point, there’s really no reason for an employer. And you can, and your spouse and your child could be a business. Your child could be your employee!
There are so many ways to do this. And you think about that. And I am saying that if you set that up to where your small business is your family, your government is going to pay for everything. Tax credits and tax credits are literally dollar for dollar whatever you’re going to pay. So there are these options, and then you say, Well, is there a way to maybe get my money out because I want to start a business and go full-blown? Yeah, you can pull your money out of your retirement account. Once you have control of it, you can actually pull it out.
So if you left the job and get a rollover, there are ways to get money out of your account without penalty. In fact, you can even do it without taxes. And this is part of the strategy that the eQRP Advise as yours in the team we’ve been working with your accounts we set up the structure so that you’re able to do this and get access to your money and have the right employees and literally the government is subsidizing all this right now because the Secure Act 2.0.
The Real Estate Guys 20:09 Our guest today is Damion Lupo with eQRP company that changes under the Secure Act 2.0 We’re gonna affect those folks with retirement funds. We’ll continue the discussion when we come back. We’re also gonna play real estate trivia next, YouTube the Real Estate Guys radio program.
Use your retirement funds to invest in real estate and other alternative assets.
We’re talking about using your retirement funds to invest in real estate and other alternative assets, as well as you know all the stocks and bonds, and mutual funds you want to invest in, but the big news is that there’s been a change in the law, I guess, as Damion Lupo, he helps folks navigate this whole landscape. And it’s good to hear that this is mostly a good thing.
Let’s talk about some of the maybe downfalls are things people need to be aware of. If someone already has their retirement plan, maybe they set up eQRP. And they’re good, is there anything that this change in the law is going to mean for them?
Damion Lupo 25:49 Well, for people that already have one, it depends on what kind of qualified plan they have. Most people, most people in America have a traditional, if you will, traditional Wall Street type of plan. And they’re kind of stuck. The good news is they can convert that to an eQRP. So it’s they have all the options that they already have, plus all the self-directed options. And this is for business owners to choose to do, as well as individuals, one of the changes that happened, that’s kind of interesting, that didn’t really it’s going to impact some people because as we know, student loans have gotten really crazy.
And a lot of people like employees can’t pay both, they can’t get student loan payments, and there may be a contribution to a 401(k), the government said, well, let’s do this if somebody has a payment to their food loan, the employer could then match that in terms of employer matching. And so basically what this does is it allows an employee to start building up a retirement account and pay their student loans instead of just being stuck paying off their debts.
So it’s kind of an interesting twist to help support people that are buried in student loans, which many Americans are. And one of the things that we’ve seen is a lot of people have listened to something like this show and they go, Oh, it’s February or March or April or I want to do this for last year.
One of the things that happened in the original Secure Act, those very cool is retroactive setups, taxes, and probably if this is if you’re listening to this earlier in the year, you haven’t filed yet, you could set up a retirement account and eQRP for the previous year, and you can then start doing stuff with that money, maybe even making a contribution. So if you say I made too much money last year, it was a good year, or you just don’t want to pay as much taxes, you can literally go back in time. So this is kind of a time machine.
And this is one of the only things that you can do where you go backward. And so that when you think about your situation, one of the great questions you asked is “How can I?”
And that’s the question here, “how can I take advantage of this?” For most people, there’s a way to either go back in time, convert what you’d have, make contributions now, or maybe contribute to your kids. There are so many different ways to utilize this. I think most people go well, the Wall Street Journal told me that I can contribute $7,000 to an IRA, or maybe contribute to my employer’s plan. And they leave it at that this is an incredibly powerful tool, especially since you mentioned Roth because the Roth is the way to go to zero tax for life, no matter what happens in the future. And that’s where we really all want to go.
The Real Estate Guys 28:04 You know, you mentioned salespeople before, I mean, we learn about insurance, mostly from people who sell it to us, we learn about mutual funds and those kinds of investments, mostly from people that sell them.
But as real estate investors, you know, those folks generally are a little more take control themselves, they want to do the right thing. At the same time, many people are passively investing. And one of the great sources of passive investment is through the retirement money that they’ve set aside. And so for either side, if you’re more of an active hands-on investor, or more of a passive, “Hey, I just want to set it and forget it”, investor, it makes sense to invest the time to learn what is the most advantageous plan for you. And I know we spend a lot of time helping people understand that. I think traditional financial planners have often said, “well, you want to structure retirement so that when you’re older, and in a lower tax bracket, you won’t have to pay as much tax.”
Well, the first time I heard that I wrestled against it. I’m like, “I never want to be in a lower tax bracket.” And so tax planning does take into consideration your retirement account, it is one of the places where you really can save a ton in tax.
Damion Lupo 29:23 But what’s really wild with all the inflation stuff that’s going on, and what people don’t realize, and you know, people talk about this, but I haven’t heard many people talk about that as all the prices go up as wages go, everybody’s being pushed into higher tax brackets. And so the government or the advisors can say, well, you’re gonna be in a lower tax bracket. Yeah, but when it doesn’t eggs cost $10 or $12.
And you have to make twice as much money to afford your eggs and milk and bread and all that then everybody’s in a situation where they’re in a higher tax bracket. So what we need to do is figure out how to get to a zero tax bracket. And that’s where we start thinking about it the pitch on “hey, you tax-deferred because you’ll be in a lower tax bracket” is a way for Wall Street to get your money pushed into a system that it feeds on you. But the reality is that Roth is probably the single-handedly best thing you can do.
Because you have the ability to control your money for life. In any type, any asset class you want. You’re not stuck in something, if you say, “wow, real estate has gone ballistic”, and I want to shift some assets to gold. There’s no tax when you move it around. You can move it between whatever you want. And that’s a really big advantage. One of the things that I remember Tom Wheelwright saying years ago to me, he said, “well, why would anybody want to put real estate in an IRA?” I said “they wouldn’t.”
And he said, “wait, I thought that’s what you did.” And it was sort of funny, we had this conversation. I said, “no, you don’t want to put it into an IRA. Because there’s this tax called “Ubit”. That gets triggered by leverage. But I love the Roth eQRP because you can have leveraged real estate, it can grow, the project can sell, there’s no event, there’s no recapture, there’s nothing that happens. It just sits there in this tax shelter. And it’s better than a tax shelter because it’s a tax annihilator it literally kills the tax forever. And if you can go to zero, why would you not go to zero for life, plus 10 years, I say plus 10. Because even after you die, it’s still tax-free for another decade.”
The Real Estate Guys 31:08 As real estate investors, we don’t happen now to things because of the friction involved, you know, sales commissions and transfer tax and all that. So you’re in a market and your property appreciates 20%. But it cost you 10% to sell it, doesn’t make a lot of sense. When you can remove the friction of tax, it has an incredible compounding effect. It’s not just that we don’t want to pay tax, it’s that we’re going to have more dollars to invest forward. And that’s how you get these astronomical numbers.
At the end of people’s lives, like wow, I just went to work and I gotta start a business in the hands of people put away some money, and before you know it, wow. And so in your business, you help people set up these structures, but you’re kind of ambivalent about the actual asset class they invest in. Are there limitations and things people just simply cannot invest in their eQRP? Yeah, really
Damion Lupo 32:03 The things that people have asked about are that they can throw the collectibles. And it’s really, that’s the biggest one, the collectibles. And so like a collectible car, people that for some reason wanted to flip cars, and I can’t imagine why but they do. And people will ask if they can collect wine and buy wine? I say no because the government says you’ll drink your retirement.
The Real Estate Guys 32:22 But what if I take a distribution like a bottle of wheat?
How does eQRP help you with retirement planning?
Damion Lupo 32:25 It’s in there, you could potentially put the record about that one area. So there, it’s sort of a funny thing, generally, the one that trips people up is they say, Well, I want to invest my retirement money in a deal that I’m putting together because I’m the general partner in a real estate deal. And there are exclusions for that. So the way that we help people work with that is we help them get some money out of their retirement account, tax-free and penalty-free, and put it into the deal that they’re working on. And during this whole, there’s a way to do that without paying taxes, and then you can do it. So you’re still using your retirement money, and you’re able to put the deal together, maybe be a general partner.
So we get rid of that problem. That’s usually the one that comes up where people want to, they want to be a part of an active part of the real estate deal. They want to be a real estate professional. And we can find ways around that. So again, it’s our I do this, not “oh, my advisor or my accountant told me I can’t or my IRA custodian told me I can’t, we don’t really do well with it”, I can’t we say, “well, how do we do this?”
And then we figured out how the tax code allows us because as we’ve heard many times, the tax code is set up as a series of incentives to get people to do certain things, like create jobs and create housing. So the tax code is not meant to make you stop. It’s meant to push you in a certain direction. And we help people figure out how to do things so that they’re following the rules.
The Real Estate Guys 33:40 Love that! Well, this has already been a ton. But I know you’ve put together a great report. And listeners may have accessed this in the past, but you’ve updated it because of the new Secure Act 2.0. Tell us what’s in the report payments.
Damion Lupo 33:52 Been talking about is in there all the different limits and the ways to really take your situation, it’s kind of the top 10 things that you can do with retirement accounts and zero to find a number of those that are going to apply to you really what the whole point of the retirement accounts are qualified accounts. IRAs, the whole point here is to incentivize people to have some type of funds into something for the future.
And so is this report giving you that tool, and I stand behind this, that there Roth eQRP, is that one tool that everybody should have doesn’t matter. It’s not the only tool, there are plenty of tools. It’s the tool that everybody should have, because it’s one of those arrows in your quiver, that’s going to give you a piece of certainty. Because if taxes ended up doing what they did in the 50s and 60s, we can be in an environment where they’re at 90% again, and depreciation is changing.
So what this is, what this does is it gives you one of those things that you can count on as you get older and you can grow you’re in control of it. So you’re not, you know, at the whim of whatever’s going on with Wall Street. And so it gives you power and control if you’re responsible this is the right tool to add to your arsenal.
The Real Estate Guys 34:56 Alright, before we’re done, we’ll tell you how you get that free report, it will take us some time to go through it. And I’ll tell you, you may have to read it twice, but it will be worth it.
Hey, coming up via the last weekend of March, we’re doing the secrets of successful syndication, you always come out to that bring a whole bunch of your team. And what I love about that is not only are you going to share some great ideas for syndicators, as well as folks that are passively investing. But you’ve got to be a team there, as this event has gotten bigger. There’s going to be hundreds of people that are like well, yeah, but can I really talk to Damion? Well, you probably can. But you don’t have to, because it’s been awesome to watch how you continue to grow your team. And you bring them along?
Damion Lupo 35:31 Yeah, I think that’s one of the things that I’ve learned from being around you guys. And being around the people that we need at the syndication event so that the people that win have world-class teams. And so that’s eQRP company is interesting, because things ideas, start with the founder.
Over the years, things have grown, what’s kind of wild is, that I’ve loved seeing people join the team. And I sometimes laugh and I go, “well, what am I good at anymore because everybody here is better than me and everything, what they do, they’re better than me.”
And that also when you go, wow, you start realizing maybe I’m the dumbest person here. And it’s humbling and it’s exciting. And so we truly do have something special because of the people. It’s not just the information, it’s the people that make this so beautiful and so exciting. And really why people want to be a member of the tribe and, and be a part of this and what we’re doing. It’s because of the people they interact with. That’s the unique thing. That’s the gift and it comes from the heart it comes from the people that make up the organization.
The Real Estate Guys 36:31 So come on out to the secrets of successful syndication on March 24 and 25th. Or if you’re listening to this later on, we do it twice a year. Just check the Real Estate Guys calendar for when we’re doing the next day. This has been great, we sure appreciate you proactively reaching out and saying, “hey, guys, let’s talk about this.” It’s going to make a difference. And we’ll look forward to seeing you at the syndication event.
Damion Lupo 36:50 I’m super happy to do it. I’m always happy to hang out with you guys and share the things that Congress is doing and options for people. I think at the end of the day, what we’re all trying to do is give people options and inspiration and help them with their transformation. And so I’m really happy to be a part of this. Thank you guys for having us here with you.
The Real Estate Guys 37:04 Awesome. There’s Damion Lupo with the eQRP company, when we come back we’ll tell you how to get his free report. You’re telling the whole Real Estate Guys radio program. I’m your host, Robert Helms, thanks so much for listening to the show today. I want to personally invite you to come to see an amazing real estate market that combines excellent cash flow, offshore diversification, and what we affectionately call lifestyle investing. Come join me from May 5th – 8th in the beautiful country of Belize.
The real estate guys have been bringing investors to Belize for more than 18 years now. And our discovery trip is designed to show you the market like nobody else can shore Belize is breathtakingly beautiful. The people are wonderful, and wait till you taste the food. But the real opportunity is the real estate investment potential.
As we study the market, learn about sustainable drivers, and tour lots of beautiful real estate.
As we study the market, learn about sustainable drivers, and tour lots of beautiful real estate. And like all of our field trips, there are no properties for sale during the weekend. Rather, you’ll meet lots of local providers that will help educate you about the market so you can follow up with them after the trip if the market is interesting to you.
You’ve heard about belief in the Real Estate Guys for all these years. Now come see what all the excitement is about. Plus, we’ll have lots of time over meals and activities to talk about all things real estate. To get the details to go to the website at Real Estate Guys and click on events where you’ll find the Belize discovery trips. Once you register, you’ll get information about our group hotel rates as well as travel details.
So join me in Belize from May 5-8th it’s a beautiful country with lots of amazing possibilities. And the only thing missing is you go to Real Estate Guys Radio under “Events” and I look forward to seeing you in beautiful Belize.
The Real Estate Guys 39:37 Hi, this is Garrett Sutton Rich Dad’s advice remember, equity happens and you’re listening to the real estate guy.
Welcome back to The Real Estate Guys radio program. Thanks for tuning into the show. If you’ve wanted to have better influence and persuasion so deals or if you’re in the business of raising capital, you need to come out to our annual two-day workshop called “How to Win Funds and Influence People”.
Russell Gray teaches us some magnificent sales techniques and tools, and they’re all genuine stuff. You’re gonna dig this event, you get all the details on the website, at Real Estate Guys under Events, talking today about changes in the law and how they affect retirement plans. And I tell you, being is always a mile a minute, I learned a ton in that interview.
The Real Estate Guys 40:23 Yeah, you know, and the thing is, you have to have people that are paying attention to their niche because it’s just impossible to keep up with all this stuff. He mentioned that this particular legislation got passed in December, and often these things get buried inside other bills. And unless you’re part of a group of people that are parsing those big pieces of legislation, digging for the gems that are in there and figuring out how can we use what just happened to improve our situation, then you’re flying blind, and you just can’t count on mainstream financial media, you can’t count on mainstream media because they all have an agenda, which is basically Wall Street’s agenda. It’s no secret about this program.
But we’re not fans of Wall Street, our whole program with syndication is about mean street investing in Main Street. And that doesn’t mean that you have to go out there and flip this house and deal with tenants and toilets and termites, a lot of people think that’s what real estate investing is. But it is possible to work your business, work your job, stack up profits and savings, and then invest through other people, which is what syndication would be.
And a lot of people think their retirement account is locked out from participating in these things called private placements. And that’s 1,000% not true. But when you add to that the tax credit, now you really literally have these taxes that you would have paid to the government now going into your own portfolio. So that’s superpower number one.
Number two, you guys didn’t get a chance to touch on it. And he may cover it in the report. But there are some really powerful asset protection features in retirement accounts. I mean, you’re talking bulletproof from press collectors, very, very strong. And then you combine that with private placements. Now you’ve got something very private.
So you have asset protection, you have privacy, and you have these amazing tax benefits, both at the time you form it, but the big superpower is over a lifetime of compounding growth. And so we like to draw attention to this on this show, because so many people have this attitude towards retirement money, they put it in because they know they’re supposed to and they completely forget about it. They don’t proactively manage it, they don’t have a strategy for it, and they just act like it’s money that will be there for them down the road. And it will be but it could be a lot bigger if you actually manage it proactively and take advantage of the many great opportunities there are right here on Main Street.
The Real Estate Guys 42:49 Well I think that’s the wake-up call of this show. If you’re average and ordinary, you’re just going to follow what the company says you’re going to check the box one two, or three number plan. That’s it, you set and forget it. But if you want to be more hands-on and more strategic and intentional with your retirement funds, which are sacred money, I mean, if you think about it, that is your productivity harness, and you owe it to yourself, your family, your heirs to take good care of it. So if you can get tax deductions and find places where it’ll compound better than whatever that company puts you in, then spend a little time upfront figuring it out, and get your mind around it. Damion’s written a couple of books on the topic, right? It takes a while but you’re in charge. You’re the executive producer, you’re the general manager of your portfolio.
So it makes a ton of sense to get educated about it. If you’re thinking about investing passively in a real estate syndication or becoming a real estate syndicator you definitely want to get out to the secrets of successful syndication. It’s right around the corner, but there’s room for you, Damion and his team will be there. If you want to have any of those one on one conversations about what can and can’t and should and shouldn’t be done in a retirement account.
They’re happy to have Tom Wheelwright CPA will be at the event on a resale roll the attorney will be there back we’ll have more than one attorney at the event. But that’s not to keep you away. That’s to get you enticed to come on and hang out. Probably the best reason is to meet people. You’ll have a lot of folks from a lot of different walks of life real estate markets, and real estate product types who are ready to have to be and do more, so come on out and check it out.
Get all the details on the website of Real Estate Guys Radio
If you’d like a copy of Damion’s report, click here.
When you do that, you’ll get the report. It takes some time to go through it. It’ll be updated for all the new parts that were seen here and the secure acupoint is out even if you read the report before probably a good idea to get up to date for the changes big thanks to Damion Lupo for educating on this and for raising his hand to say “guys let’s talk about this”, because we needed to until next week, go out and make some equity happen.
Thanks for listening. And we’ll see you next week right here on the Real Estate Guys radio show.
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