On this episode of The Passive Income Attorney Podcast, Seth is joined by Scott Maurer. Scott is an attorney and self-directed retirement plan master at Advanta IRA with over 15 years of experience in the industry. Have you ever wondered how you can use your retirement account to diversify out of the stock market and into real estate, businesses or other alternative investments? In this episode, Scott shows you how by simplifying the mysteries of the solo 401(K) and self-directed IRA, and demonstrating the immense tax benefits awaiting your new investment vehicle.
“People are familiar with what they’re offered by their employer…but what people don’t realize is if you’re self-employed or if you have a side business you can create your own 401(k) account.”
HIGHLIGHTS:
[02:54] Background on Scott
[04:51] What is Advanta IRA
[05:50] Typical self-directed client and their uncommon investments
[09:11] The self-directed IRA boom
[11:43] What is a solo 401(k)?
[14:17] Financial thresholds for solo 401(k)
[15:28] What self-directed retirement account is best for you? Solo 401(k) vs. self-directed IRA
[19:46] Enrollment process for Solo 401(k)
[22:19] Advantages and disadvantages of investing in IRA and Roth IRA
[26:11] Opinion: financial advisors who misalign their interests
[30:51] The Freedom Four: What is the best thing to keep your mind and body healthy?
[31:55] The Freedom Four: In an alternative universe what would you be doing?
[32:30] The Freedom Four: Where were you 5 years ago & where do you see yourself 5 years from now?
[33:33] The Freedom Four: How has passive income changed your life?
FIND: SCOTT MAURER:
- Website: advantaira.com
- Phone: 581.9853 ext. 1123
FULL TRANSCRIPT:
SETH: Law Nation, welcome. As always, I hope you’re having a fantastic week. My friend when you have a minute go check out escapethebillable.com and snag our free pass and invest in guide. It’s absolutely free you have absolutely nothing to lose. Go check it out. A couple of years ago I decided that I was tired of the stock market roller coaster. I wanted out. So even though I own some great stocks like Apple I knew that someday Apple would become the next Sony. I knew that the stock market would crash again someday. I knew that I had absolutely zero control over it, and even though I was and am an avid product user I sold my stocks and I cashed out my Roth IRA. I invested that money in the cash flowing appreciating alternative assets and businesses, and even though I took a penalty to cash out, I came out on top. Now, I wouldn’t necessarily recommend this all in approach to everyone, but what I would recommend is looking at allocating a significant portion of your investment portfolio to alternative assets. One great way to do that without cashing out your retirement fund, is to role that retirement fund over to a self-directed IRA or solo 401(k). This is an excellent option to have the ability to diversify your portfolio into alternative assets. Now previously we had Jason DeBono on from NuView trust to talk about us SD-IRAs, but initial I really wanted to take a deeper dive into the intricacies of when you should utilize a self-directed IRA, versus when you should use a solo 401(k) and also dive into some of the tax benefits and ancillary benefits that we didn’t talk about In the previous episode with Jason. So excited to have our guest today Scott Maurer, he’s the director of business development at Advanta IRA. A leading nationwide IRA administrator. Scott is an expert speaker in the industry and is also an attorney and a Florida gator law alum. All right let’s go.
SETH: Hey Scott, welcome to the show brother.
SCOTT: Hey Seth how are you doing today?
SETH: Doing great man. Thanks for coming on really appreciate it.
SCOTT: Yeah happy to be here, I appreciate the invite!
SETH: Yeah of course. Well let’s just jump right in and tell us route about your background and your story.
SCOTT: Sure, my background I have an educationally am I’m in attorney by degree but I’ve been with the Advanta IRA now for almost 15 years. Working in the self-directed IRA and 401(k) space. So, it’s in my background and get it is legal for an education respective, really my pro professional crew is pretty much been in the in the self-directed IRA space. Really enjoyed it burn quite a bit and I started maybe some people listening to this podcast with very little knowledge on the subject and over the last 15 years just continue to build and I continue to learn new things in this role. It’s exciting.
SETH: Yeah nice, how did you avoid getting sucked into the legal practice?
SETH: When I was done with law school in Advanta was hiring and I met your owner Jack Kelly who’s also an attorney who doesn’t really practice. So, I came onboard after meeting him and connecting with them that way I did do a little bit of legwork outside of an Advanta, some things on the side. I’m prohibited from doing the legal work for Advanta clients, so since this is my main gig takes up the most my day. Very little time for practicing law so I wasn’t I definitely wasn’t someone in law school that was dead set on being in a court room or doing anything like that. So, I enjoyed finding something else to do but still utilizing my degree.
SETH: Yeah for sure I mean there’s so many different things you can do with a law agree I mean even if you’re not sure about practicing large especially like a litigation, like being a real lawyer. There’s a lot of stuff you can do the transaction wise and businesswise and get your foot in the door.
SCOTT: Absolutely, I’ve had people make that same kind a come out on a real attorney because they think real tourneys the ones in court rooms battling for the attorneys to do a lot of different things outside of just being in the court room.
SETH: Yeah for sure tell us a little bit about Advanta and what you guys do.
SCOTT: Yes, our company is a self-directed retirement plan administrator. So what we facilitate what we do we don’t sell any products we don’t sell investments, all we do is provide a service for people who have money in IRA or old 401(k)s who want to take that money and invested outside of the stock market outside of the mutual funds and they’re kind of conditioned or think that they have to invest in. We allow in visual so take that money actually place it into a number of different alternative assets with her that’s really a real estate rental property, or syndications, a private placements private stock. So, our company acts as a custodian to hold those alternative assets. It’s self-directed is the title because an individual account owner is the one finding the investment and then directing us to make that purchase on their behalf.
SETH: Gotcha but what what’s your deal client look like?
SCOTT: it’s it early varies so we have a few clients who have several million dollars with a litany me an hour and a huge portfolio to a private mortgage or some real estate. We also have some individuals to hold $1000 every speculative private stock. So, we do have the brought into the spectrum. I think kind of in the middle you’re going to find a lot of people who somewhere in that hundred-$200,000 portfolio value range that are investing in real estate. I think real estate makes up 75% of the assets that we hold in some form or fashion show. So, individuals buying your rental properties down the street people investing in real estate multifamily syndications. That’s what cut of the bread and butter bar clients are certain that I said the outliers and you do a lot of different things, but that’s typical client it’s only 100 and 150,000 assets that we’re holding. Our clients may have other holdings outside of Adana but it is people investing in real estate as it is the primary driver of the primary investment that we see.
SETH: Gotcha I thought about real estate and what are some of the other investments that you said investing it might not be as typical?
SCOTT: Yeah well, we will go with that idea I would say not as typical as real estate we’ve seen people do hedge fund investments, exit private stocks. So, companies are looking to get started and raise capital through their issue in her own private stock. As a big one people investing in some gold and silver. Those are still so I would say somewhat mainstream investments and people understand we certainly have seen some odd things we’ve had people invest in movie projects. Invest in mausoleum crypt titles actually buying mausoleums in their IRA account. So, there’s deathly some unique things you can get. We had a couple people that invest in farm animals. A little bit outside a little bit outside the norm main stream but that’s the beauty I think of a self-directed IRA is it if you see an investment opportunity as long as it’s not life insurance or collectibles is the only cheap things you can’t buy we had an IRA, you could do it. It’s a matter for us they’re just making sure we can document it properly for the IRS.
SETH: Gotcha, there’s not really too many downsides of that. I mean because once you roll it over into a custodial such as a self where you have more freedom to invest in different things and you can still invest in stocks and bonds and mutual funds in index funds in some of those more traditional investments but you also have the freedom to invest in all those things you just mentioned.
SCOTT: Yeah, that’s what I think it’s a really important point you made the Seth, a lot of people and if you if you hear of a self-directed IRA it’s not an all or nothing proposition. You could have a couple hundred grand in an IRA with a brokerage firm that and you want to use $50,000 to invest in any particular real estate investor particular project, you can just transfer just those of those funds over to us to hold that alternative asset and still maintain your other account. You’re permitted to move money between IRA accounts as often, and whatever you’d like as long as you do the right paperwork each time. So, it’s not an all or nothing proposition in fact most of our clients maintain an IRA they maintain another account with a brokerage firm and they do move money back-and-forth between the IRA they have they there and the IRA they have with us.
SETH: Yeah for sure. Why do you think they become so much well, I don’t even know if they have you can tell me how to become more popular lately like in the last few years? I just hear more and more about it I’m not sure if that’s just you know the people that I’m surrounding myself with or if it’s actually true?
SCOTT: Yeah well I think the first bump really south direction probably is about the time I started in in 04-05 time, actually starting in 06, but it was a buildup in 04-05 where would real estate was just hot in there as we know now kind of an unsustainable path upwards. People looking for any way possible to buy a property and they thought and that’s what I need to get my hands on it so people started looking for alternative ways to do that and that’s kind of it was like the first self-directed bill and of course the market bust. But then I think of the last year is it Has increased in popularity because we’ve seen him you’re just this year with the impact Covid had on the market back in April and May. Of courses since recovered and then doing better and who knows where it is headed going forward from here but as those rocks, those ups and downs of having people started looking for other alternatives. I think a lot more financial advisors and planners who are aware that self-directed throws directions out there and they’re going to be asked by their clients. So, it is slowly getting more popular, I think just now because people are looking for something different than the stock market isn’t always trust it.
SETH: Sure, yeah, I mean it’s obviously on an uptick right now but it’s just you it’s a roller coaster. You never know I mean in this company they go out of business today or tomorrow and it’s just you know it’s all or nothing some time, so the real estate to be a lot more stable or needed diversifying into different things like precious metals and things like that.
SCOTT: I think that’s why we especially if they our clients are heavily invested in real estate as asset class. I think it’s because I think a few things that people understand it more intrinsically, people understand if I live in a neighborhood and there’s a house for sale down the block or one street over they know the neighborhood they know that you could rent that property and get a good return on it. Or they could buy a house to flip or paint or stain how do I need to get out of the market so that’s deafly part of it I think we’re looking at he said for more consistent return as well if I can rent this property make a net $1000 or $2000 a month back to my IRA account, yeah the market made the stock market me out performing here and there but in the long run I’m sleeping better at night and I am getting a consistent return. As opposed to being up 30% in one year and then down 20% the next year. It’s just it’s frustrating for a lot of people.
SETH: Yeah, no doubt about that. Let’s dive into solo 401(k). So, what are they in kind of what’s the difference between that and the SDIRA?
SCOTT: Great question so that the solo 401(k) is a unique retirement account. A lot of people probably listening or familiar with 401(k)s because you work for an employer a private company offer 401(k) is if you work for the school board or local government you might have a 403B or 457 which is essentially a 401(k) for those industry. So why do people are familiar with those when they’re offered to their employer what people don’t realize is if you’re if you’re self-employed, or if you have a side business you, can create your own 401(k) account. It’s called in this case got a soloK that allows you to make the same types of contributions that you can make it a corporate 401(k), you can borrow against the plan. So, it offers a few different options at the base of the larger contribution limit then you get with a buy traditional or Roth IRA. Which witch limit you to six or seven grand a year with a solo 401(k) you can contribute up to 55- $57,000 a year, into those types of accounts. So it was so it’s similar to the IRA it’s still a retirement account and still has great tax benefits, but there’s a larger contribution limit for people who are in our self-employed do you have a side business and you’re looking to ramp up your retirement savings, the soloK as it is a great way to go.
SETH: Gotcha, so the caveat there is you have to have a side business or be self-employed.
SCOTT: You do right so if someone individual who has a just a W-2 job and does not do anything else other than that job it’s hard to justify the soloK. So, with Ira raise the traditional ‘s in and Roth accounts as long as you have earned income through your employer, you can still contribute make those annual contributions to the account and grow it. With a soloK you have to have a sponsoring kind of business again it can be a side business it does not have to be your primary source of income. You can sell stuff on eBay as your side business and it had that validate before and keep it that is an important, I think thing to note for individuals looking at soloK. Cause the iris does expect just to be kind of a valid entity do you have a valid sponsoring company or even yourself as a sole proprietor, it’s not simply a way to stash funds yeah you know you got to have that that valid set up from the beginning.
SETH: Gotcha, so you know you can set up that LLC or whatever it might be in sell your products on eBay but are there any like financial threshold or anything like that the IRS looks forward to make sure that you know it’s not you know it’s not fraudulent or misrepresented in some way?
SCOTT: Well for that one for the soloK again I think they want to see a sponsoring entity and then at some point with a soul OK they do want you to make a contributions if you if you set up an LLC as an example sell things on eBay at some point you might have to pay me to take a somewhat of a salary from that LLC, doesn’t have to be huge. Then you should probably defer some of that salary then into the 401(k) that really legitimizes the plan. Your 401(k) that never received a contribution from the actual account holder is a red flag for the IRS. Now but the soloK you can only roll over other IRAs their old 401(k)s into that plan so you have more money to work with, but it’s him what you wanna to make at least a small contribution to take such a legitimize it.
SETH: Gotcha so OK so once you have that business let’s compare and contrast the SDIRA versus the solo 401(k). What are the pros and the cons?
SCOTT: Sure, so the pros of an SDIRA the subject erase fewer reporting requirements. Usually the custodian market in this case about a we take care of all the reporting for the IRA accounts on an annual basis. It doesn’t require any additional filings, it’s a little bit cheaper because you’re just simply yeah but having an IRA account you just pay an annual fee. The soloK the advantages are those in the higher contribution limits, the disadvantage of the soloK contrasting in the IRA there is additional reporting. So again, with the self-directed IRA we are reporting all of the income in the asset value each year to the IRS and distribution for the soloK you are the trustee of that plan and assets you need to make sure you do any IRS filings are necessary. Now one benefit of the soloK Is it you don’t have to file anything with the IRS until your soloK is over $250,000 in value. At that point you have to file the annual 5500 easy returns. The final requirements aren’t steep it is something that you have to do as us as a trustee of the plan that you don’t have to with the IRA. But one of the benefits and this might be solely for people to listening to the podcast I think especially when we talk about passive income there’s a little known tax called UBIT, unrelated business income tax that can apply to an IRA account if it is invested in a leveraged real estate deals. If you’re invested in a syndication with underlying debt or you’re looking at buying a property and taking on some debt as for the purchase, your IRA can actually be subject to this little-known tax. Certainly, impact than your overall rate of return Solo 401(k)s are not subject to that tax at all. So that’s one reason we’ve seen an uptick I think in the number of solo 401(k) in the last few years of people wanting to avoid that unrelated business income tax.
SETH: Gotcha, yeah sounds like the solo has some advantages but there’s also some extra hoops you may have to jump through in order to kind of keep that qualified. I mean you think about jusdt having that LLC or that side business, you know you’ve got certain reporting requirements that have to do with that as well so it’s just a little bit more hands-on.
SCOTT: It is it when we do our best to walk you through both of those. I mean we actually diary will take care of a lot of that work for you but with the soloK we have a welcome packet. We’re actually revamping our soloK to the point where we may actually be doing some of the reporting of the 1099s of the 5500 for people who want us to take on that service form. Because it’s not difficult to do I was just making sure that you do it.
SETH: Gotcha, so I’d I would guess that when you get someone on the phone you need to evaluate their situation and then rec make a recommendation on one versus the other. Is there a particular type of client that you recommend for one over the other?
SCOTT: Sure, I think with the soloK it’s going to make sense for number one people as we talk but are self-employed, because they have that ability to make a much higher contribution limit then just with a regular IRA account. It can make sense for people I wanted to be able to access those funds personally with an IRA account. You cannot borrow from your own IRA that’s simply prohibited but the 401(k) as some people know because they have a corporate 401(k) you can borrow from that type of plan. You can do the same thing with the solo. Again, people who self-employed want to make large contribution limits but I may want to borrow from the plan if needed any of the people were looking at investing in leveraged real estate deals, they want to just the negate and not worry about the do UVIT tax.
SETH: Got it got it in a lot of the folks listing probably qualify for that business as well because their solo practitioners either is a doctor or a lawyer or something like that.
SCOTT: Yeah that’s true yet I mean again and again sometimes it’s all practitioners add the super brighter, but again if you have a side business it does if you don’t have to kind of create a whole new industry and devote an X number of hours to that each week or each month. It’s merely how you have income from the side business that will then justify you holding and having that solo 401(k).
SETH: Cool, let’s walk her listeners through just the role of a process step-by-step. I mean it’s not just people you know they think I’m just going to leave it where it is and they don’t want to take that next step, but maybe you can go through that and kind of put their minds at ease.
SCOTT: Sure, that’s something I think people at times to get it get a misconception about. It’s hey what’s involved how difficult is this going to be in, the good news is 1 said it’s for those who don’t mind it it’s just paperwork. So, I just completing the right form to establish the account and then to request either in a transfer from another IRA or a rollover out of a 401(k) account. So, you know we walk you through that step at the first up is establishing the account, getting your information whether it’s an IRA or soloK getting that account established in the second step is getting the funds moved from your current custodian. Whether it’s an IRA or old 401(k) all depends really on the paperwork it’s involved but we help you get that those documents completed and sent. It usually takes anywhere from a few days to a few weeks to get the account open and funded. So, we can’t How long it take the brokerage company to send us the funds or 401(k) company issued a check but it usually happens within a few days or a few weeks. At that point your accounts open it’s funded and you’re letting us know now how you want us to place that money. If you have a particular property that you’re purchasing or you’re investing in a private place when you’re getting a subscription paperwork, and again did we work with you to get all of that documentation completed properly in the name of the IRA. That’s one of advantage is it that we try to espouse that we have is our customer service is really like a concierge level, where we walk you through each step of the process are always there to answer the question. So yeah people who hate paperwork unfortunately it is it a paperwork intensive process but again we try to make that as easy as possible.
SETH: Gotcha, at least they don’t have to figure out themselves and you can literally just walk them step-by-step here’s this form fill it out here’s this form filled out and will handle the rest.
SCOTT: That’s your people know some people ask a lot of times, like why can’t I do this through Fidelity why can I do this through Schwab or their brokerage firm? That’s part of the reason there’s more paperwork there’s more things involved or moving pieces, that doesn’t fit their business model so it’s not that they couldn’t offer this as a service they don’t want to because they’re set up their profit margins are meeting is set up to go off of selling mutual funds and stocks. That’s their bread and butter and OK what’s the bulb is something they’re not interested in and getting into.
SETH: Yeah, yeah for sure let’s dive into another tax advantages of investing in these types of vehicles and also the disadvantages. Because I believe that there are a couple downsides and you mentioned one year taxes with respect to using these when you’re investing in a real estate real estate opportunity.
SCOTT: So the advantages of investing in an IRA, this is kind of in general because it’s kind of certainly apply to stocks did your buns as well, again some people and you make contributions to your IRA or to your 401(k) plan you may be aware already that you get a lot of times you’ll get a tax deduction on your current year’s taxes. So there’s a tax benefit upfront to putting money into the plan it’s the it’s the government incentive for you to load money into that plan and then he gains that you have against put aside for UBIT that’s a different issue but for stocks for real estate that you’re holding free and clear or you’re getting interest income back and dividends, that income is being generated coming back into your IRA on a tax deferred or possibly tax free basis. So, the Roth IRA is the one account that it is tax free but for a regular IRA regular 401(k) is going to be tax deferred income. So, the benefit is if you’re high tax bracket now making investments through your IRA does not affect your individual taxes, until you start taking that money out in retirement. And the benefit of the Roth IRA is that is a tax-free investment vehicle if you were willing to forgo that deduction upfront when you place money into the Roth, that money goes in after tax and will grow completely tax-free, for however you invest that money in for me at the remainder the time you have that account. So, when you actually reach retirement age If over your lifetime you put in say 20 or 25 grand into the Roth it’s not worth 100,000, all of that gains completely tax free. That’s what a huge benefit of the IRA had the same with the tax deferred tax-free growth that allows you to compound your money more quickly. I would at the disadvantage obviously there’s a UBIT if you are invested in leverage real estate if you’re not buying invest in leverage real estate don’t worry about UBIT been at all. The other is for people who invest in real estate personally, they’re aware of the deductions and depreciation that they typically can take from investing in real estate. That is not available to you within an IRA accounts, because you’re not paying any tax on the income. The one caveat to that is if you do have a UBIT issue your IRA can take deductions and appreciation to offset UBIT. That’s the downside sometimes and people look at investing in real estate with the IRA versus doing it I’m individual basis.
SETH: Gotcha and in the west been explained to me before as well as you know you’re not paying taxes on that anyways because it’s in one of these protected accounts. So, it’ll be able to take those united appreciation and some of those reductions doesn’t even really make sense in the end it doesn’t really hurt you because you’re not paying taxes anyways.
SETH: Correct. Correct and then to be honest me to let me in as much as the tax aspect of IRAs is important and for some people it certainly is a motivator when they see a great opportunity and I would have a tax consequence for making that investment. Again, a lot of people to choose to self-direct because as we talk about ready to look into diversify, get some of the money out of the stock market or it’s just you know they have the money in the IRA. I could put this in mutual funds or stocks which I don’t quite understand how that all works and white goes up a wire goes down or again as we talked but I can go buy a piece of real estate and get a consistent income and that makes more sense to me. And I can sleep better, that’s sometimes that’s more the motivator than it is for tax reasons.
SETH: Yeah I’d love to get your business is really an opinion thing but I’d love to get your opinion on you know traditional financial planners that they tell you he just plug all this money in the mutual funds and stocks and bonds and they don’t ever tell you about investing in alternative investments it is not in their best interest. You know what do you think about that kind of misalignment of interest and a propels people to roll their roller 401(k)s into the SDIRAs to diversify.
SCOTT: I guess I’m a little more forgiving and, in some respects, only because I think part of the reason that happens is a lot of them have no idea because it’s never been mentioned to them. So, they couldn’t work for me and they said what we sell OK that’s what we saw on the road there if they’re asked about it there that’s all just a thought to move along. So I don’t fall those individuals cause it’s more of an ignorance thing it’s not a will fall on the glass but I have had people over the years that I talk to my financial advisor planner about it they were yeah you don’t want to do that there’s all these tax consequences for pulling your money out there and they really do try to steer him as a way to do it or that’s not secured like the market is. For some people they don’t think the market is a secure place to invest based on the roller coaster so and that being said there are plenty of financial planners plenty of advisers that I have worked with over the years who do when their clients ask them about real estate asked him about investing in a private place will say sure if you want to carve off a piece of your IRA or 401(k) here’s a way to go here’s a company to work with and they send them over to us. You’re definitely going to have some bad apples in the bunch you are trying to hold on every penny they can have their client’s portfolio.
SETH: Yeah, I mean I agree 100% and I mean I think the vast majority have no malice involved at all I mean it’s just kind of what they know this is what the product is the name they do believe in it. So I don’t you know there’s nothing wrong with that and I think it’s becoming more prevalent nowadays they do become well-versed in real estate and have a more diversified knowledge base to advise her clients on.
SCOTT: I agree with you 100% on that, so yeah, I think more people had a guy talk to guy just a few days ago and said the exact same thing. He was here I was looking at he was looking to do something else and he wasn’t going to be allowed the way it was being structured he’s like you know I’m getting asked a lot about this for my clients or good to have your contact information because the good advice is I think you truly have their clients best interest at heart when they’re asked a question, rather than lie or mislead this would hate if this is really what you want to do here’s a place to go. You know and then they’ll end up seeing some of the benefit on the backend when the client is earning a lot of income but I don’t know where else to put it they might very well take it back to put it in some mutual funds or some stocks will do it while they’re waiting for the next deal.
SETH: Yup absolutely before we jump into the freedom four any last Golden Nugget for our listener?
SCOTT: I think again, for people or less they might already be on board with the with real estate and in other types of passive income investments, just slow to use your IRA is it as an opposite as a possible alternative a lotta people don’t realize they have that old 401(k) sitting out there IRA fund that can be use. I think it’s import I would like to mention it whenever I do any speaking engagement but it’s important for any investment you make that you do your due diligence, so it even if you’re investing through Advanta and you’re buying real estate that’s not our role. We’re not going to evaluate the investment from a suitability standpoint it is up to you to make that decision. So Internet exit goes for any investing even if it’s mutual funds or stocks don’t just blindly pick a different day different assets get some meds to get some guidance in and whatever you’re investing in. Especially in the in the real estate community user network meet people that they have already done with your lunch to do it and learn from them and listen to them and said there’s a lot and I was it is also a ton of free advice that’s out there on the Internet you don’t need to pay 20 or 30 grand for some course on real estate investing. You get to learn it all on the Internet for basically next to nothing.
SETH: Yeah, it’s all out there nowadays no excuses not to do your research.
SCOTT: And that’s not to say that if there’s not advice worth paying for, this certainly is in service paying for its Fellow attorneys that you know people conform to an LLC ‘s and they could probably look online how to do it. But there’s no stand in for actually getting someone to do it properly for you.
SETH: Exactly the trick is knowing what to pay for and what not to pay for.
SCOTT: Exactly. Yeah.
SETH: Alright man lets jump into the freedom four
SETH: So, what’s the best thing you do to keep your mind and body healthy?
SCOTT: Nothing to do body healthy, might even be mind and spirit as well as I coach my son ‘s soccer team. I’ve done it I’ve known for a couple years and so it’s always well to get out through three times a week run around the kids and I enjoy teaching as well as young we play along with them as the coaches. It keeps me somewhat active and it from my mind I really, I don’t do anything specific every day but I’ll grab a crossword puzzle or some other mind engagement. I even play some video games every now and then have that like skill and strategy around to it. I don’t play a lot of it but I’ll do it every now and then just to kind of had to go helps keep me sharp.
SETH: Yeah, yeah for sure I mean we kind of do the same thing over and over and our jobs every day so it’s good to get some kind of outside the box where minds yeah today’s pliable for new things.
SCOTT: Like I don’t have like a sudoku book that I go through and do you want to do but if I come across can you do this now I just another little thing I can spend a few minutes to help keep my mind sharp.
SETH: Yep, for sure in an alternative universe where you were involved in your current business what would you be doing?
SCOTT: I think without a doubt I’d be golfing and pretty professional looking for like what would I be it would be my other profession if I could do it professional golfer adult I used to play a lot when I was younger I had kids all play as much as I surely used to be. Being able to travel around the world or to the country and play all these big horses in and do that for a living would be incredible.
SETH: that’ll be the dream, right?
SCOTT: Absolutely!
SETH: Where are you at five years ago and where do you see yourself in your business five years from now?
SCOTT: So five years ago I was kind of in the same role but I think what’s been exciting it’s happened in the last five years I think it’s going to be really set us up for five years going forward Is we are still going to get our feet on earth with the sales processing in and how we operate our business and how we reached out to people and that’s something we worked hard at in the last five years. Again five years ago was not where it’s at now, and it took a little time and I think that’s a good tip for people who are in any business or industry is it really make sure you get the right people working for you don’t necessarily have to have all the knowledge in your subject area but if you get the right people working for you can train them get them to obviously to mold into your company vision. That something that we’ve been successful in the last few years I think five years and now your company simply going to be growing that that much greater clip, based on who did the right putting the right people in the right positions to succeed.
SETH: For sure man you’ll get their brother. How has passive income made you or your clients lives better?
SCOTT: Certainly for our clients I mean the over 7500 Clients that we have an Advanta IRA and we get compliments and its more of compliments to themselves, they’re happy that they found our service because it’s enabled down there today I wish I’d known about this for a couple years ago I wish I’d known about this sooner. I would’ve been doing this all along, because they’re seeing the benefits of getting money out of the market and simply yeah putting in a real estate investment that kicks off cash every month. One of my favorite clients we have I think he has probably 10 or 12 different real estate syndication so you just invest possibly other people’s deals with his IRA account he calls the mailbox money mailbox. He just loves that every month I go down to the mailbox the checks are there I said them your deposit back to my IRA account and then he takes money from us. So, its made it easier for him he’s retired and he just sits back and lives off of those investments. I think that’s the guy thing for anyone investing is to get to the point where your moneys working for you and you don’t have to do much for it so far our clients absolutely made their lives much better being able to be able to take advantage of alternative assets of the retirement account.
SETH: Yeah that’s crazy when you start getting those checks in the mail and you’re like oh well this is interesting and then it’s just consistent time every time.
SCOTT: Absolutely.
SETH: Scott man it’s been great having you on, where can I listen to find out more about you?
SCOTT: Go to our website and Advantaira.com. I would say also if you if you have a question basically talked about today maybe something I didn’t I didn’t we didn’t cover that you had to have an interest in you give me a call direct me my number is 727-581-9853 my direct extension is 1123. Again if you go to Advantaira.com you can go to our about us page and get my direct email from there as well. I’m always happy to jump on a call even if it even if it’s not regular related to what we did but you have a question on IRAs in general, give me a call give me a shout. If you’re looking to raise capital for listening who’s the say I’m looking to reach more people self-directed Ira as we can help you out with that as well so give me a call. I’m always available for Brad 15-30 minute call, whatever is needed.
SETH: Alright brother, talk soon.
SETH: Ahh the mystery of UBIT taxes is solved I loved that interview. Scott is such a great and knowledgeable guy and obviously I love that he has the legal background as well. If you were thinking about how you can get started building passive income streams rolling your traditional retirement account over into something more independent, like a solo 401(k) or an SD IRA it’s an incredibly powerful way to start buying back your time. If you’d like to talk about more passive investing strategies such as these hit me up at Seth at passiveincomeattorney.com and don’t forget to grab your free pass invest in guide at escapethebillable.com. Catch you next time, enjoy the journey!
