IRA Plans - Individual

Stocks, bonds, mutual funds, and options typically form a major part of a traditional IRA investments portfolio.

Traditional IRAs

Annual IRA portfolio investment limits are modest, with a slight increase if you are over age 50. Amounts vary depending on whether you are single; married; filing jointly; and whether you or your spouse have a plan at work or not. Investments are tax deductible but withdrawals from the portfolio will be taxed at the applicable rate.

Nondeductible Traditional IRAs

Investment limits are similar to the traditional IRA. Investments are made with post-tax money so are non-deductible. Earnings are taxed upon withdrawal, while the portion representing your nondeductible investment is tax-free.


With Roth IRAs, an individual pays applicable taxes now in exchange for tax-free treatment when the funds are withdrawn later. To achieve completely tax-free status, investors need to defer taking any distributions from their Roth IRA until at least age 59.5 years; the original funds have been invested for at least five years; or some other exception applies. Early withdrawals generally incur a penalty.

ROTH Conversion

It is possible to convert a traditional IRA into a ROTH IRA under certain circumstances.

Spousal ROTH plans

Spousal plans can be set up under certain circumstances.

IRA Plans - Small Business

SEP-IRA (Simplified Employee Pension Plan)

Excellent for sole proprietors and small businesses, they are easy to set up and maintain and offer variable contributions from year to year. There is little administration, and tax filing isn’t required. To be eligible, a business must have no more than 100 employees, can be an S or C Corporation, Sole Proprietor, LLC, or tax exempt organization.


This plan is also known as a Self Employed 401(k) or Individual 401(k)) and is specifically for employers with no full-time employees other than the business owner(s) and their spouse(s). Funds designated as 401(k) funds are tax deferred until retirement. Both the employee and his/her employer may make contributions to the plan.

Alternative Investments

Where a client has more assets than traditional IRAs can handle, there are a variety of Alternative Investment options available. These include private placements, secured (e.g. mortgages) and unsecured promissory notes, tax lien certificates, and real estate.

Private Placements

Private Placements enable qualified high income and or high net-worth investors to invest in non-public enterprises such as:

  • Private company stock
  • Interests in LLC’s and limited partnerships
  • Non-listed real estate investment trusts (REIT’s)
  • Hedge funds.
  • Secured/unsecured notes or loans
  • Convertible notes
  • Debentures

Promissory Notes - Secured

A mortgage is the most common example of a secured promissory note. Collateral, such as a home and lot, back up the secured note. In case of a default, the holder of the promissory note (such as a mortgage) is able to take back and sell the collateral (e.g. the property on which the mortgage is held).

Promissory Notes – Unsecured

This is an extension of credit to one or more borrowers. There is no collateral supporting the debt obligation, therefore, unsecured notes have more risk than secured notes. For the lender the value is in the higher interest rate earned by the money loaned.

Tax Lien Certificates

Tax lien certificates may be issued by a county when a property owner fails to pay property taxes. Investors purchase such a certificate and earn a return of 5-18% (in Florida: percentages vary by state). When the delinquent taxes are paid the investor receives back the invested principal plus interest. If taxes remain in arrears over several years it becomes possible to purchase these certificates and foreclose on the property.

Contact Us for free e-brochures with more information on alternative investments.

Real Estate

Owning a property for rental purposes is one of the most popular alternative investments. Properties can be condominium units, houses, or even business properties.

There are pros and cons to becoming a landlord through real estate investments:

Pros Cons
Rental properties generate revenue for the landlord. Revenue becomes taxable income.
Real estate tends to increase in value over time. Gains in value on a second property are subject to capital gains tax.
Landlords have some additional tax deductions to offset the revenues generated by the rental property. Becoming a landlord has on-going time and financial commitments.

Interested in real estate properties?

Contact Us to request a list of foreclosure properties currently available.