Income Protection Insurance Atlanta: July 2011

Wednesday, July 27, 2011

Finally, An Inside Look Into an Entry Level Management Position

Jelani Asar

Who am I?

Hi, my name is Jelani. I work in a company that is continuously hiring for entry level management positions. I remember when I was seeking my entry level management position and the excitement I had at the thought and vision, as well as the skepticism and weariness about the reality of this job.

Now I am a member of one of these companies that train people such as myself to learn and then teach others. I am an entry level management trainee.

Recently I asked my manager and teacher, Doug what his goals are and he said, 'Growth. To turn you into me, so I can move up and you can train others to be you. And so on.'

So, I asked him to describe his hiring process.

Finally, here is an inside look into an entry level management position.

The Secret Entry Level Management Job Description

Often times most of the actual explaining of the responsibilities and rewards of an entry level management position is late into the interview or on a second, full day of training to give you the actual experience.

This is how it goes. This is the system.

The whole purpose of the business its growth perspective is to bring in people, have them learn skills and then teach these skills to other people. This is the process.

This is simple and makes sense, right?

You learn and teach. The more you learn, the more you teach, the higher you move up the management ranks and the more responsibility for your people and your business you have.

Easy to understand, right?

Now you have clear knowledge of the secret entry level management job description.

Ah, okay. And what qualities do I need?

Remember, the whole purpose of the business from the clients' perspective is to solve problems and sell the solutions. The whole purpose from the team's perspective is to bring in people to learn and teach, learn and teach, learn and teach. That's it.

The more clearly you understand this simple principle, the easier it is to know what qualities you need to succeed and whether this type of position is the right fit for you desires in life.

Here we go.

Positive attitude
Strong work ethic
What three strengths are you bringing?
Professionalism
Desire for team building
Desire to multiply efforts rather than add them
The long buck. Not the short buck.

Now I See. The Mystery is Clear.

Recap.

My name is Jelani. I know that you have looked at those business management entry level jobs and mentally salivated at the possibilities, yet simultaneously got white around the mouth at the hidden realities.

I have written this article for you because I have gone into these interviews and have accepted the position. I also spoke to my teacher, Doug, and asked him to give me the scoop from his point of view. This is an entry level management job description for you.

I have combined my experience thus far with Doug's explanations and come up with this summary of an inside look into an entry level management position.

Your purpose is to come in and continuously learn and teach, learn and teach. Moving up the ranks of knowledge, skill, and responsibility along the way. The top quality to have for success is a deep desire for team building.

The benefits of coming into an entry level management position are the ability to multiply your efforts so you work less for more return, the long and continuous financial reward, and the opportunity to lead your team.

Jelani Asar is a member of Aflac Atlanta and Income Protection Atlanta at http://IncomeProtectionAtlanta.wordpress.com/aflac-career-entry-level-management-trainee. He and his manager, Doug are continuously looking for people with a strong desire for team building to come into their entry level management positions to gradually work less for incredibly more reward. Go to Income Protection Atlanta to move into your Aflac career as an entry level management trainee.

Tuesday, July 19, 2011

Our Unfunded Liabilities - What If the United States Was A Man Named Joe?

Joe's Promises

A story about Joe, the man who makes many promises.

There is a man named Joe (J). Joe is a rather spectacular person, or at least he appears to be.

J is well respected and looked up to as a leader and role-model of success, personal power, and financial prowess. Joe has developed such a cache of personal power, that he shares his power by taking care of others in their time of need. J provides strength of character, although the most important way he takes care of others - is financially.

J has a few financial support programs, referred to collectively as Joe's Promises (JPs). Anyone who enrolls in Joe's programs is entitled to a financial promise. It is a great financial promise and many people are coming to rely on Joes's integrity as their sole source of financial support in the certain situations that Joe's promises cover.

Specifically, each member is entitled to money to cover their medical expenses and money to live on after they reach a certain age.

That's right, Joe is promising money.

Want some? Most people do. Why wouldn't you?

So now you have your promises and you feel safe. You've got help with your medical expenses - the most outrageous and damaging expenses of all. When you get old and your energy to produce - ie. your earning power - decreases, you've got Joe to pay you money and keep you safe. And with JPs, you are safe, aren't you?

But wait, there's a problem. Potentially, a big problem.

Problems with Joe

"What's the problem with Joe?" you overhear being whispered between two other members of Joe's Promise. You see, as we learned earlier, Joe (J) appears to be spectacular, although the validity of his magnificence has been growing shakey.

J is a social man and a provider. J keeps his financial records public, for all to see and have confidence in his power...and his promises. The problem is - the people do not have confidence in J's finances. Joe's finances look bad - real bad - and how many people are depending on super solid JPs?

Word got out about J's financial problems and some people have begun to talk about it. Those who know are worried. Angry. Devoid of hope. Shocked. Confused. Dumbfounded. Appalled. Preparing for it all to break loose.

Why? Why such drastic reactions? It's Joe, how bad could it possibly be?

That is exactly what you want to know - how bad could it be - because you're depending on Joe's Promises too.

You quite your thoughts as you hear the other members start getting to the nitty gritty. This is what you learn:

1. J earns $15m/year

2. J has current debt of $14.5m

3. J incurs debt at $0.5m/year

4. J has 1 out of of every 2 people in the community enrolled in Joe's Promises

5. J is promising to pay these people a total of $115m

That's how bad it is. J is promising to pay $115m and only makes $15m - all of which could technically be required to pay J's other debts.

Here's the worst part.

Remember we learned earlier that JPs pay money when people get to a certain age? Well, a bunch of people are about to reach that age - 1 out of 4 people in the entire community. Which means it's time for J to pay up. Yet, according to Joe's financials, not only does Joe not have nearly enough money to pay up...Joe's broke.

All of those people, including yourself, are promised money that Joe does not have.

Upon reflecting on the implications of this horror, your eyes explode wide open, your throat swells, you attempt to swallow the non-existent saliva on your dry tongue, and you immediately rethink your financial life.

"I've got to take care of myself."

From that moment forward you develop income protection and financial self-sufficiency for yourself. J ignores the monster beneath his bed and the people are unknowingly awaiting a surprise.

1. Joe, the United States

2. This story of Joe is a story of the United States.

3. Joe = the United States

4. Joe's Promises = Entitlement programs and Unfunded liabilities

5. Joe's numbers (times) 1000 [income, debt, promises, members] = the numbers of the United States

6. Members of Joe's Promises = the American people

7. You = You, I, and other members of the informed public.

Jelani Asar invites you to prepare yourself with shocking interviews for the economic nightmare of the Unfunded Liabilities Monster at http://usUnfundedLiabilities.wordpress.com. Call for a free income protection quote in Atlanta, Georgia today.

Article Source: http://EzineArticles.com/?expert=Jelani_Asar

Article Source: http://EzineArticles.com/6417685

What If You Personally Had the Unfunded Liabilities?

Bringing the Monster Home

The unfunded liabilities of the US government are so huge and so incomprehensible, it can be extremely difficult to put this monster into proper perspective.

How can you comprehend over $100 trillion? How can you apply the government's financial problems to your own financial situation? How can you imagine the effect of owing money to tens of millions of people - money you do not have set aside for such a purpose?

It's time for us to put these unfunded liabilities into perspective.

Putting it into perspective and bringing the monster down to earth.

Looking at the massive numbers and discussing the problem as one that the United States or the government has, can put the problem out of perspective and disconnect us from the situation. "Oh, that's happening over there, not here. It's a big, lifeless nation, not me. It's not my problem, it's the United States's problem. It's national, not personal." Speaking through the wide-angled lens of economics can have this effect, can it not?

Let's bring this Monster home so we can relate and actually understand the immense gravity of this problem.

What about you.

Suppose this is your situation and you are the United States. How does it feel then? Let's make this real.

Here you are.

You are working day in and day out.

You earn $42k/yr.

You have your home, your car, your pleasures - and you have debt. The bundle of debt that you are most familiar with is equal to $41k.

You have $41k of debt.

You have a family - children, other half - and you also have parents. You are in your early 30s and your parents are in their late 50s. Your parents are about to retire. Also, you have the responsibility of taking care of not only your parents when they are no longer working, but also your other half's parents, as well as various aging cousins, uncles and financially struggling friends. All in all, the number of soon to be retirees dependent on you amounts to 1 out of every 4 people you know.

You have to pay $230k to those dependent on you.

So -

You earn $42k/yr

You have at least $41k in debt

You owe $230k in financial support

This is your situation.

You owe more than 9 out of every 10 dollar you earn - to creditors. On top of this debt, a mass of people is expecting you to pay them a total of 230 times your annual salary in order to take care of themselves in their time of need, which is right now.

This is your situation.

You are the United States.

Now do you see?

Now what do you do?

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What Exactly Are Medicare and Medicaid?

Definition of Medicare

Medicare is another of the entitlement programs funded by tax revenues and allocated by the government. Although, whereas the Social Security program provides general financial support, Medicare provides financial support specifically for medical expenses rather than general living expenses.

Medicare insurance consists of money accumulated through taxation and provided by the government to Medicare recipients who are enrolled in the program because they are considered to have higher than average medical expenses. Those eligible for Medicare include people with lifelong physical disability and people over 65, for example.

Medicare can get quite specific - consisting of four sub entitlement programs - A, B, C, and D, which provide hospital insurance, medical insurance, and prescription drug money. In the interest of simplicity and for our purposes, we will be referring to Medicare as simply Medicare rather than highlighting its more specific components.

Medicare is medial insurance or 'medical care' for the elderly and physically disabled.

In essence, Medicare is a transfer of wealth from the able to the disabled in order to ensure equal opportunity for medical and financial security.

Definition of Medicaid

Although it may be easy to confuse Medicaid with Medicare, these two entitlement programs are similar in kind though vastly different in character.

Whereas Medicare is health insurance specifically for the elderly and physically disabled, Medicaid is akin to the Food Stamp entitlement program in that recipients of Medicaid money must be low-income earners.

I understand that it may not be easy to distinguish between Medicare and Medicaid. What I do to remember which is which is look at the name. Medi-care brings thoughts of physical or health care, such as for the elderly or physically disabled. Medic-aid brings thoughts of financial aid for low-income earners or people with expenses demanding more than their capacity to pay.

In essence, Medicaid is a transfer of wealth from the financial able to the financial disabled in order to ensure equal opportunity for medical and financial security.

To put it simply, Medicare and Medicaid are programs for healthcare money for the elderly, physically disabled, and low-income earners.

Most importantly, Medicare and Medicaid are two of the largest unfunded liabilities - especially the Medicare entitlement program.

Why Shouldn't I Rely on Medicare and Medicaid?

As mentioned earlier, Medicare and Medicaid are two of the largest unfunded liabilities. This means that they the money that millions upon millions of retiring baby boomers and Americans devastated by the debt crisis has not been put aside.

That is why you shouldn't rely on Medicare and Medicaid.

Yes these financial support programs are entitlement programs and although you are entitled this money on paper - that paper is covered in zeros of debt and drenched in red ink. Also, as healthcare costs continue to grow every single year, expect the amount of diminishing amount of money you receive to cover less and less of your medical needs.

Perhaps now is the time to secure your replacement or supplement to Medicare and Medicaid?

Can your body really afford you to not be secured?

Article Source: http://EzineArticles.com/?expert=Jelani_Asar

Article Source: http://EzineArticles.com/6419919

What Exactly Are The Unfunded Liabilities?

Definition of Unfunded Liabilities

Okay, we see the problem, we hear the horror, we sense the danger, and we smell the monster. One question remains - what are unfunded liabilities?

An unfunded liability is a liability or debt that is not covered by an asset (such as income or collateral) of equal or greater value. The debts or liabilities in this case consist of the promises of financial support that the US government is making for the American people. These promises, which are also known as entitlement programs, have numerous forms and can get quite specific.

In the interest of simplicity and for our purposes, the unfunded liabilities or unbacked promises consist of the big three: Social Security, Medicare, and Medicaid.

Tens of millions of Americans are expecting these entitlement programs to provide them financial support and are secured by these promises. Although as indicated in their name, these entitlement programs are unfunded - hence, the money that millions of Americans are expecting, does not presently exist.

Definition of Social Security

As we previously learned when defining unfunded liabilities, these entitlement programs can be quite specific. The Social Security program for example, can be broken down into two major components and many others - each with its own volume of defining characteristics. The two major components that compose Social Security are Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI).

SSDI is money accumulated through taxation and provided by the government to SSDI recipients who are enrolled in the program because they are considered 'disabled'. Those eligible for Social Security Disability Insurance include the blind, widowers, and physically disabled individuals for example. SSDI is meant to provide recipients with financial assistance to fill the gap in opportunity for financial security due to their disability.

In essence, SSDI is a transfer of wealth from the able to the disabled in order to ensure equal opportunity for financial security.

SSI is what we typically refer to as Social Security, that is, when we typically speak of Social Security, we are referring specifically to SSI, not the combination of SSI and SSDI.

SSI or Supplemental Security Income is money accumulated through taxation and provided by the government to SSI recipients who are enrolled in the program because they are considered to have insufficient earning power or opportunity for earning power. Those eligible for SSI include the blind, physically disabled, and people over 65 for example. The key point to note about SSI is that it is a supplement to one's income in order to provide sufficient security for them and thus, the one common characteristic of SSI recipients is - low income.

In essence, SSI is a transfer of wealth from the able to the disabled in order to ensure equal opportunity for financial security.

Big Three Unfunded Liabilities and What They Share

In a nutshell, the common thread of the big three unfunded liabilities (as well as the smaller and more specific entitlement programs) is that they are forms of social welfare and social insurance.

In essence, these promises of money are forms of financial aid for the elderly, physically disabled, and low-income earners. The financial aid comes as a recurring income through a program such as Social Security and a financial safety net through programs such as Medicare and Medicaid.

The unfunded liabilities are the result of a desire to diminish disparities in financial security and the opportunity to meet basic financial needs by necessitating a transfer of wealth from the able to the disabled, as distributed by the government through programs such as Social Security, Medicare, and Medicaid.

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Big Beyond Comprehension - Unfunded Liabilities

How big is this monster?

Just How Much Do the Unfunded Liabilities Amount To?

As we know, the unfunded liabilities monster is composed of three main components. Social Security. Medicare and Medicaid.

There are various calculations of the size of each component, with the total size of the Monster ranging from $22 tr to $118 tr (when including Medicaid).

We are now going to present the various calculations.

Government Accountability Office (GAO) - $30 tr plus Medicaid

Board of Trustees of Social Security and Medicare - $18 tr plus Medicaid

National Center for Policy Analysis (NCPA) - $107 tr plus Medicaid

USDebtClock.org - $114 tr plus Medicaid

Richard Fischer - $99 tr plus Medicaid

So we see that the calculations for the size of the unfunded liabilities monster are quite varied. The monster's size ranges from $18 tr according to Board of Trustees of Social Security and Medicare, to $114 tr according to the USDebtClock.org. As an average, we can say that the monster is either around $30 tr or $100 tr.

Considering the two sources that present relatively low totals of unfunded liabilities are government agencies and may therefore be inclined to downplay the significance of negative numbers through complex calculations or misleading appearances, I prefer to cite the unfunded liabilities monster to be around $100t big or more.

What we also see is that not one of our sources present figures for the unfunded Medicaid promises.

Why Is Medicaid Often Not Included in Calculations of Unfunded Liabilities?

Here's why. There are three main reasons.

Medicaid is considered a social welfare program whereas Social Security and Medicare are considered social insurance programs. For our purposes and for what it means to your pocket and financial security, as well as the potential financial destruction of this country, the detailed differences between social insurance and social welfare - Medicaid and Social Security, Medicare - are unnecessary. You still pay for them through taxes. People are still expecting that money. There still is not nearly enough money to pay them.

To simplify the difference in two words, the difference between social welfare such as Medicaid and social insurance such as Social/Security is that social insurance is much more of a perceived entitlement and is thus much more guaranteed.

Again, we have only learned the differences between social welfare and social insurance because although Medicaid, Medicare, and Social Security combine to form the big three of the Unfunded Liabilities Monster, in your research you may find only Medicare and Social Security presented as unfunded liabilities. We have learned why.

The most important point to note furthermore, is that the detailed differences between the basic types of these social programs are unnecessary information for our purposes. Social welfare and social insurance are both social programs.

It's Almost A Fictitious Number

Once again, these social programs, these debt-financed promises, these unfunded liabilities - are big beyond comprehension. As Matt Allen, the Director of IRA Lending for publicly traded bank told me, "It's almost a fictitious number."

Article Source: http://EzineArticles.com/?expert=Jelani_Asar

Article Source: http://EzineArticles.com/6420174

The Unfunded Liabilities Are Doing What to My Money!?

I Have Confusion, Fear, and Pain

The unfunded liabilities have been a source of confusion, fear, and pain for Americans. Many are not sure what they are. Many are frightened by what they could mean. Many are pained by how they shame our nation.

Let's make this understandable. Simply said, the unfunded liabilities are the entitlement programs of Social Security, Medicare, and Medicaid; furthermore, the government is promising to pay trillions of dollars to people through these programs, yet has none of it set aside for this purpose.

When you research the unfunded liabilities you may find complex and unnecessary technicalities. Just know that the unfunded liabilities are Social Security, Medicare, and Medicaid. And know that the money is not there to pay them.

What Do the Unfunded Liabilities Mean for Me?

What does this mean for you and me? Why again, do we care?

We care because regardless if the name is social welfare, social insurance, Social Security, Medicare, Medicaid, et cetera - people still plan on having that money as their safety net. You are still paying for that safety net. I am still paying for that safety net. The government is still using our money, supposedly to pay for that safety net. The government is still promising to provide nearly 10 times more safety nets than it can actually get from us and supply to the tens of millions of people expecting their safety. The monster may have many faces and scents - although it still stinks and it is still ready to eat our financial future as Americans.

Medicaid is projected to require a total of $4.3t of spending by 2019 according to the Department of Health and Human Services. The projection is definitely a low-ball figure, although the point to remember here is that even though the size of the number is greatly significant, the most important point is that the money to pay for these expenses does not presently exist.

$4.3t may seem like a low payment by comparison to the massive debts of Social Security and Medicare although by comparison to the entire economy of the United State, at around $15t-$16t by 2019, this payment is huge. It is requiring nearly one out of every four dollars composing the US economy.

Actually, in order to keep up the pace with spending projections for Medicaid, the United States would have to cut spending in all other important areas of our economy and our life such as national security and education.

In fact, Medicaid spending is projected to require 67 percent of all spending by the federal government. That means nearly 7 out of every 10 dollars the US government has available to spend must go to the Medicaid entitlement program.

Someone is losing in this situation. Either the Medicaid beneficiaries get their health or the American people get their defense and education. Perhaps neither.

What is your protection?

Article Source: http://EzineArticles.com/?expert=Jelani_Asar

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Friday, July 15, 2011

Income Protection Atlanta - Interview - Doug Misch - Aflac

Hey,

Jelani Asar here.

Go to http://IncomeProtectionAtlanta.wordpress.com for your free income protection quote.

Connect with me on LinkedIn! - Jelani - income protection insurance

Income Protection Atlanta interview with Doug Misch. Doug is a District Sales Leader for Aflac in Atlanta, Georgia. Doug has been in the business of income protection for fours years yet he has accumulated quite a heavy volume of stories. Join Doug and Jelani as they discuss the definition of income protection and stories of people who have used Doug's income protection services.

Income Protection Atlanta - Interview - Jonathan Lucas - Aflac

Hey,

Jelani Asar here.

Go to http://IncomeProtectionAtlanta.wordpress.com for your free income protection quote.

Connect with me on LinkedIn - Jelani - income protection insurance

Income Protection Atlanta interview with Jonathan Lucas. Jonathan is a top sales leader with Aflac in Atlanta, Georgia. Jonathan has been protecting incomes for nearly a decade and before this he was saving souls as a Pastor. Join Jonathan and Jelani as they share stories and discuss the need for income protection during the financial meltdown.

I Can Leverage My IRA with Real Estate?!

When I first started my blog about the unfunded liabilities of the US government the first expert I interviewed is named Matt Allen.

Matt is an expert on using your IRA (Individual Retirement Account) to invest in a diversity of assets such as real estate, tax liens, and even land, cattle, and your own business.

Matt is the Director of IRA Lending for North American Savings Bank (NASDAQ: NASB) the author of Leverage Your IRA: Maximize Your Profits with Real Estate. (Look towards the end of our interview for a free special offer from Matt!).

Source: Google Finance

In addition to being a published author, Matt is an in-demand speaker on the subject of maximizing your IRA and his message is powerful for you right now because unless you are an outlier, if you do have a any money accumulating for retirement then it is only in the form of volatile and low ROI stocks.

Through remarkable techniques such as the 'IRA non-recourse loan', Matt can have you leveraging your IRA for much greater security and return on investment through investing - tax-free - in real estate, tax liens (8-16 percent return on average), and other assets to maximize your profits and actually secure your financial life in your future - all while maintaining your income protection.

Here is my interview with Matt Allen on leveraging your IRA:

ULM Expert Interview – Matt Allen

Matt is the Director of IRA Lending for North American Savings Bank (NASB) in Kansas City, Missouri.   NASB has been in business since 1927, is a publicly trading company (NASDAQ:NASB), and has well over $1b in assets.   Matt has been the director of IRS lending for NASB since 2003 has has been leading their increasingly popular program with IRA non-recourse loans.

Matt has been featured with the popular source of financial news and advice, Market Watch. Matt has also been featured by brainstorminonline, prweb, and the Star Global Tribune. Matt is a highly demanded speaker on the subject of IRA lending and the author of Leverage Your IRA: Maximize Profits with Real Estate.

As the Director of IRA Lending, Matt is immersed in the realities of the unfunded liabilities monster and the riskiness of dependence upon social security and other government funded social programs.   Matt is also active in assisting the many future retirees in responding to this issue by developing financial self-sufficiency right now, using their IRA.

Today we are discussing the instability of the financial system of the United States, why it is necessary to take your financial life into your own hands, and how to prepare and profit most properly using unknown investment secrets through your IRA (individual retirement account).

Jelani Asar: Well alright, here we are. This is Jelani Asar with The Unfunded Liabilities Monster and here today we have an interview with Matt Allen.

Matt Allen is the Director of IRA Lending at the North American Savings Bank. He’s been there since 2003 and North American Savings Bank has been around since 1927. It is a publicly traded company.   It has well over a billion dollars in assets.

As previously mentioned, Matt’s expertise is in the IRA – specifically self-directed IRAs – and something that’s called IRA non-recourse loans, which Matt will be getting into.   Matt has also written a book Leverage Your IRA: Maximize Profits with Real Estate.

And now a brief word on how me and Matt connected.   I went into a website named RTIR online and it’s basically a spot where experts – individuals who would like to share their information - put up profiles on the website.   Then publishers – people who would like to interview these experts – come into the website and connect.

I went to the website specifically searching for experts on the topics: retirement crisis, unfunded liabilities, baby boomers, medicare, and social security. Matt’s profile is one of the profiles that came up and he was using words that resonate with me pretty well. For example, right in the headline he asks, “Is Retirement An Out-dated Concept for the 79 Million Baby Boomers?” And I just did a piece about baby boomer retirement and just how huge of an impact that this big bump in the population demographic has.

Also, under the section where he outlines what topics he covers during interviews, the first line is, “There is a crisis coming in retirement and few Americans are ready for it.”   So, it’s gripping and it also just agrees with me personally.

So here’s Matt.

Jelani Asar: Matt, how are you doing?

Matt Allen: Great, great Jelani, glad to be on.

JA: Glad to have you on. So, well, how bout a little bit about yourself and really what your position is.

MA: Sure, well has you mentioned earlier on, I’m with North American Savings banks. We’re a publicly traded company based out of Kansas City, Missouri. We have been around since 1927.

NASB - North American Savings Bank - Website

And we offer, every type of loan product pretty much. We closed over $2m in residential loans last year.   And we have some niche products, one of which is our IRA non-recourse loan program and that’s what I’m in charge of. I’ve been a part of that program since 2004 when we first enacted it. Basically, we help investors purchase real estate within their IRA retirement plan or 401k and then we actually loan money through their IRAs to help purchase the real estate.

You know, I’ve been involved with that. It’s been a great product and it’s, it’s something that’s opened a lot of eyes for people because they didn’t know they could invest in anything besides stocks, bonds, and mutual funds with their retirement plan.

JA: Yeah. So is it only through the non-recourse loans that we’re able to invest in real estate through our IRA?

MA: Well, you know there are three ways you can invest in real estate through your IRA:

1. Pay cash.   When I say ‘cash’ I mean paying for the real estate with your IRA funds. So for example, you have a $100k piece of real estate – single family home let’s say. And you have $150k in your IRA account. Well, $100k of your funds would go for the purchase of that home and you would own it free and clear.

2. Partner with other investors. Say you only have $50k in your IRA and there is another investor who has $50k in their IRA, then you could do a fifty-fifty split and the combination of the two of you would own that property free and clear. Each with a fifty percent ownership.

3. Leverage. It has to be a non-recourse loan, so that’s where our bank comes into play. Let’s say you only have $80k and you don’t have another investor go in on the deal, then we would actually loan $60k to you.   So you would put down $40k through your IRA and North American Savings Bank would loan that other $60k. So that helps you purchase that property without having the entire amount on your account.

Let me give you a background on non-recourse loans.

What actually is a non-recourse loan?

It’s a little bit different than a loan that most of your listeners are accustomed to. When you buy a single family home, let’s say in Georgia, you’re going to sign a personal guarantee on that promissory note. So if something should happen, then the lender could go after your other assets – whether it’s your checking account, your savings account, your automobile – to recover any losses they couldn’t recoup from the sale of that home on a foreclosure.

Whereas with a non-recourse loan, the lender doesn’t have that option. The only collateral is the property itself. So the lender can only take back the property; they sell it; if they don’t recover the losses well then, they’re just outta luck.

And that’s required by the IRS.

So the IRS requires a non-recourse loan to use with your IRA account.

JA: Alright. So that (the IRA non-recourse loan) is a way to protect yourself.

MA: Yes. It does have some benefits, yes.

JA: Have you been seeing a growth in demand for this type of lending?

MA: I have. You know, when we started this program self-directed IRAs were really getting some traction nationwide. And so every year it’s increased as the awareness level’s increased. It’s still a niche product but more and more people realize that you can buy real estate with a self-directed IRA and they want to diversify their retirement plans. This is an excellent way to do it.

JA: Right. Do you think the growth in demand has anything to do with the financial climate and the financial crisis?

MA: I do.   I believe so. In ’08 when everything kinda – you know, the perfect storm – real estate collapse, the stock market – people got scared, concerned, and a fair amount of trust was lost. So they are looking for alternatives.   They don’t want to put all they’re eggs in one basket so they’re looking at those alternatives and a lot of them are doing their own homework.

Not relying on their financial planner or their family and friends who they may have gotten advice from in the past. They want to do their own homework and they’re coming across self-directed IRAs and they’re looking for real estate.

To give you an idea, for the listeners, in a self-directed IRA you can purchase anything within that plan except life insurance and collectibles such as wine, coins, stamps, and automobiles. So if you think about it, if you’re only prohibited from buying collectibles and life insurance – that’s a pretty wide range of options for you.

Some things people are buying besides real estate – they’re starting their own companies, they’re starting a bank, they’re buying tax liens, cattle – you know you can be very, very creative, although real estate is the most popular option at this point.

JA: Ah. I saw a video that you have on the NASB website and its about your book, Leverage Your IRA. One point that stuck out to me is that you were saying, “I know you are wondering whether or not you’ll actually have enough in your retirement to actually be sufficient.”

Do you think people are – I’ll say it like this – how set do you think people are? How prepared to think people are? Or unprepared?

MA: The majority of people are unprepared. They haven’t save enough. They’ve lost a large amount lately. Lots of different factors and variables. Most people (laughing) do not save enough to live that retirement that they want to live or even to sustain what they’ve built up.

You know, it’s almost a tragedy that most people aren’t prepared for their golden years and I think that’s one of the things people really need to start taking into consideration. Starting now.   “What am I doing now to create that lifestyle to be comfortable when I retire and enjoy myself? Am I saving enough? Am I looking at different alternatives? What am I doing to educate myself and prepare so I don’t have to work well into my seventies to live a comfortable life?

JA: Right. Yeah this is really interesting. I mean, there are so may people that I know who are getting close to that time and it’s just – they, they don’t really have anything set.

MA: Right. You know, social security – I mean, a lot of people – that’s, that is pretty much their income once they retire and in most cases that’s just not going to be enough.   Especially if you still have a mortgage payment and a car payment – that really depletes quickly.

When social security was enacted back in, I believe it was the thirties, the life expectancy was 62 years old, so that’s where people are taking social security now but people are living a lot longer so it doesn’t quite play into their time frame. So they need to either work longer with they current job, or get a part time job if they haven’t prepared themselves for the later years.

JA: Okay, now a few points that popped up while you were speaking. Ah let’s see, on the topic of social security – I noticed that you have on your profile on the RTIR that you were saying that a simple solution to the social security crisis and the social security problem is to raise the age.

MA: Yeah, that’s something that I know Congress is looking at – increasing that age – and I’m not going to say that’s a complete fix. Although something has to be done with social security because it’s gonna run out. For the two of us – we would probably be considered younger – we still have quite a few years before retirement, I’m not counting on it to be there, to be honest.

JA: Me niether, hahahaha.

MA: I’m relying on my own due diligence. If it’s still there then well, that’s, that’s just an extra income that I didn’t plan for that would be great.

JA: Right.

MA: But if you increase that age to 70 then that really does help alleviate some of that pressure and free up the amount of funds that are available so that more would go into social security and people our age would still be able to be rewarded for all the money we’ve put in over the years.

So, there’s not a simple solution but I know that’s something that’s definitely in the works and who know if it’ll get passed and some of the people would be grandfathered in obviously because you can’t take that income away from them.

JA: And then with this issue with, as you were saying, this issue with the money just running out – I mean, I was just looking at the US Debt Clock just to refresh my memory before we began and I mean, the amount, the amount that’s promised is just astronomical by comparison to the amount that’s coming in.

MA: Yeah it’s almost, I almost can’t comprehend it.

JA: Right.

MA: It’s so large. It’s almost a fictitious number (laughing).

JA: (laughing)

MA: Are we going to be able to take a chunk out of that or is it always just going to keep increasing my astronomical numbers. So, it’s scary – how much debt the country accrues every year. I think it’s something that as US citizen we really need to start taking control of our own financial situation and not rely on the the government. That entails making wise decisions and educating yourself and preparing yourself and doing different things than you’ve done in the past.

JA: Right, okay. Now on that – two points.

MA: Yes.

JA: Now, okay. So, let’s just say that social security runs out. Realistically speaking, what, what happens at that point? Because, there are so many people who, regardless of their income level, are two paychecks away from being empty. And let’s say that they are relying upon social security and it’s not there or it’s so insufficient that it might as well not be there – I mean, what really happens at that point.

MA: That’s a great question because it’s, you know it’s – I wish I had a crystal ball to see what happens to the American society.

JA: (laughing) It might explode.

MA: Yes, yes (laughing). Because that would be a very, very, very – bad situation – for the country as a whole. Hopefully people that we elect in Washington will come up with a solution well before that possibly could happen. I really hope things will get straightened out and we’ll have some answers. Somebody will come up with a great a idea that will allow social security to continue and it will never be depleted.

But for now, you just can’t count on it.

JA: You were also talking about developing financial self sufficiency. What do you think the best ways to do that are? There have been quite a few experts who have been saying, “I told you so.   You don’t want to rely on the job. The safe, secure job is a myth now. You’ve got to go into business and investing.” Do you agree with this notion?

MA: Well, I think a very important factor is diversification. Don’t rely on one thing solely. In today’s world we have a huge leg up because we have the internet, where we can read about so many different things. In the past we did not have that luxury. We’ve had to rely on books and by the time they get printed they may be out-dated.

Now we don’t have to talk to the financial planner and friends because we can research on our own from our own home and come up with some good solutions and plans of attack to help sustain our retirement plans and see that growth of our money more than inflation occurs.

For example, self-directed IRAs – I’ll bring that up again – there are 10-15 different companies out there that offer self-directed IRAs and they all have great websites. Somebody could go to these websites and within a day learn the basics of self-directed IRAs and look at buying different asset classes. On our website – IRALending.com – we link to all of their websites.

There are just so many great resources out there. I always tell people, that’s the first step – you need to educate yourself first to be financially stable – take that first step, don’t rely on somebody else, and do it today.

JA: Well, I’ve been thinking about financial self-sufficiency pretty heavily and thinking about what I would need to do – looking in the long term. I keep coming back to this idea that I really want to get into real estate. Although I don’t know how to do this, I don’t know what steps to take.   I look into tax liens which can be kind of like a step into real estate – a way of getting in there.

Also, a mentor of mine was saying that he wouldn’t touch real estate in the United States with a ten-foot pole for years to come. So my question is – for someone like me who’s interested in real estate, interested in diversifying and investing, and building financial self-sufficiency – what steps would you suggest as far as getting this actually manifested?

MA: Well, the first steps – we’ve covered this – is just to educate yourself. Self-directed IRAs are a solid step. Although they have to be truly self-directed IRAs. You know, some of the large brokerage companies will tout that they offer self-directed IRAs but what that really means is that they offer you the choice to choose between their own products – stocks, mutual funds, securities basically that they offer in their own plan – but it doesn’t include real estate.

You have to find a truly self-directed IRA company. Give them a call. Talk to them. Tell them what your plans are. How they can help.

And all you have to do is you rollover your funds from your IRA or 401k plan - you just roll them over into your self-directed IRA and from that point forward you can make your own investment choices, including real estate.

You know, your mentor who said he wouldn’t invest in US real estate right now, I can understand his thought behind that if you’re looking for the appreciation in a rapid time frame – it’s probably not going to happen. You have to take into consideration that prices are really low right now and you can get great deals and the cashflow you earn from a property within your retirement plan – that grows tax free also. If you have excellent monthly cashflow, it’s going to go back into your IRA and that’s going to accumulate over time too tax free or tax deferred and the same with the appreciation.

So that’s why we’ve seen our business, especially this particular product – so many investors are out there saying, “I could get this single family home for basically nothing and I’m going to bring in that monthly cashflow and I’m going to better than I would’ve done in the stock market.

JA: Right

MA: Now, buying real estate – there is more that goes into it compared to, you know, buying a piece of IBM stock online – you don’t have to collect rents, you don’t have to monitor the property and handle the upkeep, so it’s a little more time consuming but the payback can be a lot more. The rewards would be greater too.

People will typically go in looking to buy one home and usually they choose something close to where they live. They can drive buy and make sure it’s okay. Then over time they build up their confidence, know how to take care of it for their retirement plan and then they’ll expand out into different markets.
So it can be done, even for people where this would be their first investment property.

JA: Do you place heavy emphasis or any emphasis on the need for having a team so you have a team for property management and that is not a responsibility you have to take care of?

MA: Yeah, that’s a good recommendation.

When we’re lending non-recourse loans, we require you to either have a property manager or live within thirty miles of the property.

So I personally would say that having a property manager is an excellent route to go because you’ve got someone who’s experienced in dealing with tenants. They would be receiving a certain percentage of your monthly rent although that can alleviate some of the troubles that you have by knowing that someone who’s experienced does have a handle on the situation.

That’s always a good recommendation – look for a property manager.

JA: As far as your own investments, do you have a specific focus?

MA: Me personally?

JA: Yeah.

MA: Diversifying is what I’ve been doing and what I continue to do. Real estate, ETFs, stocks, mutual funds, tax liens – just continue to do that.

Like I mentioned earlier, the perfect storm happened in 2008 when everything just collapsed and that typically doesn’t happen. In the future, when one market collapses the others will help maintain economic stability so you’re not hurting as bad.

Look at different alternatives. Don’t rely on everybody else. Do your own homework.

JA: Okay. Ah so let’s see, a couple more questions.

So I’m on your North American Savings Bank website and you were saying that you have a list of self-directed IRA companies?

MA: Yeah if you visit our website – IRALending.com is what we use to market that product and if you’re on the main page of IRALending.com, scroll towards the bottom and there’s a hyperlink that says ‘self-directed IRA companies’. If you click on that it opens up a list of IRA custodians, administrators, IRA LLC facilitators, and those companies can establish a true self-directed IRA.

JA: Right, I see it. Okay. And any words that you have based upon what we would find in your book? Also, on the topic of your book, I noticed that your facebook page is set up like a squeeze page.

MA: Yes.

JA: That’s great. So I input my email address. Am I going to be receiving your book?

MA: Well we do offer that, where we do give away free copies. Yeah I will give you a free copy of our book and anybody listening to your blog, this particular blog, if they send me an email with their mailing address we’ll send them a complimentary copy.

So if they’re interested in buying real estate within their IRA – just specific to your listeners.

JA: Okay.

MA: But yeah, you know the book itself – it’s titled Leverage Your IRA: Maximize your Profits with Real Estate – for anybody that’s looking to do this, I’m one of the authors of the book. We also have a couple of representatives of some of those self-directed IRA custodians and a CPA that has contributed a chapter.

So it is a good resource. It explains what you can and can’t do, how do you get a loan, exit strategies, prohibited transactions, etc.

So it’s a great way to get introduced to this and then you can expand out, read other books, and look and the different websites, things like that.

JA: Great. Well, any specific points that you’d like to touch on?

MA: Well, you know we’ve covered a lot today and I think you definitely hit on some of the key topics that have drawn some attention lately and again for those people listening – they’re obviously taking the next steps and they found your blog so they’re looking to educate themselves on specific topics and I just recommend that they continue to do so.

Look for that team, like you mentioned earlier.

If you’re going to buy real estate in your IRA account, look for a CPA a real estate agent, and a self-directed IRA custodian that can help you with that because once you get that team in place it makes it so much easier to make decisions just because you have that experience behind you.

So always look for somebody that’s done it before and mimic them and not reinvent the wheel.

JA: Great. Well thank you Matt. Definitely appreciate your knowledge. And I know that a lot of people listening to this very deeply appreciate you, because this issue is affecting them so personally.

MA: Right. I’m glad to be on. I hope your listeners learned something from this. Again if they ever have any questions they can always visit our website or contact me directly and I’ll be more than happy to help.

JA: Alright so that’s IRALending.com. Any other ways to contact you directly other than IRALending.com?

MA: My email address is mallen (at) nasb (dot) com.   So send me an email letting me know that you heard about us through the blog and just include your mailing address so we can mail you a free copy of our book.

JA: Great. Well thank you Matt.

MA: Alright, thanks Jelani.

JA: Alright, cya.