The 4 Must-Knows for Crowdfunding Investors

What is Crowdfunding?
Crowdfunding is a type of investment structure that involves raising small amounts of money through a large number of investors. It is likely that crowdfunding will become popular with self-directed retirement plan investors (as it has already proven popular with accredited investors), particularly those who want to invest with Roth IRAs. Investments in startup companies can produce large returns from small investments, but there is a risk involved with any startup investment.

4 Must-Knows for Investors

1. Crowdfunding is different from Kickstarter. They are both similar in that they are raising small amounts of money through a large amount of investors, but the return to the investors is different. With Kickstarter, investors receive perks and merchandise in exchange for their assistance in funding. Crowdfunding allows investors to invest in the company’s equity, which can allow investors to make money as the company grows
2. One of the benefits to crowdfunding is that is allows investors to purchase equity in startup businesses, regardless of whether they are accredited investors or not. The new rules just enacted allow for non-accredited investors to now take part in crowdfunding. An accredited investor is defined by the IRS as someone with $1M net worth (excluding the value of their residence) or a person with an annual income of $200K ($300K if you’re married). Unaccredited investors can invest between $2K and $100K a year in small companies depending upon their net worth and annual income.
3. Crowdfunding investments cannot be done directly. Companies that wish to crowdfund must do so through a broker dealer or a funding portal that is registered with the Securities and Exchange Commission (SEC).
4. You are restricted from reselling your shares in the first year after purchasing them unless you are transferring them to:
   1. The company that issued you the shares
   2. An accredited investor
   3. A family member
   4. In connection to your death/divorce/or similar matter
   5. To a trust controlled by you or a trust for the benefit of a family member
   6. As part of an offering registered with the SEC

How to Make Crowdfunding Work for your Retirement

Do you want crowdfunding to help your retirement nest egg flourish? With the SEC opening crowdfunding to more of the public, you can invest in companies with an IRA. As the company grows, so will your IRA. You can read more about crowdfunding here or call Next Generation Trust Services at 888.857.8058.

Breaking News!

It’s been four years since the JOBS Act was signed and little by little, the SEC has opened up crowdfunding to more investors. Today, non-accredited investors can start investing a minimum of $2,000 a year or more investing in small companies in exchange for a stake in the business (equity funding). For our clients, this means being able to include equity funding in their self-directed retirement plans even if they had not previously qualified as an accredited investor. The startups and small businesses can raise up to $1M a year through crowdfunding. Read all about it, and about some young entrepreneurs who raised capital in this way, in this article in the New York Times. For more details on crowdfunding, download our free white paper about it.

Whip Out that Retirement Calculator to See How Much to Save!

It’s hard for younger workers to think about what they will need to live on when they retire and for many older workers nearing retirement age, it’s a scary thought because they have not saved enough. Either way, how much should one be saving for life after career?

First off, let’s be clear – it’s important to start saving early and often. Millennials who are
in their 20s and 30s need to get an IRA open and funded on a regular basis. It’s hard tothink about when you may be embarking on a new career, starting a family, buying a house, and paying off student loans. But even small amounts every month will add up over time to a significant retirement nest egg.

Many people don’t sit down to calculate how much they should be saving or what their potential shortfall will be. Some tools and practices to get you thinking about your retirement savings are:

• A retirement calculator – there are many of these on the internet. Based on your current age, earnings, and current retirement savings, the calculators will tell you how much you will need when you retire in order to fully replace all your income.
• Set aside a specific percentage of your income a year — The Center for Retirement Research at Boston College says most people will be on track for retirement if they consistently save 15% of their income each year. However, this assumes you have started saving early in your working life and as stated above, the earlier you start saving, the better off you’ll be later on.
• Make your savings goal 70 to 80 percent of pre-retirement income – NerdWallet, a site with financial tools and information, suggests taking the average income for the ten years leading up to retirement for that pre-retirement figure. Of course, depending on your particular living situation and anticipated expenses (insurance, mortgage, lifestyle desires, etc.) you will have to adjust this down or up in terms of percentage of income you’ll plan to replace.
• Open a self-directed retirement plan and supercharge your retirement savings.

Keep that retirement calculator bookmarked so you can see how you’re doing as you include nontraditional investments in your self-directed IRA. By investing in the alternative assets you already know and understand, you can build a potentially more lucrative retirement portfolio while you keep your eye on your savings goal. Real estate, precious metals, commodities, hedge funds, private placements, and other non-publicly traded assets can help you reach your retirement goals with a self-directed Roth or Traditional IRA, SIMPLE IRA, SEP IRA … even a self-directed HSA. At Next Generation Trust Services, an administrator of these plans, we’ll handle all the paperwork and reporting while you make all your own investment decisions.

Ready to close that retirement calculator and open a self-directed retirement plan? Check out our Starter Kits, watch our informative videos, or contact our helpful team for more information at Info@NextGenerationTrust.com or 888.857.8058.

Do You Have a Retirement Account? Learn How to Earn the Most From It!

In case you missed this webinar, here is the replay!

MJS Financial   Host:  Mahir Allan

SPECIAL GUEST SPEAKER:

KAREN AUGIS from NEXT GENERATION SERVICES

Do you have a retirement account?  Learn how you earn the most from it!

Find out what types of retirement accountants are out there and why a self-directed IRA is great vehicle to secure your future.

We’ll tell you how to purchase notes directly from your retirement account and what the benefits are using this method.

CLICK HERE for the replay!

What Will Your Expenses be During Your Retirement Years?

What Will Your Expenses be During Your Retirement Years?

It’s nearly impossible to know that now, right? That makes it hard to know how much you’ll need to save for those golden years (and avoid having them tarnished by the high costs of living you didn’t anticipate).

For example, take your utility bills. You know how much you’re spending today for gas, electric and water but what about 20 years from now? Who can tell?

This makes it hard to determine what you’ll need to live comfortably after you stop working. However, according to an article in USA Today, some of those expenses will drop, not increase. In fact, Bureau of Labor Statistics data from 2013 showed that spending of post-retirement households (ages 65 to 79) was about 77 percent of spending of pre-retirement households (ages 50 to 64).

Here is a look at other expenses to keep in mind as you plan for your retirement expenses.

1. Medical expenses

We’ve written about this before—how the average retiree will need more than $200,000 to cover healthcare expenses in later years (even after you are on Medicare, which you pay for out of your Social Security benefits). With longer retirement horizons for many Americans than generations that came before, those expenses really add up. Plus, many people opt for secondary health insurance to cover what Medicare does not so that is an additional monthly expense to consider.

2. Insurance

Homeowners — If you change your place of residence, you will probably reduce your property & casualty insurance. If you’ve moved to a retirement community, for instance, you won’t pay your homeowners insurance but might have renters insurance or other associated expenses. Or, if you’ve downsized, your homeowners premium is likely to downsize along with the size of your domicile.

Life — Since you no longer have work income to cover in the event of your death, you might consider reducing your life insurance (if you and/or your spouse or dependents are able to live off your investments comfortably). For example, with kids grown up and an IRA to fund retirement expenses, many older adults may choose to cancel or let expire a term life insurance policy.

Disability — If you are no longer working, you won’t need the disability insurance you carried to cover lost income.

Even if you continue to work part-time, you can still reduce those insurance policies and save some money.

3. Taxes

Bear in mind that a portion of your Social Security income is taxed and depending on your particular financial situation, it might not be taxed at all. It’s best to speak to your accountant or financial planner about how this will work for you so that you are prepared.

Depending on the type of IRA you have, you might pay taxes on the distributions. With a Roth IRA, that money is withdrawn tax free (it was taxed going in); funds in a 401(k) or Traditional IRA have been growing tax free but are taxed upon distribution. Amounts are based on several factors which your financial advisor can explain.

If you are a homeowner, you’ll pay your property taxes so be sure to budget for that.

4. Housing

Maybe you’ve paid off (or will soon) pay off your mortgage – think of how much money you’ll save after that! Even with homeowners insurance, property taxes, utility bills, and/or common area maintenance changes (if you are in a condo), you will lighten the financial load when the mortgage is done and gone.

If you make the move to a retirement community, it’s likely that your monthly housing expense will go up but it will also include a lot of things you pay for out of pocket now. Or, maybe you’ll sell the house and relocate to a less expensive region of the country. Everyone’s needs, plans and lifestyles differ and so will your housing expenses, depending on what you do or where you go.

5. Lifestyle

Entertainment, travel, hobbies, pampering and more can eat up a lot of money. If you are accustomed to spending lavishly on these when you were working and don’t plan to curtail the fun when you retire, be sure you have budgeted accordingly from your planned retirement income.

Commuting to work, dining out with co-workers, and a work wardrobe all contribute to work-life expenses that you won’t have during retirement, so you will save money there (you can put it towards traveling to check out foreign retirement destinations!).

Plus, you are technically done saving for retirement because well, you’re already there—and have put enough away already.

Speaking of saving for retirement … have you self-directed your retirement plan? Self-direction is a great way to build up a more eclectic and potentially more lucrative portfolio that enables you to live it up in style when you retire. Self-directed retirement plans may include a wide array of nontraditional investments that enable you to build up greater retirement wealth through vacation properties, commodities, precious metals, unsecured loans, and many other alternative assets. You can read more about self-directed retirement plans by downloading our white paper or contact our helpful staff at Info@NextGenerationTrust.com or 888.857.8058 to get started.

DeAnna Vecchio of Montclair is Promoted to Client Service Manager of Next Generation Trust Services

DeAnna Vecchio of Montclair is Promoted to Client Service Manager of Next Generation Trust Services

 ROSELAND, N.J., April 15, 2016 – DeAnna Vecchio has been helping clients of Next Generation Trust Services, a third-party administrator of self-directed retirement plans, with various aspects of their self-directed transactions since 2010. The Montclair, N.J. resident was recently promoted to Client Service Manager of the Roseland firm, with managerial oversight of quality assurance and customer care. The announcement was made by CEO Jaime Raskulinecz.

“DeAnna is well-versed in all aspects of self-directed transactions and has expertly
audited accounts, reviewed statements, and assisted clients with many transaction questions or issues that have arisen,” said Raskulinecz, who founded the firm in 2004. “When clients get on the phone with DeAnna, they know their matters will be resolved professionally and with the high level of customer service we pride ourselves on at Next Generation.”

Prior to her promotion, Vecchio was Next Generation’s transaction billing and collections supervisor. As Client Service Manager she will oversee file audits, software implementations, and policies and procedures to ensure all client transactions are handled as expeditiously and accurately as possible. She will also continue to assist in staff training, ensuring that all employees can answer basic questions about self-direction or be able to refer clients efficiently to the proper staff member for help.

As part of her role at Next Generation, Vecchio educates clients on IRS guidelines regarding self-directed retirement accounts and certain types of transactions that may be prohibited in these types of plans. With self-directed retirement plans, the account holders make all their own investment decisions and may include a broad array of alternative assets. The administrator executes the transactions, holds the assets, and manages all the paperwork and reporting for the self-directed plan.

In addition to her promotion, Vecchio celebrates another milestone this month, having attained her certification as a paralegal and membership in the National Association of Legal Assistants (NALA). She completed her studies in Fairleigh Dickinson University’s paralegal certification program in late 2015 and sat for the NALA certification exam this winter. The curriculum comprised over 300 credit hours and included ethics, estates, wills and trusts, corporations, civil litigation, criminal law, family law, and research and writing. She holds a bachelor’s degree in business administration from Pace University.

“This certification has further deepened my knowledge of the legal process for estates, trusts, and many other topics frequently discussed at Next Generation,” said Vecchio, who now bears the initials CP (certified paralegal) after her name. “I consider this an extension of my ongoing education in the realm of IRAs and self-directed investments, to better serve our clients.”

For more information about self-directed retirement plans, visit https://NextGenerationTrust.com or contact Next Generation Trust Services at 888.857.8058 or Info@NextGenerationTrust.com.

Put Your Health Savings Account on Steroids through Self-Direction

We’ve written before about the benefits of having a self-directed health savings account (HSA) as another way to enjoy tax-advantaged retirement savings and help you cover out-of-pocket medical expenses. As an investment account, you might find—especially if it’s self-directed—that you can build up a healthy retirement nest egg with an HSA.

If you participate in a high-deductible health plan—as many people do these days—you are eligible to open  and contribute to an HSA, which is meant to pay for your qualified medical expenses. For 2016, a high-deductible health plan has a deductible for a single person of at least $1300 and $2600 for a family.

The contribution limits for 2016 are $3350 for an individual and $6750 for family coverage. If you are age 55 and older, you can make a “catch-up” contribution of an additional $1000.

Qualified health care expenses

• Medical and dental
• Prescription drug and vision expenses (including deductibles and co-payments)
• Long-term care services and the premiums for qualified long-term care insurance
• Premiums paid after age 65 for Medicare or your employer’s retiree medical plan (but not for Medicare supplement plans)
• COBRA premiums

What’s so great about HSAs?

There are some similarities to IRAs and non-matched 401(k) contributions; and, if you are using the money in the account for medical expenses, there is an added benefit (with additional goodies for account holders ages 65 and up).

• Contributions to the health savings account are deducted from your gross income.
• The contributions grow tax free in the account until you withdraw the money (for reasons other than medical expenses). Those withdrawals are taxed as ordinary income (plus 20% penalty if you are under age 65).
• Withdrawals from the HSA that go to pay for qualified medical expenses are tax free (no income tax on that money).
• Once you reach age 65, you can withdraw money from the HSA to pay for other expense, with no penalty applied. You will pay ordinary income taxes, just as you would on any withdrawals from deductible 401(k) plans and IRAs.
• Once you reach age 70-1/2, there is no required minimum distribution from the health savings account. You can keep the money in there as long as you’d like and let it grow in value if you don’t need it.

Want to make that account even more powerful? Consider a self-directed HSA.

A health savings account offers individuals a way to save specifically for health care expenses as well as a way to save for other future expenses they will incur during their retirement years. The funds you contribute will accumulate and grow and self-direction can inject a healthy dose of oomph to your retirement savings.

Through self-direction, savvy investors can build up greater retirement wealth by including nontraditional investments in their retirement plans, including HSAs. Do you already invest in real estate or commodities, precious metals or limited partnerships? These and many other alternative assets may be included in your self-directed health savings account. You can read up on what you can include in a self-directed retirement plan in this Next Generation Trust Services white paper.

With the stock market continuing to be unpredictable, those individuals who are comfortable making their own investment research and decisions, and who may already know and understand nontraditional investments, are finding self-direction to be the prescription for building a potentially more lucrative nest egg.

Of course, how you invest (and how and when you withdraw the funds) depends on your unique financial situation as well as your health in this case, so we recommend you consult your trusted financial advisor or tax professional about how to proceed. But, if you have questions about self-direction as a retirement wealth-building strategy or how to open a self-directed HSA, you can contact the professionals at Next Generation with your questions at 888.857.8058 or Info@NextGenerationTrust.com.

Don’t Kill Your Retirement – Put it in Overdrive Instead!

Get the skinny on making the most of your retirement plan and savings strategy with co-presenters David Alemian, a nationally acclaimed retirement expert, and Karen Augis, business development representative of Next Generation Services. You’ll get informative tips about using self-directed retirement plans to supercharge your retirement savings, and how to protect yourself and your family from common financial pitfalls that can crimp your retirement lifestyle. David and Karen will have time for questions.

Did you miss our free live webinar, “Avoid the Seven Retirement Killers”?  Not to worry.

Click here for the recording of this joint informative webinar!!  

Women Business Owners—Get tips on Building a Better Career Ladder with this Program!

Our CEO, Jaime Raskulinecz, proudly sits on the advisory board of the Women’s Center for Entrepreneurship. She wants all women entrepreneurs to know about this great program — a speakers business forum titled, “How to Successfully Transition to the Next Steps in Your Career.” The program will be held on Tuesday, June 23, 2015 at Juice Tank, 220 Davidson Ave. in Somerset, NJ.

You’ll hear from five successful corporate executives and entrepreneurs about building businesses and second careers.

See details below to register. It’s the best $25 you can spend for tips on how to leverage your corporate skills to maximize your success and achieve your goals.

REGISTER TODAY!

Registration, Networking and Continental Breakfast from 7:45am – 8:30am.
Presentation begins promptly at 8:30am
Registration required at www.wcecnj.org
$25 per attendee
Society of 75 Members no charge

Our panelists will focus on how you can leverage your corporate skills to maximize
your personal success.

Mary Livingston – Retired Global Vice President
AT&T Business Solutions
Mary recently retired from AT&T as VP Global Sales and has held numerous sales leadership positions supporting Fortune 500, Middle markets and small business. She has achieved the highest sales honors 5 times in her leadership roles. She also led a major change initiative to improve productivity and process efficiency which resulted in $100M business impact.  This work was highlighted in Jon Katzenbach’s book, Real Change Leaders, which demonstrated the role and approach used in change programs. She has also held various roles in Operations, Human Resources, Finance, and Product Management.  NJ Business magazine named Mary one of New Jersey’s Top 50 Business Women in 2008 and she was named one of the “Most Powerful and Influential Women” of the Tri-State Area for leadership excellence by the National Diversity Council.  Since retiring, Mary has joined the faculty at Interweave for the Emerging Women Leaders program, secured her Personal Trainer and swim coach certification; and continues to pursue her goal of completing 100 triathlons.

Peggy McHale – Co-founder and Principal
Consultants 2 Go
Peggy is the co-founder of Consultants 2 Go®, LLC (C2G), a Newark based consulting firm that provides marketing and analytic solutions to Fortune 500 companies. C2G was recently named for the third consecutive year to the Inc 500/5000 list as one of the fastest growing companies in the US.  Peggy is also the co-author of Black and White Strike Gold: Practical Nuggets to Grow Your Business.  Prior to launching her business, Peggy was a Vice President at American Express and a Marketing Director at AT&T. Peggy serves on the board of NJIT’s Interdisciplinary Design Studio and the Women’s Business Center of New Jersey. She is also a member of the Women Presidents’ Organization, NJAWBO and NJTC. Peggy was recently named a finalist for EY Entrepreneur of the Year for NJ. She received an MBA in finance from St. John’s University and graduated from the College of Mount Saint Vincent.

Helen Denise – CEO
HiLin Life Products
As a producer of KNOWWHENR Fertility Products, she is helping women around the globe. With a drop of saliva, ovulation can be indicated for natural family planning. It’s 98% accurate, 100% natural, CE certified, FDA cleared, patent filed and is the only product of its kind holding a US clincial trial which is published in the Journal of Women’s Health. Each kit comes with an educational CD and a free personal App. The KNOWWHEN Fertility Monitor is sold on CVS.com and at CVS and Supervalu stores. Helen has won numerous awards including The Sharkette Tank Awards at the Own It Ventures Expo, the NJ Finalist in the SBA national contest InnovateHer, and named “The Company Most Likely to Succeed at the NJ Venture Conference. Helen has been featured in The Wall Street Journal, Chicago Tribune, Star Ledger, Fox News, NJ Biz, Forbes, Time.com, Yahoo and many other online and print publications.

Esther Luongo Psarakis – President
Foodpreneur
As an entrepreneur, Esther launched Foodpreneur, an educational food consultancy dedicated to educating early stage food companies and international brands seeking expansion into the US market. She has worked with companies across the US as well as Tunisia, France, Ecuador and other countries. Foodpreneur developed out of her experiences from launching Taste of Crete, an award winning gourmet food company which imported artisan Greek Food products. Esther has won many awards including NJSBDC Success Award and Sam’s Club Emerging Women Entrepreneur. She has held leadership positions at American Express and Citigroup. She has a BA in Communications from Douglass College, Rutgers University and is a graduate of the Rutgers Graduate School of Business Entrepreneurial Pioneers Initiative Program and holds a Certificate in International Market Entry from the US Department of Commerce.

Kawanzaa King – Media Expert and Leadership Coach
Kawanzaa began a rewarding career at Lucent Technologies where she championed excellence in positions of Project Management, Customer Business Solutions, and Sales. It was during her successful tenure as a Sales Executive that she discovered and refined her gift to connect and build relationships with her customers. This gift would later serve her radio and TV audience. Kawanzaa is the creator and producer of Live Life On Purpose Today! a vlog (journalistic video) that profiles the human story of passion and purpose. She is currently the anchor for Hometowne TV in Summit, New Jersey. Kawanzaa is a graduate of Goucher College with a BA in Business Management. A 2015 graduate of the Institute for Professional Excellence in Coaching, Kawanzaa is also a certified Core Energy Leadership Coach.

The WCEC welcomes any questions. Please call 973-507-9700.