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Losing a job ranks among the highest of all stress causing situations. The most immediate issue you have to deal with after the loss of a job is making sure you can still provide for yourself and your family. Even in these unprecedented times, the world has not stopped moving. The every day stresses of life, along with the bills are still there.
Having the assurance that the mortgage will be paid can make the difference between you being able to navigate the uncertainty that lies ahead and be able to protect and take care of your family with a safe place to shelter or getting caught in a dangerous spiral of insecurity, worry, and hopelessness.
We were fortunate to help many during the financial hardships and unemployment that was faced in 2008. Here is one example of someone we helped:
Based on actual clients of Lasaii Benefits:
*Names in this case study have been changed to protect our client’s privacy.
In May 2008, Jacob lost his job in Albuquerque, New Mexico. He was scared and upset. He had purchased a home a few years back. The purchase had made him a proud homeowner. He was angry at the thought that after all of his hard work, he may still lose his house. He researched his options and found us through an internet search.
When Jacob spoke with us, he expressed his frustrations and the challenge he was facing in not being able to find employment, though he had been searching and applying exhaustively. He really did not want his home, which was his pride and joy, to go into foreclosure.
Luckily, Jacob had a $320,000 401K from his previous employer that had to perform layoffs. Lasaii Benefits was able to roll his 401K over, tax-free, into our SAFE HARBOR®-Directed IRA™ (SHIRA™). The SHIRA™ was then structured to help pay Jacob’s monthly mortgage payments, entrusting that Jacob would not lose his house and giving him the peace of mind to carry on with hope for his future, security, and the confidence to protect and provide for his family. On top of that, Jacob had a tax effective IRA real estate investment that enhanced his portfolio, lifestyle, market position and legacy.
Summary of IRA Real Estate:
Lasaii structured the SAFE HARBOR®-Directed IRA™ (SHIRA™) to protect Jacob’s home by:
1). Structuring his IRA to support the mortgage of his home:
The SHIRA™ was customized to help make Jacob’s mortgage payments on his primary residence because with our program THERE ARE NO PROHIBITED TRANSACTIONS.
2). Tax benefits:
IRA funds are considered income and therefore can carry a tax liability, but with our program, the tax liability of using your IRA funds are totally or partially eliminated because of the tax benefits associated with real estate ownership and property taxes. (If you qualify).
3). Offer Step Up in Basis for Heirs
The SHIRA™ has the benefit of step up in basis at death, therefore, Jacob’s children will someday inherit the real estate at its appreciated value, with no tax consequences to them. If Jacob were to rent his property out down the road as a way to make additional income, he could have the option to file the real estate as a rental and could then also qualify for a 1031 exchange.
4). Flexibility:
When Jacob becomes employed again, he could continue to use his SHIRA™ to support his mortgage on his primary residence and use his income to invest in something else. He could use his SHIRA™ to purchase and invest in more real estate, or he could just let it accumulate and grow for his retirement. Each SHIRA™ is totally customized to best fit your wants and needs.
5). Asset protection:
The SHIRA™ is protected from any possible downturn in the stock market, with upside interest earning potential when it does well-giving Jacob the peace of mind that his money isn’t going anywhere.
Lasaii Benefits offers a viable solution to mitigate the crisis many recently unemployed may be facing in meeting their mortgage payments.
Retirement monies can be structured to be applied to an existing mortgage. The SAFE HARBOR®-Directed IRA™ (SHIRA™) is a comprehensive estate planning approach to IRA real estate that incorporates real estate and individual tax laws within IRA regulations to support the purchase of real estate, while at the same time, ensuring the security and longevity of the principal of the retirement fund.
The flexibility of this program allows for either short term cash flow relief or longer term diversification of retirement monies into real estate. The SHIRA™ is a smart solution as your retirement monies are not being wasted each month, but rather are being put towards your mortgage payments on your real estate, protecting your family’s home from foreclosure and being able to keep that real estate asset to continue to grow your wealth long-term.
Endless Options with the SHIRA™:
Our program is customized to work with each indiviuals’s needs. For example, maybe you just want to take a portion of your IRA funds to open the SHIRA™ to help support the mortgage on your home now to weather this uncertain time we are all facing.
Or, maybe this experience with the volatility in the markets has made you want to diversify your portfolio even further and invest a larger amount of your IRA in the SHIRA™ because of it’s asset protection and opportunity to invest in real estate that you could personally use and/or use to create income. Though the real estate market is currently at an almost standstill, since most are doing their part and staying at home to flatten the curve and help the doctors and nurses that take such good care of us, we do see signs that point to a potential buyer’s market in the future and when this is all over. You could then essentially have two investments-your SHIRA™ and the real state, working together in perfect synergy.
*And remember, not a single client of ours lost a dime of their IRA funds in 2008 or in these past weeks of intense market volatility.
We Want to Help:
We find ourselves again in 2020 with immense financial hardship and high unemployment. Only this time is unprecedented. We’ve never seen anything like this in our lifetime, so we really don’t know when our lives will be able to return to “normal” -and that can leave many feeling helpless and anxious.
If you lost your job due to the crisis and have an IRA, 401K or other qualified plan, we can help you protect and keep your home, which is now more important than ever.
If you or anyone you know could be helped by our program, please share this information with them. We offer free phone consultations to discuss your options and how our program can best fit your wants and needs.
“This is one of the better decisions we made with Alberto’s assistance and we’re glad we found you when we did. My wife and I comment on that decision often and believe our Guardian Angels sent Alberto to us. Our sincere gratitude to him and his logical thinking.” — Rachel and Steve, H., Colorado, Client
