Categories: Podcast

Investing In Your Retirement Account with No Taxes with the EQRP! – Damion Lupo

Synopsis

Damion is a best selling author and founder of the eQRP. The eQRP is a fascinating tool for investing in your retirement account because with a self-directed IRA, you still need to pay taxes if you used leverage to purchase the asset! With a eQRP, you get full control of your check book and you don’t need to pay taxes on the gains of an asset, even if you used leverage to buy it!

Key points

  • If you’re investing your IRA money in real estate and there is leverage or debt, you are subject to a tax called UBIT or Unrelated Business Income Tax.
  • The EQRP or the Enhanced Qualified Retirement Plan is a way to invest your IRA money, with leverage (debt), in real estate without being taxed. It is a qualified plan exempted from UBIT.
  • An EQRP is for anybody who wants to invest their IRAs in any investment other than stocks and bonds.
  • Opening up a self-directed IRA account will just let you invest in things other than equities. It won’t necessarily protect or exempt you from paying taxes on your profits.
  • You need a team to help you not just in setting up an EQRP account, but also to help you be compliant. This team will make sure that you won’t mess up your account and incur penalties as severe as having your account closed. Having a team is your first step.
  • In an EQRP, you can borrow 50% of your funds anytime or up to $50,000, for anything that you want to use it for. This is a very useful tool to get cash when you need it.

References

Terms discussed

Resources

Ralph Miller

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  • Have you considered the benefit of Infinite banking theory with Whole Life insurance that is structured with non-direct recognition? It is an alternative that can be utilized without the worry of any tax consequences at all, no need to hire a team, and taking advantage of arbitrage in your loans from the cash value in your whole life insurance policy.

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