INVESTMENT OPTIONS TO REACH YOUR IDEAL RETIREMENT

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Traditional Investments

These types of assets are commonly found within the stock market.

Alternative Assets

Alternative assets are not publicly traded and tend to be less “liquid” than traditional investments.

Prohibited Investments

These types of assets are not permissible in a qualified account or retirement plan.

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By using a qualified self-directed account, individuals are provided access to investing in both traditional (publicly traded stocks, bonds, and mutual funds) and alternative assets (everything else allowable by the IRS). We specialize exclusively in the non-traditional to grant access to the alternative investment world. Once your account is funded, a world of opportunity is at your fingertips.

Limited Liability Company (LLC)

A Limited Liability Company (LLC) is a company registered with a state that offers lessened liability to its owners. Many times, it has characteristics most often associated with a partnership, rather than a corporation. An LLC consists of at least one member (which can be a person or a company), and each member has what is called “membership interest” in the LLC.

LLCs are often used in one of two ways:

Single Member LLC: In this instance, the single member is usually an individual who controls the investments made by the LLC. Single member LLCs have become an investment choice for investors due to their flexibility. In most cases, the LLC is owned 100% by the retirement account.
Multi-Member LLC: A multi-member LLC exists when the LLC has a membership interest greater than one individual or company. When structured appropriately, investing into a multi-member LLC can allow the investors additional buying power and investment opportunities by combining investment capital from many sources.

If an IRA is investing into an LLC, the account owner must be aware that the investments made in an LLC must adhere to the same rules regarding prohibited transactions and prohibited investment classes as investments made directly through a custodian.

Gold, Silver & Palladium Bullion

The IRS allows certain eligible precious metals, coins, and forms of bullion to be held in retirement accounts. The eligible metals must be held in physical position of a bank or approved non-bank trustee. The requirements for these types of metals can be found in IRC Section 408(m).

Real Estate

An investment in “real” property including residential, commercial, and raw land purchases.
The property can be rented to offset costs and increase value if the restrictions surrounding prohibited transactions are observed.

The property can be improved upon if the restrictions surrounding prohibited transactions are observed. If the property is being ‘flipped’, the account owner may need to be aware of potentially triggering UBIT. If real estate is debt financed using a non-recourse loan, the account owner may need to be aware of potentially owing UDFI.

Private Companies

A private company is a company that is not publicly traded. These companies include partnerships, LLCs, and corporations. Retirement accounts may not own shares of S-Corporations as retirement accounts do not qualify as shareholders. Investments may be subject to UBIT tax.

Since it can be easier to encounter a prohibited transaction when investing into private companies, the IRA owner must be aware of these rules and regulations to avoid a potential distribution of the assets.

Market Linked CDs

A Market Linked CD (MLCD) is a certificate of deposit whose performance is linked to selected securities or market indexes. MLCD terms are typically longer in length; terms are typically years, rather than months.

Promissory Notes

A promissory note is a legally binding contract outlining the borrower’s promise to pay back a sum of money to the lender within a defined time frame. Promissory notes are a form of private money lending

The terms of a note, defined by the lender and borrower, should contain all terms of the loan and repayment. Some of those terms cover items such as: the principal amount, interest owed, the parties involved with the note, the date, the terms of repayment, the payment schedule, and the maturity date.

Sometimes, provisions are included concerning the payee’s rights in the event of a default, which may include foreclosure of the borrower’s assets. Provident Trust Group does not review, vet, or set the terms of promissory notes that are held in client accounts. Promissory notes may be secured or unsecured:

Secured promissory notes indicate that the lender will receive the previously-agreed upon asset or property as collateral for the note (i.e. shares of a company or property) if the borrower defaults on the note.
Unsecured promissory notes do not provide that level of protection. If the borrower defaults on the note, the issuer does not have an opportunity to claim assets specified within the note, without additional legal action.

TAX LIENS / DEEDS

A tax lien is a lien imposed on property to secure the payment of taxes. Tax liens may be imposed for delinquent taxes owed on real property or personal property, or as a result of failure to pay income taxes or other taxes. They are imposed by the county in which the property is located. Some states don’t offer tax liens, but offer tax deeds instead. A tax deed sale is a governmental sale of real estate to cover nonpayment of taxes.

Foreign Investments

Provident Trust Group can typically hold investments in U.S. based companies whose holdings include foreign investments, and may hold foreign property, if the asset can be valued annually in U.S. dollars. Foreign assets are reviewed on a case by case basis to determine if Provident Trust Group can hold the asset.

Timber Rights

This type of investment involves purchasing the right to cut and sell timber from a piece of land. The Timber Rights can be sold/recorded so that it reserves the rights to the timber in a variety of ways such as:

In perpetuity or a certain period of time.

Or state that:

Only trees of a certain size, species, or quantity of etc. can be harvested.
Require the trees to be marked ahead of time.
Only allow trees located in a certain area of the property to be removed.

Structured Settlements

This type of investment involves the purchase of a payment stream. Typically, a person that is the recipient of an income stream (perhaps from an insurance settlement) sells all or part of their future income stream for a lump sum.

Mineral Rights

Also known as a “mineral interest”, this type of investment involves purchasing the right to exploit, mine, and/or produce any or all of the minerals below the surface of a piece of land. Minerals can refer to: metal ores, oil, gas, salts, sands, or stones.

Effective 6/15/2022:

If you have funds in your PTG account that are not subject to a current Direction of Investment (or awaiting your direction), or uninvested cash funds, those funds will be deposited in the investments listed below until you provide direction otherwise.

Lincoln Stable Value Separate Account – PTG UF

Governmental Money Market Fund (WFFXX)

The uninvested cash fund balances are allocated so the Lincoln Stable Value Separate Account – PTG UF will hold approximately 75-80% of the funds as of 6/15/2022, the Governmental Money Market Fund will hold a majority of the remaining funds to generate interest and preserve liquidity, and any residual funds not invested in either fund will be kept in various Wells Fargo bank deposit accounts overnight. Any fluctuations in the cumulative uninvested cash fund balance could then change the Governmental Money Market Fund balance and the residual bank deposit account balance on a daily basis. The Investment Committee reserves the right to modify the balances maintained in any of the listed investments if business conditions warrant a change to accommodate an unexpected liquidity event.

Your account will be credited with a portion of the earnings on these fund balances. Provident Trust Group will credit interest earned on Uninvested Cash Balances to your accounts within 30 days after month end. The interest rate paid on Uninvested Cash Balances will be adjusted on a monthly basis based on actual interest earned during the prior period, with a minimum rate of 0.001% to be paid on all balances. Between January 1^st, 2023 and January 31^st, 2023, the interest rate paid on all balances is 0.003%, with a jumbo rate of 1.260% applicable to an owner’s accounts if the owner’s combined average Uninvested Cash Balance exceeds $3,000,000 during the prior month. Rates between February 1^st, 2023 and February 28^th, 2023 will be 0.003% with a jumbo rate of 1.315%. Rates effective March 1^st, 2023 will be 0.004% with a jumbo rate of 1.780%

Provident Trust Group will retain the interest earned on the money held by Provident Trust Group for assets held pending investment instructions or while waiting for a distribution check to be presented for payment, or “float.”

The approximate uninvested cash fund and float earnings retained by Provident Trust Group are calculated monthly. The monthly rates for 2022 are as follows: January 0.01%, February 0.18%, March (0.03%), April 0.16%, May 0.53%, June 1.42%. July 2.25%, August 2.17%, September 2.21%, October 2.52%, November 2.63%, December 3.56%. Provident Trust Group estimates that it will earn 3.64% on uninvested cash fund and float earnings in January 2023.

Provident Trust Group will hold funds from all checks for a minimum of 2 business days from the date of deposit to ensure the funds are collected and determined to be good funds. Funds from personal checks will be held for a minimum of 5 business days from the date of deposit before Provident Trust Group will release the funds.

Endless Investment Options

The IRS only states what you can’t do. There is a world of opportunity available to you.

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