Johnkrol's Weblog

Blog title…

johnkrol — Mon, 21 Sep 2009 17:28:46 +0000

Social Media Central » NLP
http://ping.fm/s88tR
Neuro-linguistic
programmingNLPTOPICSHistoryNLP and scienceMethodsPositive/NegativeMETHODSMeta modelMilton modelAnchoringMetaphorReframingRep. systemsSubmodalitiesPerceptual …

johnkrol — Mon, 07 Sep 2009 19:10:35 +0000

System down until tomorrow error in backing up and lost three weeks My bad

johnkrol — Mon, 24 Aug 2009 01:18:51 +0000

See my new best friends at Gnomedex 9.0

If you can make it its a real adventure in the future of technology coming on line

johnkrol — Mon, 24 Aug 2009 00:39:05 +0000

Checking the ability to send to more than one service at a time. “With all the services its a bit much to update them all”

johnkrol — Mon, 24 Aug 2009 00:26:37 +0000

Working with Ping at a remote loication

johnkrol — Thu, 30 Jul 2009 20:44:11 +0000

NeoConomy by Daniel Altman the revolutionary gamble with America’s future http://ping.fm/nqqSZ

Tools ‹ Johnkrol’s Weblog — WordPress

johnkrol — Mon, 15 Jun 2009 23:10:39 +0000

A way for Boomers to create Positive Cash Flow

IRA-401K-Real-Estate

johnkrol — Mon, 14 Jul 2008 01:38:35 +0000

IRA-401K-Real-Estate

Most of my product and service development is centered around the theory that for most average Americans, a self directed IRA/401k actually is too risky. The conventional way of investing involves pushing a button or placing a phone call to effect a securities transaction. This new way of investing holds potential power, but for most people simply opening an account and then being thrown out to the wolves doesn’t work very well. This type of balanced viewpoint is not usually spotlighted by companies who make their money in convincing people to open self directed accounts. There is a lot of focus on opening accounts and setting up LLCs, but very little focus on how to actually find, evaluate, and buy profitable alternative assets.

So how well are accountholders doing in isolation? It’s very hard to tell because there’s never been a survey done to get a good feel (I’m currently working on having IRAAA perform such a survey). My involvement in the field has found me often times listening to people’s investment plans, and although I haven’t followed up with everyone whose plan I’ve listened to, I would speculate that many have proven to be disastrous. I’ve heard people talk about putting all of their IRA funds into a deposit on a pre-construction property in a soft real estate market with no plan or resources to close on the property. I’ve heard people come up with creative ways to break the prohibited transaction rules, planting a time bomb that goes off in the event of an IRS audit. And most of all, I’ve heard thousands of people talk about throwing diversification out the window simply because real property and private businesses costs more than a stock or mutual fund.

The main cost of isolation is that thousands of people can be suffering the consequences of the same basic mistakes. Sounds pessimistic right? Don’t worry I think I have a solution and it’s coming in a future post.

Boomers Bank http://blog.ira-401k-realestate.com

Bulletproof Your Wealth with Family Limited Partnerships and LLC’s

johnkrol — Sun, 13 Jul 2008 15:05:00 +0000

Bulletproof Your Wealth with Family Limited Partnerships and LLC’s
by Bill Bronchick

Thinking and planning are key

A limited partnership is a partnership that has at least one limited partner and one general partner. Most states require the filing of a certificate with the state in order to be recognized as a limited partnership.

The limited partners generally have no liability beyond their contribution to the partnership. If the limited partnership business fails, the creditor cannot go after the limited partners for debts (there are a few minor exceptions to this rule that are not difficult to avoid). Furthermore, limited partners are not personally liable for wrongful acts committed by the other partners. In exchange for this limited liability, the limited partners give up their right to participate in the control and management of the partnership.

The general partners run the management of the partnership. The general partners control the cash distributions to the partners. The general partners also have unlimited liability, as in a general partnership. Creditors of the partnership can look to the general partners’ personal assets if the limited partnership’s assets are insufficient. Furthermore, the general partners are liable to third parties for wrongful conduct within the partnership business (e.g., a “slip and fall lawsuit”). Thus, a corporation is usually better for pure liability protection for its owners.

The limited partnership does not pay taxes as an “entity.” It files an informational tax return to the IRS. It issues a form K-1 to the partners who include the partnership income or loss on their personal tax returns. The partners must pay income tax on all gains whether or not the profit is distributed.

Creditors of individual partners cannot take a partner’s place in the partnership. A creditor may garnish the partner’s share of income (called a “charging order”), but has no right to participate in the management or utilize partnership property. Thus, if a limited partner’s income is garnished by a creditor, the general partner (who should be under the limited partner’s control) can frustrate the creditor by not distributing income to the partners. Since a partner is required to pay taxes on his share of the income whether or not the income is distributed, guess who gets the tax bill? You guessed it, the creditor! If your assets are held in a limited partnership, they are virtually judgment-proof!

The Family Limited Partnership

Let’s look at a variation known as a “family” limited partnership. Suppose that you and your spouse create a limited partnership to hold your family’s liquid assets. Your limited partnership contributions are all of your stocks, cash, CD’s and mutual funds totaling $300,000. Your partnership agreement could state that your spouse will act as general partner with a 2% share (the size of the general partnership share does not affect the general partner’s power to manage the partnership’s affairs). You agree in writing that your contributions constitute a 98% limited partnership interest.

The partnership agreement could further state that the limited partnership shall have the right to buy out the general partner for his share of the partnership and appoint a new general partner to replace her (the “you” in this example is the husband; we are making the wife general partner because we assume that husband’s risk of getting sued is higher; if the opposite were true, then we would arrange the partnership accordingly).

Let’s say that you are sued and a creditor obtains a $50,000 judgment against your name. The creditor can attach your limited partnership interest but only to the extent of your income as a limited partner (called a “charging order”). The creditor who attaches a limited partnership interest cannot participate in the management of the partnership, and thus cannot force the general partner, your spouse, to distribute income. As general partner, your spouse stops paying the limited partners’ distributions, because in her discretion the limited partnership would be better served to reinvest the capital.

One year later, the creditor still has a $50,000 unsatisfied judgment. Just to top it off, the partnership sends the creditor a form “K-1″ for the creditor’s share of your “phantom” income (In our example, the partnership assets are worth $300,000. At a 10% annual return, your share of income would be approximately $30,000 – the creditor would have to pay income taxes in the ballpark of $10,000! If the creditor does not pay the tax due on your undistributed share of income, the IRS may come after the creditor!). You will be in a strong position to force your creditor to settle his claim for a fraction of its value.

Let’s say a creditor sues your spouse and tries to attack your spouse’s general partnership interest. At that point, the partnership exercises its power under the partnership agreement to buy out her general partnership interest in the amount of $2,000 or 2%. The partnership then finds a new general partner. With proper planning, this may not be considered a “fraudulent” conveyance because the general partner received full compensation for her partnership share.

As you can see, the limited partnership is one of the few entities which affords control over your money, yet still provides you with asset protection.

“Family” LLC’s – To Good to be True?

Another similar tool for protecting your wealth is the LLC or “Limited Liability Company.” An LLC is like a cross between a corporation and a limited partnership. All of its partners (called “members”) have limited liability and all of its members can participate in the management of the LLC without suffering any liability.

Any assets you hold in an LLC are protected from creditors in the same way your assets are protecting in a limited partnership (i.e., the creditor’s remedy is limited to a “charging order”). In addition, since all members are shielded from liability, an LLC may be an excellent device for holding investment real estate – the members are protected from tenant lawsuits and the equity of the members is protected from other creditors.

Bill Broncick

johnkrol — Sun, 13 Jul 2008 14:56:08 +0000

Bill Bronchick Bio

Bill Bronchick BIO

William Bronchick, CEO of Legalwiz Publications, is a Nationally-known attorney, author, entrepreneur and speaker. Mr. Bronchick has been practicing law and real estate since 1990, having been involved in over 600 transactions. He has appeared as a guest on numerous radio and television talk shows including CNBC Power Lunch. He has been featured in Who’s Who in American Business, Money Magazine, the Los Angeles Times and the Denver Business Journal. William Bronchick has served as President of the Colorado Association of Real Estate Investors since 1996.Bill