All Forum Posts by: Lingo Lin

@Simon W. The home not paid off yet, I heard that putting it under an LLC controlled by a Trust as to not trigger the banks "due on sale" clause. Its for asset protection, not due to a slip and fall which the insurance will cover but liability outside with my name on it that puts my home at risk as its something of value that I own that can be taken away in a lawsuit. Thats just my train of thought.

@Eamonn McElroy I agree, if everyone actually applied what they learned we as a family would be in a very good place financially. But when a large part of the family does not apply what they learn and they need help from the rest of the family to get bailed out financially, something needs to change. This is what the family wants to see done as a group, we’re just trying to figure out what others have done. I will look into a family trust fund, thank you for the advise. We are seeking. RE Attorney and CPA, so at the moment we are just brainstorming and putting it all on a whiteboard before we go to the pros with a clear picture of what we want to do.

@Brian Gerlach Thank you Brian, 100% agreed, we are interviewing Attorneys and CPA’s with Real Estate focus. Since real estate investments would be the largest ticket items we as a group would buy, anything below that like a small business that same Attorney and CPA would be comfortable handling that too. Thank you for taking the time to respond.

@John Perrings is there a limit or penalty to how many months of payment can be missed?

Funds taken out are taken out as a loan correct?

The interest on the loan goes back 100% into one’s account?

I had a health and life Insurance license many years ago, I never really put it to use, so my knowledge is limited to what I can remember, which is not much :)

What I do remember at least from selling the products is that doing the math revealed that the portion in the whole life policy that covered the insurance was higher than the same face amount on a term policy.

I would assume this is due to a whole life insurance policy is just that for your whole life no need to seek it for a new term ever 10 years which would cost more as each term rolls in.

If the money can only be taken out as a loan, it won’t satisfy our families needs.

The forced savings element is so that part of that can be used for a group investment in say real estate.

Real estate when purchased and sold at the right times in the cycle can generate a higher return and offers more tax breaks than funds being held for decades in a whole life policy, as the value of the dollar goes done over time, it just doesn’t make sense, or I just don’t see how it does at this moment.

@Eamonn McElroy the forced savings element where say a family member can save all year long and only have say the month of November to take out part of what they saved, if its taken out any other time they will be taking out a loan and pay interest on their own money, interest goes back into their account.

You may be responsible with your savings, you don’t spend frivolously. This is not the case with many members in my family, and they are seeking a solution that will lock funds up but still allows them some control.

They don’t want a set monthly commitment as each member wont be able to commit to it. They prefer to be able to say what they can month by month.

Forced savings so that investments can be made as a group. No pipe dreams or get rich quick investments, we’ll be working with Investors in their specialized fields where they are successful.

I agree there may be issues from your Accountant point of view, but that’s why I am here, to understand what issues may arise. It won’t be for everyone.

With the help of a CPA and Attorney I believe rules can be set to prevent the Cons and enhance the Pros. If there are alternatives to reach the same goals, i’m all ears. Thank you for taking the time to respond.

@John Perrings thank you for responding. The family is hard pressed to make a set monthly payment which I believe a Whole Life Policy would require.

Can one simply put in what they can when they can?

Term life, although it will get more expensive on the next time as one ages, we believe would be a more cost effective option. What’s your take on that?

Also, how easy is it to get your money out when you need it? A simple request and within 24 hours its available?

What’s the average interest rate on the money you do take out? and does this interest go back into your own account?

The other major issue would be ongoing policy fees, that eat away at that savings, equal to a tax on one’s funds.

I live in New York, and have family in PA, NJ, and FL.

I have a family of about 25 members who would like to pool their savings into one account, and each member would like to have the option of putting their savings into another account for investing as well (real estate, small business, solely for loans).

We are deciding on issues like, if a family member needs some of the savings, that they would be allowed to take it out as a loan only and any profits made, part would be given to member and part would stay in the company.

Any interest from any loans or profit from any investment made would stay inside the company (LLC or Corp) so to not trigger the need to pay taxes until the money is taken out of the company.

The questions here cover Legal, Taxes, and Accounting.

Please note the savings account element is more to have a sort of forced savings within the family and the investing account is a way to pool our funds for worthy investments instead of taking out a bank loan in full or in part.

I’ve heard of Family Banks using Whole Life Insurance policies but we would like to have more direct control of our funds as a family, would also hate for an Insurance company to go under and this way we make our own rules.

Would LLC or Corp be best?

If its an LLC with one account for savings and another for investing be ideal, or are more accounts needed?

Can members or shareholders take out a loan if needed?

If member can take out loans, is there a limit to how much they can take out or how much interest we can legally charge that member?

If interest is made, this is income to the LLC, can tax be pushed to a year when/if this income was taken out of the LLC as a distribution?

If there is any interest made or profit made in LLC, and it stays in the LLC account, doing the LLC still have to pay taxes on that money or will it only be taxed if there is a distribution made to a member that year?

Can anyone suggest any accounting system to handle many personal loans at various rates and investments? that would be great too.

I was looking into banking software, microfinance software, non-bank banking software, etc.

Thank You

I have my personal home under my name and am considering putting it under an LLC, I did research which took me further into considering putting my own home as well as any rental properties I own in an Anonymous LLC.

This would be for protection from creditors.

Does anyone have experience doing this for your own property and or rental properties?

Please share if you do, thank you.