Client Story IV

In addition to creating an estate plan, the client was operating a business with a partner without any type of corporate entity.  The firm was engaged to create a Texas LLC with two members and three managers ( adding a spouse as a manager act as a tie breaker and is a great estate planning tool).  After six months it became clear that the partnership was not workable.  In order to prevent any future claims, the LLC had to be dissolved which is a three step process.

Client story III

This required a combination of the formation of a Texas LLC, and a trust for his wife and two adult children, hiring an attorney to provide the deed transfers into the new LLC.  It also became apparent that this 60+year-old man had a very expensive life insurance policy that was no longer necessary and had no long term care planning.  This process is still ongoing.

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Whether you just left the attorney with your new estate plan, or are considering creating a new one, give us a call.  We also form entities to protect your assets.  Call me personally at 512-464-1110, or email me at david@pcfo.net.  If you would like more information complete the form below and we will do our best to provide you with additional information.  Talk to you soon!  To get your free checklist please complete the form requesting it or ask any question you may have.

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Taxes In an IRA

Did you know an IRA may have to pay taxes and file its own tax return?  Did you know an IRA can borrow money?

Yes even a Roth may find itself as a tax payer.  Per IRS rules, any gains or income that is attributable to leverage must pay tax on that which was derived from the leveraged portion.  Many IRA owners invest in partnerships and receive a K-1 which should delineate any gains which are attributed to debt vs. equity.  However even a self directed IRA must pay taxes on leveraged gains.  The tax is called UBIT or unrelated business income tax.  The theory behind it is that IRA’s, pension plans, and any non taxable entity would have an unfair advantage in business if all its gains were tax free.

Only a CPA can tell you exactly how to file and how much to pay.  As an example, if Paula Smith decides to open an IRA and invest in a rent house, all the income and gains from that house would be deferred like any other IRA investment.  If, however, Paul borrows money to improve the home, the gain on the borrowed portion is taxable like any other borrower.  Taken one step further, if an IRA invests in an LLC and that LLC has debt financing, a portion of the IRA’s gains may be taxed.

On a similar note, we have lenders who will loan money to the IRA for such purposes.  Taxes are not all bad – it means you made money.

Call David Disraeli for more information at 512-464-1110

Your Bank Account is Frozen – How to De-link Your Future by David Disraeli

If you read that headline would you really be surprised?

Imagine waking up one day, logging into your bank account only to find that the site is inaccessible. You call the bank and the lines are busy. You go to the ATM and there is a line of cars. The bank lobby is full of panicked customers and police trying to keep order.  This is sure to happen in your lifetime!

I am not a doomsayer or alarmist.  I am a 30 year financial markets veteran and observer. My experience and observations are for your enlightenment or entertainment depending up which part of the continuum (from completely indifferent to overly paranoid) you sit.  

Have you ever considered the real possibility of not being able to get to your money, if even for a few days? What if it took longer? This is a real possibility. Some believe the Chinese already have access to our power grid. It is not unthinkable that a rouge nation or terrorist organization could bring down our banking system, starting with the fed and working its way down to simple credit card processing. Perhaps its not due to a terrorist attack but a bank crises fueled by fear, war or Marshall law.  No one knows.  The FDIC does not have a fraction of the funds to meet mass redemptions any more than an insurance company could cover all the traffic accidents of all their policy holders. Many businesses base their policies on assumptions – what if they are wrong?

The only way to protect wealth is to de-link. An extreme version of this may be to put your money in gold or silver and hide it. Other less fatalistic approaches are to simply move money into instruments that DO NOT track the stock market and do not involve bank accounts.

Personally I am a conservative Christian and I believe God is in control.  However I buy insurance, watch where I am going and taught my kids to look both ways before crossing the street.  I was given common sense and I try to use it.  Common sense tells me something is very wrong.  Every day now we wake up to bizarre news stories of unspeakable human acts.  I grew up when this was not the case, but the exception.

How is it that the stock market continues to float a lofty levels with all the threats we are facing?  The national debt is enormous,  the GDP is growing at a lethargic pace. we have tension with Russia, a cook running nuclear North Korea and the Middle East is in chaos.  The reason the market seems to ignore bad news is two fold in my estimation: 1.  Money is pouring into stocks from the $billions of 401(k) contributions each pay period and 2.  There simply is no other vehicle with the promise of returns.  CD’s are not an option, bonds pay slightly more.  How long can this last?

I still believe in America, although I do not trust the government.  I believe in Amazon.com, Dell, Home Depot, Sams and many great companies.  I am convinced that they will continue to grow, open new stores and increase revenues.  The problem is the value of their stocks can move dramatically in a matter of hours without regard to the underlying reality of these company’s fundamentals.  If you are close to or in retirement, a major crash will affect all companies, good and bad and this will affect your lifestyle. others.

What do I mean exactly by “De-link”?  First lets talk about the problems with the financial advice industry and the financial media.

  1. The vast majority of investment advisers and brokers see the world from a limited point of view.  They primary work with stocks and bonds.  They never tell their clients to fire them and buy real estate or private notes, or hard assets.  Also, most of American’s net worth is in retirement plans that do not allow access to rental property or other hard assets.
  2. The media reports on the “markets”, which in the grand scheme of things is a microcosm of what is available.  Therefore the public is bombarded by messages that vary 180 degrees from one pundit to another.
  3. Both the media and the industry promote long term, buy and hold philosophies.  Some are calling for a complete crash and advise selling everything.  Both extremes are wrong.

The term “linked” as used in this post means anything you owned that is tied to or directly affected by the stock market, the banking system and the U.S. Dollar.  If an alien came to earth and said he had a million dollars to invest, would put 100% or any of his money in U.S. Dollar denominated investments?  Not if he had any sense.  So so do we?  Its a good question and I will let you answer it.  Examples of assets that are de-link are gold, commodities like oil, copper, grain, real estate, life insurance cash values and many others.  Commodities are traded all over the world and therefore not based on the Dollar.  Life insurance companies are insulated from the banking system.  Real estate is obviously not tied to the financial markets, but more importantly it never goes to zero – some stocks do.  God is making more people, but not more real estate.  What dictates the price of anything?  Supply and demand.

Regarding stocks, if company x opens at $40 per share and goes to $41 by lunch, has the value of the company real changed in a few hours?  Of course not.  The humans who are buying and selling that stock are controlling the price based on their collective behavior which has nothing to do with the company itself or its prospects for the future.  This is why a 20% drop on the market or a 50% drop is very possible and has happened many times in the past.  The buy and hold crowd says if you buy quality and hold, eventually you will recover from whatever correction (a nice way of wording the process of getting clobbered).  Well what if the market does not come back during my lifetime?  Sure my grand-kids will be fine.  Plenty of Japanese investors who invested from 1986 to 1990 are STILL UNDER WATER – that is 30 years of zero return.  So what do my comrades mean by eventually?  This philosophy is either motivate by commissions, fees, or ignorance – or maybe a combination.  At the other end of the spectrum are the doomsayers.  In my  thirty years, I have continually heard the market is too high, better get out while you can.  When I started the Dow was at 2000 and my whole office just sat at their desks shaking their heads.  Surely the market can’t go above 2000, son you better find another job.

Well I didn’t have enough sense to find another job and today the market is over 18,000.  So what is the answer?  If both the buy and holders and the doomsayers are both wrong, what is one to do?  No one knows the future, but most people are nervous and rightfully so.  The answer is to de-link some or all of your assets.  The market dropped 38% in 2008.  If you had the bad luck of retiring then, you may have had to spend principal to pay bills and miss out on some of the rebound.  We are facing the possibility or probability of a major financial earthquake with the markets, the dollar, the banks, or some of each.  The specific answers as to how to de-link will depend on each person’s individual situation.  Should you buy gold bars, gold stocks, or silver, or platinum, or copper?  Every form of de-linking has multiple variations.  Should you buy rent houses, strip centers, raw land, stocks that hold real estate?   Clearly sorting this out is a challenge, one we are prepared to sort out.

David Disraeli in the News

06-20-2016 12:02 PM CET – Politics, Law & Society
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David Disraeli, President of The Personal CFO in Austin TX Announces a New Partnership with Legal Shield

Press release from: The Personal CFO, Inc.

The vast majority of consumers do not have access to the legal system. Many times it is cost prohibitive to engage an attorney when legal issues arise. For this reason, David Disraeli has become an associate of Legal Shield to offer his clients access to top attorneys in every area of the law at an affordable price.

Legal Shield (formerly Prepaid Legal) has been in business over forty years, has over 1.4 million users and operates in 49 states. David Disraeli is often confronted with client’s legal problems from being in the financial advisory business for thirty years. Issues such as bankruptcy, foreclosure, credit card debt, divorce, landlord tenant issues are just a few.

 By being associated with Legal Shield, David Disraeli can now confidently refer his clients to a law firm that offers legal advice 24/7 365 days per year for a low monthly cost. It is a fact that most people will eventually confront situations that require legal assistance. The firm offers unlimited phone calls, free wills, (one per year), free review of documents up to fifteen pages, uncontested divorces, name changes, traffic tickets and more. If an item is not covered, members receive a 25% discount off the normal fee.

If a person has ever been sued, lost their wallet, had their identity stolen, had trouble with a warranty, car repair shop, accident, moving violation, issues with leases or tenants, injuries on their property or to themselves, they needed legal advice. Without a flat fees, people can run up hundreds or thousands of dollars in legal fees in a short time. Legal also offers plans for gun owners and businesses.

For a complete explanation of this new service, call David Disraeli at 512-464-1110 or email him at david@pcfo.netDavid Disraeli and The Personal CFO, Inc. offer comprehensive financial, tax, and estate planning advice as well as alternative investments. The firm was founded in 1993.

2101 S. Lakeline Blvd
Cedar Park, TX 78613

Austin, TX 6/18/2016  
David Disraeli, President of The Personal CFO in Austin TX Announces services to halt foreclosure in Texas
Many homeowners are unaware that very often lenders who foreclose on homes do so without the proper paperwork, and therefore illegally. Unfortunately once the foreclosure takes place the homeowner must sue for wrongful foreclosure in order to get the house back. Texas is a non judicial foreclosure state which means that lenders may foreclose and take a property back without involving the courts.

The good news is that foreclosure can be stopped dead in its tracks through a restraining order or bankruptcy and other techniques. Of course some of these processes involve an attorney, expenses, and may not work.

Congress has recently become aware that banks and mortgage companies are foreclosing on homes without following proper procedures. In fact Bank of America and other banks halted foreclosures for a time to reexamine their procedures. The key issue is that loans are sold and re-sold along with the servicing rights and many time the foreclosing bank isn’t even entitled to foreclose because the transfer of owners wasn’t Done correctly. To see if you qualify for an emergency stay of foreclosure.

Some people are still living in homes were they have not made a payment to their mortgage company in ten YEARS! Our firm does not advocate the use of maneuvers to avoid paying legitimate debts. Instead we advocate for consumers and educate them on their legal rights in Texas. Lack of information can be financially deadly. There are at least ten different ways to put a bank on hold. While restraining orders are good for one month, other techniques can be used to hold the bank off for much longer. For example, if you have a buyer a bank make agree to take less than what is owed just to avoid the whole process.

For a free analysis of your situation, call David Disraeli at 512-464-1110 or email me at david@pfo.net

Austin, TX 1/14/2016
President of The Personal CFO, Inc says that market risk is not the most important risk to investors
Author David Disraeli and prominent financial advisers says that identity theft and the risk of losing assets to a judgment creditor may be more important than market risk.

David Disraeli, President of The Personal CFO says that although market, inflation and income taxes are serious impendences to future lifestyles, there are other risks that are unaddressed. Criminals are becoming more sophisticated every day. Identy theft is becoming more and more prevalent. In fact, not a day goes by without the media announce that Target or some huge institution like the Department of Defense has be breached and thousands of social security numbers have been stolen.

In addition, most financial planners fail to plan for the possibility that a client may be sued and have their hard earned money going to a perfect.stranger. Fortunately there are a number of easy tools and techniques to make oneself judgment proof or at least judgment resistant.

Identity theft is not only related to financial transactions. A crime could be committed in someone’s name without them knowing it until they are arrested. There is also medical fraud where criminals are using someone else’s identity to obtain medical care and taint the victims’ medical history.

David Disraeli, founder of The Personal CFO, Inc. announced today that he has released a revised version of his book “What to Do With Your Aging Parents”

Online PR News – 28-December-2015 – Austin, TX – David Disraeli wrote “What to Do With Your Aging Parents” after spending many years in the financial planning business. He noticed that few clients knew much about their parents’ estates or the location of important documents. What is worse than trying to find important information or documents during a health crises? It is a forgone conclusion that before we die we will most likely do through some period of disability, either mental or physical or both.

This book was written both to the baby boomer with aging parents and the aging parents themselves. No one in Texas dies without a will, either the one your provide or the one the state provides. However without proper powers of attorney, no third party may act on behalf of you, your parents or any adult. If you wait until a crises it is too late. The courts get to decide who has the power.

The six step plan is a multi generational road map for both adult children of seniors and the seniors. It addresses the financial, emotional and legal consequences of aging. The goal is to smooth out the aging process before a major event forces plans and decisions during a heightened emotional state. For more information see www.agingparents.net. To buy the book, or view its contents do a search for the title on Amazon.com. It is available in paperback and Kindle.

 

Legal Services

David Disraeli, President of The Personal CFO in Austin TX Announces a New Partnership with Legal Shield

 

The vast majority of consumers do not have access to the legal system.  Many time it is cost prohibitive to engage an attorney when legal issues arise.  For this reason, David Disraeli has become an associate of Legal Shield to offer his clients access to top attorneys in every area of the law at an affordable price.

 

Legal Shield (formerly Prepaid Legal) has been in business over forty years, has over 1.4 million users and operates in 49 states.  David Disraeli is often confronted with client’s legal problems from being in the financial advisory business for thirty years.  Issues such as bankruptcy, foreclosure, credit card debt, divorce, landlord tenant issues are just a few.

 

By being associated with Legal Shield, David Disraeli can now confidently refer his clients to a law firm that offers legal advice 24/7 365 days per year for a low monthly cost.  It is a fact that most people will eventually confront situations that require legal assistance.  The firm offers unlimited phone calls, free wills, (one per year), free review of documents up to fifteen pages, uncontested divorces, name changes, traffic tickets and more.  If an item is not covered, members receive a 25% discount off the normal fee.

 

If a person has ever been sued, lost their wallet, had their identity stolen, had trouble with a warranty, car repair shop, accident, moving violation, issues with leases or tenants, injuries on their property or to themselves, they needed legal advice.  Without a flat fees, people can run up hundreds or thousands of dollars in legal fees in a short time.  Legal also offers plans for gun owners and businesses.

 

For a complete explanation of this new service, call David Disraeli at 512.-464-1110 or email him at david@pcfo.net

Client Testimonials

Reviews

June 15, 2016

I met David Disraeli through a mutual friend. I was referred because David is an expert in estate planning and I am not. He also handles alternative investments which help offset the risk of owning stocks. I could not be more pleased with the relationship and I would highly recommend him to others.

Tom C. Round Rock

June 14, 2016

Al J.David was very helpful in developing wills and Power of Attorney documents for my wife and I. We feel very confident that our family will have everything they need to fulfill our final request. Thanks David for all your help.

6/2016
I have known David for over 5 years now and he has always exemplified quality professionalism and great depth of knowledge in the financial markets. He has extensive experience with investment management, asset allocation, financial and retirement planning, as well as estate planning. Moreover, he is highly ethical and a valued trusted advisor.
9/2011

Greg M.David was contracted to update my parents’ will and estate planning. Everyone concerned was pleased with the final product, and I believe the analysis was thorough. There were a number of areas we might have overlooked had we not consulted with him.

6/2011

Thank you David for the heads up on how to buy the least expensive term insurance.  It came back cheaper than you expected!

Skip F. 

5/2011

Mr. Disraeli, who owns the site www.pcfo.net, completely changed my thinking about 401k plans and tax deferred investing. I never really thought about the fact that tax rates could be, and probably will be much higher when I go to withdraw money from these accounts. Now have started a pool of tax free cash I can draw upon regardless of what tax rates do.

5/2106

I have used David Disraeli to update my estate plan.  He was thorough and highly knowledgeable.  He explained things well and caused me to think about issues that were important but never crossed my mind.  If it were not for David I may still not have an estate plan.

Laura C. Lewisville, TX

6/2011 

  • I am 23 years old and just inherited a fair amount of money. My dad suggested that I sit down with Mr. Disraeli and learn about investing instead of just asking him to handle the money. Now I have a very solid understanding of my investment options and things to think about for the future. Thank you David  
  • 6/2011

    My husband and I have used David for years.  He is a true professional and is always patient.  We have used him for retirement planning and insurance.

Merna D.Austin, TX

6/2011
As a parents of four college-bound kids, my wife and I had no idea how we were going to pay for their education. Fortunately, a friend recommended  that I attend one of Mr. Disraeli’s workshops. Afterwards, we sat down with him where he explained the ins and outs of the  financial aid process, including how to estimate how much aid we would  qualify for. One thing that really surprised us was discovering that our rent house would cost us aid dollars. At least now, thanks to David, we know what we’re facing and can plan accordingly.

Fred W. Cedar Park, TX

6/23/2106

David let me know exactly what to expect if our loved one dies and what documents we will need to make things much easier afterward.  His advice really gave me peace of mind.

Ruth S. Highland Village TX

How to Stop Foreclosure

David Disraeli says Foreclosure in Texas Need Not be Automatic

Most people facing foreclosure in Texas are unaware that they have other options besides letting the house go back to the bank or declare bankruptcy.

Many homeowners are unaware that very often lenders who foreclose on homes do so without the proper paperwork, and therefore illegally.  Unfortunately once the foreclosure takes place the homeowner must sue for wrongful foreclosure in order to get the house back.  Texas is a non judicial foreclosure state which means that lenders may foreclose and take a property back without involving the court system.

The good news is that foreclosure can be stopped dead in its tracks through a restraining order.  Of course this process involves an attorney, expenses, and may not work.  Congress has recently become aware that banks and mortgage companies are foreclosing on homes without following proper procedures.  In fact Bank of America and other banks halted foreclosures for a time to reexamine their procedures.  The key issue is that loans are sold and re-sold along with the servicing rights and many time the foreclosing bank isn’t even entitled to foreclose because the transfer of owners wasn’t Done correctly.  To see if you qualify for an emergency stay of foreclosure call David Disraeli at 512.350.4159

David Disraeli is not attorney and cannot give legal advice.  However Mr. Disraeli analyzes homeowners’ circumstances and where appropriate make referrals to local attorneys.