The effects of the COVID-19 virus has impacted every member of the society. Schools have shut down, restaurants are no longer able to service dining customers, and people are forced to work from home or not work at all.
The virus also infected the United States economy. February 19 marked the peak of the S&P 500’s market until it spiraled down to its lowest point of the year on march 23, 2020. During this time frame people lost significant portion of their retirement income and suffered a major 30% correction (loss). With the “Shelter In Place” ordered by the government, people around the world stayed in their homes for fear of catching the COVID-19 virus; or even perhaps spreading of the disease. The global market literally shut down and the world was (and still is) at a standstill. As a society, we all had to adapt to a new way of life. We must now work and socialize in the virtual world of what we call the Internet.
As an international company, we have been often asked frequently how we are able to continue to make money and generate business. The answer is quite simple. We’ve already adapted to this type of environment and it is nothing new to us. We are a global company, and many of our clients/prospects live in all parts of the world.
For the past year, we have become reliant on virtual marketing platforms such as Facebook ads, YouTube, and Google search. The COVID-19 virus did not negatively affect us at all; as a matter of fact it assisted us in the promotion and marketing of our “ Jewel of the North” Pagudpudsands Resort. Society as a whole had nothing else to do but surf the Internet to shop, watch shows, play games, and socialize with family and friends. It also opened up an opportunity for people to pay closer attention to what we have to offer. The inquiries that we’ve communicated with are pleasantly surprised to see such a wonderful project being developed. What is even more surprising, is the way in which our clients were able to become Condo hotel suite owners by using a little known program called a self-directed IRA. By using this program, perspective suite owners were able to leverage their retirement plan to purchase our international real estate investment, all without having to pay a dime in pre-mature withdrawal penalties and taxes! Sounds too good to be true right?
Since 2016, our company was able to raise enough capital from investors by using this method. Take a look at our development today and how far we have come along in making this development a true reality! What is even more promising was the C.A.R.E.S. Act (Coronavirus Aid, Relief, and Economic Security Act) by President Trump. The intention of this bill was to aid/assist people that were no longer able to work, and needed money to sustain their living situation during this ”Shelter in Place” order. The C.A.R.E.S. Act provides the ability for a person with a 401(k)\IRA plan (or other type of retirement plan) withdraw funds without incurring a penalty (if they were younger than age 59 1/2). Furthermore, the bill also allowed individuals with these types of retirement plans to borrow more than the typical $50,000 to a cap of $100,000 (The borrowing of this money would need to be paid back in a three-year timeframe). So what is truly mean for people that don’t need that money?
The C.A.R.E.S. Act also provides an opportunity for a prospective investor, to diversify their retirement portfolio by purchasing international real estate investments. Prospective investors will not have to worry about what the U.S. does because their money is participating in a completely different market in a completely different asset! Furthermore, our current investors have not lost as much in their retirement due to this diversification of assets. They also enjoy a lesser price when it comes to custodial fees. This particular asset has a fixed, low price, annual fee ($299) and is not exposed to the traditional 3-5% broker fees typically imposed on these accounts.
If you are interested in how you can benefit from making your money work harder, you can give us a call today. For more info about the pricing of our suites, please fill out our Pagudpud Sands Price Request Form.
Stay safe. Stay healthy.
(disclaimer-pagudpudsands resort LLC is not a tax advisor, legal advisor, or a financial securities representative. We are an international Real estate investment company that sells alternative assets in the form of condo-tel suites. Please consult with your legal, tax, and or financial advisor prior to making any kind of purchase using qualified funds.)
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- CARES Act Stimulus checks Alexis Arnold