Fixed Income Fund FAQs
The Tactical Wealth Fixed Income Fund provides an opportunity to receive stable, consistent income with peace of mind. The Fixed Income Fund has flexible terms, no investor fees, and investment diversification benefits. Read more answers to frequently asked questions below, and contact Tactical Wealth today to get started.
Q: Who can benefit from fixed income?
Tax-astute investors, young professionals, and retirees alike can benefit from fixed income for a number of reasons. From offsetting risk to securing peace of mind with an investment, the Fixed Income Fund works for just about everyone.
Q: Can I invest using my IRA account?
Yes, you can invest in the Fixed Income Fund through your IRA, SEP, 401k and other qualified accounts.
Q: Can I let my interest compound instead of taking monthly distributions?
Yes, you will increase your high return investment substantially by letting the earnings compound.
Q: Is this investment for me?
If you’re an accredited investor looking for risk averse investments and income greater than you can get with annuities and bonds without the need for immediate liquidity, then the Fixed Income Fund may be suitable for you.
Q: Do I have to invest in $50,000 increments?
No, you can invest any amount above the $50,000 minimum per note.
Q: What happens if I pass away in year 3 of my 10 year note?
An investment in the Fixed Income Fund is an illiquid investment. Your beneficiaries will receive the remaining interest payments according to your investment terms and a final principal payment at investment maturity. It may also be possible for the fund to liquidate your investment and provide your beneficiaries with the principal of your investment early; however, there is no assurance that will occur as it is contingent on many market variables at that time.
Q: How will my payments arrive?
Monthly investor payments are deposited directly in your bank account via ACH transfer. There are no paper checks that routinely get lost in the mail, and your bank should not place a 10 day hold on funds.
Q: What are the investor fees?
There are no management fees or transaction fees with the Fixed Income Fund. You may see a fee from your bank for processing ACH payments and/or IRA custodian fees if you are investing your IRA account.
Q: How can there be zero fees?
We buy loans that meet our stringent requirements that provide a return greater than the amount we payout to investors.
Q: Will my investment value fluctuate?
Unlike investments in bonds, your principal value is fixed and does not fluctuate, even if interest rates rise. Your account value will remain steady, or increase if you choose to re-invest your monthly payments.
Q: How is my investment secured?
Each Secured Note investment is backed by all the assets of the Fixed Income Fund, which includes the pool of mortgage/trust deeds as well as the invested capital of the Fund Manager. Upon investment, you are issued a Security Agreement that pledges the assets of the Fixed Income Fund as collateral for repayment of your investment.
Q: How does this compare to investing in real estate directly?
Investing in our Fixed Income Fund provides similar exposure to real estate, but without the hassle of dealing with rental property tenants or the painful process of getting bank funding for an investment property. The Fixed Income Fund also provides a lower risk profile as it provides investment diversification across many notes, drastically reducing the risk of single loan defaults.
Q: What are the tax impacts to consider?
The tax impact and benefits are simplified with a Fixed Income investment. You will receive a 1099-INT form detailing the interest payments you received for the tax year. If you invest through your IRA, your tax is based on your IRA account distributions rather than the interest you received. You only pay tax on what you actually receive, which is very different than REITS which can trigger taxes even when you don’t receive any payments.