TIKKUN OLAM PLUS—Core Estate

This fund is designed to leverage your savings through secured returns. Annual returns start at 6% through preferred returns. While this short-term investment option will not help you mitigate any of your tax liabilities, it affords you more flexibility. Large-account investors, through partnership units, can lock in higher annual rates that translate into more competitive returns. This fund is distributed to evenly support the TIKKUN OLAM portfolio, strategically traded and diversified. With a three-to-one, asset-to-fund working capital strategy and steady historic growth in our existing portfolios, this is a sound and safe way to make your money grow, averaging a higher return than a career stockbroker could offer and without being exposed to the volatility of the open market. 

TIKKUN OLAM is aware of its competitors offering returns as high as 12%, but we also understand the fragility of those portfolios and undisclosed costs. As opposed to nearly all of our competitors, TIKKUN OLAM Managing Partners have grown existing portfolios prior, during, and after the subprime-lending crisis because we balance our funds and investments through a vertically integrated system—we only bite off what we can chew. TIKKUN OLAM encourages investing responsibly and wisely, making this an ideal fund to get started if you are new to investing.

Here is an example of how you can leverage your savings:

In this example, you can realize a secured 12.36%, before-tax gain of $1,236 on your $10,000 investment, over a two-year period. Taxes paid on your capital gains will depend on your overall tax liability and determined by your tax professional. TIKKUN OLAM offers other medium-term investment options that allow you to keep all your capital gains, eliminating the tax liability and helping you net nearly $8,000 on your $10,000 investment. If this option is attractive to you, you can make your initial short-term investment qualify for these additional benefits when first selecting the Core Estate option; when procuring your partnership units, you just need to state that you are considering renewing your initial investment for five consecutive periods and actually fulfill the medium-term option instead, in order to secure the additional income. TIKKUN OLAM advisors will gladly discuss short-term investment alternatives available to you.

TIKKUN OLAM—Allocation Estate

This fund is designed for medium-term investors seeking returns over a longer time window. Those who have properties—other than their homes—or unrealized capital gains elsewhere in their investment portfolio that is currently exposed to market fluctuations can now leverage their real estate investments by allocating that capital into a larger and more diversified portfolio and strategically reallocate their unrealized capital gains. Joining this fund, your prior management costs will virtually disappear and our brokerage can assist you in eliminating practically all commissions and eliminating capital-gain taxes on the transaction.

TIKKUN OLAM is ready to help you assess how this investment would benefit you, as there are multiple moving parts and considerations specific to each investor.

Here is an example of how you can leverage your properties, savings, and unrealized capital gains:

In this example, a partnership-units holder stands to realize a combined 41% secured gain of $10,178 on their $25,000 investment, as he or she may mitigate a $563 tax burden, by reducing capital-gain exposure from prior investments. There is a five-year minimum commitment to qualify for step-up in basis benefits. Additional tax incentives may be available to those reallocating properties that have appreciated since they were originally acquired.

TIKKUN OLAM PLUS—Allocation Estate Advantage

Just like the Allocation Estate alternative, this program was designed for investors with unrealized capital gains in stocks, bonds, or other real estate investments, which can be better leveraged. This ten-year program offers significant additional benefits and is also available to investing partners that want to leverage their savings. To these investors, the advantages of this fund are easy to discern: 1) the tax burden on the existing capital gains will benefit from a 15% step up in basis applicable to those reallocating unrealized capital gains, 2) their investment will no longer be exposed to the fluctuations of the open market, as these investors will now own limited partnership units with 5% annual, or other preferred, in-class returns, and 3) capital-gain taxes will be deferred until 2026, while appreciation on the partnership units will be tax free when realized after the ten year period of the investment with TIKKUN OLAM, capturing 100% of the new income. The comparative advantage created by this last benefit makes the program substantially more profitable than any other programs, generously rewarding investors that can leverage their investments over a longer time horizon.

Here is an example of how you can leverage you unrealized capital gains, savings, or real estate investments:

This fund is an amazing opportunity for investors that are ready to reduce the level of risk on their investments and need a tax-friendly alternative to exit or simply reallocate their portfolio. In this example, there is a combined, secured gain of 61% on the initial investment, over a ten-year period, with a $15,722 net gain and a $2,358 capital gain, tax reduction realized. If the investment was through a reallocation, the total estimated tax savings is up to $2,921.

As the effects of our recent tax cuts begin to fade, investors will increasingly benefit from this fund. It is good to bear in mind that the full value of this fund can only be secured by acting before the third quarter and committing to the full ten-year term, as a tapered program supports these figures. Late investors may still enjoy significant benefits or qualify for alternative products.