NUMBERS
- 5 percent return, goal of, 18, 56–57, 70, 80, 88, 99–100
- 401ks. See also Solo 401ks
- and 403bs, 15, 96–97
- and IRAs (Individual Retirement Accounts), 48, 96–97, 101–107
- 529 Plan, 97
- 2008, financial crisis, 45–46
A
- accredited investors, 129–131
- “accredited investors,” 48–50
- “accumulation” vs. “distribution,” 140–141
- AccuPlan Solo 401k provider, 105
- Advanta, 128
- affordable housing, 89
- Agricole “farm stop,” 25
- American dream,
- American Express credit cards, 58
- American IRA Solo 401k provider, 105
- Americans, financial assets, 179
- angel funds, 86
- antitrust regulators, 45
- apartheid South Africa,
B
- B Corp, , 23
- Bankrate.com, 54
- banks. See also credit unions; local banks and credit unions
- consolidation, 44–49
- “too big to fail,” 180
- Barbash, Angela, 123, 139, 144–145
- Bellingham, Washington, 19–20
- Bellwether Housing nonprofit, 81
- Ben and Jerry, 79
- Bennett, Sue, 112
- Berkshire Bank, 91
- Berry, Cathy, 60–61
- bills
- cutting, 68–73
- paying with debit cards, 59
- bonds
- requirement, 84–85
- and stocks, 42–43
- Boston, Equal Exchange, 91. See also Massachusetts
- Boston Impact Initiative Fund, 89
- Boston Ujima Fund, 89
- Broad Financial Solo 401k provider, 105
- Bruce, Scotty, 26
- Build It Green, 72
- bulls and bears, 56–58
- Business Roundtable,
- businesses. See also publicly traded companies
- decapitalization, 180–181
- financing, 131–135
- and investments, –4
- legal structures, 23
- sizes of, 23–24
C
- C Corp, 23, 36, 160
- California. See Oakland; San Francisco
- Calvert and Pax World,
- Calvert Foundation, 87–88
- Canada
- local investment, 183
- profitability statistics, 36
- capital marketplace, 43–44. See also marketplace maturity
- Case-Shiller housing index, 55
- cash reserves, 59
- categorically prohibited investment, 159–160. See also investment strategies
- CD (certificate of deposit), 91
- CDCs (community development corporations), 87
- CDFIs (community development financial institutions), 87–88, 123
- Central Co-op, Seattle, 28, 74
- CESAs (Coverdell Education Savings Accounts), 100
- checkbook LLC, 108, 128
- Chicago, Urban Juncture, 129. See also Illinois
- churches, investing in, 82
- city council, making requests of, 185–186
- City Girls in Pontiac, Michigan, 26
- Civic Economics, 28
- civic institutions, 31
- civic microbonds, 84
- Clinton, Bill, 87
- coffee, cost savings, 72
- college debt, 61
- college savings plan, 97, 100
- Colorado
- Poudre Valley Community Farms, 75
- workplace DIY plan, 170–171
- communities, prosperity and success, 27–28, 30–32
- Community Investment Notes, 87–88
- Community Vision Lending, 89
- competitors, considering, 145
- Confluence Philanthropy, 90
- consultancy, setting up for Solo 401k, 110
- Consumer Expenditure Survey, 68
- “controlled group” rules, IRS (Internal Revenue Service), 111
- Co-op Power, 75
- Cooperative Fund of New England, 88
- co-ops (consumer cooperatives), investing in, 73–75
- “corporate social responsibility,”
- corporations, “disqualified transactions,” 155
- Cortese, Amy, 125
- Coverdell education savings, 97
- “creative class,” 32
- credit cards
- interest payments, 15, 18–19
- interest rates, 58
- paying off, 58–59
- credit unions. See also banks; local banks and credit unions
- exemption and banking laws, 46–47
- and local banks, 90–91, 185
- crime and public health, 32
- crowdfunding
- emergence of, 79–80
- exemption from securities filings, 77
- legalization, –7, 82–84
- portals, 83, 125
- real estate investment, 83
- since 2016, 179
- at state level, 187–188
- Culver, Judith, 19
- Cunningham, Matt, 28
D
- dairy processing company, 20
- debit cards, paying bills with, 59
- decapitalization, 180–181
- deferring taxes, 96–97
- Desich, Richard, 190
- diabetes, type 2, 32
- Dimon, Jamie,
- Discount Solo 401k provider, 105
- Discover credit cards, 58
- “disqualified” persons, “prohibited transactions,” 152–156
- distributions, taking, 175–178
- diversification, 41, 148
- divorce attorneys, 14
- DIY (Do-It-Yourself) Accounts
- financing self-owned businesses, 131–135
- formalizing investment decisions, 167–169
- government forms, 172
- and LLCs (limited liability companies), 131–135
- overview, 96–101
- “prohibited transactions,” 153–154
- resources, 11
- self-dealing, 156–157
- vs. Solo 401k, 120
- taking distributions, 175–178
- terminology and perceptions, –9
- UBITs (Unrelated Business Income Taxes), 173–175
- UDFIs (Unrelated Debt-Financed Income), 173–175
- Dodd-Frank Act, 45–46
- donation sites, crowdfunding,
- DPO (direct public offering), 75–76, 78–79
- DQYDJ.com, 50
- Dun & Broadstreet, 24
E
- E. F. Schumacher Society, 91
- East Bay Permanent Real Estate Cooperative, 89, 112
- Economic Community Development Institute, 89
- Economic Development Quarterly, 29
- economic performance, 28, 30–31
- economic-development funds, 186
- economic-justice missions, 89
- economy, equity, ecology (three Es),
- education
- investing in, 72
- savings account, 100
- electricity, annual payments, 68
- Elkington, John,
- employees and size of business, 23–24
- energy efficiency, investing in, 70–73
- entrepreneurs of color, 89. See also minorities or women
- Entrust Group Solo 401k provider, 105
- Equal Exchange, Boston, 91
- Equity Trust, 37, 105
- ERISA (Employment Retirement Income Security Act of 1974), 111
- ESG (environmental, social, governance) concerns,
- Exchange Act of 1934, 47
- Exclusive Benefit Rule, 161
- exercise machine, investing in, 72
F
- factories, comparing, 33
- “farm stop,” equity investment in, 25
- FDIC-insured commercial banks, 45
- Federal Reserve
- in Atlanta, 29
- investment statistics, 43
- Federalism, 182
- finance entrepreneurs, 189–190
- financial assets, Americans, 179
- financial crisis of 2008, 13–14, 45–46
- financial needs, planning out, 140–141
- financials, considering, 146
- Financing Our Foodshed: Growing Local Food with Slow Money, 36
- financing self-owned businesses, 131–135
- “find your tribe,” 144–145
- Florida, Richard, 32
- food markets, 83, 89
- Form 990-T, filing, 174
- franchises, 22
- free speech, legalizing, 188
- Friedman, Milton,
- fruits and vegetables, cost savings, 72
- Fs (friends, family, fools), 76
- Fundrise, 83
- funds
- scarcity of, 42
- underperformance, 57
G
- Ganaz app, 129
- garbage pickup, annual payments, 68
- gas, annual payments, 68
- gasoline expenditures, cost savings, 72
- Geller, Stephanie, 126
- general obligation bonds, 84
- geographic risk, 39
- global businesses
- “competitiveness,” 44
- placing savings in,
- Goldman Sachs, 85
- government projects, investing in, 84–86
- grassroots investors
- crowdfunding, 82–83
- local investment funds, 87
- local investment marketplace, 41–42
- in Nova Scotia, 183
- as unaccredited investors, 130
- Great Barrington Savings, 91
- greenhouse, investing in, 72
- grocery stores, 28
- “growth” and “value” stocks, 148
H
- Harvard Business Review, 28
- heating and cooling costs, 71
- hedge funds, 86, 147–148
- Hesse, Arno, 125
- home equity, 61–65
- home-based businesses, 23
- homeless people, 81
- Honeycomb Credit, 17, 79–80
- Houston, Dan, 28
- HSAs (Health Savings Accounts), 97, 100–101
I
- Illinois. See also Chicago
- community investment fund, 89
- Iroquois Valley Farmland REIT, 89
- “impact investing,”
- income brackets, 14
- Indiegogo,
- information, finding, 40
- “in-service withdrawal,” 401ks, 103
- institutionalizing, 181
- insulation, energy efficiency, 71
- insurance funds, 43
- interest payments, credit cards, 15
- interest-free lending,
- Interstate Offering Exemption, 77
- “intrastate offering,” 79
- intuition, considering, 145
- Investibule web site, 80, 125
- investing “long” vs. “short,” 147
- investment. See also local investment; risk and investment
- shifting to local businesses, 44
- worldwide, –5
- Investment Advisers Act of 1940, 47
- investment club, forming, 127
- Investment Company Act of 1940, 47
- investment crowdfunding
- emergence of, 79–80
- exemption from securities filings, 77
- legalization, –7, 82–84
- portals, 83, 125
- real estate investment, 83
- since 2016, 179
- at state level, 187–188
- investment statistics, 43
- investment strategies. See also categorically prohibited investment
- co-ops, 73–75
- cutting daily bills, 68–73
- home equity, 61–65
- kids’ credit cards, 60–61
- local banks and credit unions, 90–91
- local businesses, 75–80
- local government projects, 84–86
- local investment funds, 86–89
- local real estate, 82–84
- nonprofits and places of worship, 81–82
- paying down mortgage, 65–68
- paying off credit cards, 58–59
- Investopedia, 54
- IP (intellectual property), considering, 145
- IPO (initial public offering), 86
- IRA Financial Group Solo 401k provider, 105
- IRAs (Individual Retirement Accounts)
- and 401ks, 101–107
- 401ks and 403bs, 15, 48
- tax-deferred savings, 96–97
- Iroquois Valley Farmland REIT, 89
- Irrational Exuberance, 55
- IRS (Internal Revenue Service)
- accredited investors, 49–50
- approval for Solo 401k, 114
- “controlled group” rules, 111
- “prototype” agreement, 17–18
- sole proprietorships, 36
- tax-deferred funds, 14–15
- issuing securities, 181
J
- Jennings, Christina, 99
- jobs, 28–30
- JOBS (Jumpstart Our Business Startups) Act, , , 79, 82, 182
- JPMorgan Chase,
K
- Kerr, Camille, 98
- Kickstarter,
- kids’ credit cards, managing, 60–61
- Kiva crowdfunding,
- kombucha company, 25
L
- L3C company, 25
- land investing, 82
- Larson, Gary, 13
- laws and regulations, taxes, 11
- lending
- interest-free,
- peer-to-peer,
- LendingClub,
- life insurance contracts, 160
- life savings, 15, 191
- LIFT Economy,
- light fixtures, energy efficiency, 71
- LION (Local Investing Opportunities Network), 125–126
- “liquid” investment, 42–43
- liquidity and risk, 138–143, 146–147
- LLC (limited liability company)
- co-ownership by spouses, 107
- “disqualified” persons, 155–156
- financing self-owned businesses, 131–135
- investment clubs, 127
- setting up, 128
- Solo 401k, 110, 114
- loans, considering, 146
- “local,” defined, 21–24
- local banks and credit unions, 90–91, 185. See also banks; credit unions
- local businesses
- competition, 180
- defined, 22
- investing in, 75–80
- Michigan, 25–27
- versus nonlocal businesses, 28
- number of, 23
- percentage of US economy, 24
- profitability, 35–41
- risk, 38–41
- local government projects, investing in, 84–86
- local investment. See also investment; risk and investment
- Bellingham, Washington, 19–20
- business support sector, 124
- considering goals, 138–143
- crowdfunding sites, 125
- disfavor of financial institutions, 44–49
- ecosystem, 181–182
- evaluating opportunities, 144–147
- evangelizing for, 122
- examples, 16–19
- family’s needs, 121–122
- finding, 120–127
- finding allies, 122–123
- funds, 86–89
- institutionalizing, 181
- issuing, 181
- local government, 124
- making public list, 126–127, 185
- marketplace, 41–43
- options, 92
- pooling, 181
- portfolio creation, 147–149
- private sector, 124
- rate of return, 57
- red flags, 39
- reselling, 181
- in self, 120–121
- since 2016, 179
- local land trust, 185–186
- local synergies, 40–41
- “Locally Owned” businesses,
- low-income neighborhoods, 87
- low-profit, limited liability company, 25
- Lyson, Thomas, 31
M
- Main Street America, 32
- management, considering, 145
- marital assets, redistribution, 14
- marketplace maturity, 37–38. See also capital marketplace
- Maryland, stormwater management, 85
- Maryland Neighborhood Exchange, 126–127
- Massachusetts. See also Boston
- community investment fund, 89
- Co-op Power, 75
- PVGrows Investment Fund, 88–89
- Mastercard, 58
- McKinsey & Company, 71
- Michigan
- local businesses, 25–27
- Revalue, 123
- Michigan Farm Market, 26
- Milk Money, 80
- Miller, Ben and Dan, 83
- Mills, C. Wright, 31
- minimum tax, 14. See also taxes
- Minnesota
- community investment fund, 89
- NorthEast Investment Cooperative, 75, 89
- Union Bank & Trust, 99
- minorities or women, businesses led by, 87. See also entrepreneurs of color
- Money Magazine, 55
- mortgages
- investing in, 64
- paying down, 65–68
- Mountain BizWorks, 89
- Move Your Money campaign, , 46
- Muha, Cathy, 25
- “multiplier effect,” 22, 27–28
- municipal bonds, 87, 185
- mutual funds, 43, 181–182
- My Solo 401k Financial, 105
- Mycoterra Farm, 88
N
- National Center for Employee Ownership, 98
- National Reality Investment Advisors, 55
- Navigator Business & Retirement Services Solo 401k provider, 105
- Neighborly, civic microbonds, 84
- New Brunswick, tax credits, 185
- New Hampshire Community Loan Fund, 89
- New Standard IRA, 19–20
- New York City Real Estate Investment Cooperative, 89
- New York Stock Exchange, 47
- The Next Egg resources, , 11, 99–100, 104–106, 112, 191
- “no action letter,” 182, 186
- nonprofits
- “local,” 23
- and places of worship, 81–82
- North Carolina
- community investment fund, 89
- local investors, 36–37
- Mountain BizWorks, 89
- Weaver Street Market, 74
- NorthEast Investment Cooperative, 75, 89
- Northeast Kingdom Prosperity Fund, 89
- Nova Scotia, local investment, 183
O
- Oakland
- Build It Green, 72
- community investment funds, 89
- Runway Project, 89
- SELC (Sustainable Economies Law Center), 112
- Obama, Barack,
- obesity and type 2 diabetes, 32
- “Occupy Wall Street,” 44
- Ohio
- drugstore success story, 190
- Economic Community Development Institute, 89
- Oldanie, Laura, 128
- organic farms, 89
- ownership of business, caring about, 27–33
P
- partnerships, “disqualified transactions,” 155
- “Patient Capital Investors,” 88
- Pax World and Calvert,
- paybacks, considering, 69–73
- peer-to-peer lending,
- PENSCO Trust, 16
- pension funds, 43, 186
- Peppe Hewitt, Carol, 36–37
- Phoenix and Tucson, 90
- “placemaking,” 32
- places of worship, investing in, 81–82
- Plan Asset Rule, 161–162
- policymakers, making requests of, 185–186, 189
- politics and voting, 31
- pools of capital, 86, 181
- portfolio, putting together, 147–149
- Poudre Valley Community Farms, 75
- Praxis Mutual Funds, 87
- profit, people, planet (three Ps),
- profitability, 35–41
- “prohibited transactions”
- categorically prohibited investment, 159–160
- “disqualified” persons, 152–156
- LLCs (limited liability companies), 132
- penalties for violation, 163–164
- rules, 151–152, 160–162
- self-dealing, 156–159
- Project for Public Spaces, 32
- projections, considering, 146
- Prosper,
- “prototype” agreement, IRS (Internal Revenue Service), 17–18
- public employee pension funds, 186
- public health and crime, 32
- public list, making, 126–127
- publicly traded companies, 23. See also businesses
- Putnam, Robert, 31
- PVGrows Investment Fund, 88–89
Q
- QPS Solo 401k provider, 105
- quality of life, improving, 27, 32
- Quimper Mercantile, 75–78
- Quinn, Peter, 77–78
R
- rabbit farm example, 36–37
- Ramsey, Dave, 55
- real estate, investing in, 82–84
- red flags, 39
- Regulation A, 77, 144
- Regulation D, 76–77
- regulations and laws, taxes, 11
- REITs (real estate investment trusts), 82
- renewable resources, 33
- retirement funds,
- retirement savings accounts, 14–15
- Revalue Investing, 26–27, 123
- revenue bonds, 84
- Revzon Solo 401k provider, 105
- RIA (registered investment advisor), 137, 139
- risk and investment, 10–11, 35–41. See also investment; local investment
- risk and liquidity, 138–143, 146–147
- RMDs (required minimum distributions), 102, 175–176
- Rocket Dollar Solo 401k provider, 105
- Rollins v. Commissioner, 157–158
- Roth IRA, 97, 164, 176
- Royal, James, 54
- RSF Social Finance, 88
- Runway Project, 89
S
- S Corp, 23, 160
- San Francisco, community investment fund, 89
- Sandoval, Michelle, 75
- savings accounts, 15
- savings and loans, 45
- Schedule C reporting, 110
- Scrap Connection, 129
- Seattle. See also Washington state
- Bellwether Housing nonprofit, 81–82
- Central Co-op, 28, 74
- Seattle Business, 75
- SEC (Securities and Exchange Commission), 46, 182
- securities
- definition, 46
- issuing, 181
- Securities Act of 1933, 47–48
- securities filings, exemptions, 76–77
- securities laws of 1930s, , 188
- SELC (Sustainable Economies Law Center), 112
- Self Directed IRA Handbook, 160–161
- self-dealing, “prohibited transactions,” 132, 156–159
- Self-Directed IRA
- government forms, 172
- and LLCs (limited liability companies), 132
- Michigan examples, 25–27
- North Carolina example, 36–37
- opening, 103–106, 128
- “prohibited transactions,” 154
- real estate and leveraged debt, 175
- setting up, 98–99
- and Solo 401ks, –9, 11, 16–19, 108
- spread of, 184–185
- taking distributions, 175
- Self-Directed IRAs: Building Retirement Wealth through Alternative Investing, 190
- self-employed retirement savings accounts, 14–15
- Self-Help Federal Credit Union, 113
- self-owned businesses, financing, 131–135
- Sense Financial Solo 401k provider, 105, 112
- SEP (Simplified Employee Pension) IRA, 97, 100
- sewage, annual payments, 68
- Shared Capital Cooperative, 88, 99
- Shiller, Robert J., 55, 66
- SIMPLE (Savings Incentive Match Plan for Employees) IRA, 97, 100
- Slow Money, 122–123, 125, 128, 139
- small businesses, 23–24, 31, 89
- Small Change, 83
- social impact bonds, 85
- social performance, considering, 146
- social return, enjoying, 27, 40
- socially responsible investment funds, –5
- solar energy projects, 84–85
- sole proprietors, 23, 36
- Solo 401ks. See also 401ks
- checklist for prototype, 115
- vs. DIY (Do-It-Yourself) Accounts, 120
- explained, 14–15
- government forms, 172
- “prohibited transactions,” 153
- qualifying for, 109–112
- and Self-Directed IRA, –9, 11, 16–19, 104, 108
- setting up, 113–116
- spread of, 184–185
- test pilot in California, 112–113
- Sorensen, Matt, 160–161
- South Africa, apartheid,
- SPD (summary plan description), Solo 401k, 114
- Standard & Poor’s index, 55–56
- startups, 38
- state legislators, making requests of, 186–188
- Step Transaction Doctrine, 161
- stock exchanges, 183
- stock market
- inflated claims, 54–55
- likely return on, 54–58
- performance of, 53–58
- stocks
- and bonds, 42–43, 146
- picking, 47
- “value” and “growth,” 148
- stormwater management projects, 84–85
- strategies. See investment strategies
- StreetShares, 128–129
- student debt, 61
- sustainability, 32–33
- Sustainable Economies Law Center,
T
- Tasch, Woody, 123
- tax brackets, 14
- tax credits, 185
- tax-deferred funds, 14–15
- taxes. See also minimum tax; UBITs (Unrelated Business Income Taxes); UDFIs (Unrelated Debt-Financed Income)
- deductions for home ownership, 62
- deferring, 96–97
- laws and regulations, 11
- TD Ameritrade, 16
- Tea Party Republicans,
- “Team Jefferson,” 77
- TerraCycle, 129
- thermostat, energy efficiency, 71
- three Es (economy, equity, ecology),
- three Ps (profit, people, planet),
- “thrifts,” 45
- toilets, water-efficiency, 71
- “too big to fail” banks, 180
- tourists, 32
- “triple bottom line,”
- trusts, “disqualified transactions,” 155
- TSP (Thrift Savings Plan), 18, 97
- Tucson and Phoenix, 90
- type 2 diabetes and obesity, 32
U
- UBITs (Unrelated Business Income Taxes), 173–175. See also taxes
- UDFIs (Unrelated Debt-Financed Income), 173–175. See also taxes
- Ulmer, Melville, 31
- “unaccredited” investors, 48–49, 87–89, 130–131
- unincorporated business entities, “disqualified transactions,” 155
- Union Bank & Trust, Minnesota, 99
- Unity Vibration, 25
- Upjohn Institute for Employment Research, 30
- Urban Juncture, 129
- US citizens, financial assets, 179
- utilities, annual payments, 68
V
- “value” and “growth” stocks, 148
- vegetables and fruits, cost savings, 72
- venture funds, 86
- Vermont
- community investment fund, 89
- Northeast Kingdom Prosperity Fund, 89
- veterans, loans available to, 128–129
- Visa credit cards, 58
- voting and politics, 31
W
- wages, 29
- Washington state. See also Seattle
- local milk, 19–20
- Quimper Mercantile, 75–80
- “wasting assets,” 68–70
- Weaver Street Market, 74
- Wefunder crowdfunding platform, , 79–81, 129
- Wells Fargo, breaking up with, 98–99
- Wiener, Jason, 186
- women or minorities, businesses led by, 87. See also entrepreneurs of color
- worker co-ops, 98
- workforce, considering, 145
- worldwide investment, –5
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