Self Directed IRA’s Put you In Charge
Oct 9th, 2008 by Kevin
Yesterday on the front page of USA today there was an article explaining that about 20% of retirement savings or about $2 trillion has disappeared, in the last 15 months according to government analysts. A different study has 1 in 5 workers over the age of 45 have stopped putting money into retirement vehicles.
Sad statistics, however its time to begin educating yourself on options rather than be a victim. Pulling out of retirement plans altogether is not a smart move. It actually may prove wise to continue putting money into 401k based investments while the prices are low (depending on your age and risk tolerance) however it is also extremely important to diversify your portfolio with alternative investments (non stock based). A vehicle that allows you to do this is the Self Directed IRA.
First - an important thing to realize and put you in the right frame of mind. A retirement plan is not an investment. It is a vehicle for you investment. In fact it is a great tax deferred or tax free vehicle.
Why Self Direct?
It gives you the true freedom to invest in what you know and let your wealth grow.
Is it Legal?
The important US tax codes are as follows:
- IRC Section 408 & 408A
- IRS Publication 590
- IRC Section 4975
If done correctly, there are many things you can self direct your investments into including various types of real estate. What may come as a surprise is that this includes offshore real estate!
If this sounds intriguing, and you are located in the treasure valley, think about attending Coastal Dream’s next offshore real estate investment seminar that will not only give you an introduction to investing in Nicaragua but also how to do it using retirement assets through a self directed IRA. Sponsored by Mountain West Entrust IRA - a self directed IRA expert, you will definitely come away with some new ideas to move away from victim to informed investor.
Related Posts:
Buying in a Down Market with IRA Money
Good Information, and you can use to invest in International Properties.
Best,
Thomas
http://www.realtyexecutivescentralamerica.com
Good post, Kevin. I like the statement “A retirement plan is not an investment. It is a vehicle for you investment.” To make self directed IRA investments, people should know that they need a custodian they can trust to facilitate the transaction.
If anyone would like additional information, check out Equity Trust Company – http://www.trustetc.com. Equity Trust Company is an industry leading custodian that can provide you with the services you need to start making self directed IRA investments. Or, feel free to contact me directly at j.roth@trustetc.com if you have any questions.
jroth,
(sorry - no name). Thanks for the comment. I actually have a self directed IRA with Equity Trust myself!
Thanks for the article! If you’re looking for custodial options, try Millennium Trust.
Millennium Trust Company (http://www.mtrustcompany.com/services/ira/real.asp) located in Oak Brook, IL, custodies real estate in self directed IRAs and solo 401(k)s. They can walk the investor thru the process. Try contacting Sandra Reese at sreese@mtrustcompany.com for more info.