Self-Directed Retirement Investing
Self-Directed IRAs & IRA LLCs are the structures of choice for most individuals interested in investing in "non-traditional" assets.
Solo 401(k) plans for self-employed individuals. Truly the best retirement plan for the self-employed owner/operator.
"Unlocking" Employer 401(k) plans for self-employed individuals. Truly the best retirement plan for the owner/operator.
Start-up Business Capital from your retirement account. Are you starting a new business and need capital to acquire or form the business? Well your IRA or former employer 401(k) can be your answer!
Defined Benefit Plans for small business owners. In the right situation, a defined benefit plan can help the small employer contribute substantially more towards retirement than other plans.
There are many buzzwords in the financial services industry and "Self-Directed" is one of them. What does it mean? Well, "Self-Directed" isn't a defined term, but basically it means You choose exactly what your retirement account will invest in. Not what your brokerage firm, bank or custodian will allow.
You probably know this, but financial services firms weren't created to make you money, they were created to make money for themselves, first and foremost. If after the investment firm and the sales people have extracted their pound of flesh in the form of fees and expenses from your investment and if there are any scaps left over, then you'll finally get your place at the table.
How would you like to invest in assets that you know something about? Like real estate in your own neighborhood or in your hometown? Or a place that you've vacationed like Hawaii or Mexico? Or lend money from your retirement account to a respected friend or business associate that you know and trust and even take real estate as security for the loan?
So if you feel the need to be able to exert some control over your retirement account and not just pass your money off to someone and just keep your fingers crossed that it will all work out in the end, then read on. You'll be amazed at the opportunities that you'll have to take control and invest in what you know, not what some financial salesperson wants you to buy.
With a quick search on the Internet you'll find there are quite a few companies today willing to provide/sell you some wiz-bang retirement structure. But be careful.
Just because some company has a nice looking website doesn't mean they have the internal capability to provide you with intelligent, well reasoned advice. Before you buy or take any guidance from any person or organization you should know exactly what their credentials are for providing you with information in the first place.
Because so many of the rules regarding retirement planning are tax based, you should ask questions like: How many years of experience do they have in tax research and planning? How many years have they practiced financial planning and investment management with individuals? What professional credentials do they have? Are they a licensed and practicing CPA, Certified Financial Planner or Attorney? Do they have any specialized tax knowledge or education?
Moral to the story: Just because some company has a presence on the Internet doesn't mean they have the proper skill set, background, professional training or credentials to be giving you retirement planning advice.
Invest in what you know
Keep in mind that the rule book for retirement plan investing, the Internal Revenue Code (created by Congress) is very liberal about what investments can be made for an IRA or 401k plan. The federal tax laws don't stop you from doing what you should be doing, it's the financial institutions that do.