How to Supercharge Your IRA and Save Taxes – Part 2

As I stated in yesterday’s article, our firms goal is to assist clients in developing their asset protection strategies.  Our belief is that your wealth is at risk from two main threats; government interference and litigation.  Under the heading of government interference lies taxation and we strive to help our clients minimize taxation through various asset protection strategies.

Today I want you to be aware of Self-Directed IRA’s, or SDIRA’s.  Most people are unaware that you can not only manage your own IRA investments, but you can invest in whatevever asset class you chose.  Traditional IRA custodians are generally investment brokers and of course they want to sell you investment where they derive fees.  It is highly unlikely you will find an investment broker offering you commercial real estate, gold, oil field rights, vacation properties, or cattle as investment options.

But what if your very familiar with farming and you have a very good understanding of the cattle market?  This may be a very good investment for you, but your investment broker won’t sell you these types of investments and won’t allow them in your IRA.  But there is an option.

With a SDIRA (there is also a Self-Directed RothIRA but I will just group them together and call them both a SDIRA), you can invest in any asset class you wish.  You have full control of your assets and how they are managed.  Essentially, the way it works is the custodian assists you in forming an LLC which is owned by your IRA.  You become the manager of the IRA, giving you full control of the investment of funds.  You can then chose to invest this money as you see fit.  There are restrictions however, but they are minimal and certainly not a deterrent.

If you chose to buy rental properties, vacation properties, gold bullion or coins, tax lien certificates, private placement loans, or cattle – no problem.  Its your IRA and you are the manager.  There are a few custodians that are out there who can set this up for you.  One of them is a friend of mine, Steve.  He runs a company that helps his clients set up SDIRA’s (and Roth’s) in order for them to take control of their retirement savings.  Who do you think is more interested in your success – a mutual fund manager or you?  Steve can also convert your existing IRA or Roth into a SDIRA.

As I stated in yesterday’s article, 2010 is a great year to convert your  IRA into a Roth IRA.  You can take advantage of an  opportunity that  may not come again in your lifetime.  This can save you a huge amount of money over your lifetime in taxes.  And if you really want to supercharge your retirement savings, convert your IRA into a Self-Directed Roth IRA.  If you are interested in contacting Steve, please send me an email and I will provide the connection.  Live well.

Comments

  1. I converted my IRA to a self-directed this year and i wished that I had done it 10 years sooner. Investing in what you know sure makes more sense than in something you don’t.

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How to Supercharge Your IRA and Save Taxes – Part 1

My firm's job is to help clients with asset protection strategies.  There are two main threats to your wealth; government...

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