June 5, 2020

A New Way to Invest that Should Pay Dividends – Solo 401k




 Real Estate Options with Solo 401k and Self Directed IRA

Have you been looking into real estate investment as a possible opportunity for increased revenue and portfolio expansion? If so, what’s holding you back? For a number of people, it could be the initial investment to purchase and fix up the home. So where could you get the money? Many will take a look at their 401K or IRA and consider this route, but will be scared away by early withdrawal penalties and taxes. Sadly, this is counter-intuitive as this money could be used to better sustain your retirement, which was the point of the IRA and 401K to begin with.

Well, there’s good news for those of you with IRAs or 401Ks who want to make investments directly into real estate.  If you’re looking for a viable way to free up money to take advantage of a real estate investment, you should definitely consider a self-directed IRA or Solo 401K. A self-directed IRA establishes a specialized retirement account that allows the funds in the plan to be transferred into a business checking account of your choice.

Thus, the IRA holder has checkbook control over their retirement funds. With control of your investments, you may choose to move money in and out of your account without worrying about penalties. With a self-directed IRA, the rents received are tax-deferred or in the case of a Roth IRA, tax free. What about capital gains? Just like the rents, they’re considered a return on investment, so any capital gain is tax free or tax-deferred as well. With this in mind, what is an area that you might want to consider for real estate investment using your self-directed IRA or 401K?

You might want to look into rentals for retirees. That’s because traditional retirement cities are about to get many more guests. America is becoming older as a nation, and 76 million Baby Boomers will soon hang up their hats and coast towards their Golden Years. Many of them will venture off into new locations that they’ve always wanted to go to. These might be places that offer warmer weather, a more relaxed atmosphere or proximity to other family members. Most will be reluctant to purchase a new home and get stuck with another mortgage, so they’ll often choose to rent instead. So where are some of these locations to be considered for investment?


The Huffington Post recently listed the 15 top spots for real estate investment that take advantage of the recent influx of retirees. While we won’t list all of them here, the list was pretty definitive by stating where retirees are going. The top spots went to traditional retirement destinations like Florida and California. However, the list is inclusive of cities across the nation in states like Pennsylvania, New York, Oregon, Arkansas and Arizona. The Boomers seem to prefer locations known for warm weather, favorable taxes and cultural attractions. If you’re looking to invest in real estate with a self-directed IRA or Solo 401k, these states should be on your radar.

How Can You Make Your Retirement Years the Golden Time in Your Life?



Your retirement years are called your Golden Years for a reason; they’re the time in your life when you can do all of the things that you have put off because of work and other commitments. People say that they are the happiest in their life after 50 – simply because they have the time and freedom to travel and make new memories with their spouse, children, grandchildren and friends. Plus, you have the wisdom to appreciate the moment at hand. However, your retirement years or Golden Years are only that if you have laid the foundation beforehand to ensure these freedoms. The most important factor in retirement planning is establishing a plan as soon as possible. If proper investments are established early, time is your friend, and time is what you will have to enjoy when a retirement plan is properly administered and realized.


Here are some tips to consider for retirement planning:


Demand Control of Your Retirement: Unfortunately, when the Great Recession hit several years back, a large number of people saw their 401K plans dwindle tremendously. The real kicker, though, was that some didn’t really have an idea of where their investments were going. Others were bound by limitations that prevented them from making investments that would have made them more secure against an economic downturn. In order to guard against future recessions, a self-directed IRA plan can diversify a portfolio and pay future dividends even in a down market. A self-directed IRA allows the IRA holder/owner to have full control over the funds, thereby allowing the IRA owner to make investments at will. Investments include traditional assets, like stocks, bonds, mutual funds, but the real advantage is the investment potential in non-traditional assets, like real estate, precious metals, private money lending and other permissible self-directed IRA ventures. IRA rules allow greater flexibility for the individual investor than most think. A self-directed IRA plan needs to be considered as part of the overall portfolio.

Retire at the Right Age: Just because you reach the age of 65, it doesn’t necessarily mean you should announce your retirement and ask for your gold watch. An individual’s retirement age depends on a number of different factors, and there is certainly not a set age. Factors that will influence your decision include whether or not you have the savings, if you foresee major expenses, whether or not you qualify for Social Security or Medicare, if needed, and lifestyle goals in your retirement years.

Maintain Your Health with the Right Lifestyle Choices: Some of the biggest expenses you may incur during your 60s, 70s and 80s will be your medical bills. Even with insurance or Medicare, you may still face “out of pocket” expenses. It is so important to take control of your health now. If you smoke, seek cessation help. Moderate the consumption of alcohol. And for all of us living the “American Fast Food Dream,” consider limiting your intake of red meat, processed foods and dairy.  A new wave of information is coming to the public and the theme is “Prevention.”  Just like the “Iron Age” and the “Industrial Age” passed, so will the health care days of “Intervention”.  Prevention is far superior to intervention.  Get ahead by discovering preventative measures in the areas of diet and exercise. Today is the day to prepare.  Your retirement years or Golden Years are exactly that: they are yours! You don’t want to spend them in waiting rooms.


Self Directed IRA Plans Put You in Control of Your Retirement Plans

Self Directed IRA facilitatorA self-directed individual retirement account is a way for people to control their own investments for their retirement portfolio and to diversify into non-traditional assets. A Self-Directed Plan offers investors the opportunity to invest in real estate, precious metals, and businesses and even provide private money loans to businesses or individuals. The real advantage being that all the returns on the investments grow tax-deferred, or in the case of Roth, tax-free in the retirement fund.

The primary benefit is the control the investor exercises over their retirement account. One way to achieve the most control is to establish an LLC where the IRA holder is the manager of the business with the ownership held by the trust or custodian. This is referred to as an IRA checkbook or checkbook IRA because there is a business checking account established for the LLC. This arrangement provides great flexibility for the investor, but with great flexibility comes the need for personal responsibility.

A Self Directed IRA Facilitator can help anyone who has traditional IRAs or 401ks set up a self-directed IRA. The self directed IRA Facilitator will provide the documents and guidance necessary to establish the trust account with a self-directed custodian. From there, the Self Directed IRA Facilitator will form the LLC for the IRA investment and enable the opening of a business checking account. No longer will the IRA be subject to delays and exorbitant transaction fees of a traditional custodial IRA or 401k.

There are several reasons why a self-directed IRA is worth setting up. People who have been working for years may have their life savings locked away in a retirement account. A self-directed account will allow that money to be invested in places they choose. This gives the person a chance to make a sizeable investment on the ground floor of a promising startup they strongly believe will prosper. Also, investing in real estate is an option that is possible under a Self-Directed Plan that isn’t possible with a traditional IRA.

Even though self-directed IRAs have more scope for investment, there are limits. Investors cannot co-mingle funds and cannot buy, sell or trade personal property to the IRA. Consult with your Self Directed IRA Facilitator, tax-attorney or accountant. Self-directed IRAs require proper guidance and once established, are a great asset for investors. Remember, no tax returns, no rollover problems. The owner is in control and can invest simply by writing a check. If you are an investor already having success in non-traditional assets, a self-directed IRA plan is a must. Invest in what you know, discover self-directed retirement options.

Investment Benefits of Self Directed IRA Real Estate

Self Directed IRA real estate is becoming a well-established investment tool.self directed ira real estate

Even with the fiscal crises strong in the memory of most, IRA and 401(K) plans are still recognized as smart investments. What many of our customers don’t realize, however, is that they can strengthen these plans even further through diversification into self directed real estate and other plans. IRA rules can be confusing because they prohibit people from managing their own funds. This leads many investors to believe that the fate of their capital is completely out of their hands. In reality, however, the rules only say that you can’t make transactions or withdrawals on your own. Setting up a self directed plan opens the door to many non-traditional investments while maintaining the ability to make investments in traditional assets like stocks, bonds and mutual funds.

Among many options available under self-directed plans, is the investment into self-directed IRA real estate, a great way to broaden your investment portfolio. Self directed IRA real estate has a number of benefits over other kinds of investment. For one, people who invest in real estate are taking advantage of a long-term market that has the potential for growth. Real estate purchased under a self directed real estate plan has remarkable tax advantages. Rents and capital gains are deferred, or in the case of a Roth IRA, are tax-free. There is no other mechanism making available this type of pre-tax growth.
Over our nation’s history, real estate has appreciated in value while non-tangible investments have wavered. A Self directed IRA real estate plan allows the investor to invest in “what they know” and can diversify the portfolio. Self-directed IRA real estate is becoming a well-established investment tool. In fact, investors have been using their IRAs and 401K real estate plans to buy real estate since 1974. Self directed IRA real estate Plans are designed to help investors make the most of their retirement funds. We recommend that you seek more information on the subject of self directed. Consult your attorney and accountant alike and, better yet, find a Self Directed Facilitator that will establish a conference call.

A Self-Directed IRA Custodian is on Your Side

An Individual Retirement Arrangement (IRA) is the framework established by the Internal Revenue Service (IRS) to allow multiple retirement investment options for individual plans and corporate plans alike. The rules that govern self-directed IRAs are published and made available in IRS Publication 590, titled “Individual Retirement Arrangement.” It is published on the public domain site: http://www.irs.gov/pub/irs-pdf/p590.pdf.

1. Self-Directed IRAs Offer More Control

With a self-directed IRA, you take control of where your money is invested. This means that you select the types of investments to make with your own money, instead of fully relying on a “park it and forget it” strategy.

IRA Checkbook_shutterstock_57639991

2. A Self-Directed IRA Custodian is Available to Keep You out of Trouble

This type of IRA requires the owner to establish a self directed IRA custodian account. Using a Facilitator in combination with a passive custodian can save money; however, the individual investor must exercise discipline. Pick a knowledgeable Facilitator to guide you through the process. The Facilitator should have a relationship with an experienced self directed IRA custodian. Ensure the custodian has a compliance department. The advantage for you is that the custodian will take care of the accounting for the trust account and file the necessary IRS forms on behalf of the IRA so that you don’t have to.

3. Proper Investment Decisions Build your Account and Protect You

IRS rules are very complex, and it is important to ensure that these rules are followed properly. Your custodian needs to have the staff that understands the rules and can prevent you from making decisions that may cost you significant amounts of money. With a passive IRA custodian, initiate the communication from time to time to ensure that your investment is allowed and not one of the prohibited transactions disallowed by the IRS. With great freedom comes personal responsibility, so seek a knowledgeable Facilitator and experienced custodian.

4. Interaction between the Interested Parties

The custodian is the party that will take care of interactions between the plan, the owner, the account holder and the government. Your self directed IRA custodian will need to file the necessary documents required each year for the reporting of the IRA value.

5. Protection from Yourself

Understanding which investments are permitted by the IRS for a self-directed IRA can be somewhat of a gray area. Your self directed IRA custodian is a resource to prevent you from trying to make investments that are prohibited by the tax code. With a passive custodian, you as the LLC manager, will need to initiate communication with the custodian if there’s any doubt as to the investment being considered. For the savvy investor, the prohibited transactions are considered a short list. For others, a tax attorney or accountant is recommended for consultation. After a couple of investments, the self-directed investor will gain confidence and will immediately recognize the tremendous potential afforded the IRA.

Take charge of your investment decisions by establishing an IRA checkbook plan. Find a trustworthy and knowledgeable Facilitator associated with an experienced self-directed IRA custodian. Take the first step to truly being your own “Wealth Advocate.” Your retirement is your future, take control today!

Self Directed IRA Real Estate Place Investors in Charge

ira real estate investment

Many people think that their legal obligation to manage their IRAs through a custodian means that they don’t have any control over their money, but this isn’t true. Self-directed IRA real estate investment ensures that consumers are always the ones in charge of their retirement savings.

Real estate is a great way to invest for retirement. Unlike many business-related investments, like stocks and mutual funds, real estate usually has the longevity to last until retirement and still have value that can be added to your estate. Even though there are temporary downswings, like the housing bubble, these don’t last forever because people will always need places to live and do business. Moreover, a well suited income property usually weathers the storm while producing consistent income during the swings in value.  Multi-family is a good example of this type of investment where rents have gone up in markets, even during the downturn, due to the increase demand from those needing to rent.

Self-directed IRA real estate investment lets people diversify their portfolio into assets once thought only possible through REITs.  For instance, many of our clients use our IRA plans to directly invest in real estate without ever paying penalties and not having to pay fees and operational costs associated with REITs / Brokers.  IRA rules dictate that investments in items like commercial buildings, undeveloped land, rental apartments and even vacation properties can be paid for using 401(K) or IRA funds. Unlike other early withdrawals, these do not incur penalties or early-distribution taxes while in a Self-directed Plan.  For this reason, many of our clients use their retirement funds to generate extra, lower-risk income.

This strategy puts our investors in control and it is easy to understand. Most of our customers who use their self-directed IRA funds for real estate purchases do so because they are investing in “what they know”.. There are few restrictions on the type of property you can invest in and the rent or profits you make count as returns on investment for the retirement fund, there is no K1 or Schedule E.  In fact, gains in this type of investment are not reported on the tax return.  Instead, there is simply a one-time report of value each year for the IRA.  This is a great way to take advantage of growth and allow the “would be” tax dollars to work to your advantage.

There are other advantages to self-directed IRAs.  The flexibility of self-directed IRA account makes it perfect for helping out relatives’ who own businesses or may be investing in properties.   Under certain guidelines, your IRA can make loans to others as “private money” lending.  You establish the terms for repayment and loan the money from your self-directed account.

What Are the Best Ways to Ensure a Quality Retirement?



If you’re sitting at your desk at work right now thinking about the many things you’re going to do once you’ve retired, you’re not the only one. Summer’s warm and sunny weather encourages this behavior. You want to be outside gardening or taking a walk around town, but in order to make this a reality; you’ll need to begin saving substantially beforehand. Unfortunately, because of the lackluster economy and its effects on the job market and workers’ portfolios, this is becoming much easier said than done. If you’re struggling to come up with a viable way to retire, here are some things to keep in mind:


Have you considered a Checkbook IRA? One of the biggest reasons people get behind is the failure of others to properly manage their IRA or 401K. When the economy tanked, so did many retirement accounts. The traditional model gives little control to the owner of the account and forces them to rely on faceless “experts” who are supposed to know what’s best for your account. A Checkbook IRA can prevent this because it’s self-directed. The owner of the account retains control to make investments in non-traditional assets, like real estate, and other areas, like precious metals or private money lending, where the investor can still diversify while directly overseeing the type and quality of the investment.  This approach enables the IRA or 401k owner to be their own “wealth advocate” and it is having much success.


Living within your means: This is one idea that many of us forget about. In a society that is increasingly becoming more about instant gratification, it’s certainly tempting to put something down on a credit card or loan, especially if the payments are affordable. But the question then becomes how much are you paying in interest? This interest could be used to pay down debt or save for your future. By living within your means and looking for deals when you can find them, you’ll make it far easier on yourself to save and avoid high interest debt.


Live a healthy life:  We’re all allowed a cheat day every now and then, but a good diet combined with exercise, sleep and proper stress management can make your retirement budget more manageable. One of the biggest components of a retiree’s budget is healthcare costs. Even with Medicare, co-payments, premiums and out-of-pocket prescriptions do add up. By taking control of your health, you can put yourself at a reduced risk for many chronic illnesses, which should free up your finances for more fun things in your retirement.


Take Control of Your Investments with the Help of a Self Directed IRA Custodian

It’s always a good idea to have a retirement plan. Establishing and regularly contributing to an IRA (individual retirement arrangement) helps ensure that you have the money necessary to live a comfortable life when you retire and your regular paycheck stops.  However, there are many misconceptions about IRAs.

Far too many investors shrug off the responsibility that comes with managing a successful retirement account, putting important decisions in the hands of big businesses that don’t always have the best interests of their clients in mind. For some, it is a conscious choice to give this decision-making power to an advisor or a financial firm, but most individuals don’t even realize there’s an alternative.

In coordination with a self directed IRA custodian, you can “call the shots” when it comes to your retirement funds. After all, it’s your money – so shouldn’t you have control of it? With our IRAcheckbook and 401kcheckbook plans, you choose how your hard-earned money is invested. We will form your investment structure and establish the custodial account with a self directed IRA custodian so that you have sole control of the funds and the decisions made pertaining to it.

Investing by means of a self-directed account is as simple as writing a check. There are no delays, no ongoing transactional fees and no tax returns to worry about each year. Once properly established in one of our Plans, your funds will be safely deposited into a business bank account of your choosing within two to three weeks.  You are then in control of the funds as  you serve as the manager.


In addition to being convenient, our services are also extremely affordable. We are proud to offer investors the power to control their retirement accounts without charging exorbitant fees. In fact, we feel that our flat fees provide the best value in the industry.


If taking control of your retirement account sounds appealing, don’t hesitate to contact us for more information on our Self-Directed IRA Plans. We look forward to working with you as you build a solid financial plan for your future. We are “Liberating Capital for Self-Directed Investments.”  It’s your future, take control today.

Real Estate Investment Using your Self Managed IRA

houseIRAs are a popular retirement tool, but many people do not know that a self-managed IRA is an option. The advantage of a self-managed IRA is that you decide what to invest in, whether it be traditional or non-traditional investments.  You may choose to invest in things that the managers of a more traditional IRA will not – including real estate.  Real estate is a good long-term investment, and IRA funds are well suited for longer term investing.

What is a Self Directed IRA?

IRS Publication 590, Individual Retirement Arrangements, explains the different types of IRAs. The traditional Individual Retirement Account is one type; the self-directed one is another. You decide how the money in your self-directed IRA is invested by working in coordination with a trustee.   You become your own “wealth advocate” and will quickly find out how easy the process can be even for the less experienced investor.  Certainly there are “do’s and don’ts” of self-directed IRAs, but with the right facilitator and custodian, this structure becomes a real advantage to the investor and opens many doors once reserved only for a select few.

Why Real Estate?

Unlike stocks and bonds, real estate is, well, real — it is a tangible asset with real value that doesn’t usually fluctuate with the whims of Wall Street.  Buying rental properties, especially multi-tenant properties, provides steady income to the IRA and diversity in more ways than you might think. There is the obvious fact that you can put money into real estate, stocks, bonds and other types of investments; however, you can also choose multiple types of real estate – rental properties (commercial and/or residential), undeveloped land or even value properties that are often referred to as “ flipped” or “flips”.

Things to Know

  • Be patient – Creating a self-directed IRA can take time, usually about three weeks.  Also,  many custodians don’t allow for self-directed accounts.
  • Financing-  The down payment on a property can be from the IRA.  This is a great way to leverage the investment.   You should contact an IRA facilitator that can guide you towards a lender that accepts IRA loans.
  • It is still an IRA – All profits from the property have to go into the IRA, and you cannot benefit from it before retirement. Also,  you cannot live in or use the property yourself.
  • It is still an IRA, the up-side – The income from the real estate is tax deferred (or in the case of a Roth IRA, tax free) , and you can make other tax deductible contributions to the account, as long as you don’t go over the annual contribution limit.
  • An IRA is an individual account – You have to avoid conflicts of interest, so your spouse or children cannot be part of the deal and neither can your parents or grand parents. .
  • It’s not a ‘set it and forget it’ investment – All expenses associated with the property have to be paid from the IRA account.

Real estate can be a very good investment. With self directed IRA real estate investments, you can broaden the scope of a retirement plan and utilize your money the way that you want to.