September 21, 2023

Charleston SC – Voted Top City in US 2013

Peer-to-Peer Lending Fills in the Gaps Banks Leave Behind

While small business lending is up — another sign of life in the slowly recovering U.S. economy — the stagnant years preceding this recovery were difficult for small businesses. Banks were tight with loans and many companies found themselves shut out, unable to expand or replace aging equipment. During that time, many companies found success with a different type of loan.

The practice dates back to 2006 with the launch of the first peer-to-peer loan company, Prosper. Today, there are many more players. LendingClub is world’s largest peer-to-peer lending platform, with Prosper in second place.

Peer-to-peer lending is a fairly simple concept. It involves using the Internet to link borrowers and lenders for loans of relatively small amounts of money, usually up to about $35,000, at competitive rates and for short terms. Investors receive good rates of return, and small businesses and individuals get access to the money they require to take advantage of business opportunities.

It works like this: borrowers provide their credit information, the purpose of the loan, and the amount they require in an application process. Investors evaluate the company’s credit worthiness and, if they suspect a good bet, they provide some part of the amount required. For some small loans, the investment could be as little as $25. Once the amount requested is met, the loan is granted and then paid back just like a traditional loan. The interest rates are set by the peer-to-peer lending service.

The model is appealing because the interest rates are competitive with, and often lower than, traditional banks, and returns run between 5 and 15 percent — better than many investment opportunities available today.  (This blogger, something of a peer-to-peer lending skeptic, prepared an interesting table of averages for peer-to-peer lending that is worth a look.)

The practice is still small, but growing. It’s expected that by 2016, peer-to-peer lenders in the U.S. alone will originate $20 billion in loans each year, according to Jason Jones, an organizer of the LendIt Conference and partner at New York-based Disruption Credit, an investment firm that specializes in online lending. Ron Suber, head of global institutional sales at Prosper, told IMT that the peer-to-peer model is popular with individuals looking to consolidate debt from high-interest vehicles.

“Since January, loan originations on Prosper have more than tripled from nine million to more than 30 million per month,” he said. “We are also seeing a sharp increase in borrowers as more people look to re-finance high interest rate credit card debt with a low-interest, fixed-rate, fixed term loan.”

While LendingTree offers loans to both individuals and small businesses, and Prosper offer loans only to individuals, other services such as Dealstruck focus exclusively on the small business market. Dealstruck brokers loans between $100,000 to $1 million for two- to five-year terms and with interest rates between 5 and 15 percent.

The benefits of peer-to-peer lending are obvious. Many of the services that offer this type of lending have no brick-and-mortar bank branches, which keeps operating costs and interest rates low. Borrowers and lenders do a lot of the administrative work online.

“It is a more direct funding process between the investors and the borrowers,” Lending Club’s CEO Renaud Laplanche told NPR. “There’s no branch network. Everything happens online and it is really powered by technology and the Internet. And we use technology to lower cost.”

This isn’t to say it’s risk-free. In its earliest days, the default rate of peer-to-peer lending hovered at about 17 percent —  a figure that could give an investor second thoughts. Today, companies like LeandingClub use algorithms to screen borrowers for risk based on a number of factors such as credit, income, and industry averages. The algorithm weeds out about 90 percent of prospective borrowers. As a result, default rates have fallen to between 2 and 10 percent.

Peer-to-peer loans aren’t government guaranteed, so it’s possible that their penetration will be limited. That said, however, the practice is attracting big names. Earlier this year, Google invested $125 million in Lending Club, which last year facilitated about $800 million in loans and says it’s planning to loan about $2 billion this year. The company is likely to attract bigger investors and greater confidence thanks to Eaglewood Capital, which provides the securitization for Lending Club’s loans.

The New York Times notes that this securitization may be a crucial development for peer-to-peer lending because it might allow a wider array of investors to buy such loans. Many companies’ internal regulations might prohibit them from involvement in peer-to-peer loans without securitization.

Suber told IMT that it’s about maintaining balance.

“Our goal in underwriting is to keep the marketplace in balance – we want to provide value to both borrowers and lenders,” he said. “The flexibility of our credit model allows us to systematically adjust rates over time to keep this balance. We also price risk at an individual level based on individual credit attributes, providing borrowers a custom rate to meet their needs.”

Smart lenders have been able to greatly reduce risk by spreading out loans across a number of investors, attaining the right mix of high-risk, high-reward loans with more conservative loans that balance out the risk. And by lending only to companies and individuals with very good credit, the peer-to-peer model can rival many other types of investing.

IRAcheckbook Enables American Pilots to Stay on Course with their Finances through Self-Directed Plans

According to IRA Checkbook, as the American Airlines/US Airways merger runs into obstacles, pilots who have transferred their B-fund over to self-directed IRAcheckbook plans have one less worry. The success of the program is driving more pilots to consider going the self-directed route.

Despite the recent DOJ action, the American Airlines/US Airways merger continues to move forward according to’s article published on 9/23/13 and the AA pilots have one less worry now that their B-fund retirement has been transferred. Many elected self-directed IRAcheckbook plans and their success is now driving more pilots by referral to consider going the self-directed route.

IRAcheckbook, a Self-Directed Facilitator, is a company located in Charleston, SC which is also the home of Boeing’s new 787 Dreamliner manufacturing facility. “It’s a small world when you think that we have established plans for the Boeing employee tasked with building the 787 Dreamliner and the future American pilots who will fly it”, says Jeff Beall, Managing Director of IRAcheckbook. American Airlines’ pilots were forced to transfer or cash out of their retirement “B-fund” due to the recent bankruptcy filing. A large number chose to go the self-directed route. “We’re pleased with the work we’ve done for these investors”, Jeff announces, “Their success is our success.”

Many professionals are not aware of all the options available for their retirement portfolio. Most retirement investors believe they must hire someone to manage their funds. A self-directed IRA allows the investor to have full control over their own funds, thereby allowing them to make investments at will. A self-directed IRA offers a way to diversify the portfolio and pay dividends even in a down market. Investments may be traditional assets like stocks, bonds, mutual funds; but the real advantage is the potential in alternative 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. Investors can have multiple IRAs, therefore, a self-directed IRA needs to be considered as part of the overall retirement plan.

IRAcheckbook is pleased to announce the success of the B-fund transfer for American Airlines. Since the termination of the B-fund last November, American Airlines pilots have been forced to find a new way to secure their retirement. Given the option of either rolling their money into a new plan, like a traditional IRA or checkbook IRA, or cashing out completely, many of the pilots chose to become their own wealth advocate. The self-directed platform is well suited for those aiming to have full control over their retirement. A checkbook IRA is easy to navigate and aids investors immensely in positioning funds for emerging opportunities; thus ensuring a more diversified portfolio while enabling them to take advantage of future economic growth. “We have found that professionals with IRAs are eager to learn all the options they are entitled to for investing”, says Jeff, “More than anything else, our company and affiliates provide educational opportunities to demonstrate the simplicity of self-directed retirement plans. It is our hope that everyone with retirement funds will eventually take advantage of all their options and shake free of the status quo”.

Although not for everyone, savvy investors have known since 1974 what a powerful tool a self-directed IRA can be. The checkbook IRA gives knowledgeable investors the opportunity to make investments when and where they see fit. For example, an IRAcheckbook Plan can be invested directly into real estate. All income collected on rent is tax-deferred or tax-free depending on the type of IRA, as is all the appreciation.

“Bottom line, with our IRAcheckbook Plan, the customer has greater flexibility and control for investing. With greater flexibility and control, comes greater opportunity.” Jeff concludes, “We always look forward to the conversation. Each customer is important to us and we get great satisfaction enabling them to become better investors.”

About IRA Checkbook:

IRAcheckbook is a Self-Directed Facilitator of self-directed retirement plans. Our IRAcheckbook Plan gives the customer “checkbook control” over all or a portion of their IRA in order to make investments in assets like real estate, precious metals, private money loans, businesses, tax liens, etc.

Clients ready to listen to advisers on alternative investments

alternate IRA investmentsAdvisers who may still fear a client’s look of horror for recommending alternative IRA investments should take note of these survey results — investors are ready to listen.

About 72% of investors would consider alternative IRA investments if their adviser recommended them — up from 35% a year ago and a giant leap from 19% in 2011, a Natixis Global Asset Management SA survey found. About 43% said they already are willing to invest in alternatives.

Education will be key, as 85% of investors said they would invest in alternative IRA investments with self directed IRAs if they understood them better, according to the survey, which sampled investors with at least $200,000 in assets. The survey, released Tuesday, included 750 U.S. investors as part of a global survey of 5,650 investors from 14 countries.

“Advisers sometimes think they can’t bring alternatives to the discussion,” said Matthew Coldren, executive vice president of Natixis. “But there’s increasingly an openness from investors to learning more about alternative strategies.”

Most investors, about 61%, said they don’t believe that traditional stock-and-bond portfolios are the best way to manage investments and go after returns, according to the survey.

In fact, about 28% of investors said they plan to increase their alternative IRA investments in real estate over the next 12 months, 28% in gold and other precious metals, 22% in alternative mutual funds and 20% in private equity, the survey found. About 25% plan to increase their U.S. stock allocation.

The largest planned shift in allocations, however, was from about 36% of investors who plan to increase the amount of their portfolios that are in cash over the next year.

Almost all investors, 86%, pay attention to the overall risk in their portfolios, and 82% try to measure their investments’ risk, the survey found.

“It’s encouraging to see a strong focus on risk,” said John Hailer, chief executive of Natixis in the Americas and Asia. “We know from recent history that when investors are focused on growing assets without understanding the risks involved, it’s a recipe for disaster.”

The survey also found that about half of these investors don’t have a financial plan to help them achieve their goals — a figure that has been steady during the past four years of the Natixis survey, Mr. Coldren said. And about 45% of investors said they don’t have clear financial goals.

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.

IRAs: They’re Not Just for Stocks, Bonds, and Funds

self directed ira rules yes


A friend is offering me the chance to invest in his start-up business. Am I able to do so using the funds in my IRA? How would I do that within the self directed IRA rules?


Mention an IRA, and most investors probably think of a long-term savings vehicle that holds only securities such as stocks, bonds, and mutual funds. But the IRA wrapper also can be applied to many other investment types, including real estate, precious metals, and equity in privately held companies, such as what you are proposing.

The vast majority of IRA assets are invested in the regulated securities with which most investors are familiar, typically through banks, brokerages, or fund companies. But a small segment–estimated at about 2% of all IRA assets–are held in so-called self-directed IRAs, which may be established through a custodian or trustee and which can encompass a much broader range of investment types. There are certain self Directed IRA rules to follow and we can help facilitate the creation.

What You Can and Can’t Invest In According to Self Directed IRA Rules

Tom Anderson, president of the Retirement Industry Trust Association, a trade group representing the self-directed retirement-plan industry, says that about 40% of the $50 billion in assets that the group’s members manage is held in real estate–everything from income-producing properties to time-shares to co-ops. In fact, self-directed IRAs can be invested in just about anything with a few exceptions. Among these are collectibles, so forget about putting that Picasso original or ’57 Chevy in your IRA. Life insurance also may not be put inside a self-directed IRA, nor can stock in an “S” corporation, which is a special type of corporate structure in which taxable income is passed on to shareholders. (The Internal Revenue Service bans these from non-self-directed IRAs, as well.)

Holding assets such as real estate or private equity within the IRA wrapper means enjoying tax-free growth and compounding, just as it does with stocks, bonds, and funds. A self-directed IRA also may use the traditional, Roth, or SEP IRA format, meaning that you could get a tax break during the contribution or distribution phase. For example, if you used money from a self-directed Roth IRA to invest in a rental property, not only would income be added to the account tax-free, but any proceeds from sale of the property would be tax-free, as well (once the account holder turned 59 1/2).

Self Directed IRA Rules Against Self-Dealing

Because they can hold such a wide array of asset types, self-directed IRAs tend to appeal to investors looking to diversify their retirement holdings and reduce correlation with stocks. The self-directed IRA is often used to complement, rather than replace, a more traditional IRA invested in stocks, bonds, and mutual funds. “Most of these IRAs are created as a result of someone working for 15-20 years, changing jobs, and rolling over [a piece of] their 401(k) into a self-directed IRA,” Anderson says.

The rules governing self-directed IRAs can be tricky, however, so make sure you understand them before opening an account. For example, there are strict rules against so-called self-dealing, which means that IRA money may not be used to invest in a property that the account holder or a direct family member will use. Thus, buying a vacation home with an IRA and using it for trips with the kids or grandkids is not allowed. That’s because the Internal Revenue Service requires that the investment be for the benefit of the IRA account exclusively–in other words, that its sole purpose is to potentially help the account increase in value as opposed to any ancillary benefit to the account holder or his family.

The rules regarding the use of self-directed IRAs for privately owned business investments are even murkier. For example, if the self-directed IRA is invested in a business wholly owned by the account holder, that account holder is not allowed to draw a salary from the business. Also, even though self-directed IRA funds can be used to start a business, they cannot be used to purchase equity in an existing business that is already 50% or more owned by you and/or other direct family members including spouses. Given the complexity of these rules, Anderson recommends that self-directed IRA users considering these or related strategies consult with a registered self-directed IRA custodian and/or an attorney well-versed on the topic to ensure these strategies don’t run afoul of tax laws. (You can read more about some of these IRA restrictions on the IRS website.)

Lack of Transparency and a Potential for Fraud
Among the potential problems with holding alternative assets in a self-directed IRA is that the assets may be illiquid, making them harder to sell. That also might make assessing their true value difficult. In a 2011 alert about potential fraud in self-directed IRAs, the SEC warned that self-directed IRA custodians may list the value of an alternative investment as the original purchase price or a price reported by the entity running the investment, neither of which may be accurate.

The alert also pointed to the fact that self-directed IRAs may hold unregistered securities, which can serve as an invitation to fraud, and Ponzi schemes in particular. In one such case, the agency helped shut down a firm that had raised $20 million in assets from retirees in California and Illinois who were persuaded to open self-directed IRAs and told their money would be invested in Turkish eurobonds with guaranteed returns when in fact it was used as part of an alleged Ponzi scheme.

Before opening a self-directed IRA, you should think long and hard about whether it’s the right choice for you. If you plan to invest funds in unregulated securities it’s always best to get a second opinion from a trusted source such as your financial advisor if you have one. Aside from that, you’ll need to keep in mind considerations such as fees charged by the custodian (Anderson says RITA members typically charge between 0.20% and 0.40% of assets), how accessible the money will be if you need access to it in a hurry, and other factors. You can read more about these important considerations in this article by Morningstar’s Christine Benz.

A self-directed IRA can be an effective way to add diversification to your retirement portfolio, especially for wealthier investors concerned about having too many of their assets correlated to the stock market. But it’s a strategy that takes careful planning and, most of all, due diligence to keep within the self directed IRA rules.


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.
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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:

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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.

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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!