Investing through an IRA or 401(k) can provide huge tax benefits. These benefits compound over time, resulting in a much larger nest egg for you in retirement, and for your loved ones after you are gone.
The downside to IRAs and 401(k)s is that you are normally restricted to a small class of traditional investments, all of which are typically highly correlated to the stock market. This leaves you very exposed in an economic downturn. Every market rally eventually ends in a downturn, so it is only a matter of time before you’re bitten.
The very rich figured this out long ago, and broke free of being restricted to holding 100% of investment assets in stocks, bonds, and mutual funds. Endowment funds, for example, tend to keep about 25% of investments in “alternative assets”. But until recently, this type of protection has been unavailable to most investors.
The good news is that you can now “have your cake and eat it too” with a “checkbook” self-directed IRA. With a self-directed IRA, you can keep the tax benefits of your Traditional IRA, Roth IRA, or 401(k) while still protecting yourself against stock market downturns by investing a portion of your retirement funds in alternative assets, such as:
- Rental Real Estate
- Bitcoin and Other Cryptocurrency (while holding your own private keys)
- Private Lending Notes
- Gold and Other Precious Metals
- Private Real Estate Investment Trusts
- Offshore Assets
These truly self-directed IRAs can be structured as either Traditional or Roth IRAs.
Best of all, I can structure this IRA so that you have “checkbook control”. This means that you can make your investments as needed without relying on third party custodian approval. This cuts out 90% of the fees that self-directed IRA custodians tend to charge. By using an our law firm to form your self-directed IRA structure with checkbook control, you can eliminate most of the “fluff” fees that most self-directed IRA marketing companies charge. And if you live in a state like California that levies high annual fees on most self-directed IRA setups, we have a solution to avoid those fees as well.
If you have an existing IRA or 401(k), it can be rolled over into this setup tax-free. Further, if you are self-employed, we can create a personal retirement plan for your business over which you have full investment control.
Bonus: Some of my clients know that they need to diversify into alternatives, but don’t know how to get started. This is because many alternative investment vehicles don’t advertise to the general public. If you don’t know how to get started with investing in these alternative assets, I can provide a list of resources to get you rolling.
I have assisted investors all over country in setting up these vehicles. Your entire self-directed IRA or 401(k) can be set up for a flat fee of $1995. That’s a one-time, all-inclusive fee. I’ll be there to guide you through and set up all necessary legal structures.
If you’re interested, set up an initial consultation and we can get started. A $150 fee is taken for the initial telephone consult, but this fee is credited against the $1995 when you move forward with the SD-IRA. In Year 2 and successive years, the only ongoing fee is $150 annually.
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