Taking Control of Your Finances with a Self-Directed IRA

“With a self-directed IRA, you can take control of your investments instead of being at the mercy of someone else.” Amanda Holbrook Click To Tweet

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Amanda Holbrook from Specialized IRA Services is here with me today. We are talking about self-directed IRAs. We go into the details of how you can open one or how you can transfer an old 401(k) into one. True self-direction is not limited to stocks and bonds. Self-directed accounts allow you to get off of Wall Street and onto Main Street by investing in tangible assets.

When it comes to making and keeping money, tax advantages as well as having capitol to invest are major advantages. Having a team to help you set up something like a self-directed account can make it easy to begin earning and saving like never before. Amanda shares strategies and clears up misconceptions about this smart retirement strategy.

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“True self-direction is not being limited to stocks, bonds and mutual funds. You can also invest in the nontraditional space” Amanda Holbrook Click To Tweet

Show Notes

  • Handwritten accounting on the open pages of some old ledgers[02:27] Amanda started out working in the conventional lending industry. She then discovered peer-to-peer investing. Then she found out with the self-directed IRA, we can be private lenders to each other.
  • [03:11] Self-Directed IRAs are the vehicle that lets you invest in something that you know.
  • [03:31] True self-direction is not being limited to stocks, bonds and mutual funds. You can also invest in the nontraditional space.
  • [04:34] With a self-directed IRA you have a lot more creative opportunities to get double-digit returns on your money.
  • [04:51] Anyone with a social security number and earned income can have a Roth IRA.
  • [05:16] With an old employer 401K it is to roll it into a self-directed IRA.
  • [05:39] With a Roth IRA you pay the tax on the seed not the crop.
  • [05:44] Get your kids started with a Roth IRA. It’s how to build the trust fund babies of tomorrow.
  • [05:52] The entire point is to get the money off of Wall Street and back onto Main Street.
  • [06:28] Get professional pictures of your baby done and issue them a 1099 for the Roth seed. The limit for the year is $5500.
  • [07:13] If this $5500 grows at 10% until your baby is 591/2, you have over 2.5 million of tax free income for your child. Take action today to set your children up monumentally for tomorrow.
  • [08:12] There are three steps to moving a 401k. Once you have deposited the funds, you can pick a non-traditional investment.
  • [09:20] There are no tax consequences as long as you keep the vehicle the same. It’s a lateral move.
  • [09:45] Self-directed means you are not limited to, stocks, bonds and mutual funds anymore.
  • [12:04] A Roth IRA is a big piece of how you can keep your money. The taxes are already paid.
  • [12:24] A Roth solo 401(k) is the account to have for self-employed people. You can put 18,500 in the tax-free portion and up to 36,000 in the tax-deferred portion.
  • [13:35] Your Roth IRA can also be zero cost capital. You can take a loan out and pay yourself back.
  • [14:47] You can bite tangible assets like gold, real estate, and other investments. You can have tangible investments that are insured in your tax-free account.
  • [15:58] When you purchase a property and do a deal you do it in the name of your IRA. It is all about how you title the property. All expenses come from the account and all profits go back into the account.
  • [16:49] You can also be a lender. When the money is made payable it’s payable to your account. This is how the money grows tax-free. Month after month after month.
  • [17:41] Things that can’t be included are life insurance policies, collectibles like artwork, and you can’t fund yourself in a business dealing.
  • [18:30] You can’t benefit out of the retirement account in the here and now. Your spouse is also off-limits. Aunts, uncles, nieces, nephews, are all okay to do business with.
  • [19:33] Things to look for when finding the team. Find people who practice what they preach. Find innovators who also execute.
  • [21:27] Knowledge doesn’t just make you successful. Execution leads to the success.
  • [21:45] Look for experience behind the table. Make sure you are dealing with a fully licensed custodian and make sure you understand the fees.
  • [22:23] There are set up, annual, and transaction fees. Specialized gives unlimited buy sell transactions for a flat fee of $250 a year.
  • [24:17] Think about whether you want to just dip your toe in the water or get your whole family on board with specialized platinum service.
  • [24:28] To take action, you decide, deposit, and direct.
“With a self-directed IRA you have a lot more creative opportunities to get double-digit returns on your money.” Amanda Holbrook Click To Tweet

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