Self Directed Investor Talk: Alternative Asset Investing through Self-Directed IRA's & Solo 401k's

https://SelfDirected.org/254d

There's a hidden distinction among solo 401(k) plans from one provider to the next that's big, bad and disconcerting if you discover it the wrong way.  I'm Bryan Ellis.  I'll tell you what it is right now in Episode #254 (part D) of Self Directed Investor Talk.

https://SelfDirected.org/ira

https://SelfDirected.org/investor-talk

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

Hosted on Acast. See acast.com/privacy for more information.

3 New Pieces of data about the Trump Economy are eye-openers… absolutely shocking… and frankly, are each great indicators about what CAN happen in YOUR Self-Directed IRA, Solo 401k or any other investment portfolio if you’re smart enough to play the hand you’re dealt.  Learn about those 3 earth-shaking pieces of data, and how they play in your favor RIGHT NOW:

Full Notes and Resources available at: https://SelfDirected.org/254

Hosted on Acast. See acast.com/privacy for more information.

The Big Idea

Prohibited transactions are a terrible, terrible thing for your IRA, and they are ALWAYS taxable, with penalties and interest, too.  Yes, all prohibited transactions are taxable.  But not all taxable transactions in your IRA are prohibited...

• Prohibited transactions are prohibited because they benefit someone other than the IRA
• Not all transactions that are taxable to your IRA are prohibited
• Zamir from Boston proposes a transaction that could be both... or neither... we take a look

• Full Episode Transcript: Episode #253 of Self Directed Investor Talk
• Deep dive in prohibited transactions... and FREE EBOOK!
• The best self-directed IRA lawyer on the planet:  Tim Berry

Hosted on Acast. See acast.com/privacy for more information.

There's nothing sexy about Birmingham, Alabama... unless very high cash flow from very inexpensive properties is sexy.  In that case... Birmingham is smoking hot!

• Turnkey rental properties are homes you buy as rental properties, but there's already a tenant and property manager in place to make the whole investment "hands-off" for you
• Birmingham, Alabama is a strong alternative to consider.  Cash flow ROI is very strong.
• Example:  1,000 SF home, built in 1920's but fully renovated, 3 bedrooms, 1 bath, kitchen, livingroom, etc.  Fully renovated:  $55,000
• Net ROI easily in 8-13% range
• To learn more about this market, call the SDI 2-minute free recorded info line at (773) TURNKEY.

• Episode #252 of Self Directed Investor Talk available here
• Free Webinar that shows how many SDI Talk listeners are receiving very large credit lines at 0% interest for their real estate deals or businesses.  Check it out here.

Hosted on Acast. See acast.com/privacy for more information.

The Fiduciary Rule claims to benefit the "best interests" of retirement account investors, but will only serve to keep middle-income Americans away from alternative assets and from high-quality financial advice.  Trump has delayed implementation of this new rule and may end it entirely... Bravo!

• In April 2016, the Department of Labor proposed new rules to expand the definition of "fiduciary" to anyone connected with providing guidance to retirement account investors
• The "suitability" standard had been in place - effectively - for many years, which required that advisors only make investment recommendations that are suitable to investors
• "Fiduciary" status raises the bar for advice from "suitability" to "best interests"... with stated motivation of eliminating "conflicts of interest"
• No evidence that "suitability" was an insufficient standard
• New "best interests" stndard will absolutely limit access to alternative investments and financial advice to all but the upper tier of retirement account holders
• Fundamental Effect of Fiduciary rule would be to limit the availability of financial advice
• Trump has delayed implementation of the Fiduciary Rule for 180 days so he can determine what to do with it.  Seems likely he'll eliminate it entirely as it limits investor choice.

• Episode #251 of Self Directed Investor Talk available here
• Free Webinar that shows how many SDI Talk listeners are receiving very large credit lines at 0% interest for their real estate deals or businesses.  Check it out here.

The next episode of Self Directed Investor Talk addresses one particular market for turnkey rental properties that we at SDI are proponents of... along with a case study of a particular investment opportunity to give you a good "taste" for the potential!

Hosted on Acast. See acast.com/privacy for more information.

An old IRS Revenue Ruling makes Solo 401k's set up by banks, brokerages and self directed IRA custodians just as risky as IRA's in the event of a prohibited transaction... and it does not need to be that way.  Pay close attention for the problem and the solution.

• 401(k) plans (including Solo 401k's) can be set up as "Custodial" or "Trust" plans
  • "Custodial" plans are usually those set up by financial companies, including Self Directed IRA custodians
  • "Trust" plans are usually those where the employer/business owner directly manages the 401k
• IRS Revenue Ruling 71-153, in effect, says that Custodial-type 401k plans are not able to be "fixed" if a prohibited transaction occurs, but that Trust-type plans can be corrected
• This means that Custodial 401k plans are just as susceptible to the horrible risk of prohibited transactions as IRA's... and the risk there is catastrophically significant
• If you have a Solo 401k plan, your action items are:
  • Determine whether your plan is Custodial or Trust
  • If your plan is a Custodial plan, consider amending it so that it's a Trust-type of 401k plan
• Contact solo 401k attorney Tim Berry here to determine if your plan is a Custodial plan, and to have it amended if necessary
• Revenue Ruling 71-153 is a very old ruling, so an alternative legal opinion is plausible.  However, subsequent regulations have been issued which echo the verbiage in this ruling, so there's substantive reason to believe it remains relevant.

• Episode #250 of Self Directed Investor Talk (this show)
• Free Webinar that shows how many SDI Talk listeners are receiving very large credit lines at 0% interest for their real estate deals or businesses.  Check it out here.
• Solo 401k / Self Directed IRA attorney Tim Berry

Hosted on Acast. See acast.com/privacy for more information.

Turnkey rental property investing is inherently simple, eliminating 95% of the effort and time involved in rental property investing.  But for those seeking a 100% hands-off experience - along with the benefit of a higher level of professional management - a brand new approach to turnkey investing could be even better than it was before.

• Turnkey rental property investing eliminates 95% of the effort involved in rental property ownership, but for some, that's not enough
• "Buffer Fund" is an investment fund that invests in rental properties and is an alternative to direct 100% ownership of individual properties
  • Not the same as a REIT (Real Estate Investment Trust)
• "Negatives" of investing in Buffer Fund rather than directly into real estate:
  • Loss of control
  • Potentially decreased liquidity
  • Loss of use of 1031 tax defferred exchange
• "Positives" of investing in a buffer fund rather than directly into real estate:
  • All involvement and time requirements are eliminated
  • Your legal & financial risks are each greatly diminished
  • Superior diversification
  • Economy of Scale
• What do you think?  We really want to know your opinion... please use the comments area below to sound off!

• Full transcript of Episode #249 (this episode) of Self Directed Investor Talk is available here
• Free Webinar that shows how many SDI Talk listeners are receiving very large credit lines at 0% interest for their real estate deals or businesses.  Check it out here.

• In the next episode of SDITalk, we look into Solo 401(k)'s and discover a significant difference in risk for that account type based on a common and simple misconfiguration

Hosted on Acast. See acast.com/privacy for more information.

Treasury Secretary Steve Mnuchin has said he plans to privatize Fannie Mae and Freddie Mac.  But will he really?  If he does, there's a great opportunity lurking...

• Treasury Secretary Steve Mnuchin said very unambiguously that privatization of Fannie Mae and Freddie Mac are high priorities and can be accomplished quickly
• That was welcomed news to current shareholders, who have been the victim of the Fannie/Freddie bailout in 2008
• If privatization of Fannie Mae and Freddie Mac happen, the market for 30-year fixed rate mortgages will likely disappear
• The reduction of funding will likely cause a temporary diversion of the price of real estate and it's value, thus creating a strong buying opportunity for cash buyers
• Seller-financing-oriented investors stand to fare very well... but Dodd Frank must first be repealed, which is also a Trump objective

• Full Transcript of Episode #248 (this episode) is available here
• Free Webinar that shows how many SDI Talk listeners are receiving very large credit lines at 0% interest for their real estate deals or businesses.  Check it out here.

• The next Episode of Self Directed Investor Talk is here... enjoy!

Hosted on Acast. See acast.com/privacy for more information.

Not all solo 401(k)'s are the same... and the differences can be very profound.

• A 401(k) is an employee-sponsored salary deferral and profit sharing plan.  It can be both, one or neither of "Solo" or "Self-Directed"
• Solo 401(k)'s offered by stock brokerages tend to exclude all assets other than stocks, bonds and mutual funds.
• The law doesn't require a 3rd party custodian/trustee for your 401k, but some providers do
• Your plan will be more flexible as a trustee-directed plan than as an individual-directed plan... as long as you're the trustee!
• The expertise and availability of the provider of the solo 401(k) plan is the most important distinction
  • Bryan's Recommendation:  Talk with Tim Berry for a Solo 401(k) that meets all requirements

• Episode #247 of Self-Directed Investor Talk
• Free Webinar that shows how many SDI Talk listeners are receiving very large credit lines at 0% interest for their real estate deals or businesses.  Check it out here.

Hosted on Acast. See acast.com/privacy for more information.

There are two fundamental philosophies when it comes to interpreting law as a judge, and one of them is absolutely better for anyone who makes their own investment decisions.  How does Neil Gorsuch, President Trump's nominee for the US Supreme Court, stack up?

• President Trump just nominated Judge Neil Gorsuch to serve as the next US Supreme Court
• It matters greatly because judges who ascribe to a particular judicial philosophy are very bad for investors and businesses
• The two philosophies are Originalist and Acitivist
  • Originalism says:  The plain words of the law are the guide and absolute limits of my ruling in any case.  It’s the job of CONGRESS to create or change laws, not the job of judges to do so
  • Activism says:  The law is a guide I’ll consider.  But if necessary, I’ll subordinate the law to other factors, including my own political beliefs, the legal system in other jurisdictions, social preferences, etc so that I can arrive at a decision that I believe to be suitable.
• This all boils down to whether a particular judge makes decisions that create reliable precedent so that we can make decision about investing our money
• Origianlists tend to make more consistent decisions based on the law itself - regardless of whether the law is "conservative" or "liberal"
• Neil Gorsuch is definitely an originalist and is an excellent pick for the US Supreme Court

• Episode #246 of Self Directed Investor Talk (this show)
• Free Webinar that shows how many SDI Talk listeners are receiving very large credit lines at 0% interest for their real estate deals or businesses.  Check it out here.

Hosted on Acast. See acast.com/privacy for more information.