Critical Tips On Gaining Control Of Your Retirement Investments

June 12, 2010

You should consider a self directed IRA LLC if you want complete flexibility when you’re looking at your retirement options. You can make all the decisions associated with your investments and retirement plan yourself when thinking about this form of individual retirement account, commonly known as the IRA. Many people look at this as an exciting and potentially very beneficial way to control their own retirement accounts. These options are so flexible that they can be used for numerous potential investment opportunities, including but not limited to small business ventures, franchises, mortgages, tax liens, private equity, partnerships or real estate purchases both home and abroad. The self-directed IRA offers you an almost unlimited range of solutions, creatively.

If you have a Roth IRA, traditional IRA, 401(k), 403 (b) or other plan, so long as it is a qualified retirement account it can be rolled into a self-directed IRA. The funding from these introduced accounts is injected into the new plan and then shares are purchased in a custom made limited liability company, LLC. This is a legal and established process that allows you to assume control over your retirement account investments, with no early distribution taxes, transaction fees or other restrictions.

If you engage in this type of creative formatting, the potentially punitive asset-based and transactional fees that are associated with self directed IRA custodians can be avoided, and this can add up to hundreds or thousands of dollars in a given year. Not only that, but you will also be better positioned to take advantage of time-sensitive investment opportunities, such as foreclosure auctions. With a self-directed IRA LLC, you don’t have to deal with the complex and time-consuming restrictions associated with gaining custodial approval.

Normally, a custodian must be appointed to oversee all IRA matters. If a rental property is involved, as an example, rent checks must be forwarded to the IRA custodian on a monthly basis. If any repairs are needed you would first need to gain approval from the custodian, and so on. Each time the custodian gets involved, you can be sure that you will be paying transaction fees. When a self-directed IRA is developed using an LLC structure, the custodian merely invests funds into the LLC one time. The LLC manager (you) then takes care of all the day-to-day needs of the account. You can collect and deposit the rent checks, arrange for repairs to the property, and write a check for related expenses on-the-spot. With a self-directed IRA LLC, you are not held hostage — you are in control.

Earlier it was pointed out that there was an almost unlimited array of investment options available to you through a self directed IRA LLC. It’s important to point out the restrictions, however. According to the Internal Revenue Service, IRS, there are only two areas that you cannot deal with when involved with self-directed IRA accounts, including collectibles and life insurance. Collectibles includes items such as jewelry or works of art. But this category can also extend to silver or gold coins, in certain instances. When coins are disqualified, they typically are valued more from their “collectible” position, rather than the actual silver or gold content, thus categorizing them as collectible.

For individuals seeking investment options with more security, and looking for life outside of the stock market, there is no better structure than a self-directed IRA LLC. It’s a great feeling when you have every day, hands-on control over your investments and the chance to build a really diversified portfolio, when using self-directed IRA programs.

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