If you contribute to your 401K account, you may still contribute to a Roth IRA and/or a traditional IRA, as long as you meet the IRA’s eligibility requirements. However, if you wish to contribute to a traditional IRA and take a tax deduction for that contribution, depending on your income, your contribution to your employer’s […]
Category: Self-Directed IRA
Start Rolling Over Your 401K to an IRA
When it comes to a 401K, you can take it with you from job to job, and in fact, you should, and it should be in the form of a 401K rollover. But making the most of the money you’ve built up means performing the rollover correctly. Here’s the four-step process for how to rollover […]
A Guide to Non-Recourse Loans in an IRA
What is a non-recourse loan? When real estate is purchased through a self-directed IRA using leverage, the IRS requires a non-recourse loan. The main difference between a non-recourse loan and a recourse loan is which assets a lender can go after if a borrower fails to repay the loan. Non-recourse debt is usually limited to a 50-60% […]
The Importance of Diversification of Your IRA Portfolio
Whether you’re new to the investing game or a novice, there’s something that everyone needs to learn, and that’s diversification of assets. Diversification is fundamental, not only for your portfolio’s sake, but also for your future retirement’s sake. When you have a self-directed IRA, and the investment options available to you are practically limitless, that’s […]
Using a Self-Directed IRA to Invest in a Private Company
The Internal Revenue Service puts few restrictions on what assets you can own in an individual retirement arrangement. You can’t use your self-directed IRA to buy life insurance, collectibles, jewelry, alcoholic beverages or some forms of precious metals. But there’s nothing in the law that says you can’t buy an interest in a closely held […]
Self-Directed IRA Rollover Terminology Broken Down
Rollovers are the most common way to transfer funds within retirement accounts. Transfers and rollovers are transactions that allows for the movement of assets between IRAs and 401K plans. Let’s go over the basic terminology. Direct Rollover A Direct Rollover is generally used when moving funds from an employer plan (like a former employer 401K) […]
What All SDIRA Owners Need to know About Trust Deed Investing
Quite plainly, a trust deed investment is when an individual lends money to a borrower for a real estate purchase. When you invest in Trust Deeds, you act as a lender and offer financing to a property owner. The loan is secured with a property, and in the event of default its title transfers to […]
Starting at the Basics with Self-Directed Individual Retirement Accounts
A self-directed individual retirement account is an account held with a custodian that allows investments in a range of alternative assets inside of that account. Depending upon what your custodian allows, these could include IRAs (both Traditional and Roth accounts), SEP-IRAs and Solo 401Ks. Why a self-directed individual retirement account? A self-directed individual retirement account, […]
Why You Should Take a Multi-Asset Approach to Investing
The traditional Single-Asset Investing Strategy emphasizes purchasing one item at a time and holding it for a long time. In the 1980s, this strategy was effective, primarily because interest rates were high and assets were not correlated. But in 2020, the financial markets are displaying some markedly non-traditional features. Low Interest Rates In the 1980s, […]
Inflation Can and Will Deplete Your Self-Directed IRA Income – How to Fight it
Inflation is something most Americans don’t think about much, but it has a significant influence on all of our financial lives. Not only does inflation impact the prices of consumer goods; but the federal government also uses it as a benchmark in determining whether to increase contribution limits to qualified retirement plans or to raise […]