Posts Tagged ‘investment’

How Much Money Should You Have in Your Retirement Accounts?

Monday, February 17th, 2014

How much do you need to retire

Saving for retirement can seem so frustrating and out of your hands. There are so many things you can do to make sure you are involved with your own retirement. You can even invest your retirement how you want with a with a self directed account. Self directed accounts can be IRA or 401Ks. What is great about a self directed account is that you can invest in things like real estate and gold. There is plenty of other things you can use your IRA to invest in with a self directed account. If you are worried about invest in the stock market then a self directed account is a great option. Once you have a self directed account then what? Start investing!! Even when investing with a self directed account it is important to remember about your end goal of securing a great retirement.

We have extensively gone over retirement and how to prepare for that ever so exciting, yet potentially stressful time. The more you are prepared for retirement the less stressful it will be. Why is it stressful? It is stressful because if you haven’t prepared well enough then you may be wondering if you have enough money in your retirement accounts? This is what most of us worry about. With a self directed account it isn’t always about how much money is in your accounts but what are your assets worth?  Either way knowing you have enough to get through your retirement without running dry is important. Today we will be discussing how much money you will need when you actually do retire.

As knowing a perfect figure can be quite tricky and each situation can rule different outcomes it is wise to sit down with a financial planner to make sure you are on the correct track for your situation. A few of the factors that need to be considered when looking at your situation are:

When You Retire

When you retire can have a huge impact on your retirement income. Just speaking of when you will start collecting social social security between 62 to 70 can be dramatic. Say you earned $50,000 a year and turned 62 in 2013. You could collect roughly $1,011 a month as a single. If you waited until 66 you would be able to collect roughly $1,420 a month (in today dollars). If you started collecting at 70 you would collect roughly $1,972 a month (as before it is in today dollars).

Where you Retire

$300,000 can go a lot farther in places like Daytona Beach, Florida, Pocatello, Idaho, Greenville, S.C. than it can in San Francisco, California, or New York, New York. Make sure you know the cost of living where you are retiring. You may find that you need to adjust your savings plan depending.

What You Plan To Do While Retired

This is an obvious but often overlooked aspect of retirement. If you plan to continue the same lifestyle that you typically had before retirement you should be ok. If you plan to travel and do things that you never did while working you may need to boost your retirement savings plan.

How Long You’ll Live

This is another huge thing to be aware of when retiring. Of course we never know what is going to happen but you should plan for the long haul. There are different ways you can judge how long you will live. There are expectancy calculators and the IRS has a table to guestimate how long you will live. Using those guestimates you’ll be able to know how long you’re going to need money which will be a great insight to figuring out how much you’ll actually need.
With so many variables that go into figuring out how much you actually need is it even possible to have any idea what I should be saving now? Yes, it is very possible to have a good idea of what you need. There are plenty of calculators that help you with your retirement. There is also a general rule of thumb that can give you a good starting point.
  • Age 35: Have saved as much as your current salary.
  • Age 45: Have three times your salary saved.
  • Age 55: Save at least five times your salary.
  • Age 67: When it’s time to retire, a great goal is to have saved at least eight times your ending salary.
This is a great starting point and if followed can give you a very solid basses for your retirement. It still doesn’t beat out getting as detailed as possible though. Look at every aspect of your life and figure exactly how much you spend and do your best to figure out future spending. Again, the more detailed detailed the plan the better. If you follow that detailed plan you are much more likely to be able to go through retirement lasting on your own money. you need to very wise to dig as deep as you can and to get as detailed as possible.


Private Placements Investing inside of an IRA

Wednesday, January 15th, 2014

Invest in a business

Investing through a Self-Directed IRA is a great alternative strategy to diversifying your investment portfolio.  Through a self-directed IRA, you can invest in multiple investments, including real estate, physical gold and silver, private placements, loans, and other non-traditional investment vehicles.

One investment vehicle that could have a big pay out is private placements. In short, a private placement is an ownership in a privately held business that is not traded on the stock exchange. Private placements can be LLC or corporations.
With a private placement, they do not have the normal disclosure laws that a publically traded company is required to report.  There are benefits and disadvantages to this.  The disadvantage is that you need to do your own homework on the company, as to ensure that the company is legit and that investing in the company will be a good move.  The advantage is that by doing your own homework and getting into an investment early, you can hit the jackpot on a good investment that can pay out in large dividends.

If you are interested in investing in a private placement you need to align yourself with an IRA custodian that will allow you to do this type of transaction. Most IRA custodians only allow you to invest in a publically traded stock. Our company allows you to take your IRA and put it in private placements investing.

Below are some other benefits of investing in a private placement:

  • Allows for greater balance in your portfolio because of diversification in your IRA
  • Control over the investment options, because you’re not bound by a custodian that only allows for stock and bonds
  • If you have knowledge of a new startup company, you can get in early enough to make large profits
  • Any growth or dividends grow tax deferred or tax-free if you have a Roth IRA
  • Your IRA is also able to diversify into Limited Liability Companies, Limited Liability Partnership, C-Corporations, and other non-traditional start-up companies

Below are some general rules to follow when investing in a startup company:

  • Due to the tax nature of S Corps, your IRA cannot have any ownership in an S Corp. That’s because S Corps can only be owned by a natural person
  • Your earnings could be subject to UBIT Tax (Unrelated Business Income Tax). For more information read What are UBIT and UDFI Taxes Associated with Self-Directed IRAs.
  • You cannot invest in a private placement that you already own
  • Ownership in the private placements needs to read as the following: NAME OF CUSTODIAN FBO___________clients name.  You cannot have the ownership read your name individually
  • There can also be restrictions if you are employed by the company or are a manager for the company
  • And lastly, all income or dividend payments must go back to the IRA, not to you personally

If you would like more information on private placements investing inside of an IRA, feel free to contact me or comment below.

Author: , Self-Directed IRA Professional
[email protected]


Thursday, January 9th, 2014

You don’t have to start your resolution on January 1st, but you should start your resolution with the intent of following thorough.  According to, 34% of people make money related resolutions.  How many times have you thought about taking control of your financial future?  About having more money in your retirement?  Well, the beginning of the year is the time to make these thoughts into realities.  The stock market ended on a very strong note and as all financial advisors will tell you, its best to sell high.  This may be the best time to sell those traditional assets like stocks and bonds to invest in something that has the potential to make more money than stocks and bonds can offer.

What are the benefits?

*”Self-Directed” means you have complete control over selecting and directing your investments.  We even offer accounts that give you checkbook control.

*Diversification– Instead of “putting all your eggs in one basket” on Wall Street, a self-directed account offers a plethora of investment options.

*Market Volatility – We have seen the market on Wall Street do dips and drops and downward strides several times this year.  A self-directed account offers many investment options that have much less market volatility.

*Due diligence – As with an investment you should do your due diligence by researching your investment.  Since self-directing offers so many investment options you can research and invest in what you know and enjoy!

*Tax deferred – profits are tax deferred in your retirement account.  When investing in real estate, no 1031 exchanges are ever needed.

*Plus more

Investment options

—  Real Estate

  • Commercial
  • Residential
  • Multi-family
  • Multi-unit
  • Apartment buildings
  • Co-ops
  • Condos
  • Land – Improved or Unimproved
  • Multi-Tenant Shopping Space
  • Anchored Shopping Center
  • And more!

—  Hard money lending

—  Precious Metals

  • Gold
  • Silver
  • Platinum
  • Bullion coins

—  Private placements or offerings

  • Oil & gas
  • Real estate
  • Ownership interests in privately held businesses and business entities, etc.

—  Trust Deeds

—  Tax Liens

—  Funding a Start-Up Business

And Many Others!

What type of money can be used?

You can roll several types of accounts into a self-directed IRA.

  • Most type of retirement accounts:
    • 401(k)
    • 403(b)
    • Profit Sharing Plans
    • Keogh
    • Qualified Annuities
    • Money Purchase Plans
    • Cash Balance Pension Plans
    • Defined Benefit Pension Plans.
    • IRA accounts:
      • Traditional IRA
      • SIMPLE IRA
      • Roth IRA
      • SEP-IRA
      • Inherited IRAs
      • Plus more, like Coverdale Education Savings

How to get started?

The process is simple.  Visit our website to learn about the self-directed world.  You can watch videos, read brochures, learn about the different types of accounts and investments available when self-directing.  While you are on our website, you can chat with one of our IRA Specialist.  Or, you can give me a call directly so we can discuss your investment goals and decide which self-directed account best fits your situation.

HAPPY NEW YEAR!  And congratulations on starting this year by taking control of your financial future!


Jaclyn M. Grella