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There are various reasons to choose alternative investments for your 401(k) monies. Many investors initiate this by rolling their 401(k) over into a self directed IRA. This puts the power how, when and what they invest in squarely in their control. Here we will explore why this trend is catching on like wildfire, and the influence it can have on the decisions you make regarding your retirement.

Self-Directed IRAs: Why the Baby Boomer “Have It All” Mentality Is Driving This Choice

The single largest pool of American workers in history are going to retire soon. We’re talking about baby boomers. They are a unique segment of the population, and make up a large slice of the workforce. What makes them so unique on one level is that they’ve managed to accumulate wealth beyond the wildest dreams of generations that came before them. Many financial analysts believe that they will be the largest group of wealthy retirees in history.

Baby boomers defined the concept of “have it all.” So many changes took place during their lives that contributed to this, eg, women joined the workforce in all-time high numbers. This phenomenon bred a large number of two-income households. Social and political changes like the women’s right movement and the civil rights movement added more to the “I can have it all” equation. And, exactly how does this tie in with the proliferation of self-directed IRAs and the seeking alternative investments?

The social and political changes in the world had a significant impact on the lives of baby boomers in that it led to greater independence and freedoms on many levels – financial, educational, personal and spiritual. Financially speaking, this led to a generation who made more, traveled the world more and were more educated than possibly any generation before them. Accustomed to the finer things in life, it’s not something they want to give up in retirement. In fact, they look to increase this lifestyle in retirement. Hence, their retirement monies need to work as hard as they do. Therefore, the desire for more diverse portfolios with greater returns.

The Self-Directed IRA Can Help You Keep Your “Have It All” Dream

Because self-directed IRAs let you choose what to invest in, you can create a very diverse portfolio. And, you can grow it by investing in instruments that provide greater returns, eg, real estate (a.k.a. self directed real estate IRA). Self-directed IRAs are not limiting like traditional IRAs. With the power to make decisions squarely in your hands, the self-directed IRA can help you keep your “have it all” dream alive.

I would like to use the money in my IRA for the purpose of purchasing real estate, and I’ve been told I can do it with a self-directed IRA LLC account. Is it possible? The answer is, yes it is …

The IRA can contribute all the cash or a portion of its cash into an LLC wholly owned by the IRA. The transfer of your IRA money as initial capitalization of the LLC does not constitute a disqualified transaction or a taxable event!

Since the self directed IRA owns the IRA LLC or IRA Company, the IRA funds can be directed to the IRA Company in exchange for member units or shares of the LLC. After funding, both not only can traditional investments be made, but also alternative investments such as real estate including foreign real estate, discounted notes, gold coins, and bullion may be purchased by the IRA-LLC.

A Key Point to Consider When Buy Real Estate with an IRA Owned LLC

When owning real estate inside an IRA, all expenses must be paid by the funds in the IRA-LLC account. If you pay out-of-pocket for such expenses as contractors, appraisers, plumbers, taxes or landscapers, then you can open your IRA up to penalties, fees, and taxes starting at the beginning of the year in which you made the mistake.

Assets consolidated under the LLC become the sole asset of the account holder’s self-directed IRA. Once your IRA LLC has been funded, your IRA statement from the custodian will simply reflect one asset, i.e., the LLC. If structured properly, your IRA LLC should not pay any transactional, asset or holding fees, and why should you should it? After all, you are truly self directed and you are the one cutting the checks and paying the bills directly with your IRA checkbook.

The management of a self-directed IRA is a skill the investor can learn. Checkbook control of your IRA is something that every savvy investor should consider if they don’t want to be limited to just the run-of-the-mill investments.

In order to set up your IRA LLC feel free to call the IRA LLC Partner at (877) 339-4559. The IRA LLC Partner will guide you step by step. They will help you complete all the appropriate paperwork to manage the IRA transfer as well provide you with the training to guide you and set you on the course to investment success.

The current economic climate has caused many to worry about the economy and the future of their money. This is understandable. However, it shouldn’t cause you to panic. Remember, all economies are cyclical. Therefore, not only do they evolve they revolve. As a matter of fact, on the bright side, now has never been a better time to assess your investment options.

3 Ways to Capitalize on the Changing Economic Climate

Isn’t it time to put your IRA retirement funds to work for you. While others are lamenting about how bad things are, you could be capitalizing on the recession, building the foundation for enormous returns when the market bounces back – and it always does. Following are three ways you can capitalize on the current recession.

Start a Real Estate Foreclosure Business: This is an excellent service to start, particularly in the current economic climate, because there are so many foreclosures that banks can’t keep up. And, the beautiful thing about this kind of business is that you can structure it so that it even thrives when the economy recovers. How do you do this?

Overall, make it a real estate cleanup company. One of your “divisions” could be foreclosure cleanup. In this way, no matter what the economy is doing, you’re in an evergreen business that thrives.

Buy a Franchise: If you don’t feel up to the challenge of starting a business from scratch, use your self directed IRA funds to invest in a franchise. The failure rate of franchises is much lower than other startups, and most of the hard work is already done for you.

Invest in Real Estate with IRA: Use your self directed IRA to invest in real estate, especially now that the economy is in what many view as a recession can pay huge dividends over the next 5, 10 or 15 years from now. It’s simple math: buy low and sell high. When do you remember interest rates and real estate prices being so low? Now’s the time to buy, not panic, for these are some of the best deals you’re going to find for along time.

A self-directed checkbook IRA gives you checkbook writing privileges on your individual retirement account (IRA). This means you can invest in foreign real estate with your checkbook IRA if you so choose.

A self-directed checkbook IRA means you don’t have to consult with an account custodian every time you want to access funds as they relate to your real estate investment. Whether it’s putting a down payment on a real estate investment overseas, or consulting a real estate attorney to guide you through the international investment waters, you can don’t have to get “permission” from anyone on how to use your money.

Why Investing in International Real Estate Represents the Best of a Global Economy

Investing in real estate with your self directed IRA represents the best of what a global economy is all about. No longer are the best deals right in your back yard. Many financials now tout that foreign markets that trade in everything from real estate to energy resources are some of the best investments around.

Reap the Rewards of the Cyclical Real Estate Industry by Investing Internationally

Real estate is a cyclical industry – whether it’s here in the United States, or in Latin or South America. What goes up will come down. One only has to track patterns from years gone by to see that. You can use your checkbook IRA to reap the rewards of the cyclical real estate industry by investing internationally. How? Quite simply by taking advantage of deals in hot markets.

For example, if you live in Seattle and the market is not favorable there, you may be able to pick up some great deals in Argentina or London or Dubai. With a checkbook IRA, you can capitalize on opportunities beyond U.S. borders. Investing abroad not only brings more lucrative opportunities your way, it adds depth to your retirement portfolio. And, this is the advantage of investing in a global economy. That’s the power of a checkbook IRA.

What do we mean? A self-directed IRA LLC / Checkbook IRA allows you complete control over how you retire. Your hopes and dreams rest within your power because of the following two benefits of a self-directed IRA.

Power Your Future with a Truly Self Directed IRA

What we mean by power is that you take command of how you retire. A self-directed IRA LLC is much more than a retirement account, it is literally the power to control what your financial future will be.  There are no co-pilots on this journey. You make every investing decision.

And, isn’t that the way it should be? Weren’t you the one who dutifully reported – sometimes to an unfulfilling career – day after day, week after week, month after month? Now shouldn’t you reap the reward of deciding how to invest your hard-earned money? A self-directed IRA LLC gives it to you.

You Can Invest Internationally with a Self-Directed IRA LLC / Checkbook IRA

A self-directed IRA LLC / Checkbook IRA opens a Pandora’s box of investment opportunities, way beyond the scope of the limited offerings of Wall Street. A prime example is international real estate. Many Wall Street offerings don’t take advantage of the global economy we now operate in. There are 193 countries worldwide that fall under the heading of international real estate.

And, many of them offer highly lucrative investment opportunities for smart investors. The simple reality is, real estate – no matter where it is — is a cyclical industry. Because of this, when the real estate market is slumping in the U.S., it could very well be booming in Latin America, Europe or South America. As an investor, you can take full advantage of this and build phenomenal wealth. That’s the advantage of a self-directed IRA LLC / checkbook IRA.

With home foreclosures on the rise, those with money just sitting earning pennies in a Self Directed IRA account can put their money to work for them. Why is now a great time to be investing in the foreclosure market? There are three reasons.

3 Reasons Now is a Great Time to Invest in the Foreclosure Market

Buy Low: The key to investing in the foreclosure market is to find “good deals.” What is a good deal? Simply speaking, a property that has enough equity in it for you to buy it and make a profit. Right now, the market is flooded with properties that have a lot of equity.

As adjustable rate mortgages adjust up, the economy worsens and more people lose jobs, homeowners become more willing to negotiate. This means the elusive good deal is easier to come by.

Banks Don’t Want to Be Landlords: Piggybacking off the aforementioned point, banks don’t want to be landlords or property managers. As the market is flooded with more and more properties, banks are trying to sell them off as fast as they can.

If they don’t sell them, they have to maintain them, eg, cut the grass, remove furniture left behind by previous tenants, deal with broken windows from vandals, etc. In short, the longer a property sits empty, the more it costs the bank. So they’re really losing money in two ways. One, in lost mortgage payments; and two, by having to carry the upkeep until it’s sold. If you have money sitting in your Self Directed IRA account, now is the time to put it to work.

Long-Term Gain: Real estate is a patient man’s game. If you use your Self Directed IRA to invest in foreclosures now while the marketing is bottoming out, so to speak, you’ll be well positioned to really maximize your investment when the real estate marketing gets red hot again.

Self Directed IRA account holders enjoy the freedom of investing in real estate, without the hassles of having someone sign off on every expenditure. This is particularly important for those who choose to flip fixer-upper properties as an investment strategy.

Self-Directed IRA LLC - Self Directed IRA: 3 Tips for Maximizing Profits When Flipping Fixer Uppers

For those who are patient, flipping fixer-uppers can provide a phenomenal return on for a Self Directed IRA portfolio. Careful research is required to make sound decisions when flipping properties, but, that is the case with any investment. If flipping properties is how you choose to maximize your retirement income via your Self Directed IRA account, keep the following in mind.

Location is Key: This is the golden rule when buying real estate. And, it is particularly true when you are buying solely as an investment. This is easy to digest when you consider that it’s easy to fix what’s wrong with a property. But, you can’t change the dynamics of a location with a can of paint.

Another rule of thumb when flipper fixer uppers: Keep the needs, wants and desires of the buyer in mind. Look in neighborhoods where property values are on a steady climb, where buyers want to purchase because the schools are good, where city government is active and present, etc…

Cosmetic Renovations: Where possible, choose properties that need as little work as possible. This is especially true if you are just starting out. After all, you’re using the monies from your self-directed IRA LLC account to increase your portfolio’s value. Don’t fall in love with the wrong property and overspend to buy it, or fix it. Run the numbers. This is a business investment – nothing more, nothing less. Never forget that.

Call on a Rehab Specialist: Because it is your money coming out of your self-directed IRA LLC account, you should team up with a rehab specialist to inspect properties before buying. They can assess the structure soundness and give you an idea on what it will really cost to fix it. If you truly want to grow your self-directed IRA LLC portfolio buying and selling fixer uppers, this is one of the most astute moves you can make.

Interesting timing for this press release… Could investing more of your retirement funds in Green technology and companies with a Self Directed IRA be just what is needed to revive a sputtering economy and preserve our climate? With trillion dollars tied up in IRA and 401k retirement accounts, the growing Green industry emerging globally, investing in Green might be just the win-win situation investors have been waiting for to change the trajectory of our economic future….

Source PR Web:

Retirement investors who want to invest responsibly are no longer limited to specialized mutual funds. Anyone can now invest in a private company which shares their passion, whatever that may be, with a self-directed IRA from Entrust New Direction, IRA.

Lafayette, CO (PRWEB) April 17, 2008 — Retirement investors who want to invest responsibly are no longer limited to specialized mutual funds. Anyone can now invest in a private company which shares their passion, whatever that may be.

David Williard, like all retirement investors, wants diversity in his retirement fund and long term growth on his investments. He would prefer to minimize the impact on the environment, while making money. In Williard’s case, he has diversified his self-directed IRA by investing in a commodity that is about as green as they come — trees.

Catherine Wynne, president of Entrust New Direction, IRA, explains that with the self-directed IRA, “Our clients who want the freedom to invest in private companies and real estate can transfer old 401(k)s and standard IRAs into a self-directed IRA with us.”

Williard used his self-directed IRA to buy shares in a private company - The Bauers Family Tree Farm. The company bought a 260 acre cattle ranch in Costa Rica. The land, which had been clear-cut 50 years ago for cattle ranching, now has 45,000 teak trees on 140 acres. “120 acres is forest that will never be cut down,” said Joe Bauers, one of the owners of the Bauers Family Tree Farm. “We see monkeys, ocelots, armadillos — it’s really a jungle.”

Bauers and his investors are not planting teak trees as a charitable contribution — they expect a healthy return. After year ten, and in five year increments thereafter, some of the trees will be cut down and sold to thin the forest. Williard believes the tree farm is “poised for long term growth.”

Williard is part of a recent trend of investors who want to do good while doing well. A growing number of these people are using a self-directed IRA to invest in private companies of their choice.
Entrust New Direction has seen many clients grow their retirement fund while investing where their heart is.

Wynne said, “Our clients have used their IRAs to loan money to their church building fund, they’ve invested in companies who make energy efficient windows, and they can still invest in a green mutual fund, all within their self-directed IRA.”

Entrust New Direction IRA, Inc is located at 1300 Plaza Court N, Suite 103 Lafayette, CO 80026. They can be reached at 303-546-7930 or newdirectionira.com.

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