Longboat Retirement Solutions LLC

How Simple is it to Start a Solo 401k – Part Three February 28, 2015

Filed under: Uncategorized — larsfforsberg @ 2:50 am

What other issues have our clients experienced while setting up their Solo 401k?

Essentially once clients have cleared the hurdles put in place by their previous custodians and negligent bankers, the process is smooth.  It is vital that clients continue to “encourage” action on the part of their previous custodian – through the entire process.

The other part of the puzzle that can slow down the creation of a Self Directed Retirement Plan, is a client who is tenative about taking ownership in the process.  It is imperative that clients take action and sometimes it is necessary for clients to step outside of their comfort zone.  This may entail talking to a banker or making several calls or visits in person to their local financial institution to straighten out some confusion.

The paperwork by itself is straightforward and simple.  Most people find the process to be surprisingly quick, after dealing with banks and custodians for so long.  The pros at Longboat can set up a 401k Trust the same day that we receive the required information.  It usually takes a week to ten days to get a Solo 401k set up and funded.

What are you waiting for?

Little Red Viking


How Simple is it to Start a Solo 401k? – Part Two February 22, 2015

Filed under: Uncategorized — larsfforsberg @ 8:37 pm

What are some of the stumbling blocks clients encounter while getting their Solo 401k started?

The number one problem encountered by clients is slow moving custodians.  It is not in the best interest of custodians to help their customers close the IRA or 401k that the custodian manages.  Therefore, these custodians will take every opportunity to drag their feet and delay the client’s removal of their funds.  In other words, if you want action, you will need to encourage (agressively) your previous custodian.

I have personally seen these custodians send checks rather than wire – this causes a delay of up to 3 weeks!  I have seen custodians send the check to a person rather than financial institution – this causes an additional delay of a week or so.  And, recently, I saw a combination of the two; the custodian sent a check to our client, which caused a week delay, and the fact that they sent a check delayed the process by over three weeks!  This means that the custodian was able to claim that it held or managed these funds for an additional month.  That means money in their pocket.  These situations are extremely aggrevating for me, and unfair to the people who are trying to get their money back from these crooks.  I encourage all of our clients to really push for a wire to their newly opened Trust account.  This method puts money in clients’ account within days, not months.  If a custodian wants to charge you for the wire, I suggest that you raise hell.  If you are unable to get them to wire the money for free, I think it is worth paying the fee.

Stay tuned for Part Three, where we’ll discuss the other issues clients have had when opening a Solo 401k.

How Simple is it to Start a Solo 401k? Part One February 20, 2015

Filed under: Uncategorized — larsfforsberg @ 2:16 pm

The things that we do at Longboat are simple.

We assist people with the process of liberating their retirement money from the evil bankers.

How do we go about that?

Essentially, we set up a Solo 401k Trust for clients (all 401k’s are Trusts); then we instruct our clients on the procedure of opening a checking account for the Trust at a financial institution of their choosing.

After the account is open, we assist and consult our clients with the process of getting the client’s previous custodian (evil banker) to send the money to our client’s new Trust account.

After the previous custodian has sent the money to the new Trust account, our client is free to write checks, use an ATM card or wire funds to invest in whatever the IRS allows….or our clients can leave the money in their checking account as cash, ready to be used when they find the right investment for them.

Pretty simple, right?



Why do People Continue to Give the Wall Street Criminals Their Money? February 11, 2015

Anytime I talk to people in random social situations and the conversation veers towards finances, I hear the same mantra: “All of the bankers are a bunch of crooks!”  To that I reply: “Why do you continue to give them your money?”

The initial response invariably is that they have no choice, their employer has their 401k managed by Fidelity or TD Ameritrade or Edward Jones, or any of the other big banks.  Of course this is incorrect.  They do not need to leave their money with the big crooks, whoops, I mean banks, in most cases.

The other common thing that I see all the time is people spending more time analyzing the pros and cons of a particular TV set or internet provider than their retirement plan.  This is crazy, but such is the nature of the human mind.  We spend too much time concerned with trivial things and too little with life’s most important decisions.

So, to answer my own question: “Why do people continue to give the Wall Street criminals their money?” – because they lack the knowledge that they have a choice, and they lack the fortitude to face the real issues that affect their future.

I may sound harsh in my analysis, but I can come to no other conclusion.

Certainly the big media propaganda and collusion plays a factor.  After all, big media gets paid big bucks by the big banks to put out investment “news” that paints a rosy picture of the stock market and the associated banks.

The herd mentality doesn’t help, nor does the mindset of “Oh yeah, most investment advisors are nothing more than used car salesmen, but my broker is great!”  That’s the same state of mind that gets us the same representatives in congress elected cycle after cycle, even thought these guys and gals have a 16% approval rate.

How can this be?  Congress has a 16% approval rate, and Wall Street banks continue to get wacked with hundreds of millions in fines for duping investors, yet the same clowns will get re-elected to congress and the same criminals will continue to live in mansions on the hill while stealing from old ladies’ retirement funds.

Please, pull your head out of the sand and explore the options you have, and for Pete’s sake don’t re-elect someone or give them your life’s savings just because their name sounds familiar!


A Very Short History / Finance / Economics Lesson: February 7, 2015

Filed under: Uncategorized — larsfforsberg @ 7:05 pm

A very short history / finance / economics lesson:

By the time March 6th 2009 rolled around, the Dow Jones Industrial Average dropped 54% to 6,469 from its high of 14,164 on October 9, 2007.  This oversized market correction took many by surprise, while others saw it coming and profited off the high point and the low point.

If you had bought stocks in September 2007, your return over the next 7+ years through today would be about 27%.

But when you adjust for capital gains tax (at 15%) and inflation (using the B.S. 2% number), the annualized return drops to just 2.5% per year….not really a great return.

In other words, if you buy at a high point and sell at a higher point, the gains are quite small.

You don’t need to be Nostradamus to see that the market is high right now and will go lower at some point in the future.

If your retirement savings is tied up in the US stock market and the market as a whole declines, what happens to the value of your savings?  It goes down.  It does not matter that your “portfolio is diversified” across asset classes.  When the market as a whole goes down, you lose.

You may ask “What can I do?”

Buy low, sell high.

You might then ask “How?” I can’t sell stocks in my IRA without liquidating and taking a huge tax and penalty hit, and besides, my IRA only allows investments in US stocks and bonds.

To that I say why does your IRA only invest in US stocks and bonds?  Why are you letting someone who gets paid to sell stocks, manage your retirement savings.  Relying on a salesman to manage your money is a little crazy, don’t you think?

Longboat Retirement Solutions can help you set up a Self Directed Retirement Account that will enable you to control your retirement saving directly, meaning that you can invest in what you want, when you want.

In other words, if you feel like the market is nearing a top, you can sell the stocks that you have and hold cash, ready for a low point to buy back in.

Or, as many people suggest, you could buy physical metals or real estate with your retirement savings.

There are mountains of research out there that aim to predict when the market will crash or correct.  None of this matters when you are talking about your retirement savings.  You need to be able to move in and out of the market when it is high or low.

It’s a simple technique.  When something is undervalued, you buy; when something is overvalued, sell.

How do you tell when an individual stock is overvalued?  Well, you can use a thousand formulas, or buy research, or use your gut feeling, or darts.  But, unless you are a day trader, this doesn’t matter either.

What does matter is the fact that the US stock market is at an all time high.  That means that your portfolio is probably in a good place right now.  This also means that it has a greater potential to lose money in the near future.

What I’m saying here is “SELL HIGH, BUY LOW”.

This is not anything revolutionary.  I am not Nostradamus.  I am not a stock picker or a trader.