Longboat Retirement Solutions LLC

A Self Directed IRA or Solo 401k Can Hold Real Estate as an Investment. April 29, 2016

A Self Directed IRA or Solo 401k can hold real estate as an investment.

Why does this make sense, or what would be the benefit?

In short, your retirement account balance can grow as it collects rent, and if the property appreciates in value, you could sell it down the road for a gain.

There are restrictions and regulations that you need to follow.

Number one: You cannot live in the property.

Number two: You cannot repair the property; you must contract out the work.

Basically, be sure that you, personally, are not receiving benefits or doing work for the property.

Naturally you will want to remember the rules of Prohibited Transactions – don’t break them.

You will want to think about the ramifications of Unrelated Business Income Tax (UBIT) if you use a Self Directed IRA. UDFI, Unrelated Debt Financed Income, is a component of UBIT, and applies to IRA income generated by financial assets.

A Solo 401k has the added benefit of not being subject to UDFI or UBIT.

Describing UDFI will be a subject of an entire blog; for now, just remember that it exists, and inquire with your accountant if you are on the verge of purchasing property within you IRA.

 

Panama Papers Reality Check April 12, 2016

I have heard so much misinformation on offshore accounts and “tax evasion” over the last week, that I felt the need to clarify and give some truths.

Truth number one: The United States taxes its citizens regardless of where the money was made.

Truth number two: It is much harder and much more expensive to open a bank account in a country labeled a tax haven.

Truth number Three: There are reasons other than money laundering and tax evasion to have money in a country other than the United States.

Truth number four: The U.S. government is in bed with the U.S. media.

Truth number five: The U.S. government is filled with rich people.

Truth number six: The U.S. government is also in bed with large corporations.

What to these truths logically lead to:

The U.S. government is telling its citizens, through its media division, that only rich people and terrorists keep money offshore.

This leads us to the lies:

If you have money offshore, you are rich and/or a terrorists.

The only reason people have money offshore is for money laundering or tax evasion.

Of course both of these things are lies. Most people who have money offshore are not either terrorists or fabulously wealthy.

There simply are not terabytes worth of fabulously rich people and terrorists.

The United States and England are the destinations of choice for laundering money and tax evasion.

That is fact; look it up.

So, if you open your eyes to reality and facts, you can easily decipher that the government, through their propaganda arm, are dispensing lies to distract and leverage the current fear and anger of the populace towards the rich people and terrorists to clamp down and take even more freedoms. They will once again get people to beg to take away their freedoms, in the name of “transparency” and “safety”.

Already, I have seen the protests in Europe.  Sad.

If you have ever considered moving some money offshore to real banks, that offer security, diversification, actual interest, and some protection from litigation, you’d better act fast.  It is clear that the big banks want to consolidate all of your money into their crooked institutions.

I guarantee, right now, that there will be investigations, and committees, and other B.S. that creates a new panel, and then new prohibitive laws to restrict money movement.  Currency controls anyone?  Count on it.

 

Your 401k Stinks April 5, 2016

 

The Panama Papers

The Panama Papers. This is an interesting developing story. Many people’s initial reaction will be that of surprise. Frankly, I’m surprised that people are surprised – wait, no I’m not. For anybody in the financial world, this is a Duh moment. Of course rich people are hiding money offshore. These people are either smart, or have smart people working for them who manage their money and know that American and Western European banks (most, not all) are bunk. The banks that most people keep their money in are under capitalized (that means that they don’t have your money). Not only that, but they are under insured for loss (remember the bailouts). These big banks are also corrupt as hell (see 2008).

If I had millions or billions of dollars, I’d keep them offshore as well. In fact, I recommend that everyone have an offshore account in a “tax haven”. These banks in so called tax havens actually pay interest! What a novel idea!

Also, living in an extremely litigious country like the good old US of A, I am forever fighting the statistical probability that I will be sued for offending a field mouse with hateful rhetoric.

Money kept offshore can be made harder to get by the blood sucking lawyers. It is a good insurance policy.

All that being said, I hope that the big dog criminals and politicians get locked up (but I know that will not happen).

CNN, FBN, FOX, CNBC, and The Guardian will all report this story; they will follow it for a few weeks, and then it will fade away.

A few bones will be thrown to the public to chew on.

 

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