Longboat Retirement Solutions LLC

Diversified Portfolio February 28, 2017

Over and over I hear the mantra “Diversified Portfolio” – but what does that mean?

Diversification means different things to different people.

Most however, think that it means they own stocks in several industries that counteract each other. In other words, they own two stocks – if one goes down, the other goes up. No two stocks are going to perfectly counteract the other, but a person can come close with lots of research.

Other people (including myself) contend that investment diversification must also include investment class diversification and international diversification. In other words, you should own things other than stocks, things like metals, currencies, bonds, real estate, and even international investments.

The argument could be made that a world wide downturn would hurt all of these things. Well….sure, maybe, but maybe not. Generally “safe harbor” investments and “contrarian” investments like gold, and certain currencies (Norway, Switzerland) tend to go up during world wide downturns.

Now, being a guy that does not give investment advice, I’m not going to advocate any particular investment, or even investment class, or even investment style….but do your research, and diversify…..and I mean really diversify, not just own a bunch of U.S. stocks.

 

What Does a Trump Presidency Mean to Your Retirement Savings? February 22, 2017

How will the Donald Trump Presidency affect your retirement?

If you believe the big media outlets, he is going to steal your wallet and your retirement account.

I doubt that this is the case. But, how would I know?

While we are certainly overdue for a market correction in the U.S., the timing of a correction is of course the million dollar question.

I’ve said this before, but I’ll say it again; I am not in the business of predicting the stock market. I am in the business of helping people diversify their retirement savings through the set up of self directed retirement accounts.

In other words, it should not matter what the U.S. stock market does. My clients have the flexibility to move in and out of the market when ever they choose. Or, if they choose to have zero dollars in the stock market, they can do that too. If they choose to pull out of the market and hold cash, they can. If they choose to hold metals, or real estate, they can.

The point I am trying to make is that true diversification requires more than owning several stocks from different industries in the U.S. stock market. True diversification necessitates ownership of a variety of investment classes, as well as investment location diversification. When you have your retirement savings invested in stocks, bonds, real estate, foreign markets, and metals, you can call yourself diversified.

The best way to diversify your retirement savings is through a Solo 401k – accept no substitute.

Give Longboat a call or send us an email. We are not slick salesman; we are real people.

406-551-4775

 

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

 

Educate Yourself About Self Directed Accounts March 22, 2016

Education is the answer

All too often I am approached by people who have never heard of a self directed IRA or a Solo 401k. These people are usually skeptical that they can use these plans or they may even question their existence.

While these retirement plan options have existed for many years, most people have never heard of them.

The reason is simple:

Large institutional investment banks will lose money when you manage your own retirement account.

When you set up a self directed retirement account, you take over the helm and make the investment choices that are in your best interest. You are no longer limited to a menu of investments offered by a particular investment bank.

With a Solo 401k, your choices are particularly powerful. Not only does it open up your options, but it also eliminates the middle man completely. There is no custodian needed with a Solo 401k; no permission to ask. You invest in anything allowed by the IRS, which includes pretty much anything other than insurance or collectibles.

Longboat Retirement Solutions can help you set up a Solo 401k quickly and painlessly.

Transferring your money out of a big bank IRA or 401k into a self directed account is not a taxable transaction, and there are no penalties.

Stop being robbed by the big banks; give us a call

Little Red Viking copy406-551-4775