Longboat Retirement Solutions LLC

How Does Your Investment Advisor Make Money? March 8, 2015

Longboat Retirement facilitates the creation and initial set up of Self Directed IRA’s and Solo 401k’s.

We don’t push investment schemes, make investment recommendations, or sell financial products.  We do not give tax or legal advice.

This makes us truly independent.  We have no interest in making commission on the sale of any financial or investment products.  We don’t charge fees based on “assets under management” because we do not manage people’s assets.

Our interest is strictly helping our clients achieve control of their retirement and their future.

Lars Forsberg

http://www.myselfdirectedretirement.com

406-551-4775

Little Red Viking copy

 

Maximize the Growth of Your Retirement Savings March 6, 2015

Filed under: Uncategorized — larsfforsberg @ 4:45 pm

Invest in what you know, leverage that knowledge, and maximize contributions.

The following is the true story of a real person who uses a self directed retirement.

You may have heard of this guy.

Mitt Romney, the former Massachusetts Governor and Presidential candidate a few years ago revealed that he had an IRA valued between $20 and $100 million dollars.  That sounds like an amazing amount of money to accumulate in an IRA – some would say impossible.  Of course it is quite possible to do with the right financial tool – the Self Directed IRA.  No doubt Romney had a team of skilled attorneys and insider knowledge of certain companies that he was working with that enabled these extreme results.  You may not have a team of attorneys, and you may not be in the private equity business.  Don’t let that stop you.

Invest in What You Know

Mitt Romney invested in what he knew intimately.  Being in the business of buying companies and taking companies public, he was able to see the inner workings of companies before investing.

Romney used this knowledge to grow his Self Directed IRA to extreme levels during his tenure at Bain Capital.

Now, I’m not here to toot Mitt’s horn or say how great of an investor he was or is.  I am here to profess the benefits of using a self directed retirement account to invest in what you know.

Too many investors rely on information provided by “experts” or “advisors” who are neither.

Often these advisors are nothing more than sales people who are trained and encouraged to push particular stock or bond funds.  Clients who have known me for a while know exactly how I feel about these experts.  This is not to say that their aren’t plenty of knowledgeable financial folks out there who have their clients interest at heart – it’s just that the numbers of advisors that fit this description seem to be shrinking by the minute.

I’m guessing that you have knowledge and interests in products, industries, or companies that may not be widespread – we all do.  What industry knowledge have you gained over the years? Leverage that knowledge.

KNOWLEDGE LEVERAGE

The employees at Bain capital were able to co-invest in the company’s takeover deals.  Bain Capital allowed employees to use IRA funds to invest in a special class of shares that were inexpensive and yielded much larger gains than other shares – averaging 50%-80% annually.

Self directed IRA’s and Solo 401k’s enable Longboat clients to invest in private equity deals that are otherwise out of reach.

Bain’s employees leveraged their knowledge to make impressive gains in their retirement accounts.

There is no limit to the amount of money your investments can make inside of your retirement account.

Read that again.

Let that thought digest and think about the ramifications of that statement.

In other words, investments made with your retirement account can grow exponentially, much like the investments of employees at Bain capital….and they grow tax free.

Do you know of any investments that can grow more quickly than publicly held stocks?  Many people do; Maybe you do too.

HIGH CONTRIBUTIONS

For 2014 contribution limits to a Self Directed IRA are $5,500 with catch up totaling $6,500 if over the age of 50.

The maximum contribution to a Solo 401k for 2014 is $52,000 or $57,500 with a catch up contribution if over 50 years old.

As you can see, if you are able to set up a Solo 401k, your ability to grow your retirement savings can really accelerate.  You don’t need to have a corporation, LLC, or Partnership to set up a Solo 401k.  You don’t need to have revenue or sales.  You do need to be self employed or be able to create some self employment.

It’s the combination of high contributions and knowledge leverage that enable self directed retirement account holders to grow their nest eggs to levels that seem impossible.

 

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?

 

 

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.

longboat

406-551-4775

www.myselfdirectedretirement.com

 

December 31st is Approaching November 24, 2014

Filed under: Uncategorized — larsfforsberg @ 6:23 pm

It’s that time of year again – time to think tax strategies and planning for the next year.  Longboat is offering $500 rebates for the set up of Solo 401k’s by December 25th.  We’ve done it before until December 31st and it was a real nail biter trying to get things done between Christmas and New Years.

If you’ve been putting it off for a while and kicking yourself every time January 1st comes around, make your move now so you don’t have to kick yourself!  Last year you pulled a hamstring.

If you receive our newsletter, you will receive another reminder of this sale.

You won’t be able to say that we didn’t warn you or give you enough time.
 

Give use a call at 406-551-4775 or email me at lars@myselfdirectedretirement.com

Little Red Viking copy
Lars Forsberg
President