Longboat Retirement Solutions LLC

Reduce Fees, Create Cash Flow October 23, 2012

Filed under: Real Estate Investing,Uncategorized — larsfforsberg @ 3:14 am
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Self directed IRAs and Solo 401k’s can own real estate.

The fact that real estate prices throughout the U.S. have declined has self directed retirement account holders looking for undervalued properties that have the potential to generate cash flow. Cash flow real estate can be a valuable addition to your retirement account. You can’t get cash flow out of your stock portfolio, gold investments, CDs or tax liens.

Why do self directed IRA custodians and self directed IRA administrators charge such high transaction fees and annual valuation fees?  Why is a Solo 401k, if you qualify, a superior retirement account than a self directed IRA?

Large institutional IRA custodians like Merrill Lynch or Fidelity have minimal fees and offer correspondingly minimal choices.  The use of a TRULY self directed IRA or a Solo 401k will broaden your choices greatly.

Firms like Equity Trust Company and Entrust Administration specialize in the administration of self directed retirement accounts, but have fees that can add up quickly and demoralize your enthusiasm for self directed investing. These companies’ hit you with transaction fees, wire fees, cashier’s check fees, and same day service fees and annual valuation fees.

  • Would you like to avoid all of these transaction fees?
  • Would you like total control of your retirement account checkbook?
  • Would you like to avoid the cost of the IRA LLC structure, and its annual fees?
  • Would you like to avoid UDFI (unrelated debt financed income) when using leverage in your  retirement account?
  • Would you like to be able to personally borrow up to $50,000 from your retirement account with low interest and without a penalty?
  • Would you like to contribute up to $49,000 individually or $98,000 if married into your retirement account?

A Solo 401k may be the best choice for you….again, assuming you qualify, or can become qualified (self employed, with no employees). Can you produce self employment income?  Have you ever considered going on your own?  Ever dreamed of being your own boss?

You can retain your current employment, while moonlighting with your new business that allows you to create income and contribute to your Solo 401k.