Creating and Sustaining Self Direction: Recent Comments

Comment on Frequently Asked Questions: Real Estate Purchase in an IRA

Lance Newton — Sat, 10 Sep 2011 20:37:04 GMT

You are right, it has been some time since I have posted a new entry. Perhaps it is time with the number of properties around the country that are affordable to IRA investors. Arizonan, Nevada and Florida have very affordable (in terms of price) condos, but be sure the HOA costs and taxes are carefully figured into any buying decision. Please send me an email with a source list for your non-recourse loans.

Comment on Frequently Asked Questions: Real Estate Purchase in an IRA

Dylan — Thu, 08 Sep 2011 18:53:51 GMT

Even though you put this together two years ago, the information is still very good, Lance. Lately I have seen non-recourse loans with interest rates around 7% over 30 years. Also, there are a lot of properties available now around the country for such low prices that many people have enough retirement money to buy IRA real estate without leverage.

Comment on Rethinking Your "Retirement Plan"

Lance Newton — Fri, 11 Feb 2011 04:58:57 GMT

I thank you so much for your comment. It has been a while since I posted a new entry, but I am full of new energy now. I have always wanted to speak the truth as I now see it. Many, if not most of us prefer to stick our heads in the sand long enough to see if our problems solve themselves. I think we all know the results of that type of strategy. The fact that my writing has reached you gives me hope that I can reach others and perhaps together we can modify the behaviors that brought us to this point together. Keep checking back from time to time and let me know about any themes you would like to hear more about.

Comment on Rethinking Your "Retirement Plan"

Jerry W — Tue, 30 Nov 2010 19:53:33 GMT

I can't imagine i am the only one who feels like they have been doused with a bucket of cold water regarding this. born in 1950, I am right in the middle of the boomer generation and thought everything was going to be just smooth as could be when it came time to retire. We were on top of the world, and unfortunately we were looking down and not forward. Life was good and the living was easy. I have a state pension fund that I am now eligible to receive. part of me says just take the monthly and another part says I had better get my lump sum out and invest it for myself. but the article is absolutely correct we spent and enjoyed like there was no tomorrow, well tomorrow is here.

Comment on Potential Advantages of 401(k) Plans for Sole Practitioners and Sole Proprietors

student self directed roth ira — Sat, 04 Sep 2010 00:10:39 GMT

Always great to get good information before deciding...I am considering opening a self directed roth ira.

Comment on Frequently Asked Questions: Real Estate Purchase in an IRA

David A Baker — Tue, 11 Aug 2009 18:07:47 GMT

THought the article was good and would like to be kept abreast of any changes or rulings in this area. I am a commercial / industrial real estate broker. Thank you.

Comment on Did You Know You Can Buy Bank Owned REO Investment Properties in your IRA?

John Barry Stutt, Esq. — Wed, 27 May 2009 14:19:17 GMT

It is good, Lance, that you are getting the word out on these investments. Banks and captive financial planners refrain from telling their customers about these opportunities.

Comment on Potential Advantages of 401(k) Plans for Sole Practitioners and Sole Proprietors

Lance Newton — Thu, 09 Apr 2009 15:49:37 GMT

Regarding antialienation and Individual 401(k) plans:

You ask a very good question and the answer is somewhat unclear. Since I am not a legal or tax professional, I can only offer my observations and opinions and you should seek the advice of a professional before making a purchase decision based on the representation of anyone who will make a commission when you decide to buy based on their representation.

Basically the sponsors of many self directed 401 (k) plans say that their plan offers the same protections as a corporate type 401 (k) with full time employees. The usual caveat for these Solo or Individual K plans is that the plan sponsor should not have any employees that work more than 1000 hours per year. In researching the answer to your question, I think that those sponsors oversimplify their position and that these types of plans do not enjoy protection through what is called "antialienation" (sometimes described as an "O.J. Clause" because footbal star O.J. Simpson was able to keep the assets in his Qualified Pension Plan from the NFL in spite of Civil Suits related to the death of his ex-wife. I found a reference on about antialienation and include it here: http://www.petershannonco.com/timely_tax_topics2.htm. Before you decide to buy any 401 (k) designed for a sole proprietorship or husband and wife business because the seller says you have the same asset protection as offered for fully qualified plans governed by ERISA, check with a professional regarding this issue.

One source for a plan of this type is at www.cencal.entrust.com. The position of this plan administrator is that an Individual K does not qualify for ERISA protection. Your tax or legal professional can contact them for more information and there are strategies for reducing exposure to litigation in your IRA based on what state you live in.

I would love to have more comments from you in the future and invite good questions like yours to my blog, but please include a valid email address in the future.

Comment on What to do with your Pension when you Change Jobs

Planning your Retirement — Wed, 07 Jan 2009 09:17:25 GMT

First of all congratulation for such a great site. I will keep visiting this blog very often.

Rose.

Comment on Potential Advantages of 401(k) Plans for Sole Practitioners and Sole Proprietors

Mon, 01 Dec 2008 00:59:09 GMT

Do the ERISA antialienation benefits for a typical 401(k) plan extend to a Solo 401(k)?