Your SlideShare is downloading. ×
0
uDirect IRA Services
uDirect IRA Services
uDirect IRA Services
uDirect IRA Services
uDirect IRA Services
uDirect IRA Services
uDirect IRA Services
uDirect IRA Services
uDirect IRA Services
uDirect IRA Services
uDirect IRA Services
uDirect IRA Services
uDirect IRA Services
uDirect IRA Services
uDirect IRA Services
uDirect IRA Services
uDirect IRA Services
uDirect IRA Services
uDirect IRA Services
uDirect IRA Services
uDirect IRA Services
uDirect IRA Services
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

uDirect IRA Services

420

Published on

This presentation covers some of the basics of self-directed investing

This presentation covers some of the basics of self-directed investing

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
420
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. How to Self-Direct Your Retirement Savings<br />uDirect IRA Services, LLC does not render tax, legal, accounting, investment, or other professional advice. If tax, legal, accounting, investment, or other similar expert assistance is required, the services of a competent professional should be sought.<br />
  • 2. Self-DirectionWhy Haven’t I Heard About This?<br />Few attorneys are knowledgeable <br />About self-directed plans<br />Few CPAs are knowledgeable<br />About self-directed plans<br />IRS rules have allowed self-direction since IRAs were created in mid-1970s<br />
  • 3. What’s the Difference?<br />Typical IRA<br />Stocks<br />Bonds<br />Mutual Funds<br />CD’s<br />Self-Directed IRA<br />Rental Property<br />Notes<br />Private Stock<br />LLC’s<br />Tax Liens<br />Foreign Property<br />Raw Land<br />Etc.<br />
  • 4. What About Losses?<br />Losses<br />Cannot be written off taxes<br />Cannot be replaced in the retirement plan<br />
  • 5. What Are The Limits?<br />A Self-Directed IRA can invest in anything EXCEPT<br />Life Insurance Policies<br />Collectibles<br />Artworks<br />Coins<br />Collectible Cars<br />Antiques<br />Gems<br />Stamps<br />Rugs<br />
  • 6. What if your funds are with your current employer?<br />Your plan will probably NOT allow you to self-direct<br />Must wait until you leave the company<br />To rollover retirement plan<br />You can request an “in-service” transfer from your current plan administrator.<br />
  • 7. Prohibited Transactions(IRS Publication 590)<br />Borrowing money from the IRA<br />Selling property to it.<br />Using it as security for a loan.<br />Buying property for personal use (present or future) with IRA funds.<br />
  • 8. Disqualified Person<br />Disqualified persons include your fiduciary and members of your family (spouse, ancestor, lineal descendant, and any spouse of a lineal descendant). <br />
  • 9. Qualified Persons<br />Aunts &amp; Uncles<br />Cousins<br />Brothers &amp; Sisters<br />Unrelated friends<br />Nieces &amp; Nephews<br />
  • 10. Prohibited Transactions<br />Neither you nor any disqualified people may benefit from IRA <br />Cannot buy, sell or exchange property between plan and <br />Self or <br />Disqualified people<br />Cannot provide goods, services or facilities<br />
  • 11. Self-Directed IRA - Structure<br />You<br />Your IRA<br />TPA<br />Custodian<br />
  • 12. Buying Real Estate With Your IRA<br />Pros<br />Capital gains are tax free<br />Positive cash flow is tax free <br />No time limit for holding property<br />IRA can borrow money<br />Leverage your investment<br />Potential to earn a larger rate of return on invested capital<br />
  • 13. Buying Real Estate With Your IRA<br />Cons<br />No tax advantages of owning real estate <br />No deduction for capital losses<br />You are solely responsible for all gains or losses<br />You cannot replace losses<br />
  • 14. Your IRA Can Take A Loan!<br />Loan must be <br /> non-recourse<br />Upon default, lender can seize subject property only<br />Upon default, lender cannot<br />Seize other IRA plan assets<br />Seize your personal assets<br />
  • 15. Non-Recourse Loans<br />Few lenders to choose from<br />Must be a portfolio loan<br />Cannot be sold on the secondary market <br />Larger down payment required<br />40% to 45%<br />Cannot personally guarantee the loan<br />
  • 16. Personal Guarantees<br />Personal guarantees by the IRA owner not permitted<br />Can be personally guaranteed by a third party<br />Must not be a “disqualified” person<br />Disqualified people are<br />Ascendants<br />Descendants<br />Spouse and self<br />And others<br />
  • 17. Buying Real Estate - The Process<br />Open a self-directed account<br />Shop for a property<br />Remember, it’s the IRA that is the buyer<br />Custodian to sign “Offer to Purchase”<br />Submit a Buy Direction Letter for earnest money deposit<br />Funds wired to closing from your IRA<br />Fund &amp; Record<br />Rents are made payable to your IRA<br />
  • 18. What if the IRA depletes its reserves?<br />Make your yearly contribution<br />Liquidate other assets in the IRA<br />Transfer money from other retirement accounts<br />Bring on a partner<br />Not a disqualified person<br />IRA can get a loan<br />Sell the asset<br />
  • 19. Types Of Self-Directed Plans<br />
  • 20. 2010-Tax Increase Prevention and Reconciliation Act (TIPRA)<br />Beginning in 2010 and thereafter, you may CONVERT regardless of income<br />Convert your Traditional IRA to a Roth IRA <br />½ converted funds includable in 2011<br />½ converted funds includable in 2012<br />The income limits still apply in 2010 for CONTRIBUTIONS<br />Enjoy a huge potential windfall by taking advantage of the opportunity<br />
  • 21. How Do I Self-Direct?<br />Complete an application<br />Provide copy of driver’s license<br />Copy of statement<br />Fund your account<br />Annual Contribution<br />Transfer<br />Rollover<br />Tell us what you want to invest in<br />
  • 22. For More Information<br />Kaaren Hall, President<br />uDirect IRA Services, LLC<br />(866) 538-3539<br />KHall@uDirectIRA.com<br />uDirect IRA Services, LLC<br />2522 Chambers Road, Ste 100<br />Tustin, CA 92780<br />

×