As you begin to explore alternatives to standard stocks and bonds, misinformation springs up which can confuse even the savviest investors. We have found that there are five pervasive myths which prevent people from pursuing the most productive investments. Myth #1 – Self-directed IRAs are confusing and hard to set up. The Truth – While […]
A Self Directed IRA offers investment control in three key areas: Asset Choice Transaction Pricing Investment Timing Let’s look at each area individually, and see how the Broad platform differs from some of the more commonly offered plans. Asset Choice A standard IRA or 401(k) gives an incredibly limited choice of investment assets. Not only […]
How does a Self Directed IRA facilitate true diversification? When financial advisors talk about diversifying your IRA, they usually mean some notion of investing in a variety of market related products. These products can take the form of different stocks, bonds, mutual funds, etc. True diversification, though, extends beyond the stock market and its sister […]
The defining characteristic of any retirement investment is the fact that the investor realizes a tax benefit because of it. In exchange for putting aside money that will help fund your retirement, the government is willing to give you a tax incentive. For standard retirement plans this incentive comes in the form of a tax […]
UBIT Definition UBIT stands for Unrelated Business Income Tax. This is a tax that applies to the profits of an active business owned by a Self-Directed retirement account. Most investors never run into it, because the types of investments favored by the Self-Directed platform are normally passive in nature and thus are tax deferred, (or […]
Annual Reporting – The IRS requires that the custodian track and report all contributions to and distributions from the IRA, as well as the annual value of the IRA’s assets. These filings are done with three simple forms:
Never apply for a credit card in the name of the LLC. Credit card companies are always looking for new customers, and often mail credit card applications to newly-formed businesses. If you receive a credit card application for the LLC, never fill it out or sign it, because by doing so, you will be issuing a […]
Self-Directed investors are familiar with the concept of Prohibited Transactions – a set of restrictions that define how the investor may interact with his/her property. The obvious ones are easy: Don’t live in it Don’t let linear relatives provide paid services Don’t pay for upkeep out of your own pocket. On the flip side, Self-Directed investors also […]
