Your Ultimate Solo 401(k) is a powerful investment tool, but there are some restrictions. Avoid these five common investment mistakes to keep your retirement plans running smoothly. Never apply for a credit card on behalf of your Solo 401k. Credit card companies are always looking for new customers, and often mail credit card applications to […]
At Broad we empower people to place their retirement funds in investments they understand. However, we don’t offer them specific investment advice. This policy is good for a number of reasons. Chances are you have a special familiarity and knowledge with the investment asset that you’re looking to place in your IRA. You understand it, […]
The term “personal loan” has a distinctively untrustworthy feel about. You make a personal loan to your brother-in-law of $2,000, and then you never hear from him again. (Some might call that an investment.) However, tweak the term just a little bit and call it a “personal mortgage”, and all of a sudden you have […]
First private, and then public. That’s the dream, right? Your old college roommate is starting a killer new app that’s going to revolutionize the way humanity interacts with the internet and turn the digital revolution on its head. Get in now, and in a few years your stock options will be so overwhelmingly huge, the […]
Tax liens Investments Really? That’s a popular investment for Self-Directed investors? Also… what’s a tax lien? Okay, first things first. A tax lien is an investment you make with a local municipality. The way it works is like this: A local municipality (e.g. a town or a city) charges a real estate tax to property […]
The Ultimate Solo 401(k) can trace its history back to 1875 when the American Express Company established America’s first corporate pension plan. In 1935, President Franklin D. Roosevelt signed the Social Security Act, a government administered – and guaranteed – retirement savings program. In 1939, a predecessor of the modern-day 401(k) Plan, “Section 401a” first appeared in […]
Are Self-Directed IRAs with Checkbook Control Legal? Yes. The question was brought before the U.S. Tax Court in Swanson v. Commissioner, 106 T.C. 76 (1996). The Court ruled against the IRS and affirmed the validity of the Checkbook Control platform. The IRS acknowledged the Court’s ruling in Field Service Advisory (FSA) 200128011 (April 6, 2001). […]
Background of Prohibited Transactions In 1974 the US government instituted legislation which was aimed at encouraging its taxpayers to save for retirement. To accomplish this objective, the government permitted special retirement accounts like IRAs which allow taxpayers to save money and enjoy deferred tax benefits. These tax benefits could be accrued in a tax deferred […]
