by on January 11, 2012 10 Comments

A Challenge For Those Who Still Cling To Their 401Ks

As is my policy, the one Dad and the rest of my ‘Bully Mentors’ drilled into me, I don’t allow myself a bold statement if I can’t back it up with a specific, empirical, richly detailed explanation. In fact, I say that to callers all the time. “Don’t let me get away with that garbage! Make me back it up ’til you’re satisfied.” Tonight I’m gonna work it a different way.

Here’s the challenge.

Please, start askin’ around. Talk with friends, neighbors, family, folks at work, the innocent bystander behind you in line at Starbucks. Search everywhere ’til you find someone who has firsthand knowledge, no hearsay allowed, of a retiree, or retired couple who’re takin’ home at least $36,000 a year from their 401K. The next one I meet’ll be the first. [Read more...]

Filed Under: 401(k)'s & IRA's, Retirement Income
by on January 10, 2012 Leave a Comment

A Self-Directed SEP or 401K – Which Might be Better for the Self-Employed Individual?

Let’s get something out of the way from the beginning…..both of these plans are good….self-directed or not. But, for someone who wishes to maximize their contributions into a qualified retirement plan, generally speaking the 401K will be a better option. And, please keep in mind that an individual can qualify for a 401K as long as they are self-employed (meaning self-employed with NO employees, other than your spouse). And, for those individuals that are a W-2 employee and have a side business, most do not realize that they can participate in two plans….as long as they do not exceed annual contribution limits. And, both the SEP and 401K can be self-directed…meaning you control the investments from your plan.

As it relates to contributions, one great advantage to the 401K is that the employee (you) can make contributions in both a pre-tax, traditional or after-tax, Roth format. With both the SEP and 401K plan where pre-tax (deductible) contributions are being made, your contributions are tax-deductible and grow tax-deferred until you start taking distributions in retirement years.
However, let’s break down the contribution limits for both. [Read more...]

Filed Under: 401(k)'s & IRA's
by on January 3, 2012 Leave a Comment

It’s a New Year – Coming Attractions For Real Estate Investors

I apologize for the sparse posting lately. The holiday season and it’s predictably fun logistics have made it somewhat, um, challenging for me and the other contributors. However, since the calendar says that lame excuse has come ‘n gone, the regularly scheduled programs will now resume. Thanks for your patience, and Happy New Year to all of you.

Now for some real estate investment info to dazzle ya. :)

Charles Perkins is workin’ on some killer posts, some of which were by my request. ‘Course, I’ve learned to keep my topic suggestions with him as narrowly defined as possible. He tends to research the livin’ crud out of it, which makes me feel guilty sometimes. This is especially true the last month of the year — which, unfortunately is merely the precursor to ‘tax season’. For CPAs, tax season is that ugly stretch of roughly 105 days, when they sleep at least 3-5 hours a day, no matter what. [Read more...]

Filed Under: 1031 Exchanges, 401(k)'s & IRA's, Depreciation
by on December 12, 2011 Leave a Comment

Is the Proof In the Pudding?

For those of you who have read my posts, you already know I encourage people to consider self-directed IRAs and 401Ks for their investing purposes. My belief is that most people would prefer to have direct control of their retirement assets rather than letting others determine their financial fate (by the way, fate can be both positive or negative). I think most are attracted to the concept of being the person or entity that “writes” the checks for investments as compared to assigning that responsibility (and paying their fees) to someone else.

However, besides client testimonials, one of the best sounds in the world to me is someone from “the other side” calling and inquiring about self-directed services. Who are these people from the “other side”? Well, in this case, a broker. And, by the way, when I say they are from the “other side” it is not because I consider them from “the other side,” (as I have no selfish interest in where people choose to invest their assets), but rather they typically place themselves on that island as they never encourage their clients to establish a self-directed IRA or 401K. These are typically fine folks…they just believe in self-preservation….of their commissions. [Read more...]

Filed Under: 401(k)'s & IRA's
by on December 6, 2011 1 Comment

Self-Directed IRAs and 401Ks – Watch the Fees!

For those here long enough to read some of my past posts, you know that I have spelled out the differences between a self-directed custodian, administrator and facilitator. No sense re-hashing all the differences now, but we will keep it simple. To the layman, the difference between a custodian/administrator to a facilitator typically is perceived as the difference in fee structures and the ability to control (write your own investment checks) your own retirement account. Typically, custodians and administrators control the funds and the “checkbook”, whereas the facilitator model typically establishes your plan for a one-time fee and you control the “checkbook.”

Without getting into a long dissertation on the other, more salient differences, in comparing whether you should establish a self-directed plan using any of the aforementioned formats, typically the final decision by the individual will boil down to those two primary issues (fees and control of the account). All models have their potential pros and cons, but the choice is clearly yours as the consumer. [Read more...]

Filed Under: 401(k)'s & IRA's, Uncategorized
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