Okay, I admit it.

I fall for what seems to be the daily ritual of “is the market up or down?” and “wow, it is really up today” or, unfortunately, “boy the market really stinks today.” And, let’s be honest….don’t most of us walk around and think there is nothing we can do about it?!

With the ever so recent stories of banks borrowing 7.7 TRILLION dollars from the Federal government during the height of the financial meltdown (yep, you read that one in the last day or so?) to stories about how employee retirement plans are being plundered by the companies they work for (in fact, a good read is Retirement Heist: How Companies Plunder and Profit from the Nest Eggs of American Workers), it is easy to become very jaded on who and what to believe and who and what to trust. It seems like our very core has been violated because of this. And, by the way, it is always easier (or harder to fathom) to really show what 7.7 TRILLION dollars looks like: [Read more...]

Okay, as all of you have heard me say, when I blog on subject matters related to investments, I can always take the high road and tell individuals that I am not selling any investments. So, realizing that I am not your attorney, your CPA, your financial advisor or investment advisor, when I question something it is not because of selfish interests. Now, of course, one could say, “well you ‘sell’ self-directed IRA and 401K plans” — and, that is true. But, I am not telling you what to invest your funds into. Good enough disclaimer?

So, the other morning I am at the gym working out hard (in the dry sauna) and I come across this article (“Don’t Let Inflation Scare You Off”) in the USA Today from October 31, 2011. As I started reading and soaking in how the author bemoans the stock market and raises dismal statistics of what it has done recently and historically, I get confused that he comes back at the end of the article and tells people that they will be “richly rewarded by stocks even after the hit of inflation.” [Read more...]

BawldGuy Here: Sadly, the onset of investment scams aimed at Self-Directed qualified retirement plans was inevitable. When nearly $100 Billion is sitting in these plans, the unscrupulous, unfortunately, sees opportunity. This is why, whenever I’ve headed group investments, a third party, completely detached has been installed as both auditor, bookkeeper, and accountant. It’s the only way to fly. My thanks to John for this well timed post.

With doing blogs on the BawldGuy site, it is nice that the website owner is a person who, like many of us, cringes when stories come out related to scams and frauds. Besides the obvious pain that it causes to those who have been negatively affected by such schemes, it also makes no sense. True, many of these schemes tend to be Ponzi schemes (NOTE: if none of you are familiar with how term term “Ponzi Scheme” came to be….it is an interesting story that everyone should read) whereby investment dollars always need to come in to pay those individuals who are due money. But, what is really sad, is that there are so many good, solid investment options out there, a fraudulent promoter need not try to prey and take advantage of others.

In fact, for anyone who is reading this and who has also spoken to me, you know that one of my mantras in working with clients in establishing self-directed IRAs and 401Ks is that I do not give tax, legal, financial or investment advice, and painstakingly refrain from the conversation. As I tell many, “my job is to establish your plan so that you can self-direct….but, I will never sell you anything.” [Read more...]

Many companies talk about 401K plans…whether the plans are full-fledged company plans (with employees) or individual plans. In fact, many of these plans are touted as perfect for the self-employed individual, and they may be. But remember one thing — just because a plan is “solo”, “uni” or “one-participant”, doesn’t necessarily mean that you have the freedom to control your plan in the manner you may desire.

None of the aforementioned designations indicate you can truly control how you invest your funds. They’re merely 401K plans for self-employed individuals. What you really need to ask yourself…and there is not necessarily a wrong answer….is: 1) Do I only want to invest in stocks, bonds and mutual funds, etc. as part of my plan? OR 2) Do I want to have the option to invest in any asset class not prohibited by the IRS? Folks, there is no wrong answer….that’s what makes this country great…you have options and choices. But, I am guessing if you are a regular reader of this site, your preference is probably not to be limited in your investment options.

But, self-directed or not, all 401K plans for self-employed individuals must meet certain requirements. Let’s review some of the basics: [Read more...]