You know in the ‘ole days, it was not uncommon that many CPAs, Brokers, and Accountants would tell their clients that self-directed IRAs and 401Ks were “illegal.” Many of these professionals may not have been trying to steer their clients out of selfish interests…they just may not have known that such accounts, as long as established and executed correctly, are quite legal.
Then 2008 came and not only did it seem that many of these professionals became aware of such plans, it almost seemed that “self-directed” anything became the new buzz words. Heck, it even seemed as if everyone wanted to set up such plans (evidenced by the fact that I have had more than a handful of people ask PGI if we could train them to enter the field).
So, I never thought I would be doing a post on this topic…hey, it’s been so long, I almost feel like I am going retro 
. But, I was speaking to a new client this week and he actually told me that he reviewed a self-directed 401K with his broker first and was told that such a plan was “absolutely illegal.” Feeling discouraged, he felt as if his broker may have selfish interests, so he reviewed it with his CPA. Guess what? Well, his CPA never said it was illegal, but said he had “never heard of it before.” [Read more...]
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