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.

But you know that self-direction is a powerful and effective tool when a broker calls and inquires about establishing a plan for themselves. In this case, the broker advised they wanted to invest in real estate and, of course, their retirement plan would not allow them to invest in such assets (what a shocker!!). The broker had NO problem kindly stating, “no offense, but you know that I can’t recommend these types of plans to my clients. But it is kind of funny that I am setting up one.” I told the broker that I fully understood the concept of “self-preservation” and took no offense to the comment whatsoever. They have their commissions to make.

Now, this story should be prefaced by the fact that there are brokers out there who will recommend to their clients that they consider investing in non-traditional assets….unfortunately, in this world of “all about me”, those brokers are getting harder and harder to find.

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