Self-Directed 401(k) and IRA:
How to Invest in Almost Anything You Want
For years, the typical self-directed 401K meant signing up for a bank or an online brokerage account to choose from among investments like stocks, CDs, bonds, or mutual funds. These kinds of accounts may be right for some, however, they don’t offer the kind of freedom that a Truly Self-Directed 401K plan can offer.
Perhaps your retirement plan has room for something more. Maybe you would like to invest in a restaurant or a sports team, a private company or secondary life insurance market? Or perhaps you have some intellectual property you’ve created, like a book or trademark or patent you would like to put in.
With a Truly Self-Directed 401K, you are given the freedom to do any of those.
You are allowed to use your creativity, interests, and knowledge as you formulate your diverse investment portfolio. If you understand stocks, then you can invest in the stock market. If you understand real estate, then you can use that knowledge to make money. This diversification is one of the main advantages of a Self-Directed 401K.
What are the possibilities?
It is exciting to realize the number of allowable options; here a just a few to consider:
Commercial Real Estate
Trust Deeds/Mortgages
Intellectual Property
Annuities
Limited Partnerships
Stocks
Bonds
Mutual Funds
Business Loans
Personal Loans (”disqualified persons” are not allowed)
Foreign Properties
Professional Sports Team
Health plans
Educational Costs
And many, many more.
Checkbook Control
The power of a self-directed 401k or IRA is this: you have “checkbook control”. Checkbook control gives you the freedom to control your own investments. Your retirement account creates an LLC, and with the LLC, you are given your own checkbook. You write and sign the checks.
No longer will you need to go to your custodian for approval. You can write the check as soon as the investment opportunity presents itself. This is extremely beneficial when dealing with time sensitive investments like real estate. Checkbook control puts you in control.
Why do I want Checkbook Control?
– You gain control over your investments- Custodial Approval is no longer required. With checkbook control, you can use your own knowledge and interests by investing in what you know and understand. Why should you have to get permission to spend your own money?
– No More Delays- You can immediately write your own check as soon as you are ready. You will no longer need to fill out paperwork and WAIT for approval. No more missing out on those time-sensitive investments!
– Gain interest on uninvested funds - Your uninvested funds will no longer be held with the custodian. You will earn the interest, not your custodian. You should be the one making money on your uninvested funds.
– Eliminate unnecessary fees - Having checkbook control eliminates many fees. This may include a yearly “maintenance” fee, fees for buying and selling assets, and various processing fees a custodian will charge you. Checkbook control can save you thousands of dollars in useless fees.
Checkbook control gives you total investment decision making power.
A Truly Self-Directed 401K, with checkbook control, will allow you to take advantage of both traditional and alternative investment opportunities and puts you in charge of your investment decisions.
If you are interested in learning more about self-directed accounts, call us at 612-202-0942, or sign in to our “Wealth Membership Vault” to get a special report on the details of self-directed retirement accounts and other self-directed accounts.
