Trust Yourself April 23, 2008
Posted by Jeff Nabers in : Self Directed IRA Solo 401k , add a commentIn a world where we see stories unfold such as:
- Enron
- WorldCom
- Tyco
- Subprime mortgage crisis
- Mutual fund mortgage overexposure and misreporting
- Fannie Mae & Freddie Mac accounting scandals
- Insolvency of Investment Bank Bear Stearns
…most Americans are running low on trust when it comes to financial service companies. Who can you trust?
This is an especially important question in light of my recent post about misinformation in the self directed IRA community. My answer: yourself. That is what self directed investing is all about. You have control of your assets.
With the checkbook control provided by an IRA LLC, there is no potential for fraud unless your IRA rollover is handled by someone other than a bank or trust company (aka custodian). With a Solo 401(k) you don’t even have to transfer your assets through a custodian in the first place.
Q: What should I be concerned about?
A: Prohibited transactions and tax compliance, although it is simple to address both concerns. You can search Google for “self directed IRA prohibited transactions” and “IRA UBIT tax” to learn about the basics of both topics. If a service provider claims (more…)
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