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Solo 401k Provides Unfair Tax Advantage For Self Employed Business Owners December 22, 2009

Posted by admin2 in : Self Directed IRA Solo 401k , add a comment

Much Needed Tax Relief For 2009 Is Available, But You Must Open A Solo 401k By Dec 31st, 2009. Nabers says setting up and contributing to your Solo 401k before the end of 2009 will allow married couples to deduct up to $109,000 from their 2009 income taxes. Watch this video to learn more and pick up the phone right now as time is of the essence. The Nabers Group can be reached at 877-903-2220.

Take advantage of this unfair tax break being offered now to the self employed.

Getting Around Prohibited Transactions August 31, 2009

Posted by Jeff Nabers in : Self Directed IRA Solo 401k, real estate , 15comments

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Prohibited transactions is a chief topic when exploring self-directed IRA & Solo 401(k) investing. When a person first discovers that his retirement accounts have been chained to Wall Street brokerages without necessity, his mind starts to imagine the possibilities.

Real Estate? Yes.
Private Businesses? Sure.
Precious Metals? Absolutely.
Getting my hands on my retirement money now? Slow down there.

There are two types of limitations on the average retirement account. One is an unnecessary restriction of investment options to securities products. That can be eliminated through restructuring your accounts and funds. The second limitation is legal and cannot be removed.

Setting up a self-directed IRA or 401(k) is about removing limitations. Once you have it setup outside the nearly monopolistic network of securities dealers, you can invest in almost anything… but you must fully understand the legal limitations.

The general premise behind prohibited transaction rules is that the government wants you to grow your retirement account as big as possible because they plan to tax it later on when you distribute the funds to yourself for spending. Without prohibited transactions rules, anyone in their right mind would (more…)

Think you’re too old to get in on alternative investments? Think again May 22, 2009

Posted by reformedinvestor in : Money, Self Directed IRA Solo 401k , add a comment

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Mature investors close to retirement age are likely kicking themselves wishing they had pulled their money out of the market while they had the chance.

But too often these investors were told to “stay the course” and that “the market will come back.”  Truth be told, no one knows for sure what the market will do.

But we do know is that you still have time to recover your losses – as long as you don’t just sit back and “hope” the stock market will recover.  You have to do something about it.

Real estate can be a wonderful option for someone nearing retirement. With depressed housing prices, you may be able to find a home that offers positive cash-flow so that it provides a healthy monthly income.  When the market recovers, you can consider selling the property only if the numbers add up and you will benefit from appreciation.  If not, you can continue to cash-flow the property and create income for yourself for a long time.

So the point is that you’re never too old to consider alternative investments. A diversified investor is a smart investor at any age.

How to break America’s 401(k) addiction May 19, 2009

Posted by reformedinvestor in : Money, Self Directed IRA Solo 401k , add a comment

[Contributed by reformedinvestor]

This is my favorite excerpt taken from the interview between Steve Kroft of 60 Minutes and Brooks Hamilton, who Kroft interviewed in his expose on 401(k)s.  Hamilton is an expert in designing retirement plans for large corporations.

“The fact is that the typical 401(k) investor is a financial novice. They don’t know a stock from a bond. And we give ‘em a list of 20 or 30 mutual funds with really, really powerful names, you know, they sound like, ‘Gee, that’s where I want to have my money,’” Hamilton said.

“What are the, generally, the quality of the mutual funds in 401(k) plans?” Kroft asked.

“Mediocre,” Hamilton replied. “I’m being real honest with you, with half the funds on the list really dogs, what people would characterize as dogs shouldn’t be on the list to start with.”

So many Americans believed that the 401(k) would be the sure-fire way to safely save for retirement.  In fact, it has been reported that 401(k) plans that have become the primary source of retirement income for 60 million Americans. Companies would match our contributions making it irresistible to sock away money in these mutual funds.  But the truth is, as exposed by 60 Minutes a few weeks ago, that companies turned to 401(k)s as a cheap alternative to offering costly pension plans.  This decision created millions of new employee investors in Wall Street – creating a boom on Wall Street and putting trillions of dollars of investable cash into the hands of unsophisticated investors.

In the 60 Minutes piece, however, experts in the field say (more…)