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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 , add a comment

sneaky

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…)

World Markets to close? October 10, 2008

Posted by Jeff Nabers in : Health, Money, Personal Enjoyment , add a comment

In a Bloomberg article today, Italain Prime Minister Silvio Berlusconi said world leaders are considering the closing of world markets so they can rewrite the rules of how they work. He claims the solution can’t be for one country, but instead it must be global.

As terrorism and financial terrorism make us fearful enough to pass the Patriot Act and globalize world markets and power, a Benjamin Franklin quote comes to mind:

“Any society that would give up a little liberty to gain a little security will deserve neither and lose both.”

See the whole (more…)

My Meeting with the Social Security Administration August 19, 2008

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

About 6 months ago, the Social Security Administration started calling my office asking to arrange a meeting with my IRAAA colleagues and I. For months I had shrugged it off because of the fact that many of my readers, customers, and colleagues plan their finances as if SSA will fail. Taking control of your IRA/401k funds is all about putting your retirement in your own hands. So when I received the message from SSA, I figured it must be some kind of mistake.

After numerous messages, I spoke with them, and a meeting was set here in Denver. Associate Commissioner of the Office of External Affairs was flown in from Washington, D.C. I didn’t exactly know what to expect.

Their Concerns

Here I provide a brief summary of their objective in this meeting:

Video: Self Directed Solo 401k July 31, 2008

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

I recently sat down with Eric Wikstrom – CPA, CFP, & Founder of Integrated Wealth Strategies.

In this segment we briefly discuss the Solo 401k and how it differs from a Self Directed IRA.

The following clip observes the benefits of unrestricted investment choices. (more…)

Follow Up: 30 Day Challenge – Can you do without TV? July 22, 2008

Posted by Jeff Nabers in : Health, Personal Enjoyment, Personal Productivity , add a comment

It’s been 30 days since I put out the challenge to not watch TV for a month. Speak up and share your experience.

Here’s what I found over 7 years ago when I stopped watching TV…

  1. More time – This is pretty simple. The average American adult watches 5 hours of TV per day. Convert some of that into work or starting a business to increase or replace your income. Convert some of it into personal enjoyment.
  2. Lower discretionary spending – I am susceptible to materialism. When I allow my brain to be bombarded with advertising, it creates a desire to buy things, and I act on it. Advertising continues to happen because it works. The fact that it works means that (more…)

Penalty Free Early Distributions May 23, 2008

Posted by Jeff Nabers in : Money, Personal Enjoyment, Self Directed IRA Solo 401k , add a comment

Probably one of the must unknown facets of retirement planning is that you can distribute before age 59 ½ for any reason without paying the extra 10% early distribution tax. How?

Substantially Equal Periodic Payments

  1. Set a distribution schedule calculated using IRS tables
  2. The schedule must have regular payments of a certain consistent amount.
  3. You must make receive these distributions from your retirement account either until you reach age 59 ½ or for a 5 year period… whichever is longer.

Internal Revenue Code Section 72(t) is where the extra 10% tax for “early distributions” (before age 59 ½) is imposed. However, if you read on to IRC 72(t)(2)(A)(iv) it is explained that the 10% tax is not applicable to any distribution that is part of a series of Substantially Equal Periodic Payments – or SEPP for short.

To give you an idea of how this works using calculations from IRS life expectancy tables, let’s examine a fictional case study with round numbers for simplicity:

Jared is considering early retirement at age 45, and over the years he has grown his IRA to an asset value of $2,000,000. He isn’t sure whether he wants to completely retire, work part time, pursue a career change, or start a new business. Let’s take a look at his options… (more…)

The Roth Assumption May 15, 2008

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

We all have that friend who is financially irresponsible. You know, they have a new cell phone every time one comes out. They lease a brand new car every 2 years. Their credit cards are maxed out. And they don’t really have a game plan on how to pay for the stuff they have. The best I can tell is that our government is kind of like that. If you look at the timeline, all major tax changes result in increased taxation. Let’s just look at what happened with Social Security: