Why should you use my company to setup a Self-Directed IRA, IRA LLC, or Solo 401(k) instead of those others?

It’s quite simple really…

Those other companies all promote an illegal scheme called ROBS, and if you are a client of a company promoting an illegal scheme, you are a target for nasty IRS audits.

Best case audit scenario: After months or years of being audited, you are finally cleared. Your assets might be frozen during that time, and you may incur tens of thousands of dollars in attorney fees to defend yourself.

Worst case scenario: If you used the ROBS strategy yourself with, say a couple hundred thousand dollars, you could incur MILLIONS of dollars in taxes. Yep, you read that right. The tax penalties are severe.

What is ROBS?

ROBS is a fancy, semi-complex strategy involving a C-Corp, a 401(k), and you using your retirement funds to start, purchase or grow a business. I’m a huge fan of starting, buying, and growing businesses.

I think you should start or buy a business if you don’t already own one.

And I think you should be able to do whatever you like with all of your money.

Buuuuut… the government disagrees. The government says ROBS is illegal, and they aren’t yet going after ROBS promoters or ROBS users. Yet.

So basically, if you become a client of any of these other companies, you are associated with the promoters of an illegal scheme that the government will probably eventually pursue.

That kind of messes up the idea of gaining freedom, control, and independence, doesn’t it? I mean, I’m just guessing that your idea of freedom is NOT having your assets frozen by the IRS and being subjected to a multi-year, grueling audit.

The Nabers Group Difference

So, that’s pretty straightforward, isn’t it? We here at Nabers Group don’t take you to a magic fountain of youth, mystically multiply your investments by 10,000% per hour or anything like that. (That would be nice though, wouldn’t it?)

All we do is refrain from promoting flimsy “loophole theory” strategies that could get you in big trouble. As a Nabers Group client, one of the things you’ll enjoy is the peace of mind that comes with knowing you are safe. If you’re not a client yet, check us out by calling 877-903-2220.

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Odds and ends: Did you know that most Self-Directed IRA/401k investors FAIL? Learn how to steer clear of common, yet avoidable mistakes… and successfully preserve and grow your wealth.

Trademark notice: “Asset Exchange Strategies” is a registered trademark of Asset Exchange Strategies, LLC, which has no relationship of affiliation, endorsement, or sponsorship with the publisher.

One of the reasons that everyone seems to act so surprised at the “economic meltdown” is because we measure everything in U.S. Dollars while paying little attention to the value of the dollar itself. The dollar is a floating currency. The amount of dollars in circulation can dramatically increase or decrease in any given period of time as seen fit by the central bank, the Fed. An increase in the money supply will push prices up, while a decrease in the money supply pushes prices downward. Therefore, an asset’s true value can remain constant while it’s dollar denominated value can fluctuate – and vice versa.

Looking at statistics or charts denominated in U.S. Dollars can be very deceiving, and if that’s what you’ve been doing, then you were blindsided by the recent collapse of various markets and institutions. If during the past decade you were looking at real prices (as measured in grams of gold) it would have been quite apparent that housing prices were experiencing erratic growth that was likely unsustainable. Gold has been the real currency used by humans since the dawn of time, and even after Nixon took us off the gold standard in 1971, all markets continue to follow logical boundaries of movement as priced in gold.

The good news is that we can now look at this type of data to more comfortably estimate where the bottom is. Warren Buffett commonly perpetuated the addage attributed to Baron Rothschild: “Buy when there’s blood in the streets.” This means that you should be buying (greedy) when most everyone else is selling (fearful) and be selling (fearful) when most everyone else is buying (greedy).

That said, the charts over at www.pricedingold.com show the Case-Shiller Home Price Index as returned to 1997 levels (top). The chart for U.S. Median Home Prices (below), however, tells a less clear story:

To me, this all translates to a crystal ball that says housing is near its bottom, but median home prices may fall a bit more. This would support investment into inexpensive housing. Keen real estate investors will be diverging from trendy lofts and luxury homes in order to focus on where the real money will be found – affordable housing. Many American families will be financially destroyed by the acts of Wall Street and our central banking system. They will need to start over. At the very least, many American families will start living within their means… which they will find to be much more modest than previously thought.

The housing prices that should remain strong will be those at the lower end of the spectrum. In today’s chaotic marketplace, buying an $80k home for a 50% discount should be a solid bargain. On the other hand, buying U.S. real estate for cash flow may be a confusing (often losing) game in years to come because I suspect rent raises will be unlikely to follow inflation beyond 15%.

All in all, my perspective for wealth preservation in the next few years can be summarized in a few points:

1. Anything that is bought and sold in U.S. dollars shouldn’t be held for the long term due to monetary instability.
2. Demand for affordable housing will continue to grow while demand for luxury housing will continue to shrink.
3. If you can find a bargain (at least 50% under fair market value) on an affordable-priced home, buy it because you should feel confident that its market value is fairly solid. Buy it if you feel like you can liquidate it for its market value in one year or less.
4. Stay away from cash flow real estate if it is bought, sold, and rented in U.S. Dollars or any currency pegged to the U.S. Dollar.
5. Stay away from investing in mortgage notes or trust deeds whose return is paid in U.S. Dollars.

Once you start checking your assumptions against prices in gold, you gain an understandable, logical, and predictable viewpoint.

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### Update ###

The five guidelines above are for a person who is interested in growing wealth. If wealth growth is not high in your priorities, long term ownership of affordable-priced U.S. real estate should still provide a good hedge against inflation. This means you will likely experience double digit price appreciation, although this will be accompanied by double digit costs of living increases. That can be an effective means of wealth preservation.