Precious Metals

Using a Self-Directed IRA to Invest in Precious Metals

July 14, 2020

Self-Directed Individual Retirement Accounts (SDIRA) are becoming immensely popular nowadays. An SDIRA is a retirement savings account that can be a traditional or Roth IRA with the same contribution limits. But the notable tax benefits of an SDIRA are of one its differentiators from a regular IRA.

At the same time, the number of investment options also differentiates an SDIRA from a traditional IRA. An SDIRA allows you to invest in more assets than what an IRA allows. With an SDIRA, you can diversify your portfolio by investing in alternative assets, like real estate, precious metals, etc. Continue reading…

Between Investments? What Can You Do While You Wait?

April 27, 2020

Covid-19 has provided one of the most uncertain short-term environments for making longer-term investment decisions. Whether it is conventional publicly-traded stocks and bonds, or even private investments, there seems to be a pause in transactions; reasonably so, as we all catch our collective breaths and try to puzzle out what might happen in the time frame between now and when a successful vaccine is available.

Two Assets That Can Drive Wealth

February 5, 2019

We know that keeping your financial future secure is one in every of the foremost vital goals of any prudent investor. Throughout economic uncertainty, social unrest, or worldwide crisis, gold and silver are crucial assets and fundamental investments of a well-balanced diversified portfolio.

Some gold drivers to keep your eye on in 2019 are broken into four categories below:

Wealth and economic expansion
Market risk and uncertainty
Opportunity cost
Momentum and positioning

Alternative Investments Provide Many Options for Self-Directed IRAs

April 28, 2017

Authored by Tracy Stein – CEO & President of Prime Pinnacle Investments

The world of alternative investments was once a sleepy province populated by institutional investors making modest investments in start-ups and smaller companies. Today, the alternative investment landscape encompasses global markets in a variety of asset classes and thousands of investment firms managing trillions of dollars across the globe.

Self-directed IRAs provide an opportunity for investors to invest in alternative assets, either directly or through managed funds. When the assets are private – that is, not registered with the SEC – ownership might be limited to accredited (i.e., wealthy) investors. Purchasing individual assets or shares in alternative-asset funds offers IRA owners several benefits, including: Continue reading…

IRA-Owned LLC Buying Gold: The Ultimate in Self-Direction or Disaster Waiting to Happen?

April 6, 2016

Guest post by Jeff Watson:

On multiple occasions I have been asked to share my thoughts regarding self-directed IRAs establishing limited liability companies so that the account holder can use that LLC to purchase precious metals and store them in a safe in the account holder’s own dwelling. Continue reading…

Is Obama Capping IRAs?

April 12, 2013

It happens to me almost every presentation. Someone from the audience raises their hand during a seminar on self-directed IRAs and asks, “What is the likelihood that the government is going to take away my IRA?” Or, “will my Roth IRA indeed never be taxed again, or will Congress change their mind later when they are desperate for more revenue?”

Until this past week, I dismissed those conjectures as needless concerns from conspiracy theorists. Until the headline “Obama wants to put $3 Million Cap on IRAs” was found on the front page of the local paper. Maybe there is something going on that we need to pay attention to…

Now, of course, the political approach of making such a drastic move is first to reassure everyone that this will only target the rich, not you or I. And there is a slight inference that no one can gather such a large IRA together without some unfair advantage and extreme good fortune. In the article, recently failed GOP Presidential candidate Mitt Romney’s $100M IRA was trumpeted as the perfect example of how a large IRA is created based on insider knowledge and understanding tax law nuances.

Regardless, the rest of us in much lower tax brackets should be a bit uneasy. IRAs were created to help individuals have a shot at creating a retirement for themselves that industry and government had no stomach or ability to provide. Now over 47 million households have them, with almost $5 Trillion saved for retirement. It’s not unexpected that the government is eyeing those accounts with a great deal of interest, impatient for the tax revenues that will only come upon personal distribution of those largely pre-tax assets.

But wait, this won’t affect me – or anyone I’m likely to know. $3M is a huge IRA and not likely to be amassed by an ordinary person. Not true. For example, a person can, through a SEP IRA, contribute up to $51,000 annually. Through consistent savings and wise investing – many choosing a self-directed IRA, it is not impossible or even improbable of achieving a large balance in your IRA. We certainly have clients that would be taxed under this potential plan.

The concept of charging a tax on an IRA account which was created in the first place to provide a tax shelter to encourage savings is flawed policy. A bad idea is equally as bad regardless of whether or not it affects you or I.

Balancing the budget is something that both sides of the political aisle proclaim to be important for the future of our country. Doing it by taking it directly from retirement plans that were pledged never to be taxed is wrong.

Who knows, are Roth IRAs next?

Glen Mather is President of NuView IRA, Inc., a leading self-directed IRA administrator in Orlando, Florida. He can be contacted at 407-367-3472 or [email protected]

Keeping Your Financial New Year’s Resolutions

January 30, 2013

According to a study by Fidelity Investments, 62 percent of consumers said they stuck with their financial New Year’s resolutions in the past year, compared with only 40 percent who kept other resolutions. When you think about it, a financial resolution may be easier to keep than others regarding eating better or giving back to the community because for many people, taking control of their finances seems like a more pressing, dire need in their life.

Research shows that when people have a measurable goal, they are more likely to succeed with their resolution. Therefore, if your New Year’s Resolution is to take control of your finances, create a measurable goal for your financial health. If you don’t know where to start, consider these three main areas of financial health: zero consumer debt, adequate emergency reserve funds, and maximization of IRA contributions.

According to The Investment Company Institute (ICI), only 39% of US families even have an IRA. In addition, many people who have IRAs are only contributing up to the level at which their employer matches, which is often 6 percent. However, for most people, 6 percent will not be sufficient in the long term. Chances are, you will probably need to put away 15 percent (or more) of your salary to hit your financial goals.

A self-directed IRA is a great way to unlock your IRA and take control of your retirement plan. Self-direction significantly expands your investment options to a wide variety of investments including real estate, tax liens, stocks, bonds, mortgages, notes, precious metals, and other investments. There is a myth that you have to have a lot of money to get started with self-direction, but we debunked this myth in our blog entitled “How to Take Advantage of a Self-Directed IRA with Just $5,000”.

Consider these ideas as you work to improve your financial health in 2013. As always, NuView IRA is here to provide you with the professional service you deserve. Call our company of experienced self-directed IRA administrators in Florida at 407-367-3472 to discuss your investment choices within a self-directed IRA and to start building momentum toward your financial goals for this year.

As We Roll into the New Year, Seize the Opportunity to Take Control of Your Retirement with Self-Direction!

December 27, 2012

As we head into the New Year, many people will likely be looking at their bank accounts and then making it their New Year’s Resolution to save more money. While this resolution is admirable for anyone, why not take it one step further and have your New Year’s Resolution be to take control of your retirement! Mentioned in an article from Fox Business, George Papadopoulos seized the opportunity to take control of him and his wife’s retirement when his wife’s employer made significant changes to her company’s 401(k) plan.

In addition to offering an extensive list of mutual funds that employees could choose to invest their money in, his wife’s company began offering a self-directed 401(k) option for employees. Papadopoulos, being an experienced investor looking to take control of the couple’s retirement, jumped at the opportunity for self-direction. “Self-directed 401(k) options are great for experienced investors like myself,” Papadopoulos said.

Even though a traditional 401(k) plan and a self-directed 401(k) plan offer the same pre-tax benefits and automated payroll deductions, the true difference between them is the investment choices you have with a self-directed 401(k). Self-direction dramatically expands your investment options from a short list provided by your employer to a variety of investments including real estate, tax liens, stocks, bonds, mortgages, notes, precious metals, and other investments.

The percentage of employers offering self-directed retirement savings plans in 2011 was 29% and this number is growing. Who knows – maybe your employer will be next to offer a self-directed 401(k) option to employees? Give our Florida self-directed IRA administrators a call today at 407-367-3472 to learn more about your self-directed retirement plan options!

Crowd Investors

December 14, 2012

In the 1978 movie “Midnight Express”, the sympathetic protagonist Billy, a US citizen, is caught trying to smuggle several kilos of heroin out of Turkey, and is sentenced to four years in a prison under horrific conditions. His hope for extradition seemingly dashed, he is resigned to living out his life in the mundane routine monotony of the incarcerated. His sentence is extended due to an aborted escape attempt and is later transferred to the prison ward for the criminally insane.

For a brief one hour each day, he is afforded the opportunity to exercise in the yard with his fellow prisoners. In a pivotal scene, instead of plodding along clockwise in formation with the crowd, something prompts him to move in the opposite direction, facing the crowd. This unorthodox move is met with raised voices and fists, the group insisting that he return to the slow, methodical clockwise shuffle. His singular intransigence in breaking from the crowd marks a metaphorical turning point, leading to his eventual escape from his sadistic jail-keepers.

This may be an apt metaphor for investors who choose to self-direct their retirement. When real estate prices decline and buyers are timid, our clients start to step in and seize the opportunity to secure cash flows unheard of several years ago. When banks no longer have the appetite to lend to investors, self-directed IRA holders emerge, meeting the need through private loans, securing great returns for their retirement plan.

Yet even within investment classes, the herd mentality of crowd investors is alive and well. For example, in 2011, investors flocked to gold in record numbers, including those using IRAs, pushing the spot price well over $1900 per ounce. Many of those buyers were looking to find a safe haven to protect against uncertain economic times and the Spector of looming inflation.

Since then, prices have retreated below $1700, with new investors turning their attention back to other markets. It seems like crowd investors have moved on, yet have the fundamental reasons changed? If gold was attractive at $1900, why is it less alluring when it costs less?

Now to be sure, I am not an investment advisor, nor would I ever pretend to be. Yet I can’t help but think that the majority of investors, and yes, those that advise those investors, are guilty of group-think. Why else would someone embrace the concept of owning a CD that yields 1.3% when so many other options exist that may provide better returns within their own risk tolerance?

For those of you self-directing your IRA, congratulations, you are moving away from crowd investors. For the rest of you, think about your choices, your outcomes, and come join us – just not so many of you that it becomes a crowd.

Glen Mather is President of NuView IRA, Inc., a leading self-directed IRA administrator in Orlando, Florida. He can be contacted at 407-367-3472 or [email protected]

Required Minimum Distributions – You Can’t Afford to Miss This Deadline!

December 7, 2012

Don’t let the little issue of RMDs or required minimum distributions get lost in the blur of the holiday season. The IRS makes it painfully clear that they are envious of those of you that are over the age of 70.5 and have an IRA or other retirement plans. Interestingly, the Roth IRA holders are spared the indignity of the government telling them how to manage their finances, but more about that later.

If you hold a non-Roth IRA and had your 70th birthday before July 1 of 2012, you must take a minimum distribution from your plan. In other words, make what was tax deferred, now taxable. How much must you take out? It is based on an IRS provided table that calculates your estimated life expectancy. How much is it? Well, if you turned 70.5 this year, you will be forced to take a distribution of a little over 3.6% of your holding. My mother, age 92, is required to take out 9.8%. For those of you yearning to know more, consult IRS publication 590 for the rules and tables.

All non-Roth IRAs are added together to calculate the RMD, and distributions can be made out of any of the held IRAs to meet the distribution requirements.

IRA holders that are in or near their RMD years should plan for sufficient liquidity in their plans to permit the easy withdrawal of funds as required. This withdrawal can take place anytime during the calendar year – but if not done by December 31st, a penalty of 50% of the undistributed amount will accrue to the IRA holder.

Those that have contributed or converted to a Roth IRA are not forced to take any distribution during their lifetime, as all taxes have already been paid.

So, two end-of year reminders: If you are nearing or over seventy years of age and have pre-tax IRAs, get prepared, and take the distributions as required. If you wish to convert to a Roth this year, you must do so before December 31st. Talk to your tax professional before the end of the year so you make all the best moves.

As always, all the best in your investments,

Glen