Retire Rich With Your Self Directed IRA

by Peterson, Nora

• ISBN13: 9780910627726
• ISBN10: 091062772X
• Format: Paperback
• Copyright: 2006-07-18
• Publisher: Atlantic Pub Co

Summary

In recent years many smart investors have exited the stock market because they have essentially lost control of their investments. They have relied on the advice and skill of their brokers, bankers, and financial advisors. Many retirement accounts have dwindled or not increased. Fortunately, there is a great but little-understood alternative: the self-directed IRA. This new book will teach you how to turn your IRA into a wealth-building tool that you control 100%! Take control of your investment future, and make sure your investments are performing for YOU, not someone else. Why haven t your banker and broker ever told you about this new IRA? Because they will no longer make any money on your retirement account! New IRS regulations and the new self-directed IRA make it effortless to build up and keep hold of IRA money. Inside this new book you ll find out how to benefit from the new IRS rules and how to stay away from problems. With a self-directed IRA you can purchase real estate, buy a business or franchise, invest in high-yield mortgages and notes, invest in tax liens and foreclosed homes, manage property purchased by your retirement, rental property, ocean-front property, lake-front property, probate property, commercial property, REO property, tax-lien property, repossessed property, foreclosed property, apartment communities, and storage facilities. You can invest in stocks, bonds, mutual funds, or virtually any investment allowed by IRS regulations. The self-directed IRA lets you act as your own investment manager. We will show you how to set up your account with a custodian or IRA administrator to deal with the day-to-day activities, such as depositing contributions and executing and settling investment transactions. It s easy, fun, and puts you back in control of your retirement account. Retire Rich with Your Self-Directed IRA combines essentials, insight, and insider secrets to secure a financial victory after retirement. **Award-Winning Finalist**

Table of Contents

Introduction: Recognizing Opportunity
Assumptions	22	(2)
Terminology	24	(3)
SECTION ONE Choosing to Retire Rich	27	(82)
Chapter 1: Extreme Makeover—Retirement Style
When Opportunity Knocks	30	(1)
A House Made of Straw	31	(1)
Save Early and Often	32	(1)
Timing Is Everything	33	(2)
Diversify Holdings	35	(1)
Bill's Extreme Makeover Plan	36	(4)
Starting Over with Block	40	(2)
Power of Compounding	42	(1)
A Tax Penny Saved Is Way More Than a Penny Earned	43	(1)
The Hidden Cost of Spending	44	(6)
Choose a Self-Directed IRA	50	(4)
Redistribute Assets, as Needed	54	(2)
Pay Only Your Fair Share of Taxes	56	(8)
Chapter 2: An IRA Primer
A Brief History of Pension Plans	64	(4)
The Plans	68	(16)
Rollovers and Transfers	84	(6)
Chapter 3: Keeping What's Yours
The Big Stick of the IRS	90	(4)
Transferring Her Existing Roth IRA	94	(1)
What About Future Rollovers?	95	(2)
Pay Now or Pay Later?	97	(3)
A Sound Business Objective	100	(2)
Undoing Good Planning	102	(3)
Prohibited Transactions	105	(4)
SECTION TWO Laying a Solid Foundation	109	(40)
Chapter 4: Choosing an Administrator
Custodians, Trustees, and Administrators: What's the Difference?	112	(5)
Interviewing Prospective Administrators	117	(8)
Adding It All Up	125	(3)
Chapter 5: Jo's Backup Crew
Real Estate Agent	128	(1)
Licensed Home Inspector	129	(1)
Title Insurance Company	129	(1)
Self-Directed IRA Administrator	130	(1)
Property Manager	130	(2)
Loan Officer or Mortgage Broker	132	(1)
Lawyer	132	(1)
Accountant	133	(4)
Chapter 6: Managing Risk
Beware the Pundits	137	(4)
Taming Risk	141	(1)
Due Diligence: Exposing the Facts	142	(2)
Plan: Have One and Stick to It	144	(1)
Structure: Modifying the Framework	145	(3)
Guarding Against Fraud	148	(1)
SECTION THREE Building Blocks to Retiring Rich	149	(152)
Chapter 7: The Allure of Real Estate
Why Real Estate?	152	(1)
Traditional Versus Nontraditional Real Estate Sources	153	(1)
Traditional Real Estate Transactions	154	(4)
Nontraditional Sources	158	(3)
Chapter 8: Becoming a Landlord: Investing in Income Property
Sizing Up the Job	161	(1)
Calling in the Subcontractors	162	(4)
Nuts and Bolts	166	(8)
Funding the Purchase: Cash Versus Financing	174	(3)
Renting the Property	177	(1)
Selling Income Property	178	(3)
Chapter 9: Becoming a Lender: Investing In Real Estate-Backed Notes
Sizing Up the Job	181	(2)
Senior Notes Versus Junior Notes	183	(4)
Calling in the Subcontractors	187	(3)
Buying Paper	190	(1)
Loan-to-Value Ratio (LTV): The Lower the Better	191	(2)
Borrower's Credit History: Caution Equals Less Risk	193	(3)
Interest Rate: The Higher the Better	196	(1)
Term: The Shorter the Better — But Not Too Short	197	(3)
Nuts and Bolts	200	(1)
One Note, Four Possible Outcomes	201	(4)
Notes for Sale: Where to Find Them	205	(1)
Originating Notes	206	(3)
Nuts and Bolts	209	(2)
LTV	211	(1)
Interest Rate	212	(1)
Term	213	(1)
Borrower's Credit History	214	(1)
Three Essential Documents	215	(2)
Chapter 10: Buying Options: The Ultimate In-and-Out Transaction
Sizing Up the Job	217	(2)
Wilma's Bungalow	219	(3)
Benefits to the Seller	222	(2)
Benefits to the Buyer	224	(4)
Cornfield Redux	228	(6)
Aunt Rose's Golden Parachute	234	(3)
Chapter 11: Alternative Sources for Real Estate
Sizing Up the Job	237	(2)
Risk Management	239	(2)
Foreclosure: The Birthplace of Distressed Property	241	(1)
The Road to Repossession	242	(3)
Profiting on the Foreclosure Process	245	(1)
Buying Equity	245	(2)
Short Sale	247	(3)
Foreclosure Sale	250	(1)
REO Properties	251	(2)
Tax-Lien Sales	253	(1)
Nuts and Bolts	254	(5)
Managing Risk	259	(3)
Calling in the Subcontractors	262	(1)
Nuts and Bolts	262	(2)
Wrapping It Up	264	(1)
Chapter 12: Business Structures
Sizing Up the Job	265	(3)
Business Partnerships	268	(1)
The Limited Liability Company (LLC)	269	(3)
Calling in the Subcontractors	272	(2)
Nuts and Bolts	274	(6)
LLC Example	280	(5)
Chapter 13: Owning a Business
Sizing Up the Job	285	(2)
Calling in the Subcontractors	287	(2)
Nuts and Bolts	289	(8)
Chapter 14: Buying Precious Metals
Sizing Up the Job	297	(2)
Nuts and Bolts	299	(2)
SECTION FOUR Weatherproofing: Making Wealth Last	301
Chapter 15: Planning for Distributions
Distribution Rules	305	(3)
Early Distributions: Before Age 59½	308	(4)
Optional Distributions: After Age 59½, but Before Age 70½	312	(1)
Mandatory Distributions: After Age 70½ (Traditional IRAs Only)	313	(9)
Noncash Distributions	322	(1)
Breaking the Rules: A Costly Mistake	322	(4)
Chapter 16: Estate Planning
Stretching an IRA	326	(1)
Passing on the Stretch IRA Benefit	327	(1)
Who Can Be a Beneficiary?	328	(1)
Naming a Beneficiary	329	(1)
Naming a Contingent Beneficiary	330	(1)
Inherited IRA Distributions	331	(5)
Protecting the Stretch Option	336	(1)
Estate Taxes	337
Conclusion
Additional Resources
Appendix A
Appendix B
Glossary
Bibliography