The loss of wealth in America over the last five years has changed the way we need to think about retirement accounts. For sure, it will change the way they eat during their retirement and some Americans could find themselves eating dog food. I’m not kidding! But hey, don’t knock it until you try it.
Here’s the problem:
The cost of living continues to go up and while it’s a lot cheaper to die, that’s not a great alternative.
In today’s Wall Street Journal (July 1, 2011), an article was written about rolling back public pensions in Colorado and Minnesota. Judges in these states have thrown out lawsuits challenging the recent cuts to certain retiree benefits. Several other states are removing the cost of living benefits for public pension plans.
Folks, can you really trust the government to take care of you? Do you really think social security in its present form will be there to supplement your income during retirement? Look, I don’t have answers to these questions, but my common sense filter tells me I better bet on myself and not depend on someone else.
To that end; You should create your own retirement plan!
You can easily set up Individual Retirement Accounts (IRAs) and in many cases, the much preferred Solo 401(k).
These accounts, when self-directed, can invest in a wide selection of assets including cash flow houses. At rock bottom prices, cash flow houses can replace your income before and during retirement.
Many people are using Roth IRAs, Traditional IRAs, Health Savings Accounts and Solo 401(k)s to buy houses. If you decide to buy houses through your retirement account, it is important to safeguard your assets using land trusts and the new IRA Preservation Trust which allows you to select a trustee and move your assets into your trustee’s account. You can then invest directly from your IRA Preservation Trust without racking up transaction fees from your Custodian.
In fact, you can eliminate year end valuation fees as well, simply by choosing the right Custodian. The IRA Preservation Trust takes the place of IRA LLCs, also known as the checkbook IRA. More importantly, it eliminates the expensive cost of setting up state regulated LLCs as well as their annual fees and reporting.
The following information was taken (with permission) from an attorney that specializes in asset protection and he has solid information on how you can protect your retirement account using his proprietary IRA Preservation Trust.
IRA Preservation Trust
My name is Jay Douglas Swob, I’m an attorney but please don’t hold that against me.
It’s been over 20 years since I wrote a nationwide course on land trusts for holding real estate. And for those that are unfamiliar, a land trust is a legal entity that helps keep your ownership of real estate a private matter. The land trust keeps your name off of the public records down at your county courthouse or recorder’s office, and thus lowers your public profile, helping to reduce your risk and exposure to things like tax liens, lawsuits, asset freezes, and the like. You still own and control the real estate, but strangers or legal adversaries will have no idea that you are the beneficiary. For tax purposes, the beneficiaries of land trusts simply include the income on their tax returns. Of course if an IRA or 401(k) is the beneficiary, there is no tax return.
So really, a land trust is an asset protection vehicle that allows the real owner to keep out of view in the public records and that’s why sophisticated investors use these entities all the time. Just think about this; do you want everyone in the world to know what you own? Of course not. And you especially don’t want a litigious attorney who’s thinking about commencing a lawsuit against you to see what real estate holdings you have.
Ok, enough about land trusts.
I want you to consider using the latest and greatest entity holding vehicle for you to take control of your IRA checkbook.
This is the IRA Preservation Trust.
Let’s just take a look through our common sense glasses at what really goes on behind the doors of your IRA Custodian.
- They have your money and they put it in the bank until you direct them to buy an investment. While your money sits there, they pay you a fraction of the interest they collect.
- One you select the investment, you complete a Letter of Direction, to direct them to fund a specific investment.
- This is where the fees come in for
- Same day service
- New Investment fees
Now keep in mind these fees are a necessary part of their business model, but the one fee that stands out is the year end valuation fee. This fee is almost like a penalty for making money in your retirement account. The greater your account’s value, the greater the fee.
That is one of the reasons why so many retirement account holders are setting up LLCs for their retirement accounts.
The IRA LLC is being touted as the “end all” for holding real estate. While they are a good entity for holding real estate, they are not needed for your IRA, nor is the additional expense.
You can accomplish much more with my attorney approved and custodian approved IRA Preservation Trust. Just look at these benefits:
- Checkbook control for the trustee
- Move your funds to the trustee’s local bank
- Avoid multiple Letters of Direction every time a good deal comes along
- Avoid transaction fees
- Avoid expensive LLC creation
- Avoid annual LLC fees
- Avoid state annual filings for LLCs
- And select a custodian that has annual flat fees of less than $300 opposed to annual fees based on the value of your account
A better way to view and understand this is the below chart:
If you want control, I mean real control over your retirement account, and then you want to use this trust for all your IRA accounts.
When you open a new account or rollover an existing account to CompleteIRA, we make the trust available and assist you on how to use it properly.
Just call us at (888) 252-5851 or email us at Information@CompleteIRA.com to get started.
Take control and take charge of your self-directed IRA using my proprietary IRA Preservation Trust.