Understanding Alternative Investments for Retirement Savings
via Self-Directed IRAs
Guest Speaker: Mat Sorensen, CEO of Directed IRA and Directed Trust Company
Understanding Alternative Investments for Retirement Savings via Self-Directed IRAs
Mat Sorensen is the CEO of Directed IRA and Directed Trust Company, a lawyer, bestselling author, national speaker and expert on self-directed retirement accounts. His company establishes and serves as custodian for all types of self-directed accounts (IRAs, Roth IRAs, HAS, Coverdells, Solo K’s, custodial accounts) for self-directed asset classes such as real estate, private company/private equity, IRA/LLCs, precious metals, and cryptocurrency. His book (The Self Directed IRA Handbook), a five star rated Amazon bestseller, is the most widely used and referenced book in the self-directed IRA industry and is endorsed or used for training by all major self-directed IRA custodians. Matt is also an attorney and partner at Kyler, Kohler, Ostermiller & Sorensen, aka “The Entrepreneurs Law Firm.”
What you’ll learn about in this episode:
*The incredible aggregate dollar total of all retirement accounts in the U.S.
*Why you no longer have to think about retirement accounts and real estate investments as completely separate entities
*The definition of a self-directed retirement account – essentially, an account that can invest in any investment allowed by law.
*How the financial service industry’s takeover of retirement accounts led to a focus on financial products at the expense of people’s understanding that other investments, like real estate, are legal and viable options.
*The importance of securing a self-directed IRA custodian that can help facilitate investments in such entities as real estate and an LLC
*The different choices of retirement accounts (traditional IRA, Sep IRA and Roth (Mat’s favorite) and how these can be self-directed
*The tax advantages of a Roth IRA
*How Mat helped a client use a small sum from his Roth IRA to invest in a property that was ultimately worth millions – and how it demonstrates the versatility of the Roth for real estate investors
*Why traditional advisors like to stick with stocks and mutual funds rather than encourage real estate investments (commission!) – and just how that mindset tis changing
*Some of the do’s s and don’ts of self-directing IRAs, including rules against outside investments made by you personally or with/by your spouse, kids and parents.
*Why the IRS doesn’t allow interactions with relatives and other intimates
*Another forbidden concept: making money off your account. I.e. you can’t pay yourself to manage a property you purchase with your IRA
*A simplified breakdown of some of the more confusing rules of self-directed IRA investments
*An explanation of IRA LLC’s or “Checkbook IRAs.”
*The rules related to IRA LLC’s, beginning with understanding that the custodian holds authority over the account, and you just direct the custodian
*How creating an LLC is an effective workaround, streamlining the process and with more leeway as far as hands on activity, for the investment in and running of a property
*How to set up an IRA LLC, and why it’s important to have a professional help you
*Examples of clients who have brought investors in with their IRAS as partners
*How to get and connect with Mat’s deeper resources regarding self-directed IRAs, including his book, free investor tool kit, a free e-book and more.
Resources:
The Self-Directed IRA Handbook, Second Edition
