Do you have money in an IRA? Maybe you look at it periodically, but you just keep shaking your head. Retirement is coming, maybe soon, maybe later, but you better get ready because it’s coming. Which stock or mutual fund do you buy? How much is okay to pay your financial advisor and still build an adequate retirement? This is a common situation and these are common questions. My story is probably not unlike yours. Several years ago I had a similar situation and similar questions. I was selling a business, a small insurance agency that I had run for 32 years. I’d accumulated some retirement dollars in a defined benefit plan, a 401(k) and more than one IRA. My wife and I had invested in real estate over many years, and I was aware you could invest in real estate with IRA dollars. In fact, I had information on true self-directing in my desk drawer for years—just too busy to study it. My goal was to invest my retirement dollars in the same type investments that I had been investing in for over 30 years. I just needed to get educated and roll my retirement into a truly self-directed IRA. I decided on a plan and started on the quest. First, I rented an office in my old office building and studied there almost every day for a year. I contacted CPAs, attorneys, and other financial advisors and some were aware you could do what I wanted to do. Although there was a multitude of IRA real estate investors in other parts of the country, these advisors just didn’t have many clients in my area investing in real estate with their IRAs. So, I had to do a lot of reading and internet study—much of the latter on www.irs.gov. There I experienced the joy of the IRS Codes and publications. The second step was to select an IRA trustee/custodian. Most of the brokerage companies, banks and other fiduciaries only administered financial products they sold, but I needed one that administered investment in diverse assets. I found many regional trustee/custodians and several major ones. After a good amount of due diligence, I selected one and did a direct transfer of the funds from my retirement plans to my new self-directed IRA. Let the fun begin. Step three was searching for investments and learning the logistics of getting the appropriate paperwork and funds where they needed to be at appropriate times. Since my first investment, a condo foreclosure at the courthouse steps, to the numerous properties, mortgages and other real estate related investments, it has been a fascinating and rewarding experience. Whether you’re just starting out, near retirement or in retirement, please contact me to explore this amazing concept. Don Dickerson does not offer investment, tax, financial or legal advice to clients. Individuals who believe they need advice should consult with the appropriate professional(s) licensed in that area. |