Archives for April, 2014

21 Apr 2014

Can You Trade Stocks Using a Self Directed IRA?

Combining the potential for profitability from trading stocks with the financial benefits of a self directed IRA is not only possible; it can be very advantageous.

Using a self directed IRA to trade stocks allows you to simultaneously accomplish 3 major goals:

1. The freedom to make your own purchase decisions
2. The ability to compound growth
3. Paying the least amount of taxes or no taxes at all!

In order to be able to trade stocks inside of your self directed IRA, you have to follow a process. There are a lot of details surrounding each step, but for the purposes of this post we will generalize the process. First, you need a self directed IRA. Then, you create a brokerage account with a broker of your choosing (i.e. eTrade, TD Ameritrade, etc.). Finally, you tell your self directed IRA to invest in the brokerage account which is where you buy and sell shares.

The brokerage account is an investment choice just like a piece of real estate. You, as the SDIRA owner, have to fill out a form called a “direction of investment form” that instructs your custodian to transfer funds to a specific investment. In this case, that investment would be the brokerage account. Then you use the brokerage account to handle your trades. Any profits earned on the brokerage account are deposited back into the self directed IRA. It is also important to note that before deciding to set up a brokerage account inside of your self directed IRA, you should definitely read and understand the rules for prohibited transactions with a SDIRA. We would suggest that you speak with a professional as well. You want to make sure that you have all your ducks in a row as to avoid unnecessary fess from the IRS.

Depending on how you structure your self directed IRA, the money deposited back into the account can be tax exempt. This is true because a SDIRA can be set up as a ROTH account. Think about that, money made by trading sticks can be tax exempt.

Not everyone is a trading wizard but for those people who are stock savvy it could be very advantageous to trade stocks using the self directed IRA.

For more information, Contact Us.


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7 Apr 2014

3 Tips for smarter and more profitable retirement planning

Whether you just graduated college or are looking forward to retirement, it is important to have a solid plan for your finances. We believe in a “self directed philosophy” when it comes to retirement planning and that each individual should be in control of his or her financial future. Each person is a little different and will need to structure their own plan differently, but there are a few general insights into retirement planning that we want to share.


3 Tips for a smarter and more profitable retirement planning


1. Don’t just set goals, understand your goals

It is easy to set goals for yourself. “I want to lose 100 lbs by summer.” “I want to make a million dollars next year.” Anybody can set any goal they want, but if those goals are not obtainable then really they are just wishes. Setting obtainable goals for yourself requires you to understand where you are now and what it will take for you to get to where you want to be. Ask yourself, “If I want to have a million dollars set aside for retirement, what will it take from me to get there?”


2. Know your resources and how to use them to the fullest potential

Resources come in all shapes and sizes. They can be people, online tools, or even your own personal knowledge. In order to have great retirement planning skills, you have to be able to know what resources you available to yourself and how to use them. For example: If you have been working in the real estate industry for years and know how to analyze markets then why not utilize your knowledge as an investment resource? You could invest your IRA into trust deeds, rental homes, apartment complexes, and more.


3. Understand the time value of money

The most powerful financial mechanism in the world is compounding interest. This happens when you use the interest earned on an investment to earn more interest, literally interest on top of your interest. The reason that money has “time value” is because the longer you are able to build interest on top of your interest, the more exponential growth your portfolio will see.



Narrowing down retirement planning into 3 general tips is helpful, but it definitely won’t cover everything you should know. is jam packed with all kinds of tools and resources that can help you better plan for retirement.


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