Warning: Creating default object from empty value in /home4/mldbm01/public_html/wp-content/themes/optimize/optimize/functions/admin-hooks.php on line 160

In 1974, ERISA (Employee Retirement Income Security Act) was passed and IRAs came into existence and main idea behind ERISA was to transfer the ownership and responsibility of retirement investing from the employer down to the employee. Since Congress saw alot of poor management of the pension funds they passed this law to give the responsibility back to the individuals and away from the corporations. Most people are not aware of what ERISA stands for but most people do know and are aware of these retirement fund plans. However, most people are not aware of the number of investment choices they have in their retirement accounts. Most people simple have never heard of or have been informed of investing in things like real estate or gold in their IRA. Only about 2%-3% of the entire IRA market is investing in “alternative assets” and the other 97-98% of the IRA market is investing in stocks, bonds, and mutual funds at the traditional providers.

The traditional providers have dominated the market and keep a lid on any talk about investing outside the traditional investments. These providers spend millions of dollars on advertising and keeping the public thinking that all you can do is buy stock, bonds and mutual funds. This is so far from the truth and it is interesting to note that these “alternative assets” have been available for over 30 years. The self directed investment companies and providers have come a long way to educate people on their options and how this is done. However, many people are still in the dark and are afraid. Truthfully, what people should be afraid of is waking up at 65 with no money in their IRA because they invested just in stocks and bonds and the market has been flat or worse yet down.

There is a solution and it includes education and knowing what your real options are and finding out what is right for you and whether it fits your investing personality. Wealth Black Box is dedicated to helping people first decide on the right retirement plan and second choosing investments that really grow, protect and diversify their retirement. Diversification to most people is buying small cap, mid cap and large cap funds. This is what Wall Street wants you to believe. The IRA market is dominated by firms that don’t give you the full bandwidth of opportunity to diversify. They basically will allow you to diversify within whatever set of investments they offer. You have a choice.

One of the main advantages of a self-directed IRA is that they allow their account holders to achieve diversification; account holders can make both traditional and alternative investments within self-directed IRAs. I hope most people have learned the lesson that the stock market can not only crash but worse yet move sideways for 15-20 years. The self-directed IRA allows people to diversify into many different “alternative assets” AND participate in following stock market trends when they happen.

Real Estate is a great tangible asset to invest in your self directed IRA with little to know risk when the property is purchased properly and at the right price. You can buy all cash or leverage your money and use cash and a non-recourse note to improve your returns. Many people who purchase real estate within all cash and renting those properties are generating pure profit back into the IRA which allows them to have consistent cash flow going into their nest egg. Although popular, real estate is just one of many investment options available to holders of self-directed IRAs. Because of the wide range of investments available, self-directed IRA holders can ensure that their retirement funds are spread across diverse investments and markets, making them more secure.

The top 3 investments in self directed IRAs are Real Estate, Private Lending and Notes, and Tax Liens. Many people like a more passive approach to investing and lending money from your IRA is a great way to grow you wealth without all the headaches of owning rentals. Many people are engaging in lending practices such as non owner occupied loans or they’re lending money out to peers for business activity or things of that nature. Finally, many people want to start a new business or buy a franchise and your self directed IRA is a great place to get the funding. It is important that this is property structured and setup to keep your IRA in good standing.