What Is A Self Directed Retirement Plan?

Retirement plans really are a fairly new concept. The 401k was invented in the late 1970’s. The Traditional IRA has only been around since 1974. The Roth IRA has only been around since 1997.

However, these plans are consumed like nothing before seen. Everyone who is anyone in the financial space is saying to invest your money in your 401k for a match, and then put the difference into your IRA. At the very longest, the thing you are relying on for financial freedom has only been around for 45 years.

Why has it taken off so much? Wall Street. Plain and simple. Wall Street advertising dollars and distribution of Wall Street retail financial products through their advisor force have made this type of plan become the thing everyone does.

An IRA or 401k that invests in Wall Street products needs a custodian. It also needs investment options provided typically by a Trustee. This is how most people do it. A person contributes money to an IRA or 401k, and then selects the fund they want to invest in. These funds typically are speculative and have high fee structures. In fact, I don’t believe in this model. I don’t even believe in putting money into an IRA or Qualified Plan. I think it’s a terrible idea.

So what do you do if you already put money into one of these accounts? Well, I recommend you roll it over into a Self Directed Retirement Plan.

A self directed retirement plan is either an IRA or Qualified Plan that is not related to Wall Street and focuses on alternative investments such as Real Estate, Private Lending, and Life Insurance.

You can do a Self Directed IRA or you can do a Self Directed 401k.

What’s the difference? Let’s break it down?

Self Directed IRA:

• Can be Roth or Traditional
• Can be contributed or can be rolled over into the account
• Has a Custodian, but the custodian doesn’t offer investments and allows you to choose real estate, private lending, tax deeds, mortgage notes, and several other Real Assets
• Usually has transaction fees, setup fees, and annual fees
• Can be held with a Trustee/Custodian or an LLC account
• An individual can contribute $6000 per year
• Requires an annual account valuation to report to the IRS

Self Directed Solo 401k:

• Can be Pre-Tax or Roth
• Can be contributed to or can be rolled over into
• Must have self employment related activities
• YOU are the Custodian and Trustee
• YOU choose your own investments. All of the investments allowed by the Self Directed IRA are available and MORE such as life insurance and mortgages debt.
• Has setup fees and annual fees, but no transaction fees
• Can be held in an LLC account or a Business Trust Checking account
• An individual can contribute $19,000 per year if Self Employment Income
• Requires an annual account valuation form 5500
• Can own Life Insurance whereas IRA’s cannot
• Can own mortgage debt without incurring penalties whereas IRA’s cannot
• Can be borrowed against whereas IRA’s cannot
• Is protected against Nationalization, Creditors, and other account predators whereas the IRA is not

Most people do not know these options even exist. They continue to invest with Wall Street, where 30% of their balance will go towards fees and the account will be crushed with volatility.

If you have an old IRA or Retirement plan that you’ve rolled over or need to roll over, consider the Self Directed Retirement Plan!

Invest it into Real Estate, Life Insurance, Private Lending, Mortgage Notes, Gold & Silver Bullion, and more!

This is one of the things my company can help you with! We will educate you on your options, answer your questions, make sure you understand how it works, and then handle the setup and transfers for you.

If you’d like to learn more about Self Directed Retirement Plans click here and request some info!

If you’re a follower and have not read my book “The Blueprint to Financial Freedom” yet, that is the place to start. This book covers the specifics for each level in the various chapters, and you can grab the book for free as my gift.

Click here to get a copy!

The Blueprint to Financial Freedom by Jerry Fetta

To Purpose, Wealth & Freedom,

Jerry Fetta

Jerry Fetta is the CEO and Founder of Wealth DynamX. He is a nationally recognized financial expert featured in Forbes, Yahoo Finance, Fox, Chicago Weekly News, New York Finance, interviewed on over 45 podcasts with world renowned experts, earning endorsements and affiliations throughout his career with names like Kevin O’Leary, Grant Cardone, Dave Ramsey, and Pamela Yellen.

Jerry’s mission in life is to help create millions of financially educated and solvent families achieving greater financial freedom and sharing the truth about money with those around them.

Learn more at www.WealthDynamX.com

(DISCLAIMER: The information in this content should not be considered tax, financial, investment, or any kind of professional advice. Only a professional diagnosis of your specific situation can determine which strategies are appropriate for your needs. Wealth DynamX can and does not provide advice unless/until engaged by you.)