Guidant Financial Group Blog

MarketWatch released an article on May 21, 2009 that suggested most investors should avoid self-directed IRAs. In “Why Most Investors Should Avoid Self-directed IRAs,“ Robert Powell details three main reasons:

• It is unclear who is regulating this industry;
• The IRS guidelines are complex; and
• There are very few “experts.”

While we appreciate his perspective, we do not feel it is as simple as to suggest this type of investing is only for the wealthy. We believe that individuals have the ability to make good wealth-building decisions when provided correct information.

The rules for investing in alternatives investments using retirement funds have been outlined within the Internal Revenue Code - IRC 4975. He is right – they are complex and subject to facts and circumstances. That is why you need to work with a company (not just an individual) that really understands how these rules apply to the assets you are interested in investing in. There is no space between us on this one.

But then he is also correct that there are very few experts in the field. Unfortunately, there are a lot of self-proclaimed self-directed IRA experts using social media and paid advertising to assert their position as a leader, but don’t be mislead. Do your due-diligence and involve your tax professional and investment advisor to find a firm you feel is most qualified to help you properly facilitate self-directed IRA transactions. Please consider that just because you saw them on Twitter, read a blog post about them or they have written a book does not make them an expert. Here are a couple of things to consider:

• How long have they been around?
• How many clients do they have? (If they have 2 – run!)
• How big is their company? (Size does not necessarily mean better…but it’s indication of their potential experience and strength)
• What value do they provide? (Do not shop purely based on price! If you accidentally run afoul of the rules for self-directed IRA investing, your entire IRA could be distributed. If you have a $100,000 self-directed IRA – you could be forced to take that as income, plus penalties, and pay 40-50% to the government. Saving a few hundred bucks to work with a discount provider is not a good strategy. )
• Are they registered with the Better Business Bureau and what does their history provide?
• Have they been honored, recognized or endorsed by other reputable organizations?

We have always asserted that self-directed IRAs allow people to invest in what they know and understand. It would be difficult to argue that the stock market was safer to invest in than real estate (if you know what you're doing)…especially after this year. Even spirited money man Jim Cramer recently said that real estate is a better investment than stocks today.

Self-directed IRAs allow you to decide that investments you feel are most prudent for your retirement plan. If you feel the stock market is better – buy stocks! If you like real estate…invest in that. The same goes for tax liens, private mortgages and gold. Self-directed IRAs let you invest in your core competencies and there are safe and effective ways to do it.

If you want to learn more about self-directed IRAs or real estate IRAs – contact us!

In an article called 10 Questions for Jim Cramer, Time Magazine reported the spirited money man said that real estate was a once in a lifetime opportunity. He explained that because mortgage rates and affordability were the best he had seen in his life, coupled with the fact that there are no competitive buyers, real estate is a better investment than stocks right now.

We agree! The economic environment has created new opportunities for tax liens, private mortgages, foreclosures and income producing rental real estate. If you do your due-diligence there are some tremendous deals out there. Be patient and make sure you build a good team that can help you identify, evaluate, purchase and maintain those investments!

Have you considered buying real estate or other alternative assets inside a self-directed IRA? Guidant Financial Group is a leading provider of self-directed IRAs, facilitating hundreds of transactions annually, and the only 2008 Inc. 500 company in this industry! If you believe that real estate is a great place to invest all or part of your retirement funds - call us. We will gladly spend time necessary to help you understand how a real estate IRA works and how it could ultimately help you achieve your financial objectives.

We found an article on The Motley Fool today about how to not be an idiot with your IRA. How could that not catch your eye on Google News? No one wants to be an idiot.

Since the deadline for 2008 IRA contributions is coming quickly many people should be thinking about a last minute cash injection! We thought it was worth sharing some other ways to grow your IRA accounts. Here are a few of the Fool’s tips:

1. Don't overpay. Watch those management fees - especially in mutual funds. They can add up and over time cost you a small fortune.

2. Avoid overdosing on accounts. Pay attention to where your IRA money is and try to minimize the number of accounts that sit out there collecting fees.

3. Keep your hand out of the cookie jar. Avoid accessing your retirement funds early and getting hammered with early distribution penalties.

4. Don't “dis” dividends. Invest in companies that pay dividends. If you can live without them, reinvest the dividend money back into your account and watch your shares grow, over time of course.

I think a better choice for #5 might have been, “A fool’s advice could pay dividends”. I suppose they have only used the fool cliché only a few hundred times before.

What did they miss? How about DIVERSIFICATION! Guidant Financial Group provides and individual a chance to buy all sorts of investments inside their IRA. In addition to stocks, bonds and mutual funds, our clients can buy real estate, tax liens, private stock and mortgages and even small business. The opportunity is near limitless!

If you are not satisfied with how your retirement plan has performed – call us. Let us help you discover a new world of opportunity.

As is the case with most investments these days, Gold is feeling the pressure. Generally considered a solid investment, especially in turbulent times, Gold has experienced some ups, and downs, and ups again recently….phew!

In an article from March 10, Bloomberg cites deflationary pressures as the reason for a two day drop in prices to $912.97 an ounce, or a 2.9% drop during the period. This was immediately following a 3.6% increase just a few days prior. Amidst fluctuation, gold has risen 25% in the last 4 months.

What a difference a few days makes!
In an article from today's Bloomberg, gold has rebounded and experts say "BUY"! Another expert calls gold "As good as it gets". Gold is up to $952 per ounce today. From the Bloomberg article, Peter McGuire, managing director at Commodity Warrants Australia Ltd. says, “[Gold has] got the potential to test $980, $990 this week,” and that “The major driver is where the U.S. dollar trades this week and we see further downside on that one.” Read the entire article HERE.

How other metals are trading:
Among other precious metals for immediate delivery, silver added 0.5 percent to $13.82 an ounce, platinum lost 1.1 percent to $1,102.50 an ounce, and palladium slid 0.4 percent to $206.25 an ounce as of 1:27 p.m. in Singapore.

What does this have to do with Guidant?
The primary investments our clients make are in real estate, tax liens, franchises, small businesses and private loans. Recently we have seen a spike in the interest being shown in precious metals – namely Gold and Silver. These and other precious metals headline the limitless other alternative investments that our clients use because they are an interesting investment in any market. With the Guidant self-directed IRA, you are able to purchase Gold and other precious metals with your retirement funds as a long-term investment without paying taxes or penalties. To learn more about a Gold IRA or to find out if you can invest in something non-traditional which you do not see mentioned on our site, contact a Guidant today!

The Seattle Times reported yesterday that President Obama thinks now may be a good time to buy stocks. He urged the nation to try to ignore the "day-to-day-gyrations" of the market and consider buying stocks.