Thread: Self-Directed IRA

Originally Posted by BuffaloBill

Any updates on Ira/LLC setup from anyone? I am trying to find out all I can about this before I call.

Another big dip in my 401K is just not working for me anymore....

I've contacted PENSCO and Guidant. Guidant, though, transfer fees are higher initially, over the long term they would be the more cost effective self-directed IRA. Do your due dilligence and see what company works out best for you.

Originally Posted by tchandy

I've contacted PENSCO and Guidant. Guidant, though, transfer fees are higher initially, over the long term they would be the more cost effective self-directed IRA. Do your due dilligence and see what company works out best for you.

So what did you end up doing? I actually moved mine from Pensco to Guidant a few months ago because Pensco still wanted a lot of custodial control (i.e. approval of each individual investment) whereas Guidant set me up with an LLC and a new custodian which gives me "checkbook" control. As yo mentioned, it is more expensive to set up (I think it was around $2500). But the annual fee is nominal ($150ish).

Originally Posted by Jill

So what did you end up doing? I actually moved mine from Pensco to Guidant a few months ago because Pensco still wanted a lot of custodial control (i.e. approval of each individual investment) whereas Guidant set me up with an LLC and a new custodian which gives me "checkbook" control. As yo mentioned, it is more expensive to set up (I think it was around $2500). But the annual fee is nominal ($150ish).

I came to the same conclusion. I contacted Pensco, Guidant and Entrust. Pensco cost more up front but over the long term they had the best deal.

It pays to do your research, pick up the phone in this case, than take someone's advice. Everyone has their own reason for setting up a self-directed IRA. Age, long term plan, available money, and others all come into play.

Jill, how do you like it so far?

I saw this today and was interested on this one, for a small 401(k) I have with around $40K in funds...

"For a limited time, take advantage of our special offer, which gives you $1000 off the price of our iDirect service. But don't delay—this discount is only available through August 31. "

YouTube - ‪Guidant Financial -- iDirect‬‏

If you're looking for a truly self-directed IRA, then I think they are as good as anyone out there. Their prices are pretty darned steep tho, IMO. If you have read and studied about the tax laws surrounding qualified funds and transactions, then you shouldn't need a lot of help from their lawyers (2 hours of which is included in your fee). They will provide an operating agreement, set up your custodian, etc. In the end, you will truly have the funds in your own local bank (if you wish) with a checkbook!

I'm of the school that you should always depend on the professionals if you don't have the knowledge. But next time, I'll just use this one as a template, and do it myself. Especially on smaller accounts where $2-3000 would be a pretty good chunk.

P.S. I haven't followed the link to YouTube yet. But it is worth speaking with them to see what all will be included in their fee.

Originally Posted by andviv

Jill, how do you like it so far?

I saw this today and was interested on this one, for a small 401(k) I have with around $40K in funds...

"For a limited time, take advantage of our special offer, which gives you $1000 off the price of our iDirect service. But don't delay—this discount is only available through August 31. "

YouTube - ‪Guidant Financial -- iDirect‬‏

After working in the Self-Directed IRA business for more than 6 years, my advice would be to move your funds to a Self-Directed IRA custodian. The two best companies I have worked with are Kingdom Trust - www.KingdomTrustco.com and Equity Trust - Self Directed IRA, Real Estate IRA, and Allowable Investments at Equity Trust Company. Their annual fee will only be a few hundred dollars compared to a few thousand! Like Jill mentioned in her post, you shouldn't need a lot of help from lawyers if you understand the basic IRA rules which your custodian can help you with for free.

Let me know if you have any other questions.

Good Luck,

Tim Debronsky
Tim@IRAinsiders.com
Self Directed IRA | Real Estate IRA Investing | IRA Business Financing

I am no IRA expert but in my real estate investing days my fellow investors were using Self Directed IRA's to fun their real estate transactions and business ventures through the use of 60 day rollovers.

For example: Access your self-directed IRA for 60 days without any penalties and purchase a property or investment which was sold and the money went back into the self-directed Roth IRA's tax free surpassing the annual cap limit.

Like I said I am no expert at this but I know it's possible and legal.
They used https://americanpension.com/ ( I am not affiliated with them at all)

Another neat strategy was funding the self-directed IRA (created solely for real estate purposes) making it a partner in the deals and the large profits rolled back in tax free, then taking a 72T early tax distribution so you can live off the interest while your IRA continues to grow.

Not sure how it works in details, consult with a pro, just sharing what I saw investors doing successfully.