• Twitter
  • Facebook
  • Linkedin
  • Youtube
  • CLIENT LOGIN
  • FORMS
  • OPEN A NEW ACCOUNT
Call us today: 1-866-7500-IRA(472)
American IRA
  • ABOUT US
    • OUR TEAM
    • TESTIMONIALS
    • CONTACT US
    • CAREERS
  • SELF-DIRECTED IRA/401K ACCOUNTS
    • SELF-DIRECTED IRA – TRADITIONAL IRA
    • SELF-DIRECTED ROTH IRA
    • SELF-DIRECTED SEP IRA
    • SELF-DIRECTED SOLO 401k
    • SELF-DIRECTED SIMPLE IRA
    • SELF-DIRECTED HSA – HEALTH SAVINGS ACCOUNT
    • SELF-DIRECTED COVERDELL EDUCATION SAVINGS ACCOUNT
  • INVESTING
    • SELF-DIRECTED IRA – REAL ESTATE IRA
    • SELF-DIRECTED IRA FOR PRIVATE LENDING/NOTES
    • SELF-DIRECTED IRA FOR PRECIOUS METALS
    • SELF-DIRECTED IRA FOR PRIVATE COMPANIES
    • SELF-DIRECTED IRA FOR TAX LIENS/DEEDS
    • SELF-DIRECTED IRA FOR SINGLE MEMBER IRA LLC
    • SELF-DIRECTED IRA FOR JOINT VENTURES AND PARTNERSHIPS
    • SELF-DIRECTED IRA FOR BROKERAGE ACCOUNTS
    • SELF-DIRECTED IRA FOR OTHER INVESTMENTS
  • FEES
  • EVENTS
  • EDUCATION
    • BLOG
    • THE LOUSY INVESTOR
    • SELF-DIRECTED IRA FUNDAMENTALS
    • SELF-DIRECTED IRA – HOW IT WORKS
    • FAQs
    • CALCULATORS
    • SELF-DIRECTED IRA PROHIBITED TRANSACTIONS
    • SIGN UP
  • PROFESSIONALS
  • Menu
BLOG

CNBC’s Rudy Giuliani Says “The President is Ignorant of Economics” – American IRA Says It Is More Important Now Than Ever To Self-Direct Those Retirement Accounts

December 12, 2011/in Articles, Coverdell Education Savings Account, Health Savings Account, Prohibited Transactions, Roth IRA, SEP, Simple IRA, Traditional IRA /by American IRA

According to CNBC, Rudy Giuliani recently said, “The President is ignorant of economics.” Giuliani goes on to say, “We have the largest debt ever, probably our weakest economy in a generation.” Further he offers, “Money doesn’t grow on trees, nobody gives you money, you’ve got to go out there, you’ve got to work, you’ve got to earn it.” Jim Hitt, CEO of American IRA, a national provider of self-directed IRAs, says, “In this economic climate Americans can no longer rely on the fact that Social Security will be there when they retire. It is more important now than ever to self-direct those retirement accounts. Giuliani is correct, we have got to get out there and take control of our financial future.”

People see IRA advice on TV all the time, and it’s always the same. Contribute to an IRA or a Roth IRA if they’re eligible. Buy mutual funds. Some specialized channels like CNBC might have someone on giving ideas about what stocks to buy. Or they can buy individual bonds, for income, or for safety.

Jim Hitt says, “Remember that the media has to cater to the mass. Their advertisers are largely mutual fund companies and traditional investment companies. Furthermore, 96 percent of their viewership uses their IRAs to invest in stocks, bonds and mutual funds. Roughly four percent of their viewers invest in alternative assets. Consequently, a vast majority of the 96 percent are either not aware of self-directed IRAs or they don’t have enough knowledge of them to make the move that would be most beneficial-the move to a self-directed IRA which will allow them to invest in alternative investments they know and understand.”

Naturally, media companies have to play the numbers, and please their sponsors. This is why there is so little mention of self-directed IRA alternatives in the mainstream financial press. But the alternatives are there, they are legal, and they open up entirely new ways of diversifying their portfolio, of employing leverage to maximize growth, and to maximize their net after-return.

Thinking Outside the Box

Here’s what the media talking heads rarely say: That people aren’t stuck with funds, or even publicly traded stocks and bonds in their IRA. They can invest their IRA assets – whether rollover assets or new contributions, in many different kinds of investments, by using a special arrangement called a self-directed IRA. In fact, as long as they can abide by some specific prohibited transaction rules, they can invest their IRA funds in all kinds of things:

  • Shares of closely-held companies
  • Their own small business
  • Farms
  • Ranches
  • Horse breeding
  • Gold and other precious metals (with some restrictions)
  • Residential real estate
  • Commercial real estate
  • Foreign real estate
  • Raw, undeveloped land
  • Tax liens
  • Private lending
  • Venture Capital
  • Condominiums
  • Developers
  • Partnerships…and much more.

Other than collectibles, alcoholic beverages and life insurance, there is really no limit to what they can do with an IRA, as long as they abide by some common sense rules against self-dealing, or using their IRA to benefit themselves or their immediate family directly.

Diversification

Because the IRA is such a versatile investment vehicle, there are many ways to use their IRA to diversify their overall portfolio against stock market and bond market risk.

Tax Efficiency

When they hold assets that generate a significant income yield, such as rental property, outside of an IRA, their rental income is subject to income tax. By shifting these portfolio elements out of taxable accounts and into an IRA, however, they can make income tax concerns a thing of the past: Income within traditional IRAs (and SEP IRA and solo 401(k) accounts) is tax-deferred until they take distributions. If they hold the income-producing asset in a Roth IRA, the income generated is tax-free.

By properly allocating normally tax-inefficient assets like rental property to their IRA, they may be able to maximize their net return on the assets in the IRA or Roth IRA, while their more tax-efficient investments, such as growth stocks, raw land and index funds, are held in taxable accounts. Since these assets generate little taxable income anyway, it may be advantageous to keep them in taxable accounts, accept the income tax on what little dividends/rental income these assets provide, and avail themselves of the more favorable long-term capital gains rates, as well as enable them to take advantages of tax loss harvesting techniques, using losses to offset taxable gains. Saving their IRA space for less tax efficient vehicles can increase the after tax returns of their whole portfolio.

For more information call us today at 866-7500-IRA(472)

Tags: Best Self Directed IRA, self directed 401k, self directed retirement plans, self-directed ira services
Share this entry
  • Share on Facebook
  • Share on Twitter
  • Share on Linkedin
You might also like
Jim Hitt, CEO of American IRA-A National Self-Directed IRA Provider, Speaks About the Historically Low Savings Account Interest Rates and Offers Expert Opinion!
Investors are Getting Smarter about Self-Directed IRAs
American IRA, LLC, A National Self-Directed IRA Provider, Extends A Huge Thank You To All Who Attended Their Sold-Out August 25th Seminar
What About George?! Like Many of Us – He Dreams Big – Will His Dream Come True?!
Self-Directed 401ks: Flexibility in Your Retirement Fund
Tidal Wave Warning: Real Estate Investors know the Real Estate Market is Swelling with Opportunity! Grab those Real Estate Investment Opportunities and Get that Cash Flowing!
New Suits Over Do-It-Yourself IRAs, As Reported By The Wall Street Journal, Prompts American IRA, LLC To Remind Self-Directed IRA Holders About Important 'Due Diligence'
Jim Hitt, CEO of American IRA-A National Self-Directed IRA Provider, Answers A Frequently Asked Question...Is Retiring Through Rental Real Estate Wise?

Search

Have 15 Minutes?

Self-Directed IRAs can be complex. At American IRA we have 40 years of experience making the process easy for our customers. Give us 15 Minutes and we'll walk you through everything you need to know, with no obligation.

Schedule a CallOur Story
Kyle MoodyBusiness Development Specialist
You'll speak with Kyle or another member of our experienced team.

Recent Posts

  • What is a Self-Directed IRA and How Does It Work?
  • 5 Reasons to Consider a Self-Directed Traditional IRA
  • Ways to Unlock Your Self-Directed Roth IRA
  • Why Do Investors Like Self-Directed IRA Tax Lien Investing?
  • Can Private Note Investing Be Part of a Self-Directed IRA Investment Strategy?

Get started today!

1-866-7500-IRA(472)

Proudly Serving 50 States

Contact

135 Broad Street
Asheville, NC 28801
828-257-4949

  • Twitter
  • Facebook
  • Linkedin
  • Youtube
/
© 2022 American IRA
DISCLAIMER American IRA, LLC, a North Carolina limited liability company, serves as a Third Party Administrator on behalf of the Custodian, New Vision Trust Company, a state chartered South Dakota Trust Company. As a Self-Directed IRA administrator we are a neutral third party. We do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). We are not responsible for and are not bound by any statements, representations, warranties or agreements made by any such person or entity and do not provide any recommendation on the quality, profitability or reputability of any investment, individual or company. The terms "we" and "us" refer to American IRA, with offices located in Asheville, NC and Charlotte, NC.
Recent Gallup Polls Show Americans Are Split About Whether Their Taxes Are Too... CNN Money Answers The Question “Are You Better Off Than Your Mom and Dad?”...
CLAIM YOUR 7 FREE SELF-DIRECTED IRA GUIDES!DOWNLOAD NOW
+ +
Download Our Essential Guide to Self-Directed IRAs!

Download Our FREE Essential Guide to Self-Directed IRAs!

At American IRA, we pride ourselves on our exceptional educational materials that cater to everyone from beginners to advanced investors.

Our Essential Guide to Self-Directed IRAs is a great resource whether you’re new to investing or looking for increased diversification for your existing Traditional IRA, Roth IRA, SEP, Solo 401(k), SIMPLE, Health Savings Account, or Coverdell Education Account.

Download Now

  • Why a Self-Directed IRA?
  • How it Works
  • Investing: Popular Options
  • Real Estate
  • Private Lending
  • Tax Liens
  • Single Member LLC (a.k.a. Checkbook IRA)
  • And much more!
Share This
  • Facebook
  • Twitter
  • LinkedIn

Talk to a Specialist

Schedule a Call
Or call us now on
1-866-7500-472
Prefer email? Send us a message

Talk to a Specialist

Scroll to top