Self-directed IRAs Too Good To Be True? Is This Dead On or Dead Wrong? Jim Hitt, CEO Of American IRA-National Self-Directed IRA Provider Responds To USA Today Article

Self-directed IRAs too Good to be True? Is this dead on or dead wrong? Jim Hitt, CEO of American IRA-national self-directed IRA provider responds to the USA Today article “Investing: Are self-directed IRAs too good to be true?” Jim Hitt says, “You Decide,” isn’t that what America is all about?

The article says “Just because you can do something doesn’t mean that you should. You may be capable of cross-breeding trout with electric eels, for example but you probably shouldn’t”. Cross-breeding trout with electric eels might not be a good idea but cross-breeding donkey’s with horses resulted in a new breed…mules. Mules are sure-footed, hardy, and calmer than horses and less stubborn and smarter than donkeys. Benjamin Franklin experimented with a kite and lighting and this experiment began our understanding of electricity. There are many examples in history of ‘experiments’ that resulted in the modernizations and life improvements that everyone now enjoys.

Jim Hitt interjects, “Just because you can doesn’t mean you should but if you never try then you will never know what great things can happen. I have been an investor for more than 30 years and I can tell you that those who try the hardest, those that do their due diligence and make intelligent investment choices are the ones that experience the greatest success.”

David G. is a client of American IRA who grew a Roth IRA from $6,800 to $293,000 in five short years. This success was achieved by David’s continuous prospecting and tireless advertising along with some very carefully done due diligence. With great work came great success in David’s case.

As the USA Today article says “You can put many types of investments in self-directed IRAs.” There are very few restrictions on the types of investments allowed in a self-directed IRA. A self-directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more!

The article also goes on to warn about the possibility of scams involving self-directed IRA investments. Jim Hitt comments “Risk is not isolated to self-directed IRA investments. Even the professionals missed the $50 billion Bernie Madoff scam and the $7 billion Allen Stanford scam. I would much rather do my own ‘due diligence’. Whether you are investing inside an IRA or outside an IRA, the risk of scams and bad investments is the same. The only thing that changes is where you are pulling your funds from for the investment. Investing, regardless of whether it is inside an IRA or not, requires careful due diligence and consulting with professionals to ensure that your hard earned money is protected. As for the fact that the article calls out there are tax advantages and disadvantages…that is entirely true and that is exactly why you should consult with a tax professional to see if investing with a self-directed IRA fits the investment you have in mind. In most cases you will find that investing inside an IRA is a much more beneficial choice.”

About:

American IRA, LLC was established in 2004 by James C. Hitt in Asheville, NC.

The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Mr. Hitt and his team have grown the company to over $250 million in assets under administration by educating the public that their self-directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more!

As a self-directed IRA administrator they are a neutral third party. They 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 ). They 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 term “they” refers to American IRA, located in Asheville, NC.

Jim Hitt, CEO Of American IRA-A National Self-Directed IRA Provider, Shares Information Regarding The Use Of The Crowdfunding Exemption In The JOBS Act

Jim Hitt, CEO of American IRA-a national self-directed IRA provider, shares information regarding the use of the Crowdfunding exemption in the JOBS Act. The North American Securities Administrators Association (NASAA) have issued an important warning investors should be aware of in relation to crowdfunding.

Here is the NASAA warning:

The NASAA is concerned with the threat of potential con artists, claiming to be crowdfunding brokers or to represent online portals through which future deals must be conducted. “Be aware of unscrupulous persons offering to take fees from you now to help you raise capital over the Internet,” the alert reads. The offers could be a scam because the law has not been implemented yet, said regulators.

For those unfamiliar with crowdfunding, here’s a quick definition: According to accountingtoday.com, “Crowdfunding is the ability for a large group of people to band together and make small investments that collectively are enough to fund a startup company.”

Jim Hitt says, “A self-directed IRA can be used as a funding source for crowdfunding.”

Most crowdfunding is done via the internet via websites such as Kickstarter, Circleup, and Fundable. This is an interesting funding approach that has launched many start up companies of varying success levels. The key with this as with any investment is for people to do their due diligence before investing their hard earned money.

Jim Hitt concludes, “The crowdfunding law has not been implemented yet and looks as though it is a long way off with some experts estimating April 2013 as the earliest date. I can’t stress enough to make sure you do your due diligence and consult with experts before participating in any crowdfunding opportunities.”

About:

American IRA, LLC was established in 2004 by James C. Hitt in Asheville, NC.

The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Mr. Hitt and his team have grown the company to over $250 million in assets under administration by educating the public that their self-directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more!

To learn more about American IRA, LLC and self-directed IRAs/self-directed Solo 401(k)s, please contact our office at 1-866-7500-IRA(472).

As a self-directed IRA administrator they are a neutral third party. They 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 ). They 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 term “they” refers to American IRA, located in Asheville, NC.

American IRA, LLC Announces the Opening of Its Atlanta, GA Self-Directed IRA Training Center!

American IRA, LLC announces the opening of its Atlanta, GA Self-Directed IRA Training Center! Jim Hitt, CEO of American IRA, LLC says “We have locations in Asheville and Charlotte and are now adding a location in Atlanta.”

Our Atlanta location will be the venue for numerous training events throughout the year.

Details of the training offered:

  • There will be training for both current clients and those interested in learning more about self-directed IRAs and/or American IRA, LLC.
  • The training will be offered via seminars and classes.
  • The American IRA staff will host private training for groups upon request tailored to the needs of each particular group.
  • Training will cover all levels from self-directed IRA beginners, intermediate, advanced, and creative techniques.

We already have interested parties requesting training at this location for their groups and welcome anyone that is interested in training to contact the American IRA, LLC office with their request.

Training center location: 100 Glendalough Court, Suite D2, Tyrone, GA 30290

Watch our events page for upcoming training opportunities or sign up for our educational e-mail list.

About:

American IRA, LLC was established in 2004 by James C. Hitt in Asheville, NC.

The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Mr. Hitt and his team have grown the company to over $250 million in assets under administration by educating the public that their self-directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more!

To learn more about American IRA, LLC and self-directed IRAs/self-directed Solo 401(k)s, please contact our office at 1-866-7500-IRA(472).

As a self-directed IRA administrator they are a neutral third party. They 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 ). They 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 term “they” refers to American IRA, located in Asheville, NC.

Jim Hitt, CEO of American IRA, LLC, A National Self-Directed IRA Provider, Shares Important Steps To Maximize Retirement Planning

Jim Hitt, CEO of American IRA, LLC, a national self-directed IRA provider, shares important steps to maximize retirement planning. Proper planning is key to enjoying those retirement years. Lack of planning is a great way to end up eating peanut butter sandwiches every meal (yes, everyone loves peanut butter sandwiches still eating them every meal is a bit much!) and soaking your feet in that $10 toddler swimming pool trying to keep cool!

Many people have difficulty planning for retirement because they are not sure where to begin.

The Time Element

The first thing that must be considered when planning for retirement is the “time element” in other words how old the person is now and how many years are left before they plan to retire. The longer the time between their current age and their retirement age, the more risk their portfolio can withstand. Though a point of caution to keep in mind is that the goal is to grow the retirement account; thus, risk should always be carefully weighed as a big loss in the retirement account even at an early age is still a loss that one should avoid if possible.

Expected Spending Habits

The second thing each person should consider is their expected spending habits during retirement. Keep in mind that lots of people underestimate this amount which leads to financial hardships in their retirement years. Be honest about this when forecasting those estimates. Realistically, most people ‘who have planned properly’ spend more each year during those retirement years than they spent each year they worked. The reason for this is pretty simple; retirees have more time to do the ‘fun things’ in life and thus tend to spend more money during their retirement years.

Pre-tax and After-tax Retirement Accounts

The third consideration for taxable retirement accounts is to be sure each person is forecasting their funds based on those after tax distributions. This may sound like the easiest step in planning…still it is difficult to know what the future tax rates will be…a good rule of thumb is to overestimate the tax burden and plan for that overestimated amount. Of course, those who have Roth IRA accounts will not have to worry about this as they paid their taxes on that account when they funded it and will not have to pay taxes on any of their distributions.

Diversification

The fourth important rule of thumb is to diversify their retirement portfolio. Diversification helps to protect the retirement fund from the ups and downs of economic times. At American IRA, LLC, people can use their self-directed retirement accounts to invest in real estate, private lending, limited liability companies, precious metals and much more!

The Power of Compounding

A final point that is often overlooked is the power of compounding interest. A person who participates in hard money lending within their IRA generally receives interest rates between 7% and 10%. Most banks are currently offering less than 1% interest on savings accounts and 3% or less on CDs. Here’s a comparison of how that interest compounds over time using $50,000:

$50,000 at 1% Compounded Once Annually for 30 years equals $67,392.45

$50,000 at 7% Compounded Once Annually for 30 years equals $380,612.75

It is easy to see the growth potential of investing with a retirement account versus letting funds sit in a savings account!

Jim Hitt concludes, “Careful planning is critical to the onset of a happy and full-filling retirement. Self-directed IRAs provide people with the largest amount of flexibility, choice, and control over what they invest in and how much risk they put their portfolio in. When people wonder what to invest in, it depends on what they are currently doing; what their area of expertise is; what their comfort level is with risk. If they are comfortable with real estate investing, then it makes sense for them to use their real estate expertise to grow their retirement funds. For example, they can buy a rental property within their retirement fund and allow that property to contribute rental income to the retirement fund. At the same time, they can keep some mutual funds and perhaps even some CDs in their retirement account. This mix would give them a nice safe yet diverse retirement portfolio.

Another important point that many people over look is their loved ones. I have seen many parents and grandparents who want to help their children and grandchildren with college tuition and thus sacrifice their retirement funds to do so. Coverdell Education Accounts are a great way of saving for your loved one’s tuition expenses. Another little known fact is that Roth IRAs can be used for tuition expenses. I urge everyone to think through not just your retirement plans, but also, what you may want to do for your loved ones during your retirement and what you want to leave your loved ones in your Will. Thinking this through early and building your retirement account to cover all those things will allow you the happiest retirement years.”

About:

American IRA, LLC was established in 2004 by James C. Hitt in Asheville, NC.

The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Mr. Hitt and his team have grown the company to over $250 million in assets under administration by educating the public that their self-directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more!

To learn more about American IRA, LLC and self-directed IRAs/self-directed Solo 401(k)s, please contact our office at 1-866-7500-IRA(472).

As a self-directed IRA administrator they are a neutral third party. They do not make any recommendations to any person or entity associated withinvestments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). They 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 term “they” refers to American IRA, located in Asheville, NC.

According to USA Today, Many Will Have To Work Until They Are 70. Jim Hitt, CEO Of American IRA, Says This Is Exactly Why Self-Directed IRAs Are So Important!

According to USA Today, many will have to work until they are 70. Jim Hitt, CEO of American IRA, says this is exactly why self-directed IRAs are so important!

The USA Today article ‘Retirement bottom line: Many will have to work until 70’ addresses the serious issue of retirement funds. The article begins by explaining that Baby Boomers, with their inheritances, homes, and pensions, may be on track for a good retirement. They then caveat that by saying that the generation born from 1946 through 1964 isn’t necessarily so rosy.

This article is right on point when it states that many are ill-prepared for retirement. Jim Hitt, CEO of American IRA, says “In addition to the American IRA business I have some real estate investments…mobile home parks and single family rental homes…too often I have someone rent a mobile home that should be enjoying their retirement but, instead, are struggling just to keep a roof over their head because they don’t have any retirement funds. This is a sad and very avoidable situation.”

The overall gist of the USA Today article, as they stated by Munnell “is that retirement ages are increasing as people live longer and health care costs rise, and at the same time the retirement system is retracting.”

Economist John Turner, director of the Pension Policy Center in Washington, D.C., thinks retirees above the poverty level should do OK with at least 60% of pre-retirement income. Jim Hitt strongly disagrees stating “Now listen, I have a great deal of respect for John Turner and his expertise still I have to take issue with the fact that 60% of pre-retirement income is enough. Think about how much you are making now and decide whether you can get by on 60% of that. For some of you the answer is, yes. Now think about whether you ‘want’ to have to get by on 60% of your income throughout all of your retirement years…I’ll be the answer is, no. With the costs of everything on the rise, it is critical that planning for your retirement is a major priority for everyone.”

Self-directed IRAs are an excellent tool to help build those retirement accounts. These accounts allow people to invest with their IRA funds in things that they know and understand and that leads to greater growth within their accounts. Jim Hitt concludes “Should you save money? Yes…absolutely you should! I’m not suggesting that saving money is not the answer. What I am saying is that saving your money and putting it in an account that you can not control is not the answer. Would you bury your money in a box in the local public park? Of course not! So why then would you place it in a retirement account that you have little control over? If you self-direct your IRA, 401(k) or other retirement account, you have complete control over what you invest in. We have clients that have seen increases in their accounts of over $200,000 in 5 years…some of those clients started out with as little as $6,800. With a self-directed IRA you can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more!”