UnThreaded | Threaded | Whole Thread (19) | Ignore Thread Prev | Next
Author: katiewa Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 81565  
Subject: Re: self-directed IRA custodian Date: 4/7/2011 11:39 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Thanks for the response, ST.

An IRA-LLC has a variety of names, but basically your custodian sets up a self-directed IRA that allows you to purchase non-traditional assets (real estate, notes, etc). They also set up an LLC, fund the LLC with the IRA (1-member LLC, member is the IRA), and then name you the manager of the LLC. The LLC funds (your IRA funds) are then put into the bank of your choosing for you to invest in and manage whatever assets you deem profitable. It's a little too convoluted for me, and I have a hard time accepting their arguments as to why it's legal.

With the flat fee arrangement at Equity Trust, there are no additional charges no matter how many properties I buy or sell over the course of a year. But if they are going to mess up calculations, it will not simplify my life!

The reason for not going with some of the more traditional IRA custodians is wanting to try out owning real estate in our IRA through a self-directed arrangement. There aren't a lot of providers, and at first glance the fees seem pretty high dollar-wise. However, when you compare the fees percentage-wise with most mutual funds, they are pretty comparable, maybe even a touch less.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (19) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.