Have you ever wondered where all those TV shows and movies come from when you are sitting on a plane, browsing a cable network, or scrolling through a video on demand streaming platform? Well, there are two ways. First, the network can create the content. We have probably all tuned in at some point to a specific network to watch one of our favorite shows that you only find on that network, right? Or maybe you subscribe to a favorite streaming service because they have a show that you love to watch! Well, what about the rest of the content that you see while scrolling through your cable provider or the seemingly endless options that you have while browsing one or more of the streaming services that you subscribe to?

Private placements —stocks, bonds, or securities sold on the private market, instead of on the public exchange— make up a huge portion of our clients’ IRAs. An extremely popular investment, they’re one of our most popular (next to real estate), as typically they aren’t offered at regular retirement providers like Fidelity or Schwab. Investors use private placements to use their retirement savings to fund start-ups, technology, business expansions, and more in exchange for stock options and equity not available to the general public. An excellent opportunity with a market primed for investment, and self-directed IRAs make it possible.

We’re here to help you become the self directed IRA superstar you were born to be. Now that your IRA LLC is set up and ready to invest, what’s your next step? If you’re looking to invest your retirement with more control than you ever imagined, all while ensuring your account is compliant, we’ve got you covered. Keep these tips in mind for continued success when investing with your self directed IRA:

If you're utilizing the ever-popular IRA LLC investing strategy (where your IRA owns an LLC, making all the investments through this entity), there may come a time you'll need to take a distribution from your account. But wait— if your funds are within the LLC, how do you handle this process? It's something that comes up often with self-directed IRAs, especially when handling required minimum distributions (RMDs). Here's what you'll need to know to manage this process simply and easily:

You've invested in a private company with your self-directed IRA— now what? The paperwork is signed, the funds have been sent out, you're all done... right? Well, sort of. With a self-directed IRA, you're in the driver's seat— but that means you've got a few things to handle when it comes to your investment.

Here's what to remember to keep your self-directed retirement in check:

Nowadays, there’s no excuse for investing in companies that don’t share your values. With the huge variety and the methods available, it’s easier than ever before to invest consciously, and in every aspect of your life— even with your retirement fund. Self-directed IRAs give you a unique ability to truly vet your investments, so you can put your savings somewhere you feel good about. Socially responsible investing lets you put your money in where your mouth is, in investments that line up with your personal morals and beliefs.

The world we live in is transforming, and the markets are shifting right alongside it. There’s a persistent myth that eco-investments aren’t as profitable as traditional companies, but that’s proving to be untrue— a recent Harvard Business Review sustainability study has shown that over the next two decades, companies that demonstrate a commitment to environmental responsibility will likely outperform companies that don’t, because they’ll be prepared against new regulations and unknown market pressures. 

Increasingly, more and more investors are diversifying their retirement funds by investing in real estate and other real estate related assets. As recently noted by Bloomberg.com, real estate tends to be just about as effective an investment as stock in the long term— with the added benefit of being a physical asset. In the self-directed IRA space, investors often use an IRA LLC when investing in real estate. This gives you what is known as “Checkbook Control”— meaning you, as the IRA holder, have complete signing authority over your retirement funds. Is a self-directed IRA LLC the choice for your retirement? Whether you’re looking to invest in private stock through an LLC or you’re creating an LLC to invest in real estate, we’ll help break down the process, so you can see if this retirement strategy works for you.

Private investments are one of the preferred assets held by IRA Resources clients. That gives us a lot of insight into what it takes, from an administrator’s perspective, to ensure that transactions go smoothly. Our trained staff knows how to handle all the reporting and recordkeeping for your private investments, so you can rest easily knowing your retirement account is in our capable hands.  

While assets are still in your self-directed IRA, you generally don’t have to pay taxes on the income. But, in certain situations, you do. This happens when the IRA owns property has been leveraged or is an operating business. The two phrases you’ll need to know about this are Unrelated Business Income Tax (UBIT) and Unrelated Debt-Financed Income (UDFI).