What You Need to Know About Self-Directed Retirement Accounts with Brittany Pickell, Episode 96
Since the inception of the IRA in 1974, investors have been able to hold assets in their retirement that are alternatives to stocks, bonds and mutual funds. Brittany Pickell often comes across investors, who are surprised to learn of these alternative investing options since most brokerages only offer stocks, bonds and mutual funds.
Brittany is the Director of Marketing and Sales for Next Generation Trust Company, helping to educate the marketplace about self-directed IRAs as a wealth-building option. On today’s episode, she explains different types of retirement accounts, restrictions and best practices when using your retirement account to buy real estate and other alternative assets.
Key Market Insights
Many investors are not familiar with self-direct retirement accounts
Institutional brokerage accounts steer investors towards their funds
Retirement industry is $20 trillion industry – only 3-4% percent are invested in alternative investments
Self-direct IRA and Retirement Plans are similar to other retirement plans, but offer more options and control for investors
If you use your IRA to invest, your gains remain tax-deferred (traditional) or tax free (Roth)
Mortgages are allowed, but must be a non-recourse loan
Other options are to partner with other individuals or their IRAs
Cannot buy or sell directly with disqualified people – ascendants, descendants and their spouses (parents, children, grandparents, grandchildren)
Solo 401k allows you to contribute salary and business earnings
Other account types: Coverdell Education and Health Savings Accounts
The number of 65-75 years old who have filed for bankruptcy has tripled
People need to be careful of checkbook control to ensure they follow all requirements as an IRA owner
Penalties include early withdrawal fees, taxes and back taxes
Bull’s Eye Tips:
Winning Your Market: Be educated
Tracking Market Changes: Industry publications like Ascencus
Daily Habit: Working out and coloring
Best Business Books:
How to Win Friends and Influence People by Dale Carnegie
Akimbo – Seth Godin
"If you’re buying stocks, how much control do you have over that company?"
"If you use your IRA to invest, your gains remain tax-deferred (traditional) or tax free (Roth)"
Places to Grab a Bite:
BBQ – Hot Rods
Asian Fusion – Origin French Thai
Diner - Tops Diner
Breakfast - Jenny’s Café
Connect with Brittany: