Most traditional IRA custodians like to maintain control and tell you what you can do with your retirement funds. There are two reasons for this:
- They prefer you to invest in things like mutual funds where the returns are very low but they earn fat commissions.
- They see international investments as risky and/or not politically correct. They are scared of getting sued by people who make unwise investment decisions. Basically, they don’t want to make the effort, or hire staff with international investing experience, to make risk decisions on non-U.S. investments.
Obviously, this is not in your best interest and there is no longer any good reason to put up with it!
Adam Richardson here.
I’ve been speaking with a good friend of Q Wealth’s, Craig Keddie, about exactly what can be done to remedy the ills of an under-powered, corporate controlled IRA.
Craig overdelivered by writing a full report called “Moving Your IRA Offshore” which is now available in our Members Area. We also exchanged some emails about the basics of this strategy, exerts of which I’ve posted below.
I am not a financial planner, why would I attempt to take control of my own retirement plan?
Craig: “Sure, well, a Self Directed IRA is not for everyone.
Taking responsibility for the largest and longest term investment most people are likely to make is a big step that should not be taken lightly.
With that said, doing so does not necessarily remove the role of a 3rd party financial adviser if the investor chooses.Why someone should seriously consider taking control of their retirement plan is to open the doors to a much wider choice of investment options and in many cases these options are investments they have more personal experience, knowledge and comfort with so that they become their own Financial Planner and then research and take advice as needed.
In addition to the increased control and investment options a Self Directed IRA when properly structured also adds multiple layers of financial protection to their retirement savings to guard against potential future economic, legal, and political changes.”
You mention opening the doors to a wider choice of investment. That alone should be exciting for anyone that’s been stuck in under preforming equities or bland funds for years. I know there’s a lot of exciting stuff out there that you just will never have exposure to through your broker. What are some examples of options you’d be giving yourself with a Self Directed IRA?
Craig: “Investment options around the world open up and are so wide ranging it would be impossible to list them completely. A short list includes:
- Real Estate at home or abroad
- Precious Metals
- Intellectual Property
- Domain Names
- Livestock, Farming, Plantations
- Oil & Gas Leases
- Tax Liens
- Private Equity Placements (If you meet the accredited investor requirements)
There are many other options and the IRS does not list what you can invest in but does have some straight forward rules for what you can not hold in your IRA.
For example you can not invest in collectibles or life insurance.
Also the investments can not benefit you or your direct family financially or through usage while it is held in the IRA.
So the main thing to consider is that the rules are designed to benefit the IRA plan and not a particular individual and you and your family should always be separate from and not involved directly in the investment.
So that’s an exciting prospect, to be able to make these investments. But even if you choose not to take advantage of anything radically different to the things you’re already investing in, you’ve still got some major reasons for going to a Self Directed IRA. Tell me about the Nevis LLC and what holding your IRA in an “offshore” company does for you
Craig: “Right. Just as it is a good idea to diversify what you invest in it also applies to the structure of your IRA that controls the funds and is making the investments.
If you have your funds located onshore with a traditional IRA custodian or even with a the self directed IRA custodian that hold the funds in their account and use USA based LLC’s to hold the IRA there is nothing you can do if you are the target of any legal or political pressures.
You also have reduced control and privacy of your finances as well as higher costs over the long term in many cases.
A Nevis LLC provides an extremely high level of asset protection and privacy against legal and governmental level interference, inquiries and confiscation.
Using the structure of a Nevis LLC to control your IRA in conjunction with a bank account for that LLC in yet another jurisdiction and all your IRA funds in that account or invested by the LLC you create the most secure structure possible for what is likely to be your largest and longest term investment.
One side note to think about in regards to using a Nevis LLC is that setting up your self directed IRA in this way is currently IRS approved but this might not be the case forever so now is the time to grandfather in your status.”
It’s easy to get excited about an opportunity like this…it’s also just as easy to not do anything about it if you perceive the process as being too difficult. So far we’ve talked about taking control of your retirement by moving your account into a self directed IRA, then placing that IRA into a Nevis LLC. That sounds time consuming if not outright difficult!
Craig: “Well yes, without experience or the right connections it can certainly be difficult to setup the structure and be sure you have the best options as well as setup everything correctly.
Fortunately we have done all research, made all the connections and do all the leg work involved so this makes things very simple for our clients.
WorldWide IRA is directly connected to all the parties needed to setup the structure and we handle filling out all the paperwork as well as communications with everyone involved during the whole setup procedure. Our clients communicate directly with us as a single point of contact and we walk them through everything so they need only read and sign the prepared documents then sit back and relax while we take care of the setup.”
OK, that definitely removes some barriers to action. Now how long does it take?
Craig: “In general a typical setup will take about 3 weeks . The time frame depends on a few things with the least predictable and out of our hands being the time it takes for the transfer of funds from their current custodian to the new Self Directed IRA custodian. Our clients will receive updates during each step and if any issues arise we will solve them and let the client know exactly what needs to be done if it requires anything from them.”
Thanks for your time Craig, keep us updated on any developments or changes in this area.
Craig: “Of course, my pleasure.”
Read the full report “Moving Your IRA Offshore” in the Q Wealth Members Area and get in contact with Craig at WorldwideIRA.com
Craig Keddie; Self Directed IRA Ambassador and President of WorldWide IRA , is a business mechanic and lifestyle entrepreneur with over 18 year’s international experience in a variety of industries. Through his unique combination of skills, worldwide connections and global mindset Mr. Keddie has earned a reputation of integrity, stability and efficiency who you can rely upon to deliver as promised.