June 2008 Self-Directed IRA Responsibilites

Invest your IRA in Profitable Real Estate

June 2008

Self-Directed IRA Responsibilities!

WealthyIRA.com is pleased that you have chosen to use our service for your retirement needs. A Self-Directed IRA account can be a valuable tool in your retirement portfolio. With these resources come special responsibilities for the investor.

Fair Market Value: We are required to report certain information to the Internal Revenue Service on an annual basis. Included in this information is the estimated fair market value of your account. We are generally able to obtain a value based on public information such as market prices, note amortization, or appraised value from the asset provider for many assets. As noted in the custodial agreement, we may engage an outside appraiser to determine the value of an asset. The cost of an appraisal would be the responsibility of the account holder. You may wish to minimize that cost by providing us with a third party appraisal. If we are unable to obtain a value in one of these methods, it will ultimately be your responsibility to provide an acceptable valuation.

Real Estate Investments: For those of you who have invested in real estate, annual appraisals are generally required. We will be sending you further information regarding the requirements of the appraisal, but the general rule is to ensure that an independent third party, competent in the area where the real estate is located, completes the valuation.

Single Member LLC’s: Many of you have your account invested in a single member or family LLC where you are the manager. The requirement for these assets is for you to provide an annual valuation. This would mean that your CPA or accountant should provide a valuation of the LLC including all the assets it holds. They should use an independent third party competent in the investment field that would complete the valuation. Also, you will be required to acknowledge that none of the activities of the LLC constituted a prohibited transaction that would disqualify the entire IRA account. We may be sending you information regarding these requirements at a later date.

Valuation Process: If we are not able to value the assets held in your account as noted above, we will notify you and request that you assist in the valuation process. If no value is obtainable, we may elect to distribute the asset to you. This could pose a significant tax liability to you and therefore it is important that valuations of your assets are made available on a current basis. If you have any questions regarding these matters go to www.wealthyIRA.com and order “Is your IRA in Real Estate? It should be” the Manual & CD program and sign-up for Platinum Service while ordering “Is Your IRA in Real Estate? It should be.” Platinum Service provides you with the right answers to specific questions you may have about how to invest your IRA or other self directed retirement account in Real Estate. All the tools, resources and personalized counseling to easily walk you through unlimited transactions for an entire year. Included with Platinum Service are qualified representatives providing all the necessary forms, assistance and advice on how to complete the forms needed for as many real estate transactions as you would like to do as part of your Platinum Service membership.

Don’t Forget the Roth… It is a belief among some commentators that your children are not as financially aware as you, their parents. If that is the case, one of the best pieces of advice that you can give your children is the value of a Roth IRA. If you get them to start early in their lives to begin thinking about their future, they will forever thank you. As soon as they start making money, in a summer job, after high school or college, impress upon them the value of making regular contributions to a Roth IRA for their future and help them set up an account. The importance of tax-free compounding coupled with the advantage of tax-free withdrawals is an incredible way for them to enjoy the kind of retirement lifestyle you will want them to have.

Customer Service

At www.wealthyIRA.com we are always happy to hear from you. We know that you want information regarding your Self-directed IRA. If you have questions go to www.wealthyIRA.com, order “Is your IRA in Real Estate? It should be” the Manual & CD program and sign-up for Platinum Service so we may better assist your needs.

Latest Blog Posts

October 9, 2009

Foreclosures are Up, but So are Investments! Investment strategies have shifted and more and more people are focused on diversification than ever. With only a small amount of IRAs and 401(k)s rebounding a bit this year, many people are still struggling to see the light at the end of the tunnel. Except for the few who see the need to retire with a diverse portfolio of investment vehicles. Prices for Real Estate are the cheapest they have been since the 1970s, and for the perceptive investors, many are using self-directed IRAs to invest in the deepest discounts in Real Estate to help balance out their stock-heavy retirement plans. This plan has several positive points of interest. For one, these investors are not subject to the serious losses that the stock market can bring in a very short time. In addition, Real Estate has and will always be needed as long as people need a place to call home. Long-term investing in Real Estate provides a steady stream of rental income in these tough economic times. Along with that, many properties are expected to double in value over the next 5 to 10 years. Try getting that return on investment from a stock or a bond. Using a non-recourse loan to purchase Real Estate with your IRA or 401(k) is a worthwhile way to make sure you have a diverse investment strategy as well as a new income source and a strong long-term investment for the future. For more information, visit www.WealthyIRA.com to learn how you can invest your IRA in profitable Real Estate.

September 9, 2009

The Next Big Revenue Boom: IRA Real Estate “People who see jobs evaporating in other companies and other industries tend to ratchet back their own spending, economists say—an understandable response, but one that could drive down the local economy even further,” according to previous reporting by Seattle Times. “Not only do consumers feel overall economic conditions have grown more dire," as stated earlier this year by Lynn Franco,

August 11, 2009

Banking News: As part the much-debated Troubled Asset Recovery Plan (TARP), US Treasury Secretary Timothy Geithner’s Financial Stability Plan provides $1.5 trillion in bank bail out funds. "By providing the financing the private markets cannot now provide, this will help start a process of providing a market for the real estate related assets that are at the center of this crisis," Geithner said earlier this year.

July 10, 2009

Investment NEWSAccording to a previous article in the New York Times, of the 45 million IRA-invested households, “… an increasing number are switching to real estate, hoping for more lucrative returns.” The article goes on to report that “Industry experts estimate that 2 percent of IRA money is invested in real estate - through ‘self-directed accounts’ held by a custodian and managed by the account holder - twice as many as two years ago.”

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