Self-Directed Custodians

This VIDEO was a presentation by a self-directed custodian on choosing a custodian, opening an account and moving money and assets to that accounts. It is a great place to start. Please Note: Breglio Law Office does NOT endorse or recommend any specific custodian or financial transaction.

Once you’re ready to get series about self-direction, you will want to really get into the nuts and bolts of self-direction and how to really understand the advantages of using retirement accounts in real estate estate. A great place to start is our 4-hour video of a live master class on self-direction.

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Self-Direction Basics

Self-direction is the vehicle to use retirement account money to invest in real estate. It’s a great tool, but does requires education and knowledge. This 60-minute webinar goes over the basics of retirement accounts and getting started in real estate. Please note this is just the beginning. Anyone seriously considering self-direction should also get our video of a 4-hour master class!

Use Self- Direction

THIS INFORMATION IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL, FINANCIAL OR TAX ADVICE. PLEASE CONSULT AN ATTORNEY, ACCOUNTANT OR FINANCIAL ADVISOR BEFORE ESTABLISHING ANY RETIREMENT ACCOUNT OR TOOL.

Retirement Accounts

Surprisingly, many self-employed people don’t realize that they can contribute to retirement accounts. There are many ways, each with its own set of rules, to do invest in retirement. We will keep it simple here just so you are aware of the opportunities. You can check with us or a financial planner. But once these accounts are established, you can use them to invest in real estate. This is call “Self-Direction” because you have more control (direction) over the kinds of assets to invest in.

Individual Retirement Account (IRA): IRAs have been around a long time and are the primary vehicle for the self-employed to save for retirement. There are both Traditional IRAs and Roth IRAs. Contribution to a Traditional is pre-tax which means it comes out before you pay taxes on it. It can lower your taxable income the year you make the contribution. Roth contributions are post-tax. Therefore, they won’t lower your taxable income  that year (you still pay taxes on the amount you contribute) but it grows and can be withdrawn later tax free (with certain conditions). The biggest drawback is that there is a $5500/year limit on your contribution. Not exactly a lot to put away.

401K Accounts: Very few of our clients realize that there are “individual” 401K options and they think the only way they can contribute to one is through their employer. While your own company can set up 401Ks for you and your employees, this is often expensive (set up and maintenance costs) and a hassle for many many small businesses. You, however, as a self-employed individual can set up a 401K through a provider and make contributions to both Traditional- and Roth-type accounts. You can contribute as an individual and your business can contribute! The limits are higher than IRAs so you can put away more!

Note, however, that there are income thresholds that may further limit your contributions and may prevent you from contributing to both IRAs and 401Ks.

Use Self- Direction

THIS INFORMATION IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL, FINANCIAL OR TAX ADVICE. PLEASE CONSULT AN ATTORNEY, ACCOUNTANT OR FINANCIAL ADVISOR BEFORE ESTABLISHING ANY RETIREMENT ACCOUNT OR TOOL.