Self-Directed IRA Business Structure - Feedback please
So I have this chunk of change in my IRA. I found a company (NAFEP) who will be the custodian for a small fee. They will setup a Trust for me and buy interest in the Trust from the cash in the IRA. The cash will go into a bank account in the name of the trust and I can write checks to buy assets (with some restrictions).
So I put $200 - 250K in, purchase a property or two (also in the name of the Trust). The rental income from the property goes back into the bank account. the property appreciates, hopefully... ;0)
I can also open a brokerage account (also in the name of the Trust) and fund the brokerage account from the checking account. That way I can reinvest the small amounts of monthly income from the property into traditional assets (i.e. securities). and keep the money compounding that way.
Setup cost is reasonable and I'm not ready to discuss ROI, etc. This is not a business plan. I only want to get feedback on the structure.
It seems that the only items I'd have to manage are the bank account, brokerage account and rental property (or use management). The Trust would have to have an annual tax return, but I will pay someone to do that.
I don't need dispursements for more than 10 years.
If I die in the meantime, the Trust and it's associated accounts and assets would go to my wife as benificiary.