Self directed investing

31 Replies

@Agel Dross

Are you referring to a TSP? If so, I am not aware of being able to self-direct a TSP inot real estate, for example.

However, once you are no longer employed, you can tranfer the TSP to a self-directed IRA or solo 401k plan. 

To some extent your ability to rollover to an IRA could depend on how the plan is set up. The easiest way to determine this is to call the administrator of your plan (who you receive your statements from) and ask them how much, if any, of your account balance can be rolled over to an IRA.

Here is a link with some FAQs that might provide you with some additional insight:  https://www.dwc401k.com/knowledge-center/in-servic...

Note that I have absolutely no relationship with the company in this link.

When choosing an IRA custodian for real estate in particular, you may want to look for convenience features such as free, online bill pay for your IRA to disburse funds, the ability of your renters to pay their rent to your IRA online, etc.

I am researching self directed IRA custodians. Three I am looking at are Quest, CamaPlan, and New Direction Trust Company.

Who has feed back on any of these or can add others to the list?

Cheers-
Jarid

@Jarid S. Johnson

I'll let others provide feedback on the particular companies. If you have self-employment activity, you might want to consider a Solo 401k for its many benefits over a self-directed IRA. You would not need a custodian with a Solo 401k as you could serve as the trustee.

Originally posted by @Jarid S. Johnson :

@Justin Windham thank you, I will look into it. Does your company provide services outside CO? I will look at your site and perhaps we can have a conversation if I have additional questions?

Cheers-

Jarid

 We setup plans for clients in all 50 states. Feel free to reach out with any questions.

Ok, now that I have a number of trustees to research, I'd like to here from or talk with someone who has an SD-IRA. The prevailing wisdom has often been, "don't touch your retirement money to invest in real estate."

As I get more involved with this world, I'm hearing that redirecting retirement money is a great way to grow your income and build assets. It's a scary thought, however.

I understand how SD-IRAs work, so I'd like to know how you took the leap to moving your retirement funds from a 'secure' position in a standard investment scenario to self-directing your retirement funds into real estate.

My sense: this is a good way to have skin in the game and create a track record, particularly when I start to invite others to invest with me, while increasing my return.

Thank you for contributing your thoughts and ideas, I look forward to hearing about your experience self-directing your personal IRA funds.


Cheers-
Jarid

@Jarid S. Johnson

It is generally recommended that people don't take taxable distributions from retirement funds (especially if that involves an early distribution penalty) to invest into real estate. This conventional wisdom is sometimes repeated on Bigger Pockets because so many forum members prefer real estate to stocks and they consider the distribution. If you can have a retirement account that lets you invest into real estate without having to take the taxable distribution, however, you can really experience the best of both worlds.

I'd recommend reaching out to a few providers to get a feel for your options and any differences from one company to another. An experienced professional should be able to get your questions answered and provide valuable feedback on what past clients have learned when walking the path that you are considering.