This is why self-directed IRA custodians like NuView exist - to give investors more investment choices and control.
with what a self-directed IRA is (a moniker the industry uses to refer to investing your IRA beyond the stock market), I will provide some context. A self-directed IRA works just like any other IRA with two major cave- ats. First, all investment discretion is given to the account owner, and second, the investments held within the account are typically non-public investments, such as real estate, private loans, or private equity. What makes self-directed IRAs even more attractive is the fact that the IRA maintains its tax-deferred or tax-free status even when invested beyond stocks and bonds. One thing to keep in mind though with a self-directed IRA, is that all investments must be made at an arms-length, meaning the IRA must transact with unrelated parties (See IRC Section 4975) and the account is prohibited from invest- ing in collectibles or life insurance (See IRC Section 408). Traditional banks and brokerages don’t offer truly self-directed accounts, similar to the way that McDonalds doesn’t serve tacos. It’s not because they can’t, it’s simply because it’s not part
of their business model. This is why self-directed IRA custodians like NuView exist – to give investors more investment choices and control. To provide insight into the evolution of self-directed investing from where it was when I started to where it is now, I think it will be most helpful to break it down into four periods I call The Boom (2005 – 2008), The Bust (2008-2010), The Opportunities (2011- 2019) and The Unknown (2020). THE BOOM (2005-2008) As a newbie to the investing world, I remember being fascinated by all the different ways there are to make money, especially in real estate. My only personal experience at the time was helping my dad clean out properties after tenants moved out – which as a kid, was a very unpleasant experience, to say the least. As an intern, I was like a sponge trying to soak up as much as I could to help me better understand self-directed IRAs through the lens of our clients, but also personally as I was eager to start making my own money invest-
ing in real estate. I attended all the local real estate investor association meetings and met some incredible people – all who had a tremendous amount of experience in real estate investing. During this time, the message of self-direction was growing, and what seemed unknown in 2005 was be- coming something that more people were at least starting to hear about. This was largely in part to the reach of the internet age, coupled with many of the real estate gurus helping their students understand the part self-directed IRAs should play in their wealth-building strategies. This increased exposure coupled with a mainstream interest in real estate propelled the self-directed industry forward as investors continued to seek new capital to gain exposure to the real estate market. One of the individuals that was a large promoter of self-directed IRAs and someone I learned a lot of my own personal investment strategies from was Augie Byllott. Augie was a banker turned real estate mentor and coach who approached investments
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