Welcome to the first episode of Quest Talks on Propelio TV. I’m Haley Gant, an IRA Specialist at Quest IRA. Joining me is Nate Hare, our Executive Vice President. We’re diving into the fundamentals of self-directed IRAs and how they can boost your investments. Let’s get started!
Meet the Experts
Before we dive into the intricacies of self-directed IRAs, let’s get acquainted. Nate Hare, our Executive VP, has a rich background in real estate investing and lending. He discovered the unmatched benefits of self-directed IRAs, including tax-free profits from real estate investments. His knowledge comes from learning directly from Quest IRA’s top experts, making him a valuable resource.
Quest IRA has been around since 2004, boasting 17,000 clients and managing $2 billion in assets. Unlike big firms that trade publicly, we focus on tangible assets like real estate and private companies. Though we’re small in the $29 trillion retirement account landscape, we’re growing fast.
What is a Self-Directed IRA?
A self-directed IRA is not a different type of IRA but a marketing term. It allows you to invest in a broader range of assets beyond stocks and bonds. Let’s break down how it works:
- Same Rules, Different Custodians: The rules governing IRAs are the same, whether your account is at Quest or another institution. The key difference is that Quest allows you to pick your investments, from real estate to promissory notes and private companies.
- Investment Freedom: With a self-directed IRA, the investment choices are vast. The only things you can’t invest in are life insurance contracts and collectibles. Essentially, if you can hold a title to it, your IRA can own it.
Investing Through a Self-Directed IRA
Investing with your self-directed IRA involves a few steps:
- Open an Account: First, open an IRA with Quest. You can have multiple IRAs with different custodians.
- Transfer Funds: Transfer funds from your existing IRA to your new self-directed IRA at Quest.
- Identify Investments: Choose the investment you want to make. If it’s real estate, for example, we sign all necessary documents, and the purchase is made in the name of your IRA.
- Profits and Expenses: All income and expenses related to the investment go through your IRA. This keeps everything compliant with IRS rules.
The Power of Partnering
You don’t need a huge amount of money to get started. Partnering your IRA with others, including family members, allows for shared investments and maximized returns.
Example:
Nate plans to buy a rental property using his Roth IRA, Health Savings Account (HSA), and two Education Savings Accounts (ESAs) for his nieces. The combined funds will serve as a down payment, with a bank loan covering the rest. Over time, rental income will grow these accounts, ready to fund his nieces’ education and cover his health expenses.
Answering Common Questions
- How to Approach Potential Lenders?:
- Attend events and classes to network.
- Understand the process well enough to explain it clearly.
- Protect your lenders’ investments and build trust.
- Handling Losses:
- If an investment loses value, the loss is shared proportionately.
- Keep the buckets separate and follow a parallel transaction rule.
Benefits of a Self-Directed IRA
- Invest in What You Know: Use your expertise to invest in areas you understand best, whether real estate or other tangible assets.
- Tax Advantages: Grow your investments tax-free or tax-deferred, depending on the type of IRA.
- Control and Flexibility: You decide where your money goes, giving you more control over your financial future.
Getting Started
Visit Quest IRA to learn more and get in touch with an IRA specialist. Our team is ready to help you navigate the world of self-directed IRAs and make the most of your retirement savings.
Self-directed IRAs offer a unique opportunity to diversify your investment portfolio beyond traditional stocks and bonds, allowing you to leverage your expertise in tangible assets like real estate and private companies. With the guidance and support of Quest IRA, you can navigate the complexities of these investments, maximize your returns, and enjoy significant tax advantages.
Whether you’re just starting or looking to expand your retirement savings, Quest IRA’s experienced team is ready to help you achieve your financial goals. Visit Quest IRA today to explore the possibilities and take control of your financial future.
Get started with Propelio and unlock all the tools you need to succeed in real estate. Sign up now for a 14-day FREE trial: Start Free Trial
