Many people may call themselves “IRA experts”, but what does that really mean? In the latest episode of his blogcast series, David Moore tells you exactly what IRA experts should know to be able to help you with your retirement planning.
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Today we’re talking with David Moore, co-founder of IRA Advantage, a firm that specializes in truly self directed retirement accounts.
David, Who is Qualified to be an IRA Expert?
David: I think we have to define what an IRA expert is. Typically, people are going to ask their financial advisors a lot of these questions, and they are truly experts in investments. Which is great for the Wall Street world, but when we get to “alternative investments,” something that Wall Street doesn’t offer, most of the questions IRA experts really need to be able to address are, what qualifies, what could constitute a prohibited transaction, and what can get somebody in trouble. The basic do’s and don’ts, that’s what’s important when we’re looking at self-directed accounts. Normally the “IRA experts” are considered to be the investment advisors, and they’re going to be giving investment advice which is different than what we’re concerned about when looking at self-directed accounts.
What are Some Fundamentals for a Self-Directed IRA?
David: Well, I like simple so I always break these into two basic components. One, what’s the person want to buy? And really, you’ve got very little restriction on that. The way the law works is if it’s not prohibited, it’s therefore allowed. So the only things prohibited from being invested in with a retirement account are collectibles, life insurance contracts, or stock in a sub-chapter S corporation. Rarely is the investment a problem. What causes people problems is transactions between or of the benefit of a disqualified party.
David: So like I said, breaking those components. What’s a person going to buy? Who are they transacting between or for the benefit of? And that’s going to take out 99% of the opportunity for problems.
Thank you David. Listeners may call 503-619-0223 or can visit IRA Advantage for more information.
Many can call themselves IRA experts. But, be sure you know you’re dealing with true professionals when it comes to your retirement planning. Give the IRA experts at IRA Advantage a call today!