IRA Investments in Trust Deeds
Self-Directed IRA
A self-directed IRA is legally no different
from any other IRA. It indicates that you the client choose your
IRA investments. The rules governing IRA investments types are
exclusive--not inclusive. Therefore, you can invest your IRA funds in a
virtually unlimited set of investments, except for those specifically
excluded by law. The only assets excluded by the IRS are life
insurance contracts, collectibles, and capital stock in an "S"
Corporation. You can verify that it's legal to invest your IRA in
trust deeds by going to www.IRS.gov and
searching for Publication 590. Pages 40-41 defines what cannot be
held in an IRA.
Is this New?
No. You've been able to buy real estate and trust
deeds within your IRA since IRA's were created over 30 years ago.
Many financial professionals are unfamiliar with this, and continue to
recommend bond and mutual funds for IRA investments. Also,
some institutions limit investment choices to funds and products for
which they'll earn a commission.
Getting Started
First, verify that your current IRA custodian permits you to purchase
trust deeds. If not, contact us for information on custodians that
will allow you to place your IRA funds in any legal investment. In
additional to IRA or SEP IRA funds, you can also transfer existing
pension plans (e.g. 401k, 403b, ESOP or 457 plan) to a custodian.
Once your funds are transferred, notify us of how much you'd like to
invest in trust deeds, and hold the funds at your custodian in a
short-term investment that can be easily liquidated. When we have
a trust deed available that meets your investment objectives, we'll send
you information on the investment so that you can decide whether it's
right for you. If it is, we'll send you the appropriate documents
for signature, and give you instructions to give your IRA custodian on
how to transfer funds to the title company holding the escrow for your
deed of trust.
To get started now, contact us at 650-967-2500 or fill in our investor
contact form now.
Fax: 650-475-0606
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