Realty411 Magazine The Future of Real Estate is Here | Page 68

strategy
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ustodian
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This is
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Retire wealthy
with IRA Investing
S
By Stephanie B. Mojica
elf-directed individual retirement
accounts or IRAs are rapidly growing
IRA doing the investing, Hall adds.
“So that’s confusing because they get into
trouble by maybe signing a purchase contract (in
their own name),” she says. “Your IRA can’t buy
an asset that you own.”
Consequently, people should wait until they
actually open an account with a qualified custodian
before funding it and making transactions, Hall
says. Generally, a custodian rather than the actual
investor should sign purchase contracts relevant to
self-directed IRAs.
While representatives of companies such as
uDirect IRA do not give actual investment advice
due to potential legal liability, they can help people
follow ever-changing IRS guidelines.
Hall, a former mortgage broker whose work
history includes Bank of America and Indymac
Bank, has educated tens of thousands of investors
into deciding whether self-directed IRAs are right
for them. She and her associates have directly
worked with thousands of clients.
in popularity, but experts warn that it is
important to only get into such an investment with
proper education and professional guidance.
K
aaren Hall, owner of uDirect
IRA Services in Orange
County, Calif., says even after
more than two decades in the
financial industry and four years
of running her company she too
must continually stay on top of her
investment education particularly
regarding Internal Revenue Service
guidelines for retirement accounts.
Self-directed IRAs allow people
to invest their retirement funds into
a variety of options outside of the
traditional stock market, including
real estate, land, and private notes.
“Financial literacy is not taught in
schools, but our future depends on
understanding it,” Hall says. “Only
real estate experience, Kaaren Hall has as-
4 percent of base
U.S. of investors
have a self-directed IRA. Why? Because
sisted about
her nationwide
clients for
many most
years.
investors and many advisors simply aren’t aware of it.”
She is But
also even
president
founder
of uDi-
those and
who
are aware
of the potential financial power of self-
rect IRA Services LLC, and speaks at many
directed
IRAs
often
do
not
fully
comprehend
is the IRS guidelines of
real estate club meetings and events to edu-
according to Hall.
cate “prohibited
the public on transactions,”
how to use self-directed
“You’re She
not is allowed
have expert
any personal benefit from your IRA prior to
IRA accounts.
a sought to after
in the
field and has
assisted
retirement,”
Hall
says. national real
estate experts
with their
own deal structur-
A common
misconception
among investors is that they can use the
ing and accounts. The service and fees are
self-directed
IRA
funds
to
purchase
the aspects to consider when choosing a real estate or other property from
themselves
close to relatives
such as a spouse, a child, a grandchild,
custodian.
Having or access
the experience
a parent, a is grandparent
and with
any this
spouses of such relatives. These
and knowledge
the added value
company.
transactions are not permitted under self-directed IRAs, according to
After
many
years of
being could
a busy
Hall.
However,
an Hall
investor
purchase property from a more distant
mother of two and traveling throughout the
relative
such
as
a
sibling,
a
cousin,
a niece, or an uncle.
state of California, life has gotten much
“Make
you know
easier now
that sure
her children
are what
older. you’re
This doing,” Hall says. “We’re here to
people
so and
they expansion
understand
the twists and turns as much as possible.”
allots help
for more
time
on edu-
cating the
harnessing the
control
The public
term on
self-directed
in itself
misleads some people because it is the
of their own retirement futures.
There are many employees who are no
Realty411Guide.com
longer at their original job locations and
are looking to rollover their 401(k). Some

PAGE 68 • 2014
To learn more about self-directed IRAs, call 866-
447-6598 or visit www.udirectira.com

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