100kinvesting
New Member
Many of you are looking to start your own business, maybe just as an independent contractor. There are also those of you that are successful with your ventures. Now, what are you doing, to prepare for the future?
Since you're "self employed," you probably don't have a 401k, or similar? If you are the only one who is employed, full-time, by your business (or you and your spouse), have you looked into a SoloK/Solo401k? (Wikipedia Entry). Unlike a Self-Directed IRA, there are more freedoms and options. For example, in the SoloK, "you" can make contributions as both the employer, and employee, essentially doubling the contributions you can make, compared to what you can do with the SDIRA.
Generally, when a job offers you such a retirement plan, it's through a 3rd party company (ie, Van Guard), and they have products they sell you (mutual/index funds), and then charge you fees to manage these for you.
What can you invest your self-directed accounts into? Unlike traditional 401ks, IRAs, etc, the options are almost limitless. Essentially, there's only limits of what you can't: Most collectibles (stamps, art, wine), S-Corp Stock (which is actually something on the S-Corp side), life insurance policies (and the like), and "prohibited transactions"...this is defined as you can't use the money, yourself, or with parents, spouses, siblings, kids, or other close relatives...but if you set up a multi-member LLC, and the IRA (or the IRA's LLC) is a member, then that can get around that, but be sure you have a good CPA+Lawyer make sure everything is compliant. Almost everything else is allowed. Cows. Cryptocurrency. Real Estate. Starting/expanding a small business. The list is almost endless.
Note: this information applies to US personnel. I don't know specifics for other countries, but I would think there are, like Self-invested personal pension in the United Kingdom. I also don't know, but would guess that a foreign entity could open one in the US, just like they could open a bank, but you would need to consult the appropriate advisors, and decide if you want to invest in your country, or others.
I hope this information proves helpful to members of the Community.
Since you're "self employed," you probably don't have a 401k, or similar? If you are the only one who is employed, full-time, by your business (or you and your spouse), have you looked into a SoloK/Solo401k? (Wikipedia Entry). Unlike a Self-Directed IRA, there are more freedoms and options. For example, in the SoloK, "you" can make contributions as both the employer, and employee, essentially doubling the contributions you can make, compared to what you can do with the SDIRA.
Generally, when a job offers you such a retirement plan, it's through a 3rd party company (ie, Van Guard), and they have products they sell you (mutual/index funds), and then charge you fees to manage these for you.
What can you invest your self-directed accounts into? Unlike traditional 401ks, IRAs, etc, the options are almost limitless. Essentially, there's only limits of what you can't: Most collectibles (stamps, art, wine), S-Corp Stock (which is actually something on the S-Corp side), life insurance policies (and the like), and "prohibited transactions"...this is defined as you can't use the money, yourself, or with parents, spouses, siblings, kids, or other close relatives...but if you set up a multi-member LLC, and the IRA (or the IRA's LLC) is a member, then that can get around that, but be sure you have a good CPA+Lawyer make sure everything is compliant. Almost everything else is allowed. Cows. Cryptocurrency. Real Estate. Starting/expanding a small business. The list is almost endless.
Note: this information applies to US personnel. I don't know specifics for other countries, but I would think there are, like Self-invested personal pension in the United Kingdom. I also don't know, but would guess that a foreign entity could open one in the US, just like they could open a bank, but you would need to consult the appropriate advisors, and decide if you want to invest in your country, or others.
I hope this information proves helpful to members of the Community.
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