DECEMBER 4 NOTE: Since the paper-based system was needed for this, the offer is extended a little for now. Get an application going, etc. and send a message via our Contact Page to see if we can still make this happen. If you come back and this page is gone, then you were too late, so get going now!
If you are looking for how to start up a truly Self-Directed IRA without any upfront fees, you are on the right page.
For those who are ready to take action now, I will give the specific background and steps.
For those who need more information, I will provide that after the fast action steps.
This offer is being made possible through Belinda Savage, the business development officer of IRA Services Trust Company. (RESI or Ron Ballard do not get any kind of referral fee or affiliate commission for making this offer available.) IRA Services might not be the biggest, but they are one of the longest established IRA custodians in the business. IRA Services was formed in 1969 and has been providing self-directed IRA services since 1979. You can read about them HERE. They are based in California and serve investors throughout the country.
Usually there is a $60 application fee and $75 annual fee (not prorated), so this will save you $135 in 2013 compared to just going to their web site. Online applications are possible but it will be tougher to track them to this offer and have your fees waived, so the little extra effort of using a paper application will be worth a good savings. Also, you will receive the 2013 annual maintenance fee level for 2014, not the new quarterly one. Hey, little savings add up — especially if you aren’t sure how much you will use the account yet.
There are different situations for different investors. You might be opening your first IRA (in which case I recommend a Roth IRA) or you might be planning to transfer from an existing IRA which is not truly self-directed (only allows for investment products sold by your bank or brokerage, not private investing). Whatever your situation is, you will need to carefully read the instructions on the IRA Services website for your situation. You can start HERE.
In order to have your fees waived you need to apply using the paper-based system and put the following along the top of the application form: “Ref: Belinda Savage/Ron Ballard”. There is a opening account balance of $300 required. That is not a fee but your own money that you are investing into the account.
VERY IMPORTANT: In order to use this offer to open your first SDIRA when you don’t have an existing IRA from which to make a transfer, you must have “earned income” in 2013 and not exceed the maximum income limits. That is summarized HERE. If you make too much money for an IRA, then you will need to use more advanced planning techniques that are beyond the scope of this quick offer. Contact Ron Ballard to explore your options.
What if you have questions? First, I remind you that neither RESI nor Ron Ballard are making any money from this offer. RESI will be providing education in 2014 about how to take advantage of the benefits of self-directed IRA investing and to avoid the pitfalls. Ballard Law will be available for legal services and advice in connection with your SDIRA transactions. Hence, we are pleased to help you get started but right today we aren’t prepared to provide a lot of free information or support. (Naturally, you can retain Ballard Law for immediate advice. See the Ballard Law web site.) You can use the RESI contact page to ask quick questions or leave a voice mail at 1-877 RESI 4 US (1-877-737-4487).
What if you can’t complete everything today? In short, we can still make this happen without fees for 2013. The challenge is that Belinda Savage is leaving for a vacation so she won’t be available personally to shepherd these through and troubleshoot any issues that come up. The regular IRA Services personnel will be on hand to take care of you. The bottom line: get started today, not tomorrow; then deal with any bumps in the road that arise so you are set up fully within the next week or so.
I decided to make this offer because: 1) I believe a self-directed IRA (especially a Roth SDIRA) is a very powerful investing tool for building wealth [there are similar tools including a solo 401(k) that can be used also, they are simply more complex and beyond the scope of getting started fast]; and, 2) I was shocked last month at a meeting of very successful real estate investors when I learned that hardly 10% of them were actually using a SDIRA for investing even though most of them knew it is a powerful tool. THE SIMPLE FACT OF LIFE IS THAT MOST ENTREPRENEURS ARE TOO BUSY AND DON’T TAKE ACTION LIKE THIS UNLESS THERE IS A SPECIAL OFFER OR A KICK IN THE PANTS. SO HERE’S YOUR INCENTIVE AND KICK IN THE PANTS.
What if I’m thinking about this but don’t know if it’s for me?
If you are going to make $300 or more in earned income in 2013 and not more than the maximum allowed limits, then this likely is for you. If you aren’t currently saving for retirement, you know that you need to do so. If you are engaged in real estate investing or any other kind of entrepreneurial endeavors, odds are you are paying too much in taxes. Opening an account now will start you on the way to sheltering income and creating powerful wealth leveraging.
Too many people try to learn all about a strategy first and then take action. In this case, I believe you will do well to take action by opening the account and then you will commit to learning how to use it. There is wealth of free online information, books and seminars available. RESI and Ballard Law will be providing both education (some without a fee and some with) and actual transactional support. You can and should educate yourself fully then have legal review and support for specific transactions to be sure that you aren’t breaking the rules.
What if I have an existing IRA account?
If you have an IRA with a bank or brokerage house, it is not truly “self-directed.” You are limited to only the investment products the bank or brokerage offers. They usually will not let you invest in private businesses or your own real estate transactions. To do so you need a truly self-directed account. There are many self-directed IRA custodians who will let you invest in “alternative asset classes.” To see what your bank or brokerage usually won’t tell you click HERE. If you are currently investing in these kinds of assets outside of an IRA then you likely should start doing so in a truly self-directed IRA.
There are many IRA custodians who will administer alternative assets. RESI is teaming up with IRA Services Trust Company because it is a well established company with a long track record, commitment to education and service, and who promises to provide special attention to projects for RESI members and Ballard Law clients. They are also on the less-expensive end of the fee schedule. If you don’t want to use IRA Services Trust Company for some reason, please find one of the other SDIRA custodians who will administer alternative assets and open your account in 2013.
Why must I open the account in 2013?
There are annual limits to how much a person can contribute to an IRA or other tax-free or tax-deferred retirement account. The limits are based on each calendar year but the taxpayer can make the contribution up to April 15 of the following year. The “catch” is that the account must be in existence for the year of the contribution. So if you want to be able to make a contribution to the IRA for 2013, the account must be open in 2013 even though you can make the contribution up to April 15, 2014.
When your account is opened in 2013 you could contribute $5,000 for 2013 (for example if you meet the qualifications and have the money) and $5,000 (same caveats) for 2014 all in 2014. Then you will have $10,000 to apply to investments in 2014. If you don’t have the IRA open in 2013, then you can’t make contributions for 2013.
Many people think that their IRA money is locked up until they are at least 59 1/2. That is technically true to avoid penalties. However, there are advanced planning strategies where IRAs of various “financial friends” can engage in transactions whereby some friends are building IRA wealth while others are getting current income or cash flow. By creating a good sized handful of like-minded investors in 2013 with self-directed IRAs (preferably Roth IRAs), then there is a larger pool of financial friends who can engage in a mix of IRA and non-IRA transactions for a combination of current income and deferred wealth building.
If you do not have an open account you will not be able to take advantage of the often fleeting windows of opportunity. Take action today by establishing the SDIRA foundation for taking fast action on the right opportunity tomorrow.