How To Get Help

April 5, 2011 By 1 Comment

Positive Change

[Originally posted at JeffNabers.com]

Cliff notes version:

  • I will be offering free one-on-one phone consulting to qualified people
  • In order to make room for that, I will no longer be offering free consulting in the form of blog comment responses

Here’s the skinny >>>

I’m making some changes to how I focus my energy and how I am able to help you with your wealth preservation and wealth building, both inside a Self-Directed IRA LLC or Solo 401(k) and outside of retirement funds.

Here’s what these changes will do for you:

  • If you are aimed down a path that is likely to succeed, we may get a chance to work together more intimately
  • If you are aimed down a path that is likely to destroy your wealth and frustrate you, you won’t get my help

Let me explain…

The #1 biggest factor making an impact your wealth right now is inflation.

Some people are trying to “beat” inflation by taking bigger risks to hopefully get bigger returns that will be bigger than inflation.

For 95% of my readers, that won’t work. It won’t work because bigger risks increase the gains and the losses, and over the long term most people will have worse performance as a result of taking bigger risks.

Around 5% of my readers have maybe figured out how to get bigger returns by spending more energy on some sort of system or process that yields larger returns. Moving forward, I don’t think that will continue working either.

Why won’t aggressive investment strategies work in the future?

Well… they will work and they won’t work. They will work in terms of turning your dollars into more dollars. They won’t work in terms or actual value adjusted for inflation.

This is because there is no limit to [Read more...]

Filed Under: Blog Tagged With: 401k, depression, economy, fed, hyper-inflation, hyperinflation, inflation, invest, investing, investment, investments, ira, ira llc, offshore, recession, self directed, self directed ira, self directed solo 401k, solo, solo 401k

Solo 401k provides checkbook control without a custodian or LLC

June 18, 2010 By 17 Comments

With tens of thousands of self directed IRA investors utilizing LLC structures to enjoy “checkbook control” authority of their self directed IRA investments, this post may serve as great news for those who aim to follow suit.

Solo 401(k) retirement plans can grant direct checkbook control without the use of an LLC or custodian.

The concept of custodian comes from Internal Revenue Code Section 408(a)(2) and is defined in Section 408(n). This entire IRC section 408 is devoted to Individual Retirement Accounts, or IRAs. The code basically explains that an IRA is normally a trust, and the trustee must be a bank. It then defines bank as a bank, trust company, or any company specifically approved by the IRS. This capacity of trustee to an IRA is known as “custodian”. This trustee role is simply that of investing the plan as directed by the accountholder.

A Solo 401(k) plan is a type of 401(k) that is designed for self employed individuals whose businesses have no full time employees. All 401(k) plans are qualified plans, and qualified plans do not have any special restrictions on who can serve as trustee.

Custodian and trustee

So the significant difference is that with a Solo 401(k), the participant can actually be the trustee and handle [Read more...]

Filed Under: Blog, Setting up a Solo 401k, Solo 401k Compliance Tagged With: 401k, accountholder, administrator, assets, checkbook control, custodian, invest, investing, investment, ira, legal, participant, reporting, self directed, solo, solo 401k, title, titling, trustee

What does the Health Care Bill have to do with 401k Accounts?

March 24, 2010 By Leave a Comment

…a lot really.

Some might say the health care bill is a distraction from what’s next. Peeling back the layers of the politicians’ never-ending string of nationalizations reveals that they may just be ramping up.

Believe it or not, the self-trustee Solo 401k may hold the key to empowering freedom-loving Americans to finally defeat government takeover of private industries.

Enjoy the video, as it contains a valuable game plan.

Watch the Video Now

Filed Under: Blog, Setting up a Solo 401k Tagged With: 401k, bill, depression, economics, government, healthcare, inflation, planning, politicians, recession, reform, self directed, self directed 401k, self directed ira, solo, solo 401k

Open a Solo 401k for 2009 before it’s too late!

November 13, 2009 By 2 Comments

If you’re looking for a tax break this year, there’s still time to open a Solo 401(K). But do your research and seek experts to help you understand the plan, how to manage your account without the need for a custodian which amounts to extra fees, and how to transfer your existing new plan. You’ll find the options for investing and maximizing your contributions are plentiful but the clock’s ticking—you only have until December 31st to open one for 2009.

Filed Under: Blog, Setting up a Solo 401k Tagged With: 401k, advice, advisor, alternative investment, contribution, eligibility, government, individual 401k, individual k, invest, investing, investment, ira, one person k, planning, retirement, retirement plan, savings, self directed, self employed, self employment, solo, solo 401k, solo k, strategies, strategy, tax, uni k, unlimited

How to borrow money from your Solo 401(k)

March 2, 2009 By 10 Comments

Solo 401(k)’s most touted feature is its uniquely large annual contribution limits ($49k – $108k). A lesser known feature may be just as useful for some: participant loans.

What is a participant loan?

A Solo 401(k) participant can borrow up to either $50,000 or 50% of their account value with the following terms:

  • To be repaid over an amortization schedule of 5 years or less
  • Regular payments no less frequently than quarterly
  • At a reasonable rate of interest… generally interpreted as prime rate + 1%

Such a loan may only be made in accordance with the Solo 401(k) plan documents. While most plan documents disallow this type of loan, the Unlimited® 401k offered by my company does allow it.

Under what conditions is this allowed?

Any. As long as the plan documents allow for it & the proper loan documents are prepared and executed, a participant loan can be made for any reason.

When is this useful?

This can be useful when [Read more...]

Filed Under: Blog, Solo 401k Participant Loans Tagged With: 401k, investment, ira, loan, participant, property, real estate, self directed, solo, solo 401k

Free Self-Directed Solo 401k!!!

February 16, 2009 By 16 Comments

You heard it right: a FREE Solo 401k from Nabers Group. This is a contest, and you have a good chance of winning. I estimate that 98% of my readers will not even try to win. It’s a phenomenon: people think “Oh too many others will enter the contest and my odds won’t be good” and that leaves you will excellent odds if you enter the contest. Here’s what you have to do:

  1. Be eligible for a Solo 401k in the first place. This means that you have to have self employment activity (such as Schedule C income on your 1040 or own a business), and you have to have no employees at any businesses in which you or your spouse have significant ownership. (An “employee” is somebody who works over 1000 hours per year for your business and receives a W-2).
  2. Add me on Facebook. Go to my Facebook profile to add me to your friends. If you don’t have a Facebook account, just create one. It’s very simple and easy, and it will help you stay connected for updates, news, events, etc.
  3. Write a brief explanation of the most powerful business or investment opportunities in our current recession. Explain the “how” and the “why” as much as you can, but be direct and to the point at the same time. Submit it in a comment on this blog post (the one you’re currently reading) OR post it to the “wall” at the bottom of the Facebook Solo 401k Contest page. I’ll review all entries, and the person with the best idea will get a Solo 401k setup for them by Nabers Group with the entire establishment fee waived.

Submission Deadline: March 15, 2009

Value: $210,585

The math: Over the past 10 years, most stock indexes have produced a return of approximately 0%. With a Self-Directed Solo 401(k) plan, the accountholder can buy real estate, gold, stock in private companies, and loan money to individuals or corporations. Surveys have shown us that over 80% of our Solo 401(k) clients have a target return of investment of 12% per year or more. An investor with $100,000 of existing funds who earns 12% per year for 10 years will generate a profit of $210,585.

We’ve never done this before, and I don’t know if we will ever do this again. Now’s your chance – start working on your entry today!

* The value is based on the potential profit you could earn and will vary based on your investment decisions. With a Self-Directed Solo 401(k), it’s up to you to find and choose investments, and only you will decide how profitable and valuable this investment vehicle will be.

We’ve never done this before, and I don’t know if we will ever do this again. Now’s your chance – start working on your entry today!

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Filed Under: Blog, Setting up a Solo 401k, Starting a Business Tagged With: chongchua, discount, free, gold, invest, investing, investment, ira, ira llc, nabers, precious metal, price, real estate, self directed, solo, solo 401k, solo k, unlimited

Weak economy strengthens the incentive for a Solo 401k

February 10, 2009 By 1 Comment

This is quite a simple concept so this post will be very brief.

  • Our weak economy has brought very high inflation: as high as 13% over the past year.
  • Future dollars are worth much less than dollars today.
  • With a Solo 401k you can make tax-deductible contributions to your retirement plan in today’s dollars and pay taxes later in less valuable dollars.
  • Successful entrepreneurs and self employed individuals can contribute $49,000 per year or more to their Solo 401k in 2009.

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Filed Under: Blog, Solo 401k Investment Options & Ideas Tagged With: 401k, dollar, economy, inflation, invest, investing, ira, meltdown, profit, real estate, self directed, solo, solo 401k, wealth

3 Reasons why today is the best time in human history for immense personal wealth and freedom

January 21, 2009 By Leave a Comment

While there are many people finding themselves more fearful than ever, there are others who are more excited than ever. Here’s why…

  1. The rules of safety and courage have changed. Since the industrial revolution, employee-ism has surged. During this time, getting a job to work for somebody else was the safe thing to do. On the other side of the coin the risky, courageous act of working for oneself is what brings riches. As a result, each person has been faced with a choice to pursue either safety or riches. Part of what made employee-ism the safe bet for an individual is the stability of companies as well as what has become the largest store of non-real estate wealth in our country: holdings in the stock market. This year we have seen the rules of the game permanently changed. Our financial system is crashing, and trustworthiness has evaporated from corporate America and the financial services industry. Now working for yourself is no longer the courageous thing to do; it’s the safe thing to do.
  2. Technology has brought immense power to everybody. Personal computers and the internet are now available to just about everyone. This has made some very expensive things become cheap or free. This has made it possible to do things that were previously impossible. There is no longer a need for every transaction to take place in a physical location. Needs and desires are able to be fulfilled online. In many circumstances, the large corporation cannot compete with the one-man shop. Today a person can start and run several businesses for little or no money. Taking something and creating or increasing its value has never been more accessible.
  3. Arbitrage has never been [Read more...]
Filed Under: Blog, Solo 401k Investment Options & Ideas Tagged With: 401k, boom, bubble, business owner, bust, doom, economy, entrepreneur, entrepreneurship, family, fraud, freedom, future, gloom, government, independence, invest, investing, investment, ira, meltdown, opportunity, riches, self directed, self employed, self employment, small business, solo, solo 401k, technology, wealth, world

Nabers Group Solo 401k vs. Custodian Solo 401k

December 12, 2008 By 3 Comments

solok_custodian_scale

After being asked “What’s the difference between your Solo 401(k) and one offered by a custodian?” for the umpteenth time in the past few months, I figured it’s about time to write a post about it.

Why custodians exist

IRAs are governed by section 408 of the Internal Revenue Code.  There they are defined as a retirement savings account trust where the trustee is a bank or a trust company (a trust company is basically a bank that holds assets but doesn’t make loans). This role is often referred to as custodian. Self directed IRAs have been in use for decades, and so self directed IRA custodians have been around for decades as well. For IRAs, there is no choice… you must hire a custodian to serve as trustee to your IRA.

The trustee role of a self directed IRA

The term “custodian” comes about in IRC Section 408 because when a bank or trust company serves the trustee role, they are not being trustee in the traditional sense. Usually the trustee of a trust makes decisions and has discretion over handling the income and assets of that trust. With an IRA, this normally isn’t the case. The bank or trust company is not making decisions or providing any other services other than custody (holding assets as an intermediary), and that’s why they are usually referred to as “custodian” – because they don’t provide any services other than custody.

Solo 401(k) is not required to have a custodian

Internal Revenue Code Section 401, which governs all 401(k) plans, does not issue any restrictions on who can serve as trustee. Not too many people have figured this out yet because the self directed Solo 401k wasn’t available until 2006. The benefits of a Solo 401k (such as higher contribution limits and reduced administrative requirements) come from the fact that you can play multiple roles. You can make higher contributions by serving the roles of employee/participant and employer. But it doesn’t stop there. The participant can also serve as administrator and trustee.

The role of administrator for a Solo 401k

An administrator simply keeps records. For a self directed Solo 401(k), a diligent investor is already keeping the records that an administrator would. These include bank statements, brokerage statements, copies of real estate purchase contracts and leases, and generally whatever paperwork accompanies a transaction of the plan. Since the self directed investor should already keep these records, it isn’t necessary or beneficial to hire another company to also keep the same records. Hiring an administrator for a self directed Solo 401k simply introduces unnecessary, undesirable fees.

The role of trustee for a Solo 401k

The trustee is simply the person or company who handles the transactions of the Solo 401k trust. As an investor, if you were to hire a custodian, [Read more...]

Filed Under: Blog, Setting up a Solo 401k Tagged With: 401k, administrator, alternative, assets, compare, costs, custodian, equity trust, fees, invest, investing, ira, pensco, self directed, solo, solo 401k, trustee
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