Jailbreak My RetirementTM

 

The Facts

Want to break your retirement money “out of jail” and start using it for different investments, including Alternative Assets? Self-Directed IRA’s or 401k’s are accounts that allow you to invest in alternative assets with your retirement money. They have been authorized as long as 401k’s or IRA’s have been available-1974. If you want to check out the Internal Revenue Code, it’s covered in IRC section 408(a) (3). IRS section 4975 and IRC section 401 covers prohibited parties and transactions.

History

1974, Congress created ERISA plans, which created retirement plans for individuals. The idea was to relieve the burden from big corporations and make individual plans. 401k and 403b, IRA and SEP were plans that emerged. The IRS didn’t say what we could use as investments, they just said what we couldn’t use, life insurance and certain collectibles.

Big Wall Street brokerages were the companies that made agreements with big companies to furnish the investments for these 401k and 403b plans. The stock market boomed in super growth mode through the 80’s and 90’s as the baby boomers stuffed all their money into these plans. Of course, when there is lots of buying, prices can’t help but rise. Individuals wanted to access those same stocks and mutual funds.

The big brokerages provided asset allocation concepts to have us spread our “risk” around by owning different kinds of Wall Street assets. Some bonds, some stocks, some mutual funds that do stocks and some mutual funds that do bonds. Some cash.

They certainly didn’t let us know that it was perfectly legal to take our money and go buy a business, or a duplex or a sandwich franchise or gold or farmland or a high-rise. They didn’t want to lose the opportunity to charge us fees for holding our investments.

Many of us have gotten tired of the casino like nature of Wall Street, and have converted our assets to cash accounts like a money market or CD at the bank. We have heard about the taxes and penalties that come from cashing out these accounts, so they just let the money sit there. Inflation is running 4 or 5 times the amount of the current returns, so they are losing purchasing power.

Facing this situation, many have just given up on retirement. So many of us feel like our retirement money is just “dead” to them. Get back on track for retirement! “Break “your money out, “revive” it by putting it to work in solid, fixed return assets that you own and control.

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