401k/IRA Rollover
Top Ten Dos and Don'ts of Investing in a Self-Directed Retirement Account
What you should do
- Do consider including alternative assets in your retirement portfolio for investment diversification.
- Do consult with a knowledgeable VAM advisor. We have a dedicated team who can assist you.
- Do educate yourself. We have a wealth of information available.
- Do find out how you can accelerate earnings through leverage. ( leverage can also increase your risk of loss, it's important to understand the full risks associated with using leverge )
- Do consider using IRA funds when you, a relative, or friend starts a new business.
- Do consider your Roth IRA for those investments with the greatest upside potential.
- Do contribute to your Roth IRAs each year, if eligible.
- Do, if you are a professional, consider learning more about self-directed IRAs as a means to stay at the forefront and to become the "go to" self-directed IRA expert in your area.
- Do tell your friends about the possibilities of self-directed IRAs because it's important for investors to know their options.
- Do consider getting your children started on saving for retirement and education while they are young by establishing a Roth IRA or other Education Savings Accounts.
What you shouldn't do
- Don't convert your traditional IRA to a ROTH IRA without a proper tax consultant.
- Don't engage in a transaction with your IRA and a third party's IRA on a "quid pro quo" or reciprocal basis in an attempt to circumvent an otherwise prohibited transaction.
- Don't make personal (including disqualified persons) use of any asset your IRA owns.
- Don't engage in any transaction that results in any personal gain (e.g., a guarantee of employment) for you or your disqualified persons (other than the benefit that the IRA receives).
- Don't provide more than ministerial services (e.g., decision-making) to your IRA or IRA-owned entity (e.g., no "sweat equity").
- Don't personally guarantee a loan that your IRA obtains.
- Don't take any personal compensation for any services provided to your IRA or as a result of a transaction that your IRA participates in.
- Don't co-invest personally with your IRA in any asset that you use as a loan collateral.
- Don't take constructive receipt of any income from assets owned by your IRA, and do not pay (personally) the expenses of assets held by your IRA.
- Don't transact with an entity you control; one a disqualified person controls; or an entity that is controlled by a combined total of 50% or more by you and a disqualified person(s).