Bob Richards“Hey,” you think, why not buy the life insurance with my IRA money, and then I will be using pre-tax money.” Right you are. There’s only one problem. Life insurance is not an allowed investment in an IRA. It is a permitted investment in a qualified plan, however. Quickly thinking, you now want to [...]
Bob RichardsThis is called a linked distribution. You don’t cash in the policy. You have the insurance company change the ownership from your retirement plan to you, similar to taking shares of stock or any asset from your plan. This is a taxable event. How much tax do you pay? You pay income tax on [...]
Bob RichardsIn most cases, people will roll the funds over into their own self-directed IRAs because this gives them maximum choice for investing. While 401(k), 403b, and 457 plans typically have limited investment choices; your own IRA permits you to make any investment permitted by IRS: (1) Any publicly or privately traded security Real estate [...]
Bob RichardsSince this issue always seems to come up, let’s address the possibility of using real estate as an IRA investment. Most investors will opt for a real estate fund—a Real Estate Investment Trust (can be public or privately traded) or a limited partnership. These are “paper” investments that typically do not give rise to [...]
Bob RichardsNo matter how much you may love the company you retire from, do not keep a concentrated position of their stock, or any stock, inside or outside of your IRA. The risk in any one stock is just too great. Remember the companies that were investment darlings: Enron, WorldCom, Global Crossing, Conseco, Lucent, Qwest, [...]
