If you’ve followed my writings for the last few years at The Dollar Vigilante, you’ll know that I see the biggest risk to US citizens over the coming years is the US Government itself. The financial situation of the US Government is in a shambles, with over $75 trillion in debt and liabilities ($250,000 for each person in the US). As they continue down the road to insolvency we expect they will do what almost all governments do. They’ll try to stay alive by taking the assets of the citizenry. This has happened countless times in history. It’s happened recently in Hungary, Ireland and Argentina, where retirement funds were “nationalized”. It’s even happened in the US. In 1933, the Government was insolvent and they confiscated the gold of all US citizens at that time.
Discussions have been going on for a least two years about "replacing" IRA and 401(k) retirement accounts with "guaranteed annuities" of U.S. Treasury instruments at some fixed rate of return (say 5%, well under the real rate of inflation). It may start out as an optional program, but would soon become compulsory, or required to maintain preferred tax status. For more insight, see “401(K)/IRA Screw Job Coming?”, and "Class Warfare's Next Target: 401(k) Savings", written by Newt Gingrich!
Because of this inevitability, there are two main reasons to take control of your IRA through a TDV Self-Directed IRA today:
- • Increased investment options
- • Ability to internationalize your IRA assets and get them outside of the control of the US Government
Notably, some financial advisors are suggesting just close your retirement accounts and pay the penalties and taxes to get your remaining assets into a safe haven (gold, land, some foreign bank, etc. outside the government's reach).
But WAIT! There is a MUCH better way! You can get ALL your retirement assets out of the financial system, under your own control, and move them into precious metals or a foreign bank account and not pay ANY taxes or penalties.
INCREASED INVESTMENT OPTIONS AND INTERNATIONALIZING YOUR IRA ASSETS
If you hold your IRA in a traditional structure you are limited as to the investments you can purchase. But, when you have a TDV Self-Directed IRA you can invest in nearly anything you wish. You can buy foreign income-earning real estate. You can purchase gold and silver in storage vaults abroad. You can even buy things such as fractional interest in race-horses, should you wish. In other words, once you have a Self-Directed IRA, the world of investment opportunities becomes available to you.
Here is the process for creating a TDV Self-Directed IRA:
We will create a Limited Liability Company (LLC). This will be for the sole purpose of managing and investing your IRA assets. Just like any corporation, this needs to be organized in a state of your choosing, articles of organization drawn up, etc. A single IRA LLC can manage the assets of multiple IRAs, such as your traditional IRA and your Roth IRA, or IRAs for both you and your spouse, although combining IRA assets complicates things a bit, since you have essentially formed a partnership and need to track the ownership of the assets back to each individual IRA account. This could mean reporting via K-1 forms to each IRA account holder each year. This needs to be weighed against the cost and complexity of setting up multiple LLCs if you and your spouse both want to take advantage of this structure. We will also file for an IRS EIN number (taxpayer ID), for the LLC.
The next step (actually done in parallel), is to find a custodian for the IRA accounts themselves that will allow self-directed investments. We can help give you advice on the custodian that may be best for you. Once you select the custodian, an IRA account will be set-up and you can then wire transfer the assets from your old financial custodian (Fidelity, for example). Because you are moving the assets directly from an IRA account to an equivalent IRA account there is no withdrawal or transfer penalty. The new firm is a legitimate IRA custodian that offers more flexibility in the range of self-directed investments.
Once this is done you will need to open a business checking account at a bank of your choosing. You will need to show the bank your articles of organization from the state in which you set the LLC up, as well as the IRS EIN number (both provided by us).
Once the IRA funds are transferred from your old IRA to the new IRA accounts at the new custodian, you can then direct them to invest the IRA assets in the IRA LLC by wire transferring the funds to your IRA LLC checking account (opened in #3 above). Your IRA accounts now own the IRA LLC.
You now have a fully Self-Directed IRA. Now you can invest your IRA funds in any legitimate business activity or alternative asset as long as you avoid any of the IRS disqualifying transactions. You can write a check or wire the funds anywhere. You can move the assets to an offshore account if that’s a goal. You can purchase physical precious metals gold for storage in a private vault(s). You can purchase real estate anywhere in the world. All assets have to be titled to the IRA LLC, not the IRA or the IRA owner. The only main stipulation is that you can't commingle personal assets with IRA LLC assets, or benefit from use of IRA assets without it being treated as a withdrawal (ie. you can’t buy your own home and live in it). But, other than that, the world is now your investment oyster.
The IRS allows retirement assets to be invested in virtually anything imaginable, from real estate, to gold bullion, to start-up businesses, to fractional ownership of a thoroughbred race horse, etc. However, there is a critical requirement that neither the owner of the IRA funds, nor their family, be involved in the use or benefit of the invested assets (i.e, a disqualifying transaction). For example, if you use your IRA assets to buy a vacation condo, you CANNOT use it for even ONE day (even renting it to yourself or your brother in law). All cash flow, including income for the investment must come into and out of the IRA pool of assets and never commingled with non-retirement assets.
Now that you're taking a very important and crucial step in protecting your assets with your TDV Self-Directed IRA
, you can now also receive all of the very important information contained in The Dollar Vigilante
newsletters at almost 60% off our monthly payment subscription rates!
In The Dollar Vigilante newsletters
, our staff at TDV will keep you continually up to date with all that you need to know about new opportunities for your assets, exciting new expat communities worldwide, the most efficient and economical ways to obtain second passports and/or overseas residency, updates on overreaching government programs and a plethora of other very important real world information regarding the coming collapse of the fiat monetary systems of the world that you simply cannot find anywhere else. Plus, the subscribers to The Dollar Vigilante newsletters
also enjoy The Dollar Vigilante special reports
, such as Getting Your Gold Out Of Dodge
and TDV Bullet Proof Shares
...free of charge!
Whichever TDV Self-Directed IRA package
you decide to go with, we are 100% confident that you will be sleeping much more sound after doing so! We look forward to you joining the fast growing ranks of The Dollar Vigilantes
If you have any questions, please don't hesitate to contact us!