Video: Self Directed Solo 401k July 31, 2008
Posted by Jeff Nabers in Self Directed IRA/401k.Tags: account, contribution, custodian, invest, investing, ira, limits, loan, plan, reale state, retirement, self directed, Solo 401k
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I recently sat down with Eric Wikstrom - CPA, CFP, & Founder of Integrated Wealth Strategies.
In this segment we briefly discuss the Solo 401k and how it differs from a Self Directed IRA.
The following clip observes the benefits of unrestricted investment choices. (more…)
How to accurately refer to time zones (Correcting a common mistake) July 28, 2008
Posted by Jeff Nabers in Health, Personal Productivity.Tags: daylight savings time, time zone
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When’s the last time your got an email saying something like “Ok, I will call you at 2:00 pm EST”?
If it’s been within the last couple of months, there’s an error.
EST = Eastern Standard Time
CST = Central Standard Time
MST = Mountain Standard Time
PST = Pacific Standard Time
I’m sure this isn’t news to you… but this probably is: (more…)
Coinvesting with your plan / Partnering with disqualified persons July 24, 2008
Posted by Jeff Nabers in Self Directed IRA/401k.Tags: 401k, co-invest, coinvest, department of labor, disqualified person, dol, funds, invest, investing, ira, irs, partnering, prohibited transaction, real estate, self directed, Solo 401k
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What if you could combine your retirement funds with your personal funds and additional monies from other family members? Well, you can… sort of. This question was asked and answered in a Department of Labor Advisory Opinion in July of 2000.
Click that link above to read the opinion in its entirety, but here’s my summary in its most basic form:
Your plan can partner with disqualified persons in certain situations, BUT there are many possibilities for a prohibited transaction in operating the partnership.
A prohibited transaction is when a retirement plan transacts with a disqualified person. The DOL Opinion says (more…)
Follow Up: 30 Day Challenge - Can you do without TV? July 22, 2008
Posted by Jeff Nabers in Health, Personal Enjoyment, Personal Productivity.Tags: management, retirement, schedule, television, time, travel, trips, TV, vacation, work
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It’s been 30 days since I put out the challenge to not watch TV for a month. Speak up and share your experience.
Here’s what I found over 7 years ago when I stopped watching TV…
- More time - This is pretty simple. The average American adult watches 5 hours of TV per day. Convert some of that into work or starting a business to increase or replace your income. Convert some of it into personal enjoyment.
- Lower discretionary spending - I am susceptible to materialism. When I allow my brain to be bombarded with advertising, it creates a desire to buy things, and I act on it. Advertising continues to happen because it works. The fact that it works means that (more…)
The next big party July 19, 2008
Posted by Jeff Nabers in Money, Self Directed IRA/401k, real estate.Tags: Solo 401k, self directed, ira, 401k, invest, inflation, dollar, bubble, economy, crash, economics, recession, depression, stock
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A recent Onion News article has hit dead on what is wanted right now by the masses of the American public. As ridiculous as this article sounds, this type of mentality is exactly what’s been behind many “investment decisions” of the average American in recent past.
Read the article here, and then keep reading my blog if you’d like a more sound approach to investing.
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P.S. Just to be on the safe side, I’ll give you a heads up that The Onion is a satirical, “fake news” organization.
What Causes Inflation? (You may be surprised) - Part 2 July 15, 2008
Posted by Jeff Nabers in Money, Personal Enjoyment.Tags: bls, collapse, crash, dollar, economy, fed, federal reserve, inflation, investing, investment, monetary debasement, montery policy
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In Part 1 of this post, we examined the facts concluding that inflation is caused by monetary debasement. In this follow up, we’ll observe the reason behind why common belief is that inflation is at 3% - 5%. First, let’s recap what was already covered:
What is Inflation?
Inflation is the steady, continual rise in the price of goods. It is typically measured using a “basket of goods”. In this approach, the prices of many different goods are tracked and then integrated using some sort of logical weighting calculation.
What causes inflation?
In most developed countries, money is created by a central banking system. In the US, our central banking system is that of the Federal Reserve, a private bank. Money can be created by the Federal Reserve depositing newly created money into its member banks in exchange for US bonds. This increases the amount of money in existence. Additionally, every bank in the US has the ability to lend out 7 to 11 times as many dollars as it has in deposits. This also increases the amount of money in existence. With an increased money supply, prices rise. A continually increasing money supply, aka monetary debasement, causes inflation.
What is the current rate of inflation?
This is where there is a difference of opinion. For decades, inflation has been estimated using a “basket of goods” approach. In this method the price of each of a variety of goods is tracked, a logical weighting is applied, and the output is the rate of inflation, usually annualized. Under this method we can see inflation swinging up and down through economic cycles. In the early 1980’s, this data shows inflation at nearly 15% per annum. This is based on the published figures of the US Bureau of Labor Statistics.
In the early 1990’s the methodology of inflation reporting changed drastically, thus rendering the BLS “official” figures virtually useless. Unfortunately, these BLS figures continue to be used as if they were accurate.
A change in calculation method
Around 1993, Alan Greenspan argued that there was a flaw (more…)
Entity (LLC) Maintenance - Keeping your Corporation or LLC Legitimate July 10, 2008
Posted by Dan Marsh in Self Directed IRA/401k, real estate.Tags: self directed, ira, 401k, invest, investing, llc, ira llc, limited liability company, liability, asset protection, protect, corporation, pierce, veil, entity, maintenance, documents, meetings
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****** A note from Jeff Nabers ******
I asked attorney Dan Marsh to shed a bit of light on entity maintenance and its importance. With a general purpose LLC, failing to properly maintain the entity can result in “piercing the veil” which means subjecting creditors to assets of the LLC owner(s). With a special purpose IRA LLC, “piercing the veil” could mean a prohibited transaction resulting in hefty taxes, penalties, and interest.
Entity maintenance is important and it shouldn’t take too much time or money… yet it could save you a lot of time and money in the long run. I suggested Dan keep this post brief, but instead he did what attorneys are supposed to do: he was thorough. Rather than ask him to dumb it down and shorten it, here’s the article in its entirety…
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What Causes Inflation? (You may be surprised) - Part 1 July 7, 2008
Posted by Jeff Nabers in Money.Tags: inflation, Money, bank, cost, monetary, debasement, policy, goods, banking, fed, federal reserve, m3
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Some of the most prominent explanations of the cause of inflation can be extremely confusing and often end up leading the reader/inquirer to conclude “Ahh, it’s just too complicated. We can’t really put our finger on it, and there are many different factors.” In this post, I aim to undo that surrender of understanding and replace it with a simple, accurate explanation.
What is inflation?
Inflation is the steady, continual rise in the price of goods. It is typically measured using a “basket of goods”. In this approach, the prices of many different goods are tracked and then integrated using some sort of logical weighting calculation.
The Cause… Theory #1 - Demand-Pull Inflation
“Too much money chasing too few goods”. This is the theory that says inflation is caused by demand out pacing supply. Believers of this theory pat themselves on the back about inflation as if it is evidence of a growing economy. This kind of fantastical belief is possible only through naivety. A global review of inflation teaches us that some of the most rapid inflation occurs in economies that aren’t growing at all. Conclusion: False.
The Cause… Theory #2 - Cost-Push Inflation
“When companies’ costs go up, they have to raise their prices to maintain a profit margin.” This may explain fragmented price fluctuations, but remember that inflation is the steady rise in price of goods (in general). If prices are stable across the board, but wheat spikes in price, it won’t single handedly result in substantial inflation. Even if wheat is in the “basket of goods” that we use to calculate inflation, its rise in price will minimally affect the overall computation for inflation. Another thing to note is this: What is causing the companies costs to go up? The Cost-Push Inflation theory is almost like saying “Rising prices are caused by rising prices”. Huh? Conclusion: False.
Supply & demand of goods have nothing to do with inflation. Let’s look at the rising price of oil, and examine (more…)
Asset Protection: Multiple LLCs July 1, 2008
Posted by Jeff Nabers in Self Directed IRA/401k, real estate.Tags: self directed, ira, 401k, real estate, invest, investing, llc, assets, limited liability company, liability, limited liability corporation, asset protection, protect, safeguard, corporation, estate planning, apartments
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LLC stands for limited liability company, and that is the primary purpose for forming such a legal entity. When you enter into a business transaction as an individual (aka sole proprietor), if somebody decides to sue you, all of your personal assets can be subjected to satisfying the law suit. The idea behind an LLC or Corporation is that people are doing business with that entity (the LLC, for example). When a true separation is maintained between the LLC and its members/owners, the LLC can only lose its assets… but not the unrelated assets of its owners.
The cross-liability of one LLC with multiple assets or businesses
Jeremy forms JAH LLC to buy and hold apartment buildings. He buys Apartment Building A as well as Apartment Building B & Apartment Building C.
An accident occurs and somebody gets hurt in the common area of Apartment Building A. This person sues the owner of the buildings, JAH LLC.
Personal assets - Jeremy’s personal assets are protected from exposure to this law suit (except for what he contributed into JAH LLC).
Apartment Building A - All of the assets of JAH LLC can be exposed to satisfying the law suit. This includes bank accounts relating to Apartment Building A and even the real estate itself.
Apartment Building B - All of the assets of JAH LLC can be exposed to satisfying the law suit. This includes bank accounts relating to Apartment Building B and even the real estate itself.
Apartment Building C - All of the assets of JAH LLC can be exposed to satisfying the law suit. This includes bank accounts relating to Apartment Building C and even the real estate itself.
The additional protection of multiple LLCs
Jeremy forms (more…)
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