The #1 Account All Wealthy People Have (the $102 million secret)
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- Опубліковано 10 жов 2024
- Today we are going to talk about a special type of account. It is the type of account that you have to have if your goal is to become wealthy.
I want to answer some questions like - what is this account - what makes it so attractive - and why or how are wealthy people taking advantage of it.
With those that are familiar with how to build wealth, you often hear they invest in real estate, they are entrepreneurs, they are investing into companies, private equity…..you hear all these different ways that they are building wealth. And all of these are true.
But the one thing you have to realize is it is not just what they are buying, but how they are buying it. You always hear that the rich always take advantage of all the loopholes and tax breaks, and there is some truth to that, but these are not secret things. These are all things that are public information.
I share all of this because this is what led me to opening the type of account that I opened.
It is a self-directed 401K Plan. Now you can have a self-directed 401K or a self-directed IRA.
We will talk about that a little more.
All of this became popular back when Mitt Romney was running for office. When it became public that his personal IRA was worth over $102 Million.
This was phenomenal - you know there are limits to how much you can put into an IRA annually. Right now that number is $5,500. So with these limits in place, how do you grow an IRA to that magnitude? 💵
A self-directed IRA or 401K is an account that you have full discretion over choosing where your money is invested. There are two things you cannot invest into with an IRA and those are Life Insurance and Collectibles. So what can you invest into? Real estate, Gold, options, hedge funds, limited partnerships, tax liens, private stock, and international real estate are all options. 🏡
Right now there are only 47 custodians that will let you open a self-directed IRA or 401K. Out of that 47, a lot of them do not offer all of these choices.
There are over 791 Individuals that have IRA balances between $10 and $25 Million.
All of these figures are from 2011, so I am sure the numbers have grown since then.
So what’s the catch? What are the risks in having one of these accounts?
The first risk is cost. You can expect to pay a lot higher fees for this type of account. Another concern is IRS filing requirements, meaning there are more stringent regulations you have to follow. The third is prohibited transactions, some examples would include using IRA money to purchase your personal property or a vacation property.
So the investments within a self-directed 401K and IRA are the same, the difference is the amount of money that you can put into this account. With the IRA the max you can put in per year is $5,500 so if you want to invest in real estate it will take quite a while before you have enough money to make that type of investment.👛
Having my own business I was able to invest in my own self-directed 401K and the investments that I make inside of that include peer-to-peer lending, real estate notes, and things like that. But because I am a business owner and I have a 401K, I am able to put in a lot more money than that $5,500. There are some years that I am able to put in up to $50,000. With my wife also as an employee, we are both able to max out our accounts. 💰💰
I am more or less just sitting back waiting for these opportunities. I know they are coming and I know I can write a check when these investments come up. That is what makes this type of account more powerful. You don’t have that flexibility with eTrade or something like that.
I hope you enjoyed the video!
I am curious, have you ever considered opening up a self-directed IRA or 401K? Do you already have one established?
I want to hear your experiences and hear what you have learned while setting up your account.
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Love my different retirement accounts; SEP IRA, traditional IRA and Roth IRA. The easiest and highest investment returns you'll ever earn when accounting for those tax benefits (and even more so on the match in a 401K). Absolutely MUST HAVE.
Jeff, also remember that every dollar in circulation is actually a loan that the government has to pay back with interest. All federal reserve notes(dollars) have interest on them, many people do not know this scary truth about our country's monetary system.
Time to do more research, I have a Roth and own a LLC, it might be a good idea to open another account to invest in beyond the $5500 max. Thanks for the video Jeff👍🏾
Who did you open your LLC with and do you have a lawyer to help you with it
You can do a Back Door Roth and invest as much as you want!
@@teamphoenixleaders4736 ...that''s what i ...did ...p.s.-don''t tell...nobody''' sneaky-bastards will come after...you''''
Hey jeff. Ive been watching your videos for a few days now and im really liking them! They have helped me out a lot man. I appreciate it if theres anything i can do to help out lmk man i appreciate it so much!!
This is my first time hearing about this and I liked what you had to say about it and I’m very interested in it😊
Amazing. Everything us normal folks get to do, rich people get to do it x1,000. Never ceases to amaze me.
Thanks once again for all the valueable content that u are sharing with common pple. This is Fisrt time hearing the account. I will start thinking about how to get one.
Thanks!
Thanks for the education! Now got to find the money to invest!
2x speed 🙏 thank you
Hi Jeff, I am a big fan of your UA-cam channel.Just for info, I am 65, plan to retire at the end of 2018, and plan to apply for social security in Aug 2019 when I am 66. This video talked about self-directive 401k Ira’s, well, sometime in June 2018, I took two thirds of my regular 401K and rolled it over to a self-directive IRA in Gold and Silver hoping that it will pay off in a few years. It seems risky - but so does the stock market and annuities.As a test, I also invested $1000 in Fundrise. If that turns out good - maybe I will put some of my Roth 401k in there. I am still at little confused what to do with my Roth 401K, come end of December 2018 when my job ends .I watch a lot of your videos, which I enjoy, but on your videos never seem to talk about saving money in credit unions. I am in a credit union that offers a money market savings with blended interest rates, with the smaller investment amount getting the biggest interest rate of 3.0% and rates go down to .005% based on how much you deposit. Maybe a fixed % of 1.5% would be a better approach, I guess it all depends on your deposit amount, or maybe, if you could open up 50 credit union accounts with $1000 each, you would get $1500 in interest after a year - ok, just kidding 😊
Joe
Joe Gerard wew
I have never of a self-directed IRA or 401k before this is something that sounds really interesting
Can you do a video focusing on investing in real estate notes? It's different from REITs I'm assuming
Had no idea of the concept. My goodness that was informative.
Glad you enjoyed it! 😀👍
I need to start a business and open a self-directed retirement account.
Thanks for replying. I need to eliminate some CC debt which will take about six to nine months to do, then I can start a business.
Very interesting info Jeff Rose, thank you for the posting the video.
I'd love to see a real estate investment comparison, you have one? Inside of a self-directed retirement account vs non-retirement?
Power of leverage, tax benefits, tapping into cashflow when I want.
You're smarter than me, so I must be missing something in my short-term & long-term numbers comparison.
Keep rocking it, Jeff!
@wealthhackerjeffrose Thank you man. After I watched your video I set up a Roth account. I just so happen to be in a position to do so without all the people digging into my pockets to keep me from doing so. I lost 20 years of my life dealing with that. Now I'm rebuilding what I started years ago. I always have to play the comeback kid. I talked a lady working in a chicken shack about starting a Roth account & she argued with me over that because she want it now & not thinking about her retirement age. Tben a guy claiming to be a former soldier interfeted trying to take my eyes off her & he argued with me about it. Claimed he didn't get much from retiring from the military. Not my fault. I didn't mention that I had an uncle that retored frist lieutenant from the military that told me about luvibg on base for free & stacking your money. I had a friend that did a term in the military that came home & bought a house straight cash, bought a car outright, sported numerous of fur coats that I was going to buy one of them used from him, cartier glasses, and other thinfs. So what this guy was saying to me was very redundant! I stopped arguing with rhem. I got my chicken & left. Sir...you are ome of the best things that happened to me information wise. Thank you!
Sometimes you just have to do you! 😀👍
@@wealthhacker Once again sir I say THANK YOU!
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Great video! Thanks Jeff!
Exactly what I was looking for.
Awesome, glad it helped! 😀👍
I thought there was some restriction on how the real estate could be invested in. Though my mind is fuzzy on it at the moment.
I need to establish a side business so I can do this. I’m way behind and playing catch up. Presently I just have a 401k with my employer. So I figure I need to establish a SEP and then try to roll that into a self directed IRA.
Heard of it.Starting a business and looking into it.
Nice
Thanks for the Tip Jeff! Definitely something to dig into more. I'm excited about the possibilities.
Jeff great info, you just forgot to tell the American people that the IRS is not actually apart of our government, but a private corporation.
Thanks Jeff. Very informative. I don't have a self directed IRA. I have heard about it before though. Can you recommend some companies that open Checkbook IRA accounts. See some online but prefer your recommendation. Thanks.
I never heard of this I thought the rich classman worked with wealth managers and other private wealth management professionals, huh so this is how the wealth managers might be operating, interesting.
Hello Jeff Rose,I've never heard of the self-directed 401k or ira.Great information.I'm a disabled retiree and I want to make a good strategy for my grandchildren and my golden years.Thank you.
👍😀
First time hearing about Self directed, I would consider it
If I could I would have that kind of account
Thanks for sharing this info!
It is so hard to find a mentor to learn from my area. Can you consider to have any sort of more of one on one online mentee?
Never heard of this before. I didn't even realize this alternative option. Where would one go to set up an account and start investing?
this is awesome info men keep it up .
Is there any additional benefit to putting a trust in a self-directed 401k? Is that allowable?
How do you open a self-directed 401k???
@WealthHacker ~ I'd like to know too ~ this question is 2 mnths old
Here's one option: www.trustetc.com/
I found a smaller local company that specializes in employer sponsored retirement plans
Awesome video Jeff!👍
A-rod knows his shit
4:44 * tax liens
Hey Jeff, I need a video editor, can you refer me to yours
Waow, this is great news I'm really excited thanks man
Well the fact that you don't have a cap limit.
Jeff Rose the more you can invest the more it can compound hopefully
Education is key. 99% of us don't even know a self directed IRA, much less what to invest in. Any recommendations on who to turn to to guide us in investing decisions?
I got you. Marijuana, cryptocurrency, biotech, oil, and restored energy. Thank me later.
Life sucks. I was managing my 401k and it was doing well. Then I left my job and 1 year later I was encouraged by my bank to roll it into an IRA with a conservative portfolio and now it's been losing money like crazy.
😒
Could one use that of account to invest in a private REIT? Meaning you open a self-direct IRA and use the fund to invest in fundrise? If so, what would be the tax advantages?
If I knew how and where to start I would totally do this!
@@wealthhacker yes
who do you have your 401k with/custodian? everything i have been able to find as far as self directed 401k's they do not allow you to have employees. if they do they have a very limited selection of investments.
Need to learn
Can you have a ROTH IRA and a self directed? Or transfer from one to another?
i Have a Single K it allows me to put up to 17.5k a year i think every Entrepreneur should have one
I have one set up with Primerica looking to expand an have more accounts
I have a 401k and investing in individual stocks
I AM WILLING TO DO IT
A nice topic :)
Hi Jeff yes I would like to set one up. Do you have to have lot of money to start one?
I currently have a SEP. I would like to have a self-directed account, can my Sep be turned into a self directed account? Thanks for your channel!
Gosh this hurts my head.
You said that there are only 42 companies that you can open up a SDIRA through ~ who are they? Where can I get info on them?
goldco.com/gold-ira/rollover/
I lost my job and have about 25k in my 401k any advice on where I
should put it
Cryptocurrency
Jeff
Can one set-up both self-directed 401k and IRA simultaneously?
Yup!
@@wealthhacker Thanks.
@@wealthhacker ...INVESTMENT-NOTES-GUY...jerry-rappaport is now in...jaiL...BALA-CYNWD-...pennsylvania'''''
Thx
Yup...!
401(k)s aren't capped at $5,500. He gets it right at the beginning, then says "I can put in a lot more than $5,500 in my 401(k)." Well yeah, he can put in $18,500 just like everyone else with a 401(k). And while $50k is still a lot compared to $18.5k, it's not quite the same as implying "I can put almost 10x the amount in this account because of tax loopholes."
Perhaps he stated 401K by mistake. The max for IRA was $5500 in 2018, up to $6K this year.
Nicole do you have a UA-cam Channel?
So how you really make money putting your 6k in an IRA?
How can I learn more?
Jeff Rose I own Realestate under my LLC need more info on how to open a self directed and what type to best suite me? And thanks for responding back.
Jeff Rose Appreciate It I’ll continue to do my homework and watch your videos.
I have a Roth IRA but a self directed 401k sounds a lot better
Can I move a Traditional IRA to a Self Directed IRA
Is this with post taxed money?
Who do you speak to about self directed 401k or ira. Did you say they are tied mutual funds?
No, with self-directed you can invest into a variety of things such as real estate
Hi Jeff! Great content! Thanks for feedback, just letting you know I just dropped you an email. Regards Russell from SA
i still dont know what to do.
Invest
is their an account that I can put any amount of money into at any time and have a good interest rate on it and not to get a penalty if I take anything out?
but banks don't have good interest rates
Online banking might be a better alternative.
z2k a brokerage account might offer 1) any amount, 2) potentially good interest rate in stocks 3) no penalty other than brokerage fees to sell stock when you need cash. The thing you will be missing is tax sheltering. If you want tax sheltering in small numbers maybe a Roth IRA (less than 5500/yr) where you can take contributions back out without penalty if the account has been open for 5 years. Honestly z2k, if there was an answer to your question with 1) any amount of contributions, 2) 10% or greater returns, 3) no penalty for withdrawals/distributions, and 4) tax sheltering; everyone would be using it. Add tax sheltering to your question and you would be describing the holy grail of accounts. To my knowledge nothing like it exists. Great question. If someone else has an answer please share.
P2p lending
Do you do investment planning? If so, how can I contact you?
Jeff Rose okay. Do you have any contact information so I can reach out to them?
WHAT website do i use to open a self-directed 401k.
could you recommend one for a high-school kid who's about to start his real estate job in a month
or should I wait until I have something like a business built
yea ty u
Jeff, where can I turn to open one?
www.trustetc.com/about/contact-us
I'm interested in getting more information on this topic please.
hello sir 😊
Wow I love that shirt
Me too! 😀
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Good game to know. #JakeHunter88 thanks.
Stop saying LIKE!
Like, I know! I’m not sure why I say it so much. Like, it must be my nerves or like I’m overthinking it. Who knows! Like it has to get on some people nerves or like people who have a complex or something.
Too much talking just get to the point.
Watch on 2x. It will blow your mind
Real Estate Tax Liens -- Not Leans !
We missed that! 😬
Just set up my solo self-directed 401(k) with Matt Sorensen, (the guy who LITERALLY wrote the book about self-directing) at DirectedIRA.com. Using it for all things real estate. Nice to be able to take a 50K loan for personal investments also!
🤔
Bad idea you are going to be slammed with hefty taxes at distribution (59 1/2). Buy a whole life insurance
Whole life gets you like a 2% annual return.... Thats literally a money market level of return
More, around 5% compound interest and tax free!!
That's only if you withdraw the money BEFORE age 59 1/2. You are not required to take money out until you are age 70 1/2 for your RMD. And even then you are not required to take out all of the money, only the amount based on the calculations the IRS says is necessary. At that point your accountant should have identified some tax efficient ways to handle the distributions.
You couldn't possibly give worse advice
Buy term life and invest the other $300 a month that whole life would charge into absolutely anything else.
Get a term life quote.
Get a whole life quote.
Imagine what you would invest the difference in and you wont buy whole life
Very long winded...
2x speed will change your life
JEFF, CRIME DOES PAY! CALL, 911, you are a criminal!