Using Self-Directed IRAs and 401(k)s to Make More Money Now
and to Build Your Retirement Wealth for the Future

Self-directed IRAs and 401(k) plans have been around for more than 25 years, but many people are just now becoming aware of how powerful this idea can be. There are currently trillions of dollars in retirement plans. Do you know how to unlock your own retirement funds, as well as the retirement funds of those within your circle of influence for real estate-related and other non-traditional investments? Your knowledge of self-directed retirement plans can help make you money now as well as ensuring that you retire in style.

Plans available for self-direction. A lot of retirement wealth is in traditional IRAs and employer-sponsored plans. If you leave an employer, the funds in the employer plan can be moved into a self-directed traditional IRA. This includes money rolled over from 401(k) plans, 403(b) plans, 457 deferred compensation plans, and the federal thrift savings plan. Self-employed people may have their own individual 401(k) plan, which may include the new Roth 401(k), no matter what their income level. Other employer-sponsored plans which can be self-directed are SEP IRAs and SIMPLE IRAs.

The king of all IRAs when it comes to building tax-free wealth is the Roth IRA. Even if you do not qualify for a Roth IRA due to income limitations currently, by 2010 the income limitation for conversions from a traditional IRA to a Roth IRA will be eliminated. At that point, even the very wealthy will be entitled to have a Roth IRA. This is a great planning opportunity!

How does paying for your child's education or your health care expenses with tax-free income sound? You can even self-direct a Coverdell Education Savings Account (ESA) or a Health Savings Account (HSA), and as long as distributions are for qualified education or health care expenses, they are tax-free FOREVER. With an HSA you even get a tax deduction for putting the money in!

Perhaps the best news of all is that you may combine your IRAs and other self-directed plans to make non-traditional investments. Even better, you can invest your IRAs with other people's IRAs or even non-IRA money of people you know. The key element is that you must have your plans administered at a self-directed IRA company like Entrust Retirement Services, Inc.

Make money now. We have all heard that knowledge is power. Your knowledge of self-directed retirement plans can translate into money in your pocket today. How? While it is true that you may not derive a current benefit from your own IRA's investments, this does not mean that you cannot benefit right now from Other People's IRAs (OPI). Simply become knowledgeable about self-directed plans by reading books and attending seminars or workshops. Then spread the good news!

Anytime you go to a gathering of people, there are most likely millions
of dollars available for non-traditional investments in their
retirement plans. It is up to you to let people know about this
powerful tool, and how they can take some or all of that anemic money
and put it to work in a way that benefits both you and them. You will
look highly intelligent and will inspire confidence with your advanced
knowledge.

Invest your own IRA in what you know best. With all
your knowledge of self-directed IRAs, you will most likely want to
invest your own retirement funds in non-traditional investments as
well. What investments do you know the most about? Almost without
exception, you can invest in what you know best with your own IRA.

You can use your retirement
plan to purchase all of the following and much more: foreign and domestic real estate, debt-leveraged real estate, real estate
options, loans secured by real estate, unsecured loans,
limited-partnership interests, limited-liability company shares, stock
in non-publicly traded corporations, land trusts, factored invoices
(including factored real estate commissions), tax lien certificates,
foreclosure property, joint ventures, oil and gas interests and even
race horse colts. You are limited only by your imagination.

Entrust has many seminars and workshops to help you and those whose IRAs you want to use to make money for yourself. There are also numerous quick-selling books on the market explaining the power of self-directed retirement plans, such as Hubert Bromma's Investing in Real Estate With Your IRA and 401(k). For more information on seminars and workshops in your area, visit the Entrust website at www.TheEntrustGroup.com. Even if you don't have a dime of retirement funds yourself, you can use your knowledge to:

- Borrow other people's IRA money to do your deals today

- Sell real estate, notes or other non-traditional assets to people's IRAs

- Make others aware of an opportunity to invest in your business (always be aware of securities laws when raising money)

Ignorance may be bliss, but it will not make you wealthy. Use your knowledge of self-directed IRAs to make money now, to help others build their retirement wealth as well as your own, and to retire in the style and comfort in which you would like to become accustomed.

H. Quincy Long is a Certified IRA Services Professional (CISP) and an attorney. He is also President of Entrust Retirement Services, Inc., with offices in Houston and San Antonio, Texas. He may be reached by email at QLong [at] TheEntrustGroup [dot] com. Nothing in this article is intended as tax, legal or investment advice.

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