Posted by: Administrator in taxes, self directed ira, Pensco Trust Company, old job, old 401k, myblog, job, Faisal Sublaban, Entrust, Brooklyn Troy, Brooklyn, 401k rollover on
Jun 10, 2009
If you are amongst the thousands of other Americans who have lost their jobs, still have their 401k with their old employer and have no idea what to do next, you are not alone. This market has been rough on everyone and now more than ever your next moves could very well determine your retirement. With that in mind your should roll over your 401k over and unless you absolutely need the money to support your family or stay alive you shouldn't just withdraw you fund from your old 401k. The tax implications alone aren't worth it and trust me you will probably regret it later. So what are your options? Roll you money into a self-directed IRA where your options are almost limitless. With a self-directed IRA you can purchase real estate, stocks, bonds, cattle, cow shit, and even invest in a start up. How can you get this done? First you need to utilize a custodian to facilitate the 401k rollover into a self-directed IRA, a couple examples of these are Pensco Trust Company and Entrust. They will then coordinate with your previous 401k account holder and facilitate the transfer. From their it is time to find your next investments.
What most people aren't aware of is that they don't need to just invest their 401k in stocks, bonds, and mutual funds. There are so many more investment options that many just aren't aware of. There is no doubt that everyone rich, poor, or jobless has felt the ill effects of this economy but now more than ever is when you need to be taking control of your retirement and setting your retirement up for a more lucrative future. One example of this occurred with one of our clients at Brooklyn Troy, recently Laura lost her job and really had no idea what to do with her 401k account at her previous employer. She was distraught confused and sat on here hands for about 4 months just not wanting to deal with anything. She then not only shook off the minor set back but she got behind the wheel and started to take control of her investments. With the use of a self-directed IRA she was able to now diversify and strategically utilize her 401k to purchase 2 investment homes below the cost to build them. She now has a positive cash flow of $375 coming in every month into her self-directed IRA.
With a Self-Directed IRA the world is your oyster, and I mean literally. Where else can you have horrible credit, no job and still obtain a loan to purchase investment properties, or invest in a start up? I am not saying press the abort button entirely on your stock portfolio but now is the time to really make sure your retirement is diversified and not just within different stocks but within different industries. A self-directed IRA doesn't need to dominate your portfolio but it should definitely have a significant presence. Don't get bogged down with the jolted economy and your suddenly leveled retirement account, and start to take control of your future.
Remember no one cares more about your retirement more than you and now is the time to act like it. Take control, diversify your portfolio and set up a self-directed IRA, Call Brooklyn Troy Today! Remember our investment strategy is simple, diversify.
Posted by: Administrator in wall street, Troy, Sublaban, Steve Jobs, Standard and Poors, refinancing, myblog, mortgage brokers, moodys, moderation, Microsoft, Mark Zukerberg, Greed, good, Faisal, Facebook, CEO, Brooklyn Troy, Brooklyn, Bill Gates, bad, Apple, Adam Smith on
Mar 21, 2009
The current economic meltdown can largely be attributed to greed. It was the greed of everyone involved in business over the last several years. Sure on the surface all there is to blame are the bankers on Wall Street, Mortgage Brokers and the CEO's at the major financial firms, but the consumers themselves played their part as well.
Examples of this? The first time home buyers buying houses they knew they couldn't afford, but had to have because everyone was doing it, and ''the only way you could lose is if you didn't buy.'' Of course they may or may not have fully understood the loans or how severe the potential downside could have been, but there needs to be some accountability. It was greed that drove these consumers to keep refinancing and using credit to support their newfound lifestyles, using their homes as ATM machines. The automakers were greedy offering 0% financing and practically giving away cars to consumers, who were ready and willing to take home a new car. The examples go on and on. The fact is that everyone played their part in the financial mess and that has left me to answer two simple questions. When is greed good? When is greed bad?
Greed is good and necessary in order to have forward progress as a nation built on capitalism and opportunity. Greed creates innovation and creativity, it is what drives people to invent things that were once inconceivable. Examples of this are Bill Gates and Microsoft, Steve Jobs and Apple, and Mark Zuckerberg and Facebook. In 1776, Adam Smith explained how pursuing profit helps others: ''He intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention.'' There is however always the saying that everything is good in moderation.
It is when this greed becomes the core of decision making that everyone starts to head in the wrong direction. Mortgage CDO's were created with blatant disregard to the downside, especially for the investors who had their advisors shoveling their money into these things. In fact there was even a market created that banked on their demise. Banks were writing loans to consumers not based on eligibility, qualification, but how much money they could make or how much earnings they could report. It is here that greed begins to consume industries and even a nation. As a result whistler blowers cant afford to blow their whistles and credit rating agencies, like Moody's, Standard and Poor's, begin to loosen their belts and that is when you end up with a financial mess that we have right now.
So what is greed in moderation? That is a very fine line to try and find. There are a few simple principals that I have learned that seem to be a pretty good indicator of when you may be over eating on greed. First when everyone is pretending that you can't lose with an investment and unqualified people begin entering into uncharted waters , i.e. stock and real estate boom. When Tom the plumber begins giving out Real estate or stock investment advice then you know that too many people have gotten too greedy. Second if something sounds and looks to good to be true it usually is. Third you always have to keep your moral character in check, by that I mean if you feel and know you are or shouldn't be doing something, buying something or are sacrificing your reputation, and character for the paper chase then you have become too greedy. Moving forward there will always be another boom or bust, another recession, or another time when you just plain get caught with your hand in the cookie jar but it is the people, the investors, the companies with the largest amount of mental clarity and self-check and balances that will and always will remain on top. Remember life isn't a sprint its a marathon, live each each day like its your last but remember to always prepare in order to have a better tomorrow. The last thing you want to do is set your tomorrow up to deal with the consequences of yesterday.
