anyone here a millionaire from REI?

[DFWHoldings]

"I've never heard of a self directed 401k. Only self directed IRA, please explain how this works. The IRS requires that 401k funds be directed by a custodian or trust. I've been under the impression that since a custodian must manage the plan that by definition it cannot be self directed, please let me know how this works."

I'd have been happy to let you know how this works, however, you're consistantly confrontational and antagonistic toward me...even having stated you've no respect for me.

So sorry...I've no motivation to help you.

-Info

I think knowing that you won't help me has caused me to die, if only a little, inside. The pain is unbearable.

[graciez]

Hey reoconsultants-

Watch the midwestern digs there.  Thanks, Graciez

[reoconsultants]

Sory what did I say there Graciez?

I live in the midwest! (I thought)

[niravmd]

Moreover if you've got a million in equity in a Roth 401k Self-Directed retirement account...I'd say you're pretty well set.

-Info

I'm not sure i understand what a Roth 401k self-directed retirement account is. is it a vehicle you use to invest in stocks or is it anything that constitutes an investment?

I'm using a 401k pension combo for my investing. I'm investing in real estate and oil drilling projects with it. its self-directed because i'm the trustee of the corporate pension plan!

[Infowell]

"I'm not sure i understand what a Roth 401k self-directed retirement account is. is it a vehicle you use to invest in stocks or is it anything that constitutes an investment?"

Anything that constitues an investment with the exception of collectibles (i.e., stamps, alcoholic beverages, artwork, gems, coins, antiques, etc.).

Allowable real estate investments include;

*Annuities
*Commercial Real Estate
*Commercial Paper
*Condominiums
*Currency
*Futures
*Limited Liability Companies (LLC)
*Limited Partnerships
*Mobile Homes
*Options
*Private Stock Offerings
*Real Estate in Foreign Countries
*Rentals
*Receivables
*Residential Real Estate
*Stocks, Bonds, Mutual Funds
*Tax Certificates
*Trust Deeds / Mortgages

"I'm using a 401k pension combo for my investing. I'm investing in real estate and oil drilling projects with it. its self-directed because i'm the trustee of the corporate pension plan!"

Exactamundo! It's self-directed because, you're "THE TRUSTEE!"

Our friend--The Underwriter--could start his own business & set up a Roth 401k which would give him the greatest flexibility of all the Qualified Plans available.

Or, he could always form a Self-Directed IRA LLC. This would afford him more security, control, and eliminate the need for an Administrator.

At the beginning of this year (2006) 401k plans could be established or amended to permit employees to designate some or all of their contributions (employee deferrals) as Roth contributions. These contributions are made on an after tax basis, but distributions (including earnings) are tax-free (if certain conditions are met).

-Info

[niravmd]

seems like you've done your homework!

so you think setting up a Roth IRA LLC is a good idea too! I was looking into it, but i was told that i cannot put any money into it once its set up. so its only capitalized with the funds i already have in IRAs.

thanks for the info.

[wil817]

i think having 10-20 $M would be nice.   8)

[REI NOOBSTER]

My motivation was running low until I read this thread.
I have no doubt that one day I will have a MIL. in equity.
I just keep reading, learning and planning.
Thanks guys.

[reoconsultants]

Planning is important..

Who was it that said

"People do not plan to fail, They simply fail to plan"

[Infowell]

seems like you've done your homework!

so you think setting up a Roth IRA LLC is a good idea too! I was looking into it, but i was told that i cannot put any money into it once its set up. so its only capitalized with the funds i already have in IRAs.

thanks for the info.

I'm not sure if this is what you're asking but;

Maximum Annual Contribution (per participant)

IRA BASED PLANS

Payroll Deduction IRA = $4,000 for 2005-2007 / $5,000 for 2008. Additional contribution can be made by participants 50 or over.

SEP = Up to 25% of compensation, but no more than $42,000 for 2005

Simple IRA Plan = Employee $10,000 in 2005. Additional contributions can be made by participants 50 or over.

Employer: either match employee contribution 100% of first 3% of compensation (can be reduced to as low as 1% in any 2 out of 5 years); or contribute 3% of each eligible employees compensation.

Defined Contribution Plans

Safe Harbour 401k

Employee: $14,000 in 2005; $15,000 in 2006. Additional contribution can be made by participants 50 or over.

Employer/Employee combined: Up to the lesser of 100% of compensation or $42,000 for 2005. Employer can deduct amounts that do not exceed 25% of aggregate compensation for all participants.

401(k)

Employee: $14,000 in 2005; $15,000 in 2006. Additional contributions can be made for participants 50 or over.

Employer/Employee contributions of: Up to the lesser of 100% compensation or $42,000 for 2005. Employer can deduct amounts that do not exceed 25% of appregate compensation for all participants.

Profit Sharing

Up to the lesser of 100% compensation or $42,000 for 2005. Employer can deduct amount that do not exceed 25% of aggregate compensation for all participants.

Defined Benefit

Annually determined contribution

[niravmd]

actually i meant something else. its a <b>self-directed
Roth IRA LLC.</b>

you take an existing 401k or IRA and convert it to a Roth IRA.[if you don't already have a roth] you then set up an LLC owned by the Roth IRA with you being the trustee.

its very specialized and very few companies are doing this right now.[the cheapest I found was $2,950 to set up the LLC] the problem i'm facing is that once you set up the LLC, you cannot fund it anymore. I don't have enough to make it worthwhile, so i'll probably wait for a year or too.

[Infowell]

actually i meant something else. its a <b>self-directed
Roth IRA LLC.</b>

you take an existing 401k or IRA and convert it to a Roth IRA.[if you don't already have a roth] you then set up an LLC owned by the Roth IRA with you being the trustee.

its very specialized and very few companies are doing this right now.[the cheapest I found was $2,950 to set up the LLC] the problem i'm facing is that once you set up the LLC, you cannot fund it anymore. I don't have enough to make it worthwhile, so i'll probably wait for a year or too.

I understand & that's exactly what we've done.

Waiting is definately worthwhile in your situation.

It'll give you more time to plan & the opportunity to save.

I must be getting old, but I've got to tell you...this is exciting stuff.

-Infowell