Comments on: What is a Self Directed IRA?

By: Debt Kid Aint Casey

Debt Kid Aint Casey — Thu, 02 Apr 2009 02:08:41 +0000

I have a self-directed traditional IRA through Equity Trust Company (http://www.trustetc.com). I've been pretty happy with them. I have mostly funded notes for real estate through my IRA. But I agree with SmartGirl that you should consider opening a SEP as long as you are running a business.

By: Forever

Forever — Sun, 29 Mar 2009 11:49:15 +0000

Audio? I haven't heard a thing *taps speakers* since my first visit a few months ago. hmmmm…

By: 8020 Financial

8020 Financial — Fri, 27 Mar 2009 13:30:04 +0000

Agree with SmartGirl. You really should pay off your mother as priority. It is the right thing to do.

By: SmartGirl

SmartGirl — Thu, 26 Mar 2009 20:53:28 +0000

BTW – I really don't like the audio on your website – is there a way to turn it off other than muting my computer?

By: SmartGirl

SmartGirl — Thu, 26 Mar 2009 20:52:09 +0000

First – pay your mom! I've said it before – you have many years to "catch up" on your retirement funds – your mom doesn't. Paying her back should be your number one priority. Give her the funds to make a Roth IRA contribution in the maximum amount to assure she has a retirement safety net.
Next – saving $1,200 on your tax bill with a traditional IRA contribution is short-sided. After you've repaid your mom, any contributions you make to should go to a Roth IRA – you won't realize the tax savings now, but in 30 or 35 years, when you go to withdraw the funds, you won't be paying taxes on your withdraws. (With a traditional IRA, when you start to withdraw the funds, you do pay taxes on the $$.)
Finally, why are you looking at an IRA? You are self-employed, you should be looking at a SEP-type of plan which allows you to put way more $$ than an IRA.
A question regarding the Lending Club – is there any kind of insurance on the account should they go out of business? For banks there is the FDIC, for brokerage firms there is the SIPC if the firm fails. If the Lending Club fails, what happens?