Weird Investments You Can Make with a Self-Directed IRA

Transcript:
(00:00) she owned a ship in Star Atlas the video game Star Atlas and she would lease it out she would rent it out she get money for letting people use that ship in the video game and that was owned by her 401K that was getting that revenue from doing that what Matt said Allowed by law what that really means is you’re not going to be able to own a dispensary with your IRA but you may own the uh the land or the building that rents to The Dispensary you’re talking about cannabis um dispensary okay cannabis welcome everybody to another episode of the
(00:31) directed Ira podcast my name is Mark ker I’m here with the illustrious Matt sson who’s looking very dapper today I like this new jacket I think you’re looking Dapper we’re putting the DAP on today so watch out D Dapper Dan that was from I’m a Dapper Dan man yeah what that was from the brothers what was that oh George oh that was such a good one um anyway well we’re excited to be here with you and yes we’re going to try to keep it Lively interesting with all sorts of useless antidotes and a lot of great information
(00:59) on directed IRAs tell everybody our topic today Matt yeah we want to talk about unique Investments you can hold in your IR or 401K now I want to first start off and say a lot of people just think first level stocks bonds and mutual funds we we want to talk about self-directing your retirement account that’s what this podcast is all about and the common things people do that to many people is unique like a rental property you know investing in a small business but then we want to go another level on top of that and talk about some
(01:27) of the really unique things we’ve seen clients do at their IRA some of us have done too we’re going to share some our examples so we want to get in this to expand your horizons to know what’s possible don’t just think about Wall Street when you think of your IR or 401K there’s so much more to this that’s what we’re going to talk about today I love it and I’ve got and we can bounce back and forth to mine as well as yours um I’ve got a new one uh that I’m playing with too that we can talk about okay um but before I I I wanted to say this too
(01:56) um one of our biggest challenges and some of you may be facing this too is you’re like hey I want to self-direct and so you’re like okay I’m going to roll over this 10 grand 50 Grand 100 Grand 1 million or whatever that number is for you and it could be an old 401k maybe it’s a brand new Roth IRA you’re opening for your kids and you’re like I don’t want to do just stocks bonds and M mutual funds I want to do something unique well what the challenges that we have is some people get into a a an analysis paralysis where they’re like I can’t
(02:26) find anything that’s unique I can’t I’ve only got 10 grand to work with or I’ve got this 100 Grand but I I just don’t know what my options are hence why we’ve been having the alternative asset Summit to try to roll out ideas but what I want to let all of you know is some of these ideas we’re sharing today could be small money or big money and sometimes just doing a small money investment is about base hits It’s about teaching your kids teaching your family that these unique opportunities exist you don’t have to
(02:55) get rich doing it initially but then once you get enough inertia that money can snow ball and get bigger so we kind of debate this a little bit cuz sometimes you’re like Mark that’s a $10,000 investment it’s not worth it well there might be bigger things going on what do you think well I also think and this is just my own personal experience I didn’t make my first investment self-directing self-directing until I had 40K I didn’t have the time I didn’t think it was productive I’m just there’s different approaches to this I’m not
(03:22) disagreeing with Different Strokes for different folks you know so for me I was like I’m not going to go find a $5,000 deal now do we have clients do that every day yeah like every other hour there’s one of those Investments going out of here at direct Ira but for me I was like you know I needed 40K and I went and did a rental property I had enough it took me three years of contributions and then I had enough to go buy a rental property and so for me that that was my path now could it be 5K 10K maybe it’s 100K I don’t know
(03:51) everybody’s different we don’t want to tell you what to do this is your money your retirement to take control of we want to give you the ideas so you know what’s possible for you I love it okay and and and Matt some of Matts are low dollar mounts I I’m most of mine are low dollar amounts because I’m I’m kind of a Main Street guy I’m a little more white trash than Matt and so despite the Prest shoes he’s rocking today by the way they are pretty kickass uh they were it was a painful purchase you should have those I think you should
(04:23) be wearing your Crocs if you’re going to claim TR yeah you know I don’t appreciate that uh demeaning shaming you know cuz I know he’s got the Crocs just cuz he’s got the product who I do not own Crocs you can take the guy out of the mobile home but I know it’s tough well okay um I’m leaving the podcast now today and you you can do it all no okay no this is it but it’s true a lot of mine are smaller because I want to get my family involved in these smaller Investments and that’s kind of my bigger play um I’ve got bigger accounts that I
(04:55) invest with for sure but but I also like these smaller accounts because I my daughter Molly just walked by the studio here a minute ago and she’s like hey what are we investing in and that and that means a lot when you can start getting your kids thinking about investing in their 20s that’s a big win huge all right so should I go out with one right out of the gate yeah let’s do it okay um well you wrote it down number one so I I’ll throw this one out recently uh I I sold this investment about a year ago year
(05:23) and a half uh yeah year and a half ago but I purchased some cows now I’m a big Yellowstone fan and we have a place up in Idaho um few hours away from the Yellowstone Ranch and so uh I opened up an LLC owned by multiple IAS at small dollar amounts and this LLC is called the colar Dutton livestock LLC for those Yellowstone fans yeah yes I could use the Dutton name in my LLC as long as I added the word Coler John Dutton was like a silent partner though that’s right in in spirit in spirit in spirit no ownership yeah so you just stole his
(06:01) name yeah so what what I thought what the principle I wanted to share first of all is that I was able to involve family members but I was also able to invest in something unique and fun to just show it’s possible so I had a Rancher up in Southern Idaho who has a herd you know a lot of guys have a herd do you have a herd do not have a herd okay well yeah got to get up Tio so I’m all hat and no cattle on this let’s be honest you got a sweet belt buckle though that’s true that compliments to Mark Mark J ker thank much
(06:30) so um so he has a herd and if you want to try to scale up in ranching it is uh very difficult go talk to Beth Dutton she would tell you that but um he had a herd and I was like Hey I want to buy some cows and throw them in with your herd and that’s easy for him he’s like well there just five more cows to feed and five more cows to let run around with the bull in the summer and get pregnant and la la and you know vaccinate and all this and so he’s like here’s a price per month to let him graze with my cattle and you could go
(07:02) buy five cows at the auction I’m going down there oh it is such a cool experience you really are living the show we went to the auction we got cows um and then they did a Roundup in the spring and they castrate the Bulls and vaccinate and then Bo and it was just like the show rope them bring them in or put them through a shoot so we got to do that experience but what was neat is the LLC was owned by our I think this was part HSA money Health Savings Account money and Roth money money and we bought five cows that were already pregnant
(07:33) they had five uh Bulls I had five Bulls which is very usually it’s kind of a three two three blls two H anyway I had five bulls and then my five moms got pregnant again so at the end of the season I sold uh essentially 15 cows I had about a 14% return which was not shabby but the overall investment was around 10 grand and I bought the cows for around eight I bought all the did the grazing out of the LLC and ended up with like 13 14 Grand at the end of the day but it was a fun experience so that was one unique asset yeah and that’s
(08:08) pretty cool I think a lot of people think oh I’m sure there’s people who sell cattle there’s a whole industry of that and that invest in that but no one thinks about that for your IRA or health savings account and these are retirement accounts that guys when you have a self-directed irra for those of you who don’t know you can invest in anything Allowed by law the only thing you can’t buy is colle cbles life insurance and S corporation stock now you have to buy Investments we’re not buying personal assets so this is not like cows you know
(08:38) Mark was going to milk yeah and he was going to go drink the milk you know or like or they was going to Butcher and put you know put for on the table for food like these are held for investment and you had a Rancher taking care of them for him and so but there is so much opportunity out there like the stuff that happens just the the different Investments that go out of here every day are just pretty cool yeah and I’m going to say what Matt said allowed by law what that really means is you’re not going to be able to own a dispensary
(09:05) with your IRA but you may own the uh the land or the building that rents to The Dispensary you’re talking about cannabis um dispensary okay cannabis we can go to psychedelics later you know you may not own shrooms but you might own the ground the shrooms are grown on or whatever but lease it to the farmer you know yeah so there’s some leas we have clients doing a lot of cannabis related businesses that are not deemed illegal like renting property let me give you an example of one that I helped the client on that’s a
(09:34) perfect example so I have a client in Southern California and um where they do license you know cannabis is legal you can you can at the state at the state level right Fally and so he used actually his solo 401K he’s a self-employed guy has a solo 401K that he self-direct okay this isn’t a solo 401K it’s Charles Schwab this is a solo 401K at directed okay and he can self-direct it here we can invest in real estate Cal whatever he wants okay the only three restrictions I mentioned earlier now what this client did is he
(10:08) bought a building a retail building with his solo 401k and he cooperated with the dispensary in getting it licensed actually because the location has to receive the license right now he didn’t own the operating business that was going to own the Cannabis and sell the Cannabis marijuana mary jane yeah talking about weed weed and you know I and I you know this client was pretty smart and he knew there was going to be some high profits here you know he knew it was GNA get high on this and uh pun intended thank and he’s GNA make yeah there’s a lot of
(10:42) green to be made here you know so but but he owned the building leased it to the dispensary and that was okay with his retirement account now the issue with a retirement account we’re talking about this is cannabis is a fast growing industry and your retirement account can can invest in different areas of it it just can’t own the business that owns the weed that sells even though you might have a state license for it it’s still illegal under federal law despite recent recent um changes from from three schedule 3 to
(11:10) one but um but you can own the real estate you can that either selling it we’ve had other clients that own the land that they’re doing the grow on um and so if you’re investing in different areas of we’ve had other clients that are in like a a Transportation uh industry where they’re transporting um the weed you so would that be a a a bip plane flying from South America in on a it says yes something like that okay all right well this is cool that thanks for explaining that now um okay do you want to give another one that you like yeah I
(11:45) just want to give a basic one because I think for some people that are brand new to this like let me just talk about a rental property all right that was the first thing that I bought my retirement account the very first investment I did was I bought a rental property for $85,000 let’s make sure you understand how this works my retirement account buys the real estate it bought the rental I had a property manager out in Indianapolis that managed it for me the tenant paid the rent and I from that rent I was paying
(12:11) expenses on the property but I got to keep all the cash flow and that cash flow was building up in my retirement account now I sold the property 5 years later for $184,000 I bought it for 85 I sold it for $84 I had it I made 99 Grand on the sale of that over five years plus I got the cash flow now remember this money is not going to me personally it’s not going to Matt sson it’s going to my retirement account it’s building the account up from the cash flow or from the return on the sell of the property just like from the sell of the cows or
(12:42) the rent from the guy that was rent relasing to the cannabis dispensary now on this show we we’re going to be going way too long if we try to do this because I was about to explain well he set up an LLC and he got a non-recourse loan a lot so we’ve got countless podcasts on each one of these strategies uh that you can go listen to in our playlist please go check out how to buy a rental how to get a loan know these are all different podcasts Ira LLC your checkbook Ira like all here okay our studio producer just said move it along
(13:13) that’s right so I think he’s saying watch the video here that’s right thank you so all right so rental property so we’ll keep we’re going to give a little bit of how to do it but you got to go back and watch the show um or go watch another show on that um okay I’m going to go to crypto now there’s a lot of variants here so I’m just going to hit some highlights but cryptocurrency is a really and uh blockchain technology opens up a lot of opportunities for investment and so people go well I want to buy some Bitcoin with my uh
(13:44) Ira up until the SEC allowing some of these big funds to do some direct investing and now you’re still just buying a fund that owns Bitcoin how do you really buy Bitcoin at your crypto.com or uh your wallet or metamask or how do you do this and so a lot of people just give up quickly so at directed Ira we formed a very strong relationship with one of the most well uh audited and strong uh I don’t want to say U regulated yeah regulated but um Network or um exchange exchange thank you I can come to Lord uh so we uh went
(14:20) with Gemini Gemini I wanted to say Genesis I’ve got all these right so I was GNA say Genesis A Little Star Trek throwback because I was watching Star Trek now right but anyway little fil yeah I know so Gemini we have a relationship with Gemini where you actually have a app on your phone that’s set up as a Roth crypto account you could have a a health savings account crypto account you could have a 401k crypto account anyway so we created a relationship we got prior shows on this as well but Gemini allows you to buy a
(14:48) variety of all sorts of uh tokens and coins inside your IRA yeah and that that’s pretty exciting you can stake in some of these custodial Stak where you’re not actively involved is pretty cool so you’re staking inside your IRA um and so can I finish with a couple other quick crypto ideas the other one is I formed an LLC again with my kids and we bought a um a CPU and a motherboard and some video cards and we are crypto mining actively right now I could open up an app on my phone nice has and we are crypto mining in an LLC
(15:26) owned by Roth IRAs and what we’re doing is verifying transactions on the ethereum or salon blockchain and uh earning Bitcoin so pretty exciting and then the other issue is now the gaming industry and the nft world is just blowing up so much going on there and so we’ve had clients that literally buy non-collectible nfts they’re called utility nfts that’s a non-f fundable token so they will buy nfts and these tokens could be used in video games and Lease to kids playing video games and video games are now pay they’re not pay
(16:01) to play they play pay you to or I say pay to play your yeah that’s what I want to say so these gamers are playing games and earning cryptocurrency by renting nft assets owned by IAS some of you are like what the hell are you talking about we have some PR shows on this as well but the nft market is and um using your IRA to buy these types of uh utility tokens you’re making they’re making huge money in this area so that whole Market is unique and you can do it in your IRA yeah just for an example on that we had
(16:34) a a client that was at our crypto tax oh my gosh this the I know where you’re going she has a solo 401K which is again she’s a self-employed person self-direct she’s in her 40s she stood up she’s beautiful and she gave an examp what she’s doing with hers and all these crypto Geeks that were in the room were like oh my God off their chair in yeah they’re like so she had a following that at that conference but um but she owned a ship in star Atlas the video game Star Atlas and she would lease it out she would rent it out she get money for
(17:04) letting people use that ship in the video game and that was owned by her 401K that was getting that revenue from doing that so there’s a lot of different ways you can do this and this why we’re trying to give a lot of the creative ones so you know the limitations are very short there I mean that is a pretty cool thing now the IRS did come out on crypto and said you cannot own collectible nfts if the nft is a collectible think of like the be you know that was the the auction yeah some of those just nfts that that are just
(17:35) basically art you know that is a collectable and doesn’t count but if it’s an nft that has utility value that something that can be rented or sold or has certain rights associated with it um that that’s different and that could be owned by your retirement and now this is a great opportunity to give a plug to something all of you have got to at least purchase the uh virtual ticket and that is our alt asset Summit it’s coming up in October it’s going to be here in Phoenix it’s going to be a big deal and we’re going to be rolling out
(18:04) alternative assets options that are alternatives from the mainstream options that’s the whole concept it’s a big market and uh I was going to mention our crypto Grandma I want to get her on stage and interview our crypto Grandma some of you may like I’m too old for this this is kids play this is too hard crypto Grandma give her a shout out she’s got Roth IRAs that she trades every day um building these Roth IRAs that has her grandchildren as the beneficiaries and she’s just having a hoot and she she it’s a way for her to
(18:35) engage with her grandchildren it’s just been the neatest thing into crypto yeah they get it so anyway so that’s crypto all right what else you got um you know I’ll just say the last thing on crypto is just a couple things that we see trending right now is you know we had uh Bitcoin had the um ETF go live the next etf’s coming is ethereum and a lot of people bought Bitcoin pre ETFs getting approved and the value went up so we’ve been seeing a lot of people their investment thesis has been I’m buying ethereum using a crypto Ira at directed
(19:07) Ira which that’s probably the one of the hottest ones going right now man I’m going to get on my crypto app right now of the ethereum ETF going and so um and that’s I’m just throwing out ideas of course there’s no investment advice here I’m just throwing out ideas but um this is so fun like literally I’m on the podcast and I just opened up my Gemini app that’s my Roth IRA and I can trade grow look at my portfolio um I’m all in salana right now I’m just all soul I got a few fun ones yeah I’m I’m still a doge Dogecoin fan
(19:40) you know I just I’m just it’s my Dark Horse it could go big yeah you and Elon okay so um all right last thing on crypto to say I bought it in 2017 in my retirement account and there’s a lot of different strategies on how to do that we’ve done webinar separate podcast on crypto and so Mark talked about mining crypto we’ve talked about just buying it and holding it talked about trading it buying nfts and other things within crypto there’s a lot of options there but there’s some some things to learn so uh make sure you get back to those other
(20:07) podcasts or give a call to the team here we can certainly help you out on your crypto options well the one I’d like you to talk about is the startups kind of those pre-ipo so you’ve got a friend you see this idea you see something cool on Shark Tank or you so one one that we saw that was really big was snowflake so snowflake is a software company we had a client Roth IRA invested into it that bought into it at early stages about how much I don’t know the exact amount but it was a million dollar return it’s a seven figure return on
(20:39) $100,000 approximate investment so um but that but snowflake went public a few years ago can’t remember how long ago um it’s a very large you know market cap publicly traded company and so and what happens is and we’ve had this quite a bit if you have a typically you’re inv invested into a private place placement okay so we have a lot of people’s IRAs every day I’d say 5 to 10 people’s accounts here are invested into some private placement and the private placement is essentially a private offering of stock in a corporation if
(21:12) it’s a startup or maybe a private Equity Fund or it could be an LLC where it’s units in the fund this could be owning real estate a multif family commercial there’s lots of varieties of this but in this example they invested in and they B acquired shares in snow in Snowflake is actually through a fund that that was then investing in the snowflake but anyways and um and so what happened though is once it went public the individual investors were able to take the shares now that were publicly traded and so we have to transfer your
(21:43) privately held shares over to publicly traded shares that are now on on an exchange and on the stock market and so we’ve done that quite a bit there’s a little bit of a process but we’ve got it down because we do you can buy stock with us if you want if you know that’s not very common um but you can convert your private shares into public shares once the company goes public and so now I have seen some go public that have gone down too I’ll say that some people have had private shares that the company went public pretty much anything I
(22:09) invest in yeah and those shares have gone down and so now this one snowflake was a very successful company and and has even since IPO I think has doubled in value so uh but that’s was just one example of a a pre-ipo startup I love it and I’m going to kind of piggyback that with startups or small business we’ve had countless clients well I remember one in La that invested in uh movie making equipment trailer a lot of trailers that go around to production companies might be lighting uh gaffing all these different um set designs uh it’s if
(22:48) you’ve ever seen a movie set being made they’re like semis pull up there’s unloading all this equipment La La La La La the production companies don’t own that equipment they’re private investors that lease that equipment to the production companies so I had a client that took some Roth IRA money and bought a bunch of equipment a trailer and production companies like bring it you know and they just had a regular it was like a little rental property but it was equipment I’ve had clients buy um trucks and rigs for Trucking uh and trailers um
(23:19) and the one I would just wanted to mention to is that you may have a friend that’s opening up a bakery or a landscaping business or they’re opening up a a Surgery Center or buying an MRI unit or who knows what and so any of these ideas of a friend you know that’s trying to start a business and looking for Capital and you believe in the person you do your due diligence and all that be careful but that’s similar to a startup for me because you’re getting investing in a small business and that can be really exciting yeah I remember
(23:48) someone’s talking about Microsoft one of the I forgot it wasn’t it wasn’t Bill Gates um they’re like they’re like um yeah I guess they call you startups now and we just started we were just a small business that’s what we were okay oh my go what’s his name Paul Allen anyways yes um okay so uh let me hit some lending you I so lending is very popular um that’s what I do with my account right now I lend my account out um and I do it at 12% interest in two points to other Real Estate Investors I get a a lean on the property and that’s
(24:19) very common to to be doing private money lending we’ve got other shows on that too but another idea on that that I’ve seen quite a bit um I have a number of clients that have pretty large accounts that do equipment Finance lending so they are lending to other people that are buying heavy equipment like in the construction industry they get a lean on that title that of heavy equipment and they lend on it um they’re actually these one of the larger clients I have they’re actually in the business of this personally but then they peel off their
(24:46) retirement account to do certain deals too to other people that need financing to buy the equipment okay Matt you just hit a major vein that we haven’t talked about yet and that is some of you like oh these are all fun and neat but I don’t I don’t know anything like that what do you know what business are you in what is your family business what’s your unique skill set that you learned in college or in your career because you may say well I’m in the car wash business okay okay you know a new car wash opening up do you know someone that
(25:17) needs car wash equipment do you have providers in that entire industry that needs something see that’s a unique investment and all of a sudden your IRA is playing in that industry and making money and it’s not insider trading you know that’s kind of funny it’s just these are not publicly traded companies they private companies and if you have a unique knowledge or a connection that not other people have and you can inject your retirement account into that do it you you know again doing your due diligence being careful but uh that’s
(25:50) that that’s what we’re talking about yeah is finding that unique something that you yeah and investing in what you know and it’s interesting because those clients I talked about doing the equipment Finance they just invested in what they knew and they knew people that needed money they had the deal flow they saw the opportunity at one of our at the self-directed IRA Summit just a couple weeks ago I had a client that came up to me I remember him starting off with 600k he rolled out of a corporate plan 600k he was a general contractor and he
(26:14) private lent that money his account’s now 6 million okay but he knew people in the real estate space he was a contractor he worked with people that were rehabing and flipping he’s like I’m going to turn into the bank to these people instead I don’t want to be going doing the work on the properties I’m going to go turn into the bank because he had connections he had deal flows we always say invest in what you know it’s interesting you talked about the movie set one too another interesting one we’ve had and I forget the Netflix show
(26:37) but there’s a a Netflix movie that we had a couple of Ira accounts invest into oh okay richon it’s the new the new new one shot video and I don’t even know if it’s out yet but they invested in and you can do that that’s another thing like people in La these are the things they do they invest in the industry that’s in their backyard and these people sometimes work in the space a little bit so they have a little more um understanding of it also at the alt asset summit we’re just throwing out ideas here at the alt asset Summit last
(27:05) year and we’ll have it again this year there’s a lot of people that do Angel Investing we have a number of clients that have that do Angel Investing where they’re investing in startups kind of really early on it’s kind of venture investing Angel Investing and Tech Coast angels we had the president of tech Coast Angels speak at the last one and they basically invest in technology companies on kind of the on the coast on the west coast and they a very unique spot so people are in the tech space are like I know what technologies are going
(27:33) to pay off I know how to look at a management team and say oh these people have the experience that’s going to make it or not and so um but then on the other hand we had another group there’s another one called meta Angels which is if you have to be a physician to be in the group and they are Angel Investors in the medical space and the healthare space but they’re like hey we’re a group of people that are in the health care industry but they also want to invest in it and they they Source opportunities and look at deals together so another
(27:57) idea is if you’re into startups and such is look at the Angel Investing Network for deals um and I think those those are kind of cool places to go if you’re into real estate and you don’t know go to your local Real Estate Investors Association yeah start just networking so important well I just had one more I know I wanted you to talk about precious metals uh gold silver um there you know there there’s certain coins you can buy gold coins are certain coins you can’t you’ll explain that in a moment the one that um I’m looking at right right now
(28:29) is turo and some private driving uh there if you ever get into a black car Uber nine times out of 10 the guy’s going to slide you his card and go hey call me I’ll do private driving on the weekends or you know this that and another let’s bypass Uber and save you a few bucks and it’s I get a regular client out of it so you’re going to see a lot of these black car services but they’re always one-offs they’re just one guy with his car trying to be a little more efficient and make some more money but these um car services and fleets now
(28:58) people are buying multiple cars and putting them into turo well you may be the an investor in the car driving business itself or you might buy the vehicles and lease it to these drivers and we talked about this in other shows that when you own the equipment and and make money on it you might have a tax called ubit so make sure you watch those shows but if you own the equipment and lease it to the operator now you just have rental income and that’s interest income you cuz we we do it as like an equipment Finance lease kind of like
(29:31) when you lease a car it’s really a loan CU if it’s leasing a personal property right you get now we got sales tax well and you got ubit too still because leasing a personal property we do like an equipment Finance lease I like that thanks for clarifying so the this is what our lawyers at KK lawyers will help you do as well so when you come up with that idea and go okay I want to do this in my retirement account I want to form an LLC with multiple accounts and bring my family into the mix or an old 401k or an old HSA or whatever it is um a lot of
(30:00) times you’re going to start with a consultation with one of the lawyers you’ll see that in the link down below kqs lawyers.com talk to one of the any of our tax lawers and they can help you form the right structure that’s going to be the most efficient way to bring the money together and avoid any possible transactional tax that could play into it we’ll call it that and then um and really maximize your profit so bring the ideas bring it we’ll help you we’ll help you figure out how to do it love it so um let’s talk about precious metals that
(30:29) is a popular investment for people that want to self-re their retirement account that actually want to own the physical precious metals there’s a couple things you need to know about this now if you remember earlier I said you can’t own collectibles in your retirement account well there’s an exception to Collectibles for certain precious metals the precious metals that are accepted from that that you can actually own in your IRA is the John Wick coin that’s what I want that is not on the list damn it okay I want one of those coins John
(30:54) Wick oh those are sweet okay here’s what’s on the list gold Platinum Palladium and silver okay now gold and silver are the most popular ones of course I don’t even know that I’ve seen someone buy platinum or Palladium but it’s on the list you could do it now in the gold gold silver and any of those precious metals I mentioned Platinum padium they have to meet certain finess requirements and so we’ve got I’ve got a chapter of my book on the self directed IR handbook on this we’ve got resources at directed.com on this
(31:22) but they got to meet the certain finess requirements finess meaning it’s x% cure 999 % pure gold you know for example there’s another exception the finger yeah sorry just little James Bond throw at go ahead you’re not going to let me get through this I know I’m having so much fun this is such a fun topic now so there’s two things you got to know first does the precious metals comply with the rule is it the right type of precious metals Gold Silver Platinum or Palladium those are the ones you can buy the second rule is you have to store it
(31:52) properly and this is one that’s been violated and there’s been some cases on this recently in the tax code you must store with a custodian that is a bank and a bank under the definition there is a bank a credit union or a trust company that what’s what meets the requirements so when you have precious metals with us we require you to deposit it and that they be stored at Delaware depository Trust Company not your garage not your garage not under the mattress and we don’t want to hold it here either this is I mean you need like a Fort Knox type
(32:21) setup right and that’s what Delaware depository does they’re in the business of storing precious metals have all the security protocol and all pack and heat the other day and I thought is this to protect All the Gold in our in our building but I guess there’s no gold here that’s you know I got I got a stock you got different re I got there different now I now can you own own certain collectible like the the eagle coin or whatever you can own the American Eagles and that those are so certain government issued coins like the
(32:48) the American Eagle is the most popular that’s issued by the US Mint and so you can own that now the last thing I’ll say on precious metals and this is really important is you’ve got to be careful when you buy it I hate I mean shock you mean this is a pretty uh Lucy juy industry the precious metals industry has some you know bad players some bad players sometimes and some you know average players and better players so make sure you’re you’re checking the values of when you’re buying don’t just believe the one person you talked to
(33:17) that you called in from an AM radio commercial to go buy precious metals I was up late at 2 a.m. and I thought o this is for me yeah okay so maybe price shop it a little bit okay okay just price shop it a little bit make sure you’re gain the right price because you’re going to have to sell that metal at one time now precious metals have been on an uptick the last year they’ve done pretty well actually so but you want to make sure you’re buying right make sure you’re not overpaying all right I’m excited about this last one uh
(33:42) and that would be currencies uh can I went from cryptocurrency now we to precious metal I am in the market for some Iraqi dinar oh good lord you wouldn’t recommend that this is so funny we did have some clients Buy that back in the day I’m like what are you morons doing Iraqi the listening be careful you know maybe they’re going to be they’re going to win out I don’t know but but you can buy currency I could buy again buy foreign currency you can and so um obviously you know this there’s not any investment advice here sometimes
(34:16) it’s like we’re shocked the things that we think are dumb and aren’t going to make money do that’s true sometimes they like oh that looks like a sure thing and it loses yeah don’t trust our opinion on this yeah this is like we’re just giving you ideas okay we want you to invest in what you know and that’s the point of this too is we want to give you the ideas out there invest in the things you know or that you want to spend your time learning and educating yourself I’ve got a question this can you do Forex Trading
(34:38) you can do Forex Trading um because that’s not act you’re not M that’s not prohibited that you’re involved in the trading it’s just like trading of stock you know it’s it’s so it’s it’s it’s fine so we do have an relationship with trade station if you want to trade where you can do that with your directed IRA account you can add a brokerage account option to it it’s cost you extra bucks a year but then you can start day trading if you wanted now you know I mean you can Forex Trade It Schwab you know I mean so um but we we do have some
(35:08) clients that do that in their trade station account cool wow I just this has been fun anything else we need to cover I’m looking at your list my list I don’t no let’s just give the resources of where people need to go you know let’s just make sure if you’re brand new to this and you’re just hearing this go back to the first 10 episodes of the directed Ira podcast those lay out the rules what’s possible the steps how do I get my money from Fidelity over to direct a diary to do this type of stuff and as much as it pains me you want to
(35:33) buy Matt’s book um it’s the directed Ira handbook self-directed Ira handbook yeah it’s the number one book in the space okay okay sold 50,000 copies it’s pretty great guys yeah it it is the it is the Bible and um if you’re going to uh have a book that’s doged and on your corner of your desk if you’re going to invest you got to know you got to know the rules of the game you can’t you can’t play the game if you don’t know the rules and um once you know the rules man it’s a whole other world it’s really really exciting and um we have a monthly
(36:04) webinar at directed ira.com that you and with Q&A all sorts of resources there we’ve got not only this podcast but our workshops and the alt asset Summit is down in the description if you’re listening to this podcast you’ve got to come to the alt asset summit we’re doing a golf tournament it’s going to be a lot of awesome networking and vendors with all sorts of options that you might want to consider and a lot of great learning and of course there’s a virtual options too so if you can watch from the comfort
(36:31) of your home um tons of res I’ve got my tax and legal 360 conference coming up in just six weeks in Salt Lake again in December in Phoenix and at our 360 conference three days of tax and legal strategies Matt will be speaking there on self-directing but we’ve got oil and gas we got Michael melli there that’s a unque talk about that yeah yeah that’s got a big tax benefit for the average person so but we still have people doing oil and gas do the royalty rights interest not the working capital stuff or the kind of the um active Wells and
(37:03) stuff like that intangible drilling cost yeah you don’t want to do the exploratory type investing with your retirement account because there’s some tax benefits you want personally but the the long-term holds Michael’s got those too that’s a fun one so get out to tax and legal 360.
(37:22) com and again come in person or virtual and just Network and learn so much yeah thanks everybody hope you enjoyed Today’s Show we’ll of course be back next week with another amazing episode of the direct at Ira podcast until then stay calm selfir on