Sunday, May 15, 2011

How to Diversify Investments by Rolling Over or Transferring an IRA/401k into California Land Investment?

Most IRA’s and 401k are invested in stocks and bonds, but many are not aware that you can invest the money that you have in your IRA or 401K into land investment. This also includes investments such as other real estate, precious metals, and commodities.
You can simply do this by rolling your current IRA and/or 401K account into a new "Self Directed IRA" account at no major cost to you. You will also retain the tax deferred status without penalties as you have not cashed out your investment. The Self Directed IRA Company will do most of the work for you, but the stock brokerage may work to attempt to retain you as their customer.
Part of the reason a Self Directed IRA is more valuable is that it provides more control and choices. This control provides you the ability to invest in land, or precious metals like gold and silver which all are hedges against inflation. If you speak to a gold or silver investment company they typically suggest a five year hold in those precious metals. In addition, land investment companies also suggest a five year or longer hold. Longer term holds depends on the location of your land investment (distance from development), and your future retirement horizon goals.
There is a difference between and transfer and a rollover. When implementing a transfer your IRA assets are moved directly from one financial institution (typically a brokerage) to another without the IRA owner actually taking possession of the assets. An IRA transfer avoids any possible tax liabilities that could occur by taking possession of your IRA/401K funds, while a rollover occurs when an individual requests a distribution from an IRA or a Qualified Retirement Plan. Your investment firm would then roll the funds into the Self Directed IRA. According to IRA laws you are allowed only one roll-over in any 12 month period. Of the three types of rollovers a Qualified Retirement Plan Direct rollover is not treated under this 12 month rule, while the other two rollovers IRA roll over and a Qualified Retirement Plan rollover are.
An IRA Rollover occurs when an individual has personally taken the distribution of funds from their IRA. You then have 60 days to rollover the distribution into another IRA. If this is not completed in the 60 day period you would be subject to a 10% tax penalty.
The process begins by your establishment of a self directed IRA account. You then initiate the transfer with a transfer form provided by your current IRA holding custodial.
You then designate the new self directed IRA custodial and they receive your funds as the new custodial. You don’t have to transfer your entire IRA/401k but just as much as you need for the new investment.
Your new self directed IRA is now available to receive California land investment. VacantLandDeals specializes in low priced and low capital land investment opportunities. They have land near development typically with ideal zoning in the path of growth for future urban development providing your exit strategy in five to fifteen years. VacantLandDeals also specializes in investment capital under $50k and some investments fewer than twenty thousand, so the low capital and low risk investment has the opportunity to mature. Go to to review an investment opportunity.

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