Buying land with my 401K

[kaycee]

Socratt, are you asking advice about buying land, buying this land in particular or buying Real Estate with the money from an IRA? My mother bought a Condo with her S/D IRA several years ago. She felt she knew more about RE (she’s a broker) than she did about the market, so that’s what she did with her money. She said it took some research but that it wasn’t hard to do. It’s in Park City and she rents it out as a vacation place. She makes pretty good money off of it. She’s been happy with the decision, but it does make an income. Land obviously wouldn’t. You’d only be betting on the appreciation.

[davelj]

La Jolla Renter,

I used Trust Administration Services Corp. (www.trustlynk.com) for several years as custodians for my self-directed IRAs and they SUCKED. Horrible customer service and their systems were worse. They made several large recordkeeping errors that were a pain in the ass to correct. I actually know the president of the bank that owns TASC and when I told him about my experience he apologized and said, “Yes, we have some problems to fix there.”

I recently switched to Polycomp (www.polycomp.net) and they are awesome. Very responsive. Tight recordkeeping. Fantastic.

As to the fees, asragov, the ones you posted aren’t eggregious. If you don’t plan on making sufficient returns to justify the fees then a self-directed IRA is not the proper vehicle to use. And if you’re investing in illiquid investments – like real estate – then you should be getting compensated for the illiquidity or you’re doing something wrong.

I am a huge fan of self-directed IRAs despite my horrible customer service experience with TASC. But if you don’t plan on earning at least 15% annually on an investment you probably shouldn’t put it in a self-directed IRA because the fees are higher than other standard IRA alternatives.

[davelj]

La Jolla Renter,

I used Trust Administration Services Corp. (www.trustlynk.com) for several years as custodians for my self-directed IRAs and they SUCKED. Horrible customer service and their systems were worse. They made several large recordkeeping errors that were a pain in the ass to correct. I actually know the president of the bank that owns TASC and when I told him about my experience he apologized and said, “Yes, we have some problems to fix there.”

I recently switched to Polycomp (www.polycomp.net) and they are awesome. Very responsive. Tight recordkeeping. Fantastic.

As to the fees, asragov, the ones you posted aren’t eggregious. If you don’t plan on making sufficient returns to justify the fees then a self-directed IRA is not the proper vehicle to use. And if you’re investing in illiquid investments – like real estate – then you should be getting compensated for the illiquidity or you’re doing something wrong.

I am a huge fan of self-directed IRAs despite my horrible customer service experience with TASC. But if you don’t plan on earning at least 15% annually on an investment you probably shouldn’t put it in a self-directed IRA because the fees are higher than other standard IRA alternatives.

[davelj]

La Jolla Renter,

I used Trust Administration Services Corp. (www.trustlynk.com) for several years as custodians for my self-directed IRAs and they SUCKED. Horrible customer service and their systems were worse. They made several large recordkeeping errors that were a pain in the ass to correct. I actually know the president of the bank that owns TASC and when I told him about my experience he apologized and said, “Yes, we have some problems to fix there.”

I recently switched to Polycomp (www.polycomp.net) and they are awesome. Very responsive. Tight recordkeeping. Fantastic.

As to the fees, asragov, the ones you posted aren’t eggregious. If you don’t plan on making sufficient returns to justify the fees then a self-directed IRA is not the proper vehicle to use. And if you’re investing in illiquid investments – like real estate – then you should be getting compensated for the illiquidity or you’re doing something wrong.

I am a huge fan of self-directed IRAs despite my horrible customer service experience with TASC. But if you don’t plan on earning at least 15% annually on an investment you probably shouldn’t put it in a self-directed IRA because the fees are higher than other standard IRA alternatives.

[davelj]

La Jolla Renter,

I used Trust Administration Services Corp. (www.trustlynk.com) for several years as custodians for my self-directed IRAs and they SUCKED. Horrible customer service and their systems were worse. They made several large recordkeeping errors that were a pain in the ass to correct. I actually know the president of the bank that owns TASC and when I told him about my experience he apologized and said, “Yes, we have some problems to fix there.”

I recently switched to Polycomp (www.polycomp.net) and they are awesome. Very responsive. Tight recordkeeping. Fantastic.

As to the fees, asragov, the ones you posted aren’t eggregious. If you don’t plan on making sufficient returns to justify the fees then a self-directed IRA is not the proper vehicle to use. And if you’re investing in illiquid investments – like real estate – then you should be getting compensated for the illiquidity or you’re doing something wrong.

I am a huge fan of self-directed IRAs despite my horrible customer service experience with TASC. But if you don’t plan on earning at least 15% annually on an investment you probably shouldn’t put it in a self-directed IRA because the fees are higher than other standard IRA alternatives.

[davelj]

La Jolla Renter,

I used Trust Administration Services Corp. (www.trustlynk.com) for several years as custodians for my self-directed IRAs and they SUCKED. Horrible customer service and their systems were worse. They made several large recordkeeping errors that were a pain in the ass to correct. I actually know the president of the bank that owns TASC and when I told him about my experience he apologized and said, “Yes, we have some problems to fix there.”

I recently switched to Polycomp (www.polycomp.net) and they are awesome. Very responsive. Tight recordkeeping. Fantastic.

As to the fees, asragov, the ones you posted aren’t eggregious. If you don’t plan on making sufficient returns to justify the fees then a self-directed IRA is not the proper vehicle to use. And if you’re investing in illiquid investments – like real estate – then you should be getting compensated for the illiquidity or you’re doing something wrong.

I am a huge fan of self-directed IRAs despite my horrible customer service experience with TASC. But if you don’t plan on earning at least 15% annually on an investment you probably shouldn’t put it in a self-directed IRA because the fees are higher than other standard IRA alternatives.

[La Jolla Renter]

davelj,

I have used Trust Administration Services Corp. for several years and have always been happy with the service and transactions. It is good to hear of another alternative should my experience with them change.

Couldn’t agree with you more about an investment return of 15% or better to justify the fees.

[La Jolla Renter]

davelj,

I have used Trust Administration Services Corp. for several years and have always been happy with the service and transactions. It is good to hear of another alternative should my experience with them change.

Couldn’t agree with you more about an investment return of 15% or better to justify the fees.

[La Jolla Renter]

davelj,

I have used Trust Administration Services Corp. for several years and have always been happy with the service and transactions. It is good to hear of another alternative should my experience with them change.

Couldn’t agree with you more about an investment return of 15% or better to justify the fees.

[La Jolla Renter]

davelj,

I have used Trust Administration Services Corp. for several years and have always been happy with the service and transactions. It is good to hear of another alternative should my experience with them change.

Couldn’t agree with you more about an investment return of 15% or better to justify the fees.

[La Jolla Renter]

davelj,

I have used Trust Administration Services Corp. for several years and have always been happy with the service and transactions. It is good to hear of another alternative should my experience with them change.

Couldn’t agree with you more about an investment return of 15% or better to justify the fees.

[Author]

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