Why I Switched to a Solo 401k
I was all-in with Wall Street during the crash of 2008. I put my hopes for retirement in the wrong place. And this was part of the reason why I switched to a Solo 401k.
But first, let’s start with a little history. Before I had a self-directed IRA or Solo 401k, I had what most other people have: a corporate 401k and a Wall Street IRA.
My 401k contained most of my retirement funds. It was a mix of stocks, mutual funds and bonds. All the stuff Wall Street claims is good.
I had what I thought were diversified assets in my 401k, but I found that the crash took them all down together.
They all tanked.
Before I knew it, 40% was gone.
And my 401k was managed by a professional advisory firm, but it didn’t help.
They lost even more than I did with my IRA, as a percentage. Why was I paying these guys, anyway? Not to lose my money. So I fired them.
Wall Street was one reason why I switched to a Solo 401k.
My IRA LLC
I decided “enough is enough” after the 2008 crash.
And I knew Wall Street was not going to get me where I wanted to go. Someone was getting rich off of my retirement, but it wasn’t me.
So I knew I couldn’t keep doing the same old thing if I wanted to get out of the rat race. I needed to make a change. A big change.
In 2009 I set out looking for a better way. And I found it.
I wanted to hold alternative assets in my retirement account, like physical gold and real estate. And I didn’t want to rely on the stock market and get caught in the next financial crisis, whenever that might be.
So I wanted more control and better investment choices. What I wanted was a self-directed IRA.
And I found what I was looking for with Jeff Nabers. His was a firm that had integrity and a no-nonsense approach to everything about investing.
So after talking with his team I opened a self-directed IRA LLC with Nabers Financial.
Jeff was the founder and president of the IRA Association of America and he, along with attorney Deborah Buchanan, created the IRA LLC. Jeff knows his stuff and after talking with his team I was convinced that this was the best way to go.
It was the first IRA with true checkbook control.
And it avoided most of the issues with other self-directed IRAs, like extra fees and red tape for every investment.
I thought it was the ultimate retirement account.
A Better Way
But I was wrong.
Before I show you why, let me tell you what happened with my IRA LLC.
I started by taking what was left of my 401k after the 2008 crash and rolled as much as I could over into my IRA LLC. That’s known as an in-service rollover and is completely legal.
After funding my IRA LLC from my 401k, I started investing in alternative assets. But I was also being cautious after going through the turmoils of the “Great Recession.”
I purchased some physical gold and silver with my IRA LLC and I started looking at real estate, too. But I really didn’t want to become a landlord. So I sat out the recession with the precious metals to see what would happen.
My real goal was not a different retirement plan. It wasn’t just that I switched to a Solo 401k from a self-directed IRA. That was just the vehicle to get me where I wanted to go.
My real goal was to retire early and start my own business.
I wanted freedom and more control over my own future. I wanted peace of mind knowing that I wasn’t making someone else rich while I lost money in the stock market.
Later I would find that real estate and other alternative investments were a critical part of retiring early. But just not as a landlord.
I didn’t know how at the time, but now I understand how important alternative assets like real estate are if you want financial freedom.
My interest in investing grew to the point that I wanted to help others do what I had learned. So I started looking at ways to start my own financial business.
How To Loan Yourself Money From Your 401k
About that time Jeff Nabers created a course called the 401k Institute. I was excited, because I already knew Jeff was the expert in this field and now I had a way to make my dream of owning a business a reality.
But I had one roadblock: I needed some cash to get my business off the ground.
I could have cashed out my IRA LLC and taken the tax hit. Or taken a loan from the bank. I didn’t like either of those ideas.
Instead I found a better solution. It was through Jeff’s Solo 401k Unlimited® Platform.
Through the training I got from Jeff, I learned the truth about what could be done with a Solo 401k.
And some of the limitations with a self-directed IRA.
But not all Solo 401k plans are created equal. While some firms offer what they call a solo 401k, beware of imitations.
Imitations in this case lead to limitations.
When I understood the difference between a self-directed IRA and the Unlimited® Solo 401k created by Nabers Financial, that is why I switched to a Solo 401k.
The Solo 401k Solution
What I learned was an Unlimited® Solo 401k leaves any self-directed IRA (or any other retirement account) in the dust!
Many smart investors have already switched to an Unlimited® Solo 401k from a self-directed IRA and here’s why:
With an Unlimited® Solo 401k, there is no middleman. No custodian or Wall Street firm to get in the way. You are the sole person in control of your retirement funds. No one else, including Nabers Financial or me, has access to your funds.
A Solo 401k does not require an LLC. To get checkbook control with an IRA, you need a special LLC, which adds extra paperwork and hassle.
And a Solo 401k also has Unlimited® Rollovers. You can roll over or transfer funds from any qualified retirement plan into or out of your Solo 401k at any time or any number of times each year.
You can use your Solo 401k to take a participant loan of up to $50,000 for any reason. I used one to get my business off the ground. And that changed everything for me.
And if you have enough income, you can contribute up to $59,000 tax-deferred to your Solo 401k, depending on your income and age (up to $118,000 if your spouse participates). IRAs are limited to only $6000 or less.
No self-directed IRA offers any of those benefits. It’s no contest.
And like a self-directed IRA LLC, with an Unlimited® Solo 401k you can invest in any legal asset and have full checkbook control.
With benefits like that it’s no wonder that many investors have switched to an Unlimited® Solo 401k. It just makes sense.
Now I help people like you become smarter investors by sharing what I’ve learned from Jeff and my own experiences. In 2011 I started my own business as a program partner and affiliate of Nabers Financial.
In 2012 I left my stressful, full-time engineering career in the automotive industry by switching to part-time and growing my own business and investment portfolio.
I was 48 years old when I started on that journey and I can truly say that I am much better off than before I met Jeff and his team.
As my wife Colleen said, “I could just see the stress melting away” after I no longer needed to work full-time as an engineer.
Now I have choices. I can choose when I work and how much I work. If I want to take time out for a vacation, I can do that.
And you can have choices, too. It just takes the right tools, a little help in finding the right investments and a simple decision.
The Future Is Yours
You owe it to yourself to see what would happen if you switched to a Solo 401k. And if you already have a Solo 401k from another company, you can benefit too by switching to an Unlimited® Solo 401k.
Will you decide “enough is enough” and take control of your financial future?
I did and it sure feels great!
When you decide to take control of your own financial future, you won’t just get a Solo 401k. You’ll also get expert help to invest smarter.
After all, even the best Solo 401k (and the Solo 401k Unlimited® Platform IS the best) won’t do much for you if you don’t make smart investment choices.
Put it all together and you can rewrite your own financial future. All it takes is a decision to do it – one step at a time.
Click the button below to see how you can benefit by taking the first step – to set up your own Unlimited Solo 401k. Your future is just one decision away.
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