March 16, 2010
Several months ago, I told you about a strategy for building substantial wealth and planting an important flag with your Individual Retirement Account.
There are a few trillion dollars worth of retirement savings trapped in the United States, the vast majority of which is eeking out inadequate returns that make the money managers rich and leave the rest of us grateful for crumbs.
With this important strategy, though, anyone’s IRA can be unchained and free to invest in whatever you see fit– physical gold and silver coins, foreign real estate, Asia/Pacific currencies, etc. But these examples only scratch the surface.
It’s called an Open Opportunity IRA, and at the time, I described this strategy as the biggest investment “no brainer” I’d seen in a long, long time. Today, it makes even more sense… and here’s why:
This year, for the first time ever, the IRS has opened up a window for everyone to convert their traditional IRA into a Roth IRA. Frankly, I think they provide these retirement incentives because they know that social security is broke, so they try to give responsible savers an extra leg-up on retirement.
The huge plus for making the conversion to Roth is that when you eventually withdraw the money, it’s tax free. Naturally, though, the IRS will tax you on the value of your retirement account when you make the conversion… but if you have one of these Open Opportunity IRAs, you can cut the tax bill in half!
For an IRA worth $200,000, the savings could be nearly $40,000. It works, and it makes a lot of sense.
Furthermore, most people have unfortunately little control over their retirement savings… they’re only able to invest in pre-packaged products with often meager returns. That’s because the large, retail money managers have a larger incentive to make themselves rich than to make you rich.
What most people don’t know is that IRA’s were designed to be much, much more. Being able to take the gloves off and invest your retirement funds in just about anything on a tax-deferred or tax free basis is really the best game in town.
When I first started talking about this last year, it was before the IRS conversion change… and I didn’t really have a great resource to refer you to.
Fortunately, my friend Terry Coxon, best-selling author and renowned economist, just released a new e-book about the topic this week. It’s called Unleash Your IRA, and I cannot recommend it more highly– it’s a highly actionable guide that walks you through Open Opportunity IRAs step-by-step.
If you have an IRA, you should consider this book. Terry is highly respected for good reason– his thoughtful work is always full of value and insight, and in his new book, he takes on a topic that EVERY American needs to fully understand and exploit… and yet it’s something that almost nobody knows is even possible.
Click here for more information.