Skip to main content

View Diary: David Stockman: “get out of the markets and hide out in cash” Corruption Of Capitalism (122 comments)

Comment Preferences

  •  Self-directed IRAs. (3+ / 0-)
    Recommended by:
    YucatanMan, semiot, skohayes

    The law already allows you to completely avoid the casino of the stock market.

    Wikipedia: Self Directed IRA

    Prohibited asset types

    IRS regulations prohibit IRA investments in life insurance and in collectibles such as artwork, rugs, antiques, metals (there are exceptions for certain kinds of bullion), gems, stamps, coins (there are exceptions for certain coins minted by the U.S. Treasury), alcoholic beverages, and certain other tangible personal property.

    You can buy real estate.  You can make person-to-person loans.  You can invest in someone else's small business.
    Prohibited transactions

    IRS regulations prohibit transactions that are an improper use of the value in the account or annuity by the account owner, the account owner's beneficiary, or any other disqualified person. These rules are generally designed to prevent self-dealing. Disqualified persons include your fiduciary and members of your family, such as your spouse, ancestor, lineal descendant (e.g. children), and any spouse of a lineal descendant). In addition, other disqualified persons include:

        Service providers of the IRA (e.g., custodian, CPA, financial planner);
        An entity (such as a corporation, partnership, limited liability company, trust or estate) of which 50% or more is owned directly or indirectly or held by a fiduciary or service provider;
        An entity that is a 10% or more partner or joint venturer of with an entity that is 50% or more owned directly or indirectly or held by a fiduciary or service provider;
        Additionally, in the case of a SEP or SIMPLE IRA:
            The Employer;
            50% or more owner of the Employer;
            Officers, directors, 10% or more shareholders, and highly compensated employees of the Employer;
            An entity 50% or more owned by the Employer;
            10% or more partner or joint venturer of the Employer.

    The following are prohibited transactions with an IRA:

        Borrowing money from it.
        Selling property to it.
        Receiving unreasonable compensation for managing it.
        Using it as security for a loan.
        Buying property for personal use (present or future) with IRA funds.

    The law already allows great freedom in what you do.

    You want to buy scrubland, and reforest it to reduce CO2 and global climate change?  Permitted.

    You want to buy houses and rent them out?  Permitted, with arms-length management.

    You want to lower interest rates on student loans?  Find the valedictorian in the next town over and write him a personal loan.

    Nobody looks in the dusty, cobwebby corners of law.  But this is all black letter law today.

    -7.75 -4.67

    "Freedom's just another word for nothing left to lose."

    There are no Christians in foxholes.

    by Odysseus on Mon Apr 01, 2013 at 07:36:29 AM PDT

    [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site