With the current volatility of the equities market nationally and internationally, investors are constantly seeking new investments and investment strategies to save for their retirement. Many of our clients are turning to non-traditional IRA investments to save for the future. Recently I was reading a book regarding this very topic and one of the focuses was on investing in water.
In the example that I read, the individual who did the IRA investing was a very dutiful investor. He wanted to invest with his IRA because he knew the investment would grow tax free, but before making any investment decisions, he physically went out and visited the sights where the wells would be built. He contacted the individuals at the company and held several conference calls to discuss their operational procedures and their future plans for construction. He also did extensive research on water resource investing. He looked into the returns he should expect, how much a typical investment is, and most importantly the risk involved.
When it came time to make the actual investment the process was much easier than he had anticipated. He had already done all of his own research, knew exactly what he was getting involved in, and knew all the rules and regulations. The investment was structured the same way an existing LLC investment is structured, and all he really needed was the subscription agreement from the LLC and the amount of funds he wanted the IRA to invest. After the transaction was completed the IRA was an investor of the LLC and had ownership interest.
There is always risk involved in any investment, knowing and understanding these risks is the most important aspect of any investment. IF you have any questions regarding LLC investing with your IRA please do not hesitate to contact Entrust Freedom @ 239.333.1031, or you can go to our website www.EntrustFreedom.com.
Daniel Fisher is a Client Services Associate at Entrust Freedom, LLC. Entrust has an arsenal of tax free strategies, feel free to contact Daniel for more information or questions at 239-333-1031 x210 or Daniel@EntrustFreedom.com.