Latest / The Jon Sanchez Show / Beyond Stocks & Bonds: 10 Investments You May Not Realize That Can Be Held In Your IRA
Transcript
- Jon G. Sanchez: Good Monday afternoon to you. Welcome to the John Sanchez show on New Talk 780KOH. It's a pleasure to be with you. I hope the Monday's off to a great start. And I hope you had a great weekend. Just hope everything's going well in your life. That's all my goal is. Thanks much for joining me. I do appreciate it. Let me tell you what I have lined up for you today. Well, we have a brand new leader at the top of the pack, as far as the most valuable company in the entire world. New name up there. At least a new name recently. Tell you who what that is. Gonna give all the details of today's market activity, happened over the weekend, some the latest situations Iran, of course, that always has an influence on the stock market. And then after done with my stock market recap, I'm gonna get into today's topic. Let me ask you the question. When you hear the word IRA, do you automatically think the traditional Wall Street investments, stocks, bonds, mutual funds? Well, what if I told you your retirement account may be capable of so much more? Well, today I'm going to discuss 10 investments you may not realize that you can potentially hold inside of certain, and that's the keyword, self-directed IRA accounts. And why understanding these options could absolutely change the way that you think about your IRA and retirement investing overall. It's going to be a very interesting topic, probably that many of you may not even be aware of. But after today's show, you will be well aware of it. I promise you that. So get to that momentarily. In the meantime, let's get down to the stock market side. So we into today's pre-market session with quite a bit momentum from over the weekend. Started in the futures ⁓ yesterday afternoon when they started trading, of course, at three o'clock. The Trump administration announced that the president was pausing any further strikes against Iran. we went from, what did we hit, 12 consecutive days, I believe. ⁓ then there was nothing on Friday, nothing over the weekend as far as strikes are concerned. And then they finally made the comment and the ⁓ the statement about that. Basically, you wanted to give the whole tension, the whole situation a chance to cool down. So we saw an immediate reaction when the future started trading yesterday. We saw immediate reaction this morning the momentum built and built prior to the pre market session coming to an end at the opening bell at six thirty. Matter of fact, we're up almost six hundred points right before the opening bell this morning on the Dow. NASDAQ goes up a little over three hundred points at strengthened semiconductors. Suppose everything was lined up. Oil prices were plummeting, bond yields were coming down. Looked like it was gonna be a phenomenal day. Well, it turned out to be an okay day. Because the NASDAQ was not able to hold those gains. Here's how we finished up for the session. point gain on the Dow, 0.51%, with the Dow closing at 52,210. NASDAQ over, as I said, but not all that bad, just a 44 point decline. And the SP for the day was up ⁓ one point to close of 7,413. But the oil prices, really the story of the day. $6.69 decline in oil. $82.68 was the closing level. What a difference a few days make, right? Last week it looked like the world was coming to an end with oil prices because of the ongoing conflict. And now things seem to be so calm. Or at least what it's looking like right now. And so once again, we find ourselves in the situation. ⁓ day we're at war with them, the next day we're pausing trying to negotiate. Now, there is there was some controversy that came out over the weekend. Actually, it started on Friday and kind of made its way through the headlines on Saturday. a temporary break was needed because we're low on our military weapons stockpile. Now One let's just say some generals past present brought this concern, according to the New York Times. Trump administration insisted the US has plenty of ordinances. Trump said we have a lot of ammunition, different types, he told reporters on Air Force One while flying to Michigan. Trump also cast blame on former president ⁓ Joe Biden, saying his predecessor quote, gave a lot to Ukraine, and so we're building that up. But we have a lot. We have a lot of middle level stuff too, he added. I mean more than we could ever use, no matter what. So that's kind of what started things. everyone went, ⁓ that's the reason that he call called a a hiatus to ⁓ military strikes, because we don't have enough ammunition. I have insight, I have no way of knowing if that's true or false, but all we can is that it is false. Cause you gotta remember, we've had two weeks of strikes. Now the cestation came as diplomats, as I told you on Friday, between Oman few countries saying they were really pushing, remember I said backed by China, backed by China ⁓ stall this, right? try to get the negotiations going. ⁓ it was Pakistan, that came to mind. So it was Pakistan as well as Oman trying to again get the negotiations started all again, all backed by China. And I Said that seems really bizarre to me. it is what it is. But Iran's foreign ministry came out today and said Iran currently has no negotiations ongoing with the United States. So once again, who do you believe? Now, also the other event that unfolded was the Saudi military conducted strikes on the Iran-back Houthi targets in Yemen following the rebel group's attack in the Red Sea shipping in recent days. Remember, Saudi Arabia had a couple ships that were hit towards the end of last week. Meanwhile, this is interesting, I don't know if you've heard this or not on the war subject. Ukrainian military reportedly struck an Iranian commercial vessel in the Caspian Sea, killed one sailor, injured another. Kiev said the vessel was being used to transport military cargo supporting Russia's invasion of the country, while Turan decried the attacks as quote, hostile and a criminal act. So this has got me a bit concerned that now you're seeing Ukraine bombing missile attacks Iran. So now we're starting to drag Ukraine into the situation. But it's all coming back to, of course, is Russia involved in this? Well, I think we'd all be foolish to say they're not. There's a lot of controversy. I think it was on Thursday when ⁓ some were saying that Russia basically providing intelligence to Iran in regards to Where some of our military is located and so on and so forth. So who knows, right? As I always say, we're the last ones to ever really know. We have no insight to it. all we can do, as this market does, is trade off the headlines. So that was really the driving force as to what happened from the from the war situation. but know, other than that, it wasn't a day of of great movement. Now, the company that I was referring to earlier, who's back at the top of the world's most valuable company, is Apple. Stock rose $3.89 today, 1.17%, climbed to another all-time high. Software stocks pretty much overall outperformed, by the way. But Apple, again, nice performer there. NVIDIA, on the other hand, one of its worst days in history. Stock lost $10.31, 4.98% loss to $196.53. Now this is going to be the week of the Magnificent 7. We have four out of the Magnificent 7 names that are going to be reporting earnings this We've got Microsoft, we have Meta, we have Apple, and we have Amazon. So a lot of this buildup ⁓ ahead of Amazon, or excuse me, ahead of Apple, ahead of their earnings release is indicating that many people are very confident, of course, that Apple's going to have some very good news when the ⁓ numbers come out later in the week. Tesla, down three dollars and eighty-one cents. ⁓ It's its downward descent from week, of course, when they reported mixed earnings numbers and lot of capital expenditure spending. ⁓ Stock finished down $3.81, 1.22% to close at 309.22. Hughes was a nice standout, even though the rest of the oil patch was down. Stock rose 5.83%, $3.34 to $60.59. ⁓ However, bucked the broader sector weakness. And the reason being they reported better than expected earnings. So that was really about it. Where do we set on a year to date basis? Dow was is ⁓ is up 8.6% ⁓ for year, ⁓ SP 8.3%. NASDAQ, which again, we were, you know, what, 19, 20% at our best level. We're only up 7.3% year to date. the Russell 2000 is still the standout. It's definitely holding more steady than the other major averages. Russell 2000 up 18.8% for the year to date. I'll come back and once again refresh ⁓ on the oil side. We'll hit gold, hit the treasuries, and then once again, we're gonna get into our very important topic today. Beyond stocks and bonds, of 10 investments, you may not realize, may not realize. That can be held inside of your IRA. Welcome back to the John Sanchez Show on News Talk 780KOH. All right, before we get to our topic this afternoon, once again, I want to give you a quick reminder. This Wednesday, mark your calendar. Love to see ya. Love to see ya. I've got my next educational webinar on the estate planning issue, sponsored, of course, by specialized trusts and estate plans. you want to join this again, the title of it is ⁓ Your Trust Outdated? You see, many trusts created years ago no longer reflect your wishes. They don't reflect the current laws or your current financial situation. I'm going to show you the and teach you about the warning signs that your trust may need a review or a restatement and how to avoid the costly mistakes. as I told on Friday, I was ⁓ told by my team to announce this that the first 25 people, and I don't know how many we have at this point, to be honest with you, but the first 25 people that have an existing trust that join us in the webinar, you gotta sit to the whole one hour. I'm going to provide a free trust restatement evaluation for you. We're going take your trust. We're going to put it into our AI engines, our models, and we will give you a beautiful summary report of what your trust says, who you're leaving the money to, all the details of your existing trust that many of us forget, you know, years after we create our trust. then also our report's going to outline anything that needs to be corrected. This is a twelve hundred dollar value. And again, I'm going to give this to the first 25 people that join the webinar. Just go to specializetrust.com, click on the step. Learning Institute up at the upper right of the website. Click on webinars and you'll follow the instructions for the sign-up the event again this Wednesday, 6 to 7 p.m. Is your outdated is the topic? All right. Once on the market side of things, somewhat lackluster day today, ⁓ where we ⁓ just a very, very small gain on the market, finished up 263 on the Dow, NASDAQ lost 44 and the SP higher by one. All right. As I said at the beginning of the show, let's get down to our topic. Well, you know what? I gotta hit the commodity side. I apologize. I forgot to do that. As I mentioned earlier, six dollars and sixty-nine cent loss in oil, eighty-two sixty-eight a barrel, gold rose five dollars and ten cents to four thousand seventy-six forty, and we lost four basis points on the 10-year treasury at a four point six four percent. So nice to see those yields come down a bit. right, well, like I said, at the beginning of the show, I said, what happens and what do you think? What goes through your mind when you hear the word IRA? Again, I still get people that think an IRA can only be invested in ⁓ You know, a passbook savings account, a money market, that type of thing. And then the second step is, ⁓ yeah, it can be invested in your typical Wall Street investment, stocks, bonds, mutual funds, et cetera. And all those are correct. But there's so much more to it. much more to it. It's what we called a self-directed IRA. And want to be right up front with you when I say the self-directed IRA. There's many, many brokerage firms, some of the major national firms that use the word self-directed. But as you're going to learn, there's a whole nother definition of self-directed. Self-directed means you get to choose whatever your investments are. My definition of the self-directed IRA is you get to choose not only what investments, but investments that are outside of normal Wall Street investments, meaning outside the scope of stocks, bonds, mutual funds, et cetera. So you're going to be in for a real treat. Here we go. A properly structured self-directed IRA, if it is with the correct custodian, and that is the key to this whole thing, it has to be with the correct custodian. Many of your national custodians that many of you know do not offer what I'm about to tell you. Okay. There's really only a handful of custodians, I talk to a lot of these that offer the true self-directed IRA. ⁓ So again, if you want any information on these beyond the scope of today's show, just reach out to me at the office at 775-800-1801 or send me an email at John at SanchezGaunt.com and I'll be more than happy to share my knowledge with you on these. So, anyways, properly structured self-directed IRA may allow investments that many of you may never know were possible. ⁓ it's kind of a it's of a best kept secret, to be honest with you. Whenever I bring this topic up with a client, Their eyes kind of roll back in their head. They're like, You're kidding me. I can invest my IRA into that, into this. Yeah, you absolutely can. Matter of fact, I'm going to give you a little insight. If you pull the IRS tax codes, the IRS tax code does not say what your IRA can be invested into. What the IRS tax code says is what you cannot invest your IRA into. And that list is really simple. It's really small. You can't invest your IRA into collectibles, so stamps and rugs. You can't invest into life insurance You can't do what's called self-directed or self-dealing. This is where, as we're going to get into here in a second, where you're because we're gonna talk about real estate. and where the self-dealing comes into play is where you let a direct lineage of your family rent your property from you. You can't rent it, nor can you have your direct lineage. And again, it's a that's a nother show I'll do at some other point. but just keep that in mind. So Your investments are very, very wide open. Again, can't invest in life insurance, can't invest in collectibles. But I want to give you a little warning. Just because of the things I'm going to share with you, the 10 items that you can invest into, it doesn't mean that you should, right? Every investment has pros and cons. Every investment carries risk. But again, today's show is not about telling you what to buy. It's about helping you understand what is possible. So let's get into the first one. I just let the cat out of the bag. The real estate side of things. can your IRA own real estate? Well, again, it all starts with a custodian. And again, there's just a handful of these. what can your IRA own when it comes to real estate? A lot. It own single family homes, multifamily homes, pretty much anything on the investment real estate side of things. Commercial buildings, it can own raw land, it can own vacation rentals. It can own, ⁓ like said, pretty much anything that's investment real estate related. Now, many of you understand real estate. Matter of fact, some of you don't even invest in the stock market because you feel more comfortable with real estate. And there's nothing wrong with that. But I like the philosophy and I have the philosophy that as you've yeah, hence why I have r two real estate guys on my show single Tuesday and Thursday, and I have since 2008, because I firmly believe in my heart of hearts that a well rounded, diversified portfolio with non correlated assets, i.e. real estate, is how you build sustainable wealth. Not all in the stock market. I know. I know it's different from a broker to say that, but it's true. That's my that's my that's my feeling. So you could take a portion of your IRA you currently have invested in the stock market, move to one of these custodians, and go out and buy real estate. Maybe this is a way for you to go buy your first single family real estate, single family rental. Maybe it's a way you have some eye on ⁓ raw land that you think is a great investment opportunity. Or maybe you want to get into the vacation rental business. Think about it, it's really unlimited. But again, the key is, and I don't have time to get into the details. The key is making sure that that direct lineage does not use that property. of fact, there are a lot of rules. Again, I can't get into all the details of them today. I don't have enough time, unfortunately. but you can find yourself in a in a predicament where you decide to go out your handyman or handy girl. Well, you can't work on your own property if it's owned by your your your IRA. So that's just one of the, again, one of the many rules. Okay. So That opens up the door to a lot of different things for you, right? We did a lot of this years ago, right after the the the great you know great great recession, financial crisis, whatever you want to call it, when prices had plummeted. here's the beautiful thing about it before I get to my next area that you can invest your IRA into. Here's the great thing about it. Your investment, because it's an IRA, whether it's a traditional or a Roth, is growing 100%. Tax deferred. So let me just give you a hypothetical so you fully understand this. say you go buy a rental for $300,000. I know it's cheap, but I'm just make follow my numbers here. And find a tenant. That tenant, when they make the monthly payment, rent payments to you, they're not making them to you. They're making them to your IRA. So the check is made out to every month, to the custodian and to you. They send that check to the custodian. The custodian deposits that check into your IRA money market account. Okay. Zero tax. All that rental income coming in, tax. Because again, it's all in your IRA. You don't have it go to you, you have it go to your IRA. Okay. So let's say you fast forward the clock, and you paid $300,000. Let's say, man, we just had a great real estate run, and that rental is now worth a half a million. You go, you know what? I'm gonna take some chips off the table. I'm gonna sell this thing. So you sell it for $500,000. Again, you bought it for $300. That $200,000 capital gain. Zero tax it's still sheltered inside of your IRA. And again, you can do these with Roth IRAs also. So you see the power of it? You rental income coming in, you're not paying taxes on, and you tax-deferred growth, and you get to sell it without any capital gains tax. So remember, with a traditional IRA, of course, you're taxed once you start taking money out. Now you always to leave enough money in the IRA money market account to pay for your expenses, like property taxes and so on and so forth. You can still fund it every year with your IRA contribution if you're eligible to do that. It's just like a normal IRA, except it's owning real estate. So extremely powerful, especially if you can do this in a in a Roth IRA. I mean, just imagine the power of that. Tax deferred growth and then tax free withdrawal. So that's the real estate side of things. Again, I could spend hours talking to you about it, but you get the gist of it. I just want to make everybody aware that you can do that inside of an IRA. All right, when we come back, we'll talk about the next area private lending. Back to the John Sanchez Show on News Talk 780K H Happy Monday to all of you. ⁓ yes, the Monday's almost over. again, we finished up 263 on the Dow. The NASDAQ lost 44 in the SP higher by one. So lackluster day in the market. Big of course, in oil prices today. This was the ⁓ the culprit, as the president said that he was pausing any further military action against Iran for a few days or a few weeks. Who knows? They didn't, at least I was never able to see exactly what the time frame was, but it all acted it was gonna be something that was Maybe permanent oil filled by six dollars and sixty-nine cents, closing it at ⁓ a price of eighty-two dollars and sixty-eight cents. right, let's get back to our topic of the afternoon. ⁓ what's again, ⁓ ways that you can self-direct your IRA. 10 different investing options. All Now, I have a feeling I need to stop for a second because I I can feel you. I can feel you're you're getting all excited. You're like, ⁓ my gosh, your your your wheels are turning in your mind, thinking. This is the solution to my IRA. Maybe I'm tired of Wall Street. I want something different. Whatever it is. I want to diversify my portfolio. me pause I go on to the rest the different investments that you can your IRA into. And I want to make it really simple before I go through some of the, again, the prohibited. I I lift out as told you, you can't invest your IRA into life insurance. You can't invest it into collectibles. You cannot invest it into S corporation stock. That's the third one. beyond that, like I said, most things you're eligible for, as I'll continue down my list. But here's a simple question. I kind of call this the red flag rule. If you are thinking of something to invest your IRA into, remember this. yourself this question. Will you, will your family or your business receive any current personal benefit from this investment? If the answer is yes, it's probably going to be a prohibited transaction. So ja that's just a really, really simple rule of thumb. But me get more ⁓ details you. Here's again some prohibited transaction. This is where you can really find yourself in trouble with the IRS. The investments itself may be legal, but again, who benefits from them determines whether it's prohibited in the IRS's eyes. So IRA cannot transaction, cannot ⁓ conduct ⁓ transactions with a disqualified person. Who is that? You, your spouse, your parents, your grandparents, your children, your grandchildren, their spouses, and businesses you control. Let me go over that one more time. IRA cannot transact with a disqualified person who is again you, your spouse, your parents, your grandparents, children, grandchildren, their spouses, and businesses you control. Okay. So for example, buying your own rental house. You own a rental house personally, you cannot sell it to your IRA. You live in an IRA property. Can't do that either. Your IRA purchase a vacation home is an example. You can't stay there, vacation there, work on it. Let your children use it or let your parents use it. Not even one night. Working on the property, as I said earlier, suppose your IRA buys a rental home. You can't paint it, remodel it, replace the flooring, mow the lawn, repair the roof. Can't do anything. Your IRA must hire independent third parties and pay them directly. when I say that, keep in mind the IRA custodian also acts as like a property manager. So let's say you decide to get your house painted and it costs you whatever, $10,000. You write a check to the printer. Or printer to the painter. you what you do is you submit the invoice to the IRA custodian. They look it over, make sure it's a valid expense, and then the they turn around via your IRA and write that $10,000 check. That way your hands aren't touching it. Right? Same thing on the money coming in. Money comes in, it's payable to your IRA, you don't touch it. You can't lend to yourself. Your IRA cannot lend money to you, to your spouse, or your business. Personally guarantee alone. Now, this is where, again, I could spend hours talking about. A lot of people think, well, if I involve financing in the property, I'm going to lose the tax-deferred status. And again, would take me a long time to explain this. All I can tell you is don't do it, but there are some situations where you can. And here's what I mean. Let's say you file find a $500,000 rental, ⁓ you only have a $300,000 IRA. So you spend $300,000 of your IRA, that leaves $200,000 that need to go get financing on. Again, this is where it gets really messy. Some say that by doing so, then you will disallow the tax-deferred status of the IRA that you know, your your portion, your $300,000 you put in. Others say it won't, depending upon how the loan is written. You can only do non-recourse financing, which is really hard to come by. So again, very detailed. Can't, you know, go through exact details. How about businesses to avoid? Your IRA generally should not own businesses where you provide the services, you receive compensation, you actively manage operations for personal benefit. Again, the investment must be for the exclusive benefit of the IRA, not for your current personal benefit. Now, the penalty for a prohibited transaction, well, IRS takes this very, very seriously. If one occurs, listen to this. The IRA may be treated as Distributed as of January 1st of the year the transaction occurred. Ugh. The entire account can become taxable. And if you're under age 59 and a half, the additional 10% early withdrawal penalty may apply. Again, just ask yourself, real simple question: Will you, your family, or your business receive any current personal benefit from this investment? If the answer is yes, don't do it. Now, there's the bad news. Now let's go back to the opportunities that are there. we said, Real estate, again, single family homes, you as far as rentals, commercial buildings, raw land, vacation rentals, et cetera. Again, investment properties. Here's a fun one. I've had clients do over the years. Private lending. the bank, right? I say that facetiously, but do the lending to investors. They lend on real estate notes. Interest income generate. Again, they don't have to pay tax on it as long as it stays inside the IRA. So a lot ⁓ lot of great opportunity there. You have to be however, ⁓ that you don't crossover the the the Nevada laws for those here in Nevada, that you're not viewed as a quote lender, which again requires you to register with the state and, you know, jump through all the hoops of being a lender, which I don't think any of you want to do. ⁓ you got to be very, very careful how many loans, the size, and a lot of details again beyond today's discussion. But just know you can be the bank and you can privately lend. Private companies, yeah. I've covered this one. All of ⁓ probably know name Peter Thiel. ⁓ This is that story that I share with you. And there's many others like this out there. Where he was an early founder in PayPal, had a Roth IRA. And that's when PayPal, no one even knew about it. The stock was worth, you know, fractions of a cent. He loaded up on however many shares he could buy at the $2,500 Roth IRA level that he had. And now it's worth multi-billions, all tax-free. That's all inside of his IRA. So you can invest in private companies, startup companies, closely held businesses, private equity, so on and so forth. Number four. One near and dear to my heart, farmland. That's right. Your IRA can buy agricultural land, income-producing property. it can buy property for long-term appreciation. It can buy it for income. It can even buy the animals. ⁓ right. That's right. It can invest in the animals, such as cows. I wouldn't go down the path of horses or something that's non-income producing, but like chickens, lamb, pigs, cattle. Guess what? Your IRA can own those. Number five, precious metals. This one is very common. ⁓ your IRA can physically own gold, platinum, IRS approved bullion. Remember, you can't I was gonna say you can't ⁓ be control of this. There have been some some ⁓ situations I've heard of people actually custodian their own gold. And I've heard others say that's the last thing you want to do. That that could be a prohibited transaction. So I don't I don't have any expertise in that area, so don't take my word on it. All I can tell you is you can own precious metals and so on and so forth. there's a lot of gold IRA custodians. You hear them advertise, he used advertise a lot on my show, especially when the market got choppy, ⁓ would really start to advertise a lot. But yeah, I don't know if you can custodian your own or not. I'm gonna think you probably can't, but they're the experts on that side of it, not me. Tax liens. investment opportunity, right? property tax liens, whatever the very the reason for the lien. You can go in there with your IRA and buy it, right? Potential income, do your due diligence, know the risk that's involved there. Number seven, very common, promissory notes. That's right. secured notes, private debt, interest payments. Again, if you're looking for fixed income, this may be one way to do it. Like whether you're lending on the real estate or you're lending on the promissory note, just make sure: A, you got an attorney involved, B, your loan is securitized by something, some type of collateral. But ⁓ yeah, people love doing the promissory notes and because again, a lot of times they can find like whether it's a friend or even a stranger, it's you you almost become like a line of credit for them, right? They borrow 20,000 bucks from you, they get over you know a few weeks of payroll, whatever it is, then they pay you back and so on and so forth. So there's a lot of different ways you can do it. Again, just make sure you have an attorney drafted up and make sure that you are collateralized. one little point that I should mention very quickly before I go to break. ⁓ These IRA custodians, this is another misconception. They will not give you any legal or financial advice, right? They'll open these accounts for you all day long, but don't think they're going to be your outside counsel. They won't, or your outside financial advisor. won't. You have to know what you're doing and have the right team behind you in order to do it properly. All I'll come back with IRA Investments 8, 9, and 10. Welcome back to the John Sanchez Show on News Talk780 KOH. All right, let's get down to the last of our 10 investments you may not know you can invest your IRA into. Let give you a quick recap. And ⁓ in case you just joined us, once again, a lot of details, a lot of rules you have to follow. Need a great team behind you to do this. Investment number one, I said before, real estate. All different forms of investment in real estate. Number two, private lending. Number three, private companies. And number four, farmland, different aspects there. Including animals, number five, precious metals, number six, tax liens, seven, promissory notes. And on to number eight, oil and gas interest. Not real prevalent here locally. Maybe someone on the natural resource side with ⁓ some of the precious metals and things. But ⁓ you know, obviously you go to other parts of the country and investing in oil gas interests, very, very popular. So you got natural resources that you can invest into, alternative assets, so on and so forth. Again, not suitable for everyone. But again, just another example of investments beyond Wall Street. Number nine, this one's very popular also. interest, business ownership, alternative investments, passive investments. Some accounts can hold interest in LLCs, again, subject to IRS rules and regulations. Like everything I've said, all of these have rules behind them. If you know what you're doing, it can be an incredible way to diversify your IRA. If you don't follow the rules, it can be very, very expensive, as I covered. And number 10, traditional investments still matter, right? Your stocks, your bonds, your mutual funds, your ETFs, alternative investments or alt investments as we call them, they're not a replacement. But once again, they're just another way for you to diversify this retirement holding. It really is that. Now, will just one little step further for you. For those of you that are self-employed and maybe have what's called a solo 401k. If the plan is written correctly, plans will allow you to self-direct a portion of solo 401k, just as I just mentioned on these rules of a of a ⁓ IRA. So it's not just limited to the IRAs. Again, if there's certain parameters that are met ⁓ in to your employer sponsor plan, you can do that. So when we come, you know, kind of bring this all together, where does it fit in? Well, where we've used these in the past, again, when an unusual situation happens, that creates a what we feel is a great buying opportunity. Like I said, ⁓ did a lot of real estate in these in years past after the great ⁓ recession when real prices tumbled. the other advantage, I'm gonna go back to the real estate because that's probably most of interest to all of you. The other thing that's interesting when you do the real estate instead of the IR in inside of the IRA usually going to be a cash transaction. So what happens? Usually in many cases, you have really, really good negotiating power because you're paying with cash. Number two, it's a short escrow. I think the shortest escrow we did was five days ⁓ when were doing these a lot. simply because it's a it's a very, very quick transaction because it's cash. One little tip also that I'll share with you, among my many tips that I can't, again, I don't have time to give all of you is you decide to go out, first of all, make sure you're real estate professional. This is why I recommend you use Corey, because he he worked very closely with me on these. or Aaron. an agent to know how these work. The escrow companies have to know how they work. Okay. But back to the real estate agent. If a real estate agent doesn't tell you the following, they don't know what they're doing with an IRA. And that's the that's this. You when you make your offer, I don't care, seven days a week, 365 days a year, 24 hours a day, that offer has to be made in the name of the IRA. So one problem that we ran into before is people decide to go shopping on the weekend. They buy the or make an offer on the investment property, then they call me on Monday and go, hey, we want to use our IRA to buy this. Well, number one, the IRA I didn't know anything about it. Number two, the IRA was never set up. And number three, the offer was not written in name of the IRA. So we had some problems with this. And finally we kind of got those kinks worked out with people saying, Don't go shopping until your IRA is set up, you're ready to go, the money's in the IRA, so on and so forth. Because that offer, again, has ⁓ a specific And it has to be written in the name of your IRA. same thing. Escrow obviously has to be in the name of the IRA. And like I said, make sure that your escrow company knows how to do these. Not all escrow companies all the parameters of how to do it because they've got to talk to the IRA custodian and ⁓ so on so forth. So the bottom line is this. I covered a lot in a very short period of time. Again, I can't get into all the details, but the most important thing is. If you have an interest in doing this, reach out to me. I'll be more than happy to share you with you my knowledge and ⁓ how we can help you ⁓ do that. But again, I'm a big believer in them. They very, very nicely diversify a portfolio. ⁓ And you know, now that you know market's done okay this year, not as great as it was, but it's done okay. These are the times you want to start thinking about stuff like this, not when the market's crashing. You're like, ⁓ my God, what do I do? So once again, it's all about preparation. ⁓ God have a great afternoon. We'll see you tomorrow on the John Sancho Show.