The Prosperity Blog

The Self-Directed IRA: Pros, Cons and FAQs

During his presidential run, Mitt Romney came under scrutiny when it came to light that he had acquired something of a fortune in his self-directed IRA. According to Forbes.com, Romney’s IRA was worth between $20.7 and $101.6 million. How did he acquire such wealth in a qualified plan environment?

The answer lies in the descriptor “self-directed.” Because Romney this had a self-directed IRA (aka SDIRA), he was able to use his IRA to fund venture capital and private equity investments inside his retirement account. When Bain Capital (in which Romney was a founding partner) became highly successful, Romney’s wealth ballooned.

While few people have the ability to turn limited retirement plan contributions into many millions, the financial container Romney used to grow his investments tax-deferred is not reserved for multi-millionaires. Any American can open a self-directed IRA and use it to invest in (almost) anything they wish.

In this article, we outline self-directed IRA pros and cons and the basics of self-directed IRAs, including:

  • What is a self-directed IRA?
  • What can you invest in within a self-directed IRA?
  • What are self-directed IRA pros and cons, advantages and disadvantages?
  • Who might benefit from one?
  • What is the process and how do you begin it?

Then at the end of this article, we’ll list links to additional resources for further information.

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What Does Capitalism Mean to You? – Episode 369

Kim and Spencer dive into the definition of capitalism: how it works, is created, and provides in today’s world, its future, and how we can embrace it.

Best-selling author Kim Butler and Spencer Shaw show you how to take more control of your finances. Tune in to The Prosperity Podcast to learn more about Prosperity Economics thinking and strategies today!

Do you have a question you would like answered on the show? Please send it to us at hello@partners4prosperity.com and we may answer it in an upcoming episode.

Links and Resources from this Episode

Show Notes

  • Kim’s definition of capitalism – 0:23
  • The movement of money – 1:44
  • Capitalism works, creates and provides – 2:16
  • Spencer’s definition of capitalism – 5:14
  • How to have conversations with people – 10:45
  • The tone of voice when you have a conversation – 11:35
  • Seeking to be understood – 15:44
  • The principle of control – 17:18
  • What capitalism is all about – 18:26

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Kim Butler’s groundbreaking eBook/ audiobook explains why typical financial advice may be sabotaging your wealth… and what to do instead! 

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5 Reasons to Have a Business (even if it’s a side-gig!)

This year has been an adventure in uncertainty. We could not take even simple things for granted: going out to eat, attending church, working out at the gym, even finding toilet paper at the store! And financial uncertainty has been a part of that, with record levels of sudden unemployment and business closures.

2020 was a tough year for entrepreneurs and business owners. According to data from a Yelp survey, half of the businesses that closed due to the lockdowns are now closed permanently. In spite of this daunting statistic, there are still compelling reasons to have a business. If anything, the events of the recent months reveal key reasons why everyone should have a business—even if it is a side-gig!

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Financial and Entrepreneur Reading List of Books – Episode 368

What’s a favorite book that you’ve read recently? Kim and Spencer dive into some financial and entrepreneur book lists that you can use!

Best-selling author Kim Butler and Spencer Shaw show you how to take more control of your finances. Tune in to The Prosperity Podcast to learn more about Prosperity Economics thinking and strategies today!

Do you have a question you would like answered on the show? Please send it to us at hello@partners4prosperity.com and we may answer it in an upcoming episode.

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21 Gratitude Benefits for Happiness, Health and Wealth!

“Gratitude for the present moment and the fullness of life now is the true prosperity.” – Eckhart Tolle

2020 has been an unbelievable year—one with unusual challenges! In addition to the health and economic crisis, the media floods us with information to keep us stressed and outraged. Ironically, that state of mind only endangers our health and wealth!

Now more than ever, it is imperative that you control and direct your mindset. We have limited control over external circumstances, but we have complete control how we respond to challenges!

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