How do I invest my Rollover IRA funds into non-marketable securities?
Jul 01, 2009 in
Questions And Answers
I have a Rollover IRA established at a major brokerage account. A reliable and trustworthy friend is owner of an LLC which invests in real estate tax liens. The LLC has a very low risk return averaging 10-12% per year. I would like to invest the funds from my Rollover into this LLC. However, the brokerage house which manages my IRA will not allow this. As such, I’m considering managing the Rollover IRA myself so that I can particpate in the LLC. However, I have no clue how to even begin doing this, much less all the legal / tax stuff. Is there anyone who could point me in the right direction?
Thanks.
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One comment
Rigo C on July 1, 2009 at 8:51 pm
You need to rollover the IRA into a self-directed IRA to be able to use those funds in the manner that you want. Be very aware of the risks you are taking by 1- managing the IRA your self 2- the risk that you are taking by giving the money to your friend. Make sure you have a contract and if he is looking for investors all the time he should have a prospectus on his investment portfolio.
Good Luck.
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