Self-Directed IRAs or 401(k)s - Easy Tips From a Lawyer & CPA

Hey, welcome everybody to a live conversation about self directing your IRA, 401k, HSA, any of those retirement accounts. That's what I want to talk about today and do Q and A. I'm all here for you. I'm excited. Some people put a little message and say say the word whatever to prove that you're live. I'm really live, so I'll do that if someone throw out a comment. But I'm live on YouTube, on Facebook, entrepreneur, and live on my own Facebook channel, going three different channels. I only do this maybe once every two weeks and I want to say thank you for watching. Now real quick before you scroll on, I'm a CPA attorney, small business advisor, helping clients around the country. We have a law firm and accounting firm and we help our clients use their retirement accounts to buy real estate, to buy cars and flip them, to buy mobile homes, to buy currency, to buy gold, silver and buy racehorses and cows and bleh. You can buy all of that with your retirement account but your stockbroker is not going to tell you that because they don't get a commission. When you self direct, you have to move your account from a traditional financial advisory firm like John Hancock, Merrill Lynch, E.F. hutton, whatever. Are you listening? I'm just joking. That's an old one. Okay, but anyway, I'm too old. I look like a millennial, but I'm really not. Okay, so here's the thing. We're going to talk about self directing your retirement account and I'm going to give you some basics we're going to get on the whiteboard here. I'm going to give away some books for free. And I have a special where you can get a free book today as well. And my publisher is Entrepreneur. I love them. Ryan Shea, the CEO of Entrepreneur is awesome. He's an entrepreneur. He and his wife as well as the CEO of Entrepreneur magazine. He's awesome. And so I love the team over there, Vanessa, my publishing team, and Danielle. Thank you. So I'm here with you guys and I want to be a resource. So use and abuse me. Write your comments below and even if you don't catch this live, try to keep up on the comments on YouTube. Rosalie will help me and we'll make some comments back to you if you need it. Okay, Now I'm going to announce my winners in a moment of my last broadcast two weeks ago before 4th of July hit us. Right? And who won a book. And those have been shipped out. So I'll announce those winners shortly. Okay? Now let's get into this self directing concept and I'm just going to hit the basics and then I'm going to blow your mind with all the possibilities that you have. I recently shot a video yesterday four ways. It's on my YouTube channel. Four ways to get 15% returns in your Roth IRA every year. I know that sounds crazy too. So we can talk about it. I'm all yours. So for the next half hour we're going to be rocking it. Now here's how this basically works. Let's say you got. There's different ways to get in the game. Think of this like Monopoly and you could have the car or the ship or the little dog or whatever. There's different ways to get in. You could have an old 401k. So let's call this the old 401k from an old job. You've left that employment since then and now they've rolled the money to an IRA. Or it may be just stuck in an old 401k from a prior job. That's some of you have that. Others of you might have just a current IRA that you've put some money into over the years. Some of you might have a Roth IRA that you've put some money into. And I have some videos on how to build a million dollar Roth ira. Freaking cool. And some of you might have even nothing at all. And you're ready to get started. I'm going to say getting started. And then finally some of you have a health savings account. Do you know my health savings account owns a rental property? I know it sounds crazy too. It's paying for my daughter's braces so you can have any of the accounts. So for those of you that have a current job with a current 401k, you can't self direct because 99.9% of employers are captive to Wall street and they're not going to let you self direct. Now if you're an entrepreneur and you own your own business and you want a self directable 401k, call me, we can hook you up. But the bigger companies out there, they're going to align themselves with, you know, TD Ameritrade or Scottrade or any of these large brokerage houses for a 401k and when you're currently employed, you can't self direct. Okay, now what self direct means is you can take any of these dollar amounts and put them in the back seat of your car. You get. Well, I don't even want to say that any of These are a vehicle that you can now turn into. And someone didn't like that. I used a little vehicle drawn here on the board. They thought it was a little too childish. So forgive me, but I'm a visual guy and I want to have this little visual here. This is your car. I want you to be the driver of your car. You can drive your own car. That's called self directing. Now if you want to put something in the back seat, like gold, silver, whatever, real estate notes, you can do that because you're driving the car. It's a self directed vehicle. And so you're going to take one of these accounts and turn it into a self directed vehicle. If it's not self directed, your financial advisor is driving your car. Now you might be the passenger and you're going to say, oh, I want you to buy EFTs or exchange trade, sorry ETFs, exchange traded funds or mutual funds or bonds, an annuity, whatever. You can tell the driver to do that and that's what they'll put in the back seat. But they're only going to sell you what they get a commission on or they're selling at their brokerage. Now how this works, so on a practical step, and we'll go back to this is you're going to take your current and I'm just going to call any of these a CDERP A. So I'm going to call it a retirement plan and you're going to roll it into a CDERP a self directed retirement plan. Now when you move the money, it's actually not called a rollover, it's called a transfer. And you're just going to fire your broker. Let's say it's Oppenheimer and you're going to say, I want to self direct and I'm going to go to directed ira. I'm going to go to this trust company, I'm going to move my money. There is no tax, it's not a withdrawal and there's no penalty. You're just changing the driver of the car. You're kicking out the Oppenheimer advisor. They're going to warn you not to do it. It's illegal, it's bad. You're going to lose everything because they don't want you to go. You're going to hear every excuse in the book and you're going to roll or, sorry, transfer the money to a new custodian or trustee or trust or custodian. There's different terms for this and what I Love is directed ira.com. they're great. Directed ira.com. you can go there and set up an account and then just call your broker and say move my money. Now here's where it gets fun. On day two. That's right, on day one you move the money. There's no tax, no penalty. On day two you can create an llc. You could go directly and give someone a loan. You could go buy stock in a little startup, you could buy stock in a small restaurant down the street. Like I told you, I've literally had clients buying gold, silver, cryptocurrency, racehorses, cattle, raw land, mobile homes, rental property, all that stuff you can put in your retirement account. And I know some of you are going, mark, this is crazy. You have to be on the fringes. No, no. One quick example. Six years ago, seven years old, when Mitt Romney was running for president against President Obama and having debates, they asked for financial disclosure. President Romney said sure, no problem, we're still waiting for Trump's. That's okay. Not trying to get political, but we are. But Mitt Romney says, sure, I'll show you my, I'll open my kimono, I'll tell you what I own. He had a 20 million dollar IRA and they said how did you get 20 million dollars in your IRA? And he goes, I self directed, I invested my IRA and what I was doing at Bain Capital in Boston, Massachusetts. So when I was doing hospital takeovers, I throw my IRA in as an owner, a partner and it made huge returns. And Wall street was like, don't tell anybody. It was like on the 15th page of the Wall Street Journal because Wall street doesn't want you to know that you can do this. Ever since IRAs and 401 s were traded in the 70s under ERISA, the Employee Retirement Income Security act, ever since they were created, you could self direct, you could invest your retirement account and what you know best. So this has been around for 30, 40 years, 50 years. This is awesome. It's amazing. And so I want to answer your questions, if any of you have a question. So I'm going to turn to the ladies and say let's blow this up, let's go wherever you want with this and I'll show you some examples of how this can really take your retirement account to whole new levels. So Mallory, we got Jethos. Yes. Okay.

I have a Roth IRA for my employer and it is being invested with Wall Street. Can I switch that to my company, your company and self invest and have my employer contribute as well?

Okay, so Jethos Says he's at a current job and he's got an ira, a Roth. And he said, if he says he's at a current employer and he has an ira, what I think Jethos means is that he has a 401k at work and his employer is contributing to it. Because an IRA is an individual account, an employer can't put money in your IRA, so he has a Roth 401K. And many of you may have that at your job. A Roth 401K. We have it for our employees at our law firm. So he's got this 401k and his employer is putting money in it. And he said, can I roll some of that money out to an IRA and self direct? The answer is you can. It depends on if your employer's plan, if you're vested enough, will allow you to. There's no penalty, there's no tax. You just have to call up the HR administrator for your employer's company and say, hey, now these are some keywords I would use. People, am I vested to the point where I could do a rollover or a transfer of some of my 401k into an IRA? That's a rollover. And you'd say, can I roll that out to an ira? And they say, well, you can transfer out your contributions, but the employer matching would have to stay at the 401k. That's pretty common. So any of you that are wondering if you can access the money at your current Employers 401k plan, just give them a call. Just say, hey, can I roll out the money I put in? I'll leave the match money there and an employer will keep matching. But every year you might be allowed to roll out the money you've put in. So in Jethos's example, he'd have a 401k and in this bucket it would be divided in two. This part he'd roll out to an IRA. This part the employer would continue to contribute to. And then when he leaves the job someday, he throws it back out to an ira. So Jethos, great question. Oh, Maria, we got Herb.

Yeah, Herb from Mont. I have a solo 401k now for 2 years. I am now considering starting a second vacuum that will have full time employment.

Excellent question. Herb says, thanks everybody for letting me repeat these. The microphone was lost on my behalf when I was transporting over the weekend on fourth of July. So I got to get it back to the studio. It was my bad. Okay, so Herb says he has a solo 401k now. This is another variation, people. That's pretty cool. You can have an S Corporation or an LLC or a sole proprietor and own the business 100% yourself. So this is Herb. Herb's down here and he owns this business. And what he did is he sponsored a 401k and he can match it all he wants with very flexible limits. And he said It's a Solo 401K. What that means is Herb, his spouse and kids can all play in this 401k. So he can make contributions to the 401k and he can self direct it and buy real estate, set up LLCs, whatever he wants inside the 401k. That's a solo 401k. We set him up for 499 bucks for a DIY for a solo 401k at our office or 999 and I'll give you our website at the end if you want to do that. So you can set up your own 401k. And Herb is more than likely the trustee. He's the trustee of his own 401k. Fees for this at our office are around $300 a year. Very affordable. No stockbroker taking commissions, no hidden fees. Beautiful. Right now what Herb says, well, I'm going to hire employees. So Herb is the only employee right now. And so we can put money in his 401K. And Herb can contribute too. And so here's his W2. He's getting what's called a K1K, a W2. That's a beautiful strategy. I've got all sorts of videos on my YouTube channel about S corporations. Check it out. So Herb says, I'm going to get employees. It can, it's going to change your 401k. Now let me throw this out. If you don't hire any full time employees then and then you do not have to change to a group 401k. But if you hire full time employees, you're going to have to change this solo to a group. We have a company we work with that specializes in those. And this group, this will go away and you'll have a group 401k. You can still put money in, but you're going to have to set up some small matching amounts for your employees. It's not the end of the world. Herb, run the numbers. We do it at our firm and it's a great way to retain employees. And instead of maybe giving as aggressive raises next year, we you hire an employee, you tell them they have to best after one year that's how our firm works. Any of our employees that join our firm, they don't best for a year and then we start doing some matching. And if they don't stay longer than two years, we get to keep whatever we put in there for them. So you can put these little rules in there to make sure that they stay. Because if I'm going to get set up a 401k for my employees, I want them to stay. I want to make it nice. And so that's what you're going to want to consider, Herb. So give us a call. We can walk you through your options. And usually just a half hour, an hour with one of our tax attorneys, boom, you're off to the races and you know what to look for. But you want to shop for a self directed group, 401k so you don't get stuck in Wall street again. Mallory. Jordan.

Jordan says, is there a way to combine my Roth IRA funds with my wife's 401k fund from a previous employer to one self directed account for us to invest?

Yes, Jordan says. Jordan said. He goes, I've got a Roth. My wife has an old 401k from a prior job. Is there any way to combine these into one account? No, but I got a better idea. You're gonna like this, Jordan. So here's Jordan here, and he's got an ira. Oh, let's do this. We'll put the IRA above Jordan and then why here she is. Audio problems, Audio problems. Stay there, stay there. Thanks, everybody. You can hear me now. Okay, are we okay, Any comments below saying you can hear me now would be appreciated. Okay, thanks everybody. A little audio technical. Okay, so here's Jordan with a Roth IRA. Here's his wife with an old 401K. He said, we want to combine him into one account. You can't do that because your IRA is an individual retirement account to you and your wife is hers. But here's what we do. This is what our law guys, if you want to know my jaded interest in this, I won't lie to you. First of all, we're a CPA firm and we want to help our clients make as much money as they can and save taxes. And so we encourage them to put money in IRAs and 401ks. We educate our clients on that. Also in my law firm, because I'm a lawyer and a CPA is we want to set up LLC for clients. We want to structure the business for asset protection and help them build wealth where we make money we don't make money on your investment. We don't get commissions, none of that. But what we do is set up the llc and this is what's legally you can do, Jordan, you can take your Roth IRA and make it a partner with your wife's old IRA from the 401K. Now we create an LLC and let's say there's 20 grand in your IRA and 80 grand in her IRA. The ownership is 20%. 80%. And then you've got your hundred grand in your LLC. You get to be the manager of the LLC with your wife if you want, or she can be the manager, I don't care. And then you go out and do deals. You could buy mobile homes, you could flip vehicles, you could flip real estate. You could invest in gold or silver, whatever you'd like. There are a couple rules. You cannot invest in collectibles. Like you cannot buy a wine collection because wine collections, interestingly enough, turn into bottle collections. I don't. I don't know why, but they just kind of do. So we want to make sure that we're investing in things you don't get to enjoy. Used to be able to invest in a painting and then put it in your house and they're like, nah, that doesn't work. So anyway, this LLC is what we do. We charge around 1500 bucks. You get an hour with the tax lawyer and we set this up and you're off to the races. Now Both of your IRAs are combined and you split the profit. In this example, 80, 20. That's how it works. Jordan. Call me. We'll hook you up. All right, Brandi, what do we got?

So Brandy is a. I just left my job to work my NWM business full time. Don't know what to do with my following.

Okay, Brandi says she just left her job to work her multi level marketing business, which I love, and she's going to take her old 401k, roll it to an IRA, and then what? What do you do? And I know many of you are faced with this question. It is common, right? We're like, well, just buy more mutual funds or whatever. And you know what? It's funny. I had a client in my office yesterday that drove across the state to come meet with me, which you don't have to do. Any of you around the country can get on a phone, call a Skype, a zoom, whatever. And we talk to our clients around the country and do a consultation. But this guy wanted to drive over any great guy he knows. If he's watching. I want to tell him, thank you. But he came over and he said, this is what he said in our meeting. Mark, I just opened up my IRA account to look at the statement, and it's the same value it was in 2014. Does that happen to any of you? It does. It's crazy, right? And I said, well, at least you didn't lose it. I mean, but it's crazy. And so Brandy here is saying, I've got this IRA from my old job that rolled out of a 401k. What should I do with it? So what I would recommend, and this is a really crazy point, so hang with me. She's going to take the 401k, roll it to an IRA, and she's got her little IRA. I might start having you chunk it into a Roth, changing it into a Roth ira. But what I would do is move it to a self directed IRA. And the company I love is directed IRA.com. again. Get over there, folks. If you want, you set up an account for 3, 350, something like that. Directed ira.com. and your money's there, Brandi. And then we call you. Literally, we could call you next week and say, what do you want to do with it? So my recommendation is Brandi. Everybody listening? Invest in what you know. That's it. Brandi, if you know food and your sister runs a catering business, invest in her catering business. If you know cupcakes, open a cupcake shop. If you know horses, buy some horses and breed them. I don't know. Now, there's rules of how much labor you can provide, but if you winner, invest in what you know. Doesn't that sound crazy? But, Brandi, what we might want to do is form an LLC and then go invest. You know, yesterday I was at a jewelry store. It was my wife's birthday. Yes, I was at the jewelry store on the day of her birthday. She is not watching. She does not watch my life. So. So none of you contact her and tell me, tell her I told you this, but I was in a jewelry store yesterday, walked in the small town jewelry store, and one of the guys is like, mark, Mark, I was at one of your workshops and I was like, dude, thanks. And so I recognized his face. He said, mark, let me tell you the business. And I told him, I'm going to have him out on our podcast. Now. This is what he's doing. He's writing a book saying, forget flipping houses, flip your car. And he is an expert at finding trucks and cars at a third of the value, he does four or five of them a year. He'll buy a truck for five grand and sell it for 15. And he goes, it's not that hard. He goes, I've created an E book on how to do it and a bunch of videos and I'm going to start selling it. And I go, dude, I would love to do that. Because Brandi could take her 5 or 10 or 20 grand in her little IRA, put it in an LLC, go shopping for a car. Under Austin's strategy, I'll have him out on the show, and Austin's going to say, here's what you could buy. You could go out and buy two Ford F150s at auction and then put them up for sale on Craigslist and do a detail, add a new stereo, whatever. He'll teach you what to do. And as long as your role in that is minimal, and you might even hire an auto body shop to do the installation, put it up for sale. All the money you make is tax free. And it drops into Brandy's llc. That's how easy it is. People invest in what you know, Brandy, that's the answer. All right, Wayne.

Wayne says, I have an S Corp. Can my S Corp contribute to my 401k at 100% if I want to contribute more?

Okay, Wayne says he has an S Corp And Wayne, I'm going to assume this is good for everybody out there. He says he's got an S Corp and Wayne is the owner. And he says, I want to contribute to my 401k 100%. Now let's, let's say what Wayne can really do. Now this is cool. Everybody, you're going to love this. This is my O.J. simpson strategy. You're going to, you're going to love this. So what Wayne can do is create a solo 401k. We talked about that a little earlier. He creates a solo 401k and Wayne, we're going to assume, is the only employee. So Wayne is here. He's got a W2. Now, how much can Wayne put in his 401k? Now I'm going to do a salary dividend split that's appropriate based on his profit. Now if you watch my other videos on YouTube on S corporations, he could be a real estate broker, an electrician, a contractor, or a multi level marketer, Internet marketer. And he's bringing in, say 150 grand. He's spending 50 grand on expenses. And let's say he's netting $100,000. Now this is Good. Stay with me, Wayne. So he's going to make 100 grand in his business. Now if I was in a consultation with Wayne, that's what I'd be asking him. He married? Is he single? Does he have kids? What type of profit is he making? Because that really plays into it. That's why you get an hour with an attorney when you set up an S corp with us or set up a 401k so we can tailor it to you. But okay, so let's say he's got 100 grand. We're going to do 40,000 in salary and 60 grand in what we call K1 pass through. He's going to get the new GOP Donald Trump deduction of 20%, which is a $12,000 deduction. And he only pays tax on 48,000. What, he gets a salary for 40. Now how much can he put in his W2? This, how much can he put in his 401K? This year he could do 19,000. So we could take 19 out of that. That's cool. So now we're, if we minus that away, that's 30, minus 9, that's 21,000. So his W2 now says 21. We just whittled off 19,000. That goes into the 401K. Now the 401K can do a match of 100% or 25% of your salary, whichever is less. So I'd have to do the math and say, well, 100% of 19,000 is 19,000 or 25% of his salary, which would be 10. So I'd go, okay, he can put 10,000 from the S corp in here and that would be a deduction off the bottom line. So now his K1 turns into 50 and his deduction turns into 10. And now he's. See how this plays out. Anyway, so he's going to put $29,000 in his 401k. He gets a write off for $29,000 in his S Corp for his 401k. Is that a little better than an IRA freak? Yeah, that's a technical term. So what was his name? Wayne. Wayne. Wayne. Wayne. Yes. You want to do a solo 401k and in fact, any of you watching that have a solo 401k or S Corp, watch my video on YouTube. Type in Kohler sweet spot. Now I make sure you put my name in there before you Google sweet spot because I'm not going to be liable for the videos that will come up. But just look for Kohler sweet spot and you'll find out where did the part. There is. There's a sweet spot of how much to put in your salary or 401k. And you want to be. Bam. I want to be right there. So study up on that. And if your accountant isn't teaching you this, guys. Wayne, if you're having to teach your accountant about this, you got the wrong freaking accountant. So you might want to upgrade. Get a consult with one of my attorneys when we set up your solo 401k. All right, Herb has another question. Whoa. Are we going to throw down two questions for Herb? Rosalie's got your back, buddy. Okay, okay, now hold up. Before you guys go, let me say this. I want to announce this. Here's the winners of last week's book. So hold that question. I have three books that are just massive, great best sellers on Amazon. The first one is called Financial freedom, the business owner's guide to financial freedom. What Wall street isn't telling you. I gave this away two weeks ago, and Ameris Brown from my Marc J. Kohler Facebook won that. Then my new book, the tax and legal playbook, second edition, was one by Charismatic Chaney. What a cool name. Charismatic. Her parents were thinking she won that from entrepreneur Facebook. Did they already receive these in the mail? Okay, they're autographed and in the mail already. And then, eight steps to build your business. This is a workbook with over 60 videos in it. And you can scan over the QR code and start watching videos and podcasts and webinars immediately. It's only 99 bucks. Almost 30 hours of content inside a workbook, and you get a business plan and a marketing plan anyway. It's awesome. The winner of that was Kendrick Faison, and he won that on my MJK YouTube. Now, here's the deal. I'm going to give away these three books again. This is almost $150 of value. I don't know why I'm doing this. Why am I doing this? Rosalie, this is your idea, okay? She's doing it for my fans. Okay? Now, here's all you have to do to get in the drawing. Share this video. Just share it on YouTube or Facebook and let Rosalie know. And she's going to do a drawing in the morning, and she'll email the winners, and I'll announce it. Next week, I'll do another Facebook Live. I usually do them on Thursdays. This week is Wednesday because I'm giving a workshop in LA this weekend. Now, share the video, win the book, and I'll tell everybody else. How to get a free copy of the book here in a moment. Okay, so Herb, what's his question?

If I take just a 5k loan from my solo 401k with the 5 year repayment term, can I set it up as an interest only with the balloon repayment plan and how to determine the rate to charge paid to avoid red flag.

Okay, so what Herb is wanting to do is he's. Let's use Wayne's example here. Let's say Herb set up his S Corp, set up a Solo 401K and you could self direct this and invest it. But what Herb wants to do is take a loan against his 401k. Now the rule allows you to borrow up to 50% of your 401k. So in this example, if we were using Wayne's example here, he could borrow. What is this? 14:5. So $14,500. So Wayne could borrow $14,500. And here's what's cool. He could use that $14,000 to go on a cruise around the world, which I would hope he would not do or start a business. But all the payments go back into his own 401k and all the interest he pays back to his own 401k could be tax deductible if he starts a business with this 14 5. So check this out. You're getting a tax write off to pay your own 401k interest that's growing tax free. Is that crazy? All right, so that's what Herb wants to do, and I'm good with that. But Herb said he wants to do interest only with a balloon and he wants to adjust the interest rate. Herb, we don't recommend that. Your 401k documents are going to tell you how the loan has to be drafted. My understanding is it has to be principal and interest under a five year amortization under the federal standard rate plus 2%. There's a. It's like the, the fibo. The fibo. Oh my gosh, I forgot the name of it. Anyway, it's going to be prime plus 2% approximately. Something like that. If you set up the 401k with our office, we give you the loan documents and the loan calculation, amortization schedule every time you do it and you administer it yourself. But you got to follow the rules or you're going to get audited. So it's good. You can do a loan and you can borrow up to 50%, but you've got to do a five year AM with principal and follow the Interest rate provisions inside the 401k documents, which we give you in our 401k package. All right, we're going to do maybe a couple more questions. Maybe that's good. Two more. We got Matt and Alicia. So hang on, Matt.

Matt says if I buy a multifamily real estate property with my self directed ira, can I hire my management company with an llc?

Okay. Matt says if he takes his ira, forms an LLC and buys a multifamily, let's say a four plex, and he wants to hire his S corp to be the manager of the 4 Plex because his IRA owns the LLC and his LLC owns the fourplex, can the fourplex hire his S corp? So down here is Matt. It's Matt, right? And Matt's here. Matt, I hate to say the answer is no. You cannot hire your own company to manage your own IRA property. Nor can you hire your spouse's company, your children's company, or your parents company. You have to hire a third party. Now if you get caught by the irs, they will distribute the entire IRA with penalties and taxes. And I'll be honest, it's pissing me off right now. There's a guy on my street, literally in this little town in Idaho I live in, that has a rental property on my street owned by his ira. And I think it's great. But he's his own property manager and oh, do I want to turn in this guy. And he is a jerk. Everybody on the street hates him. I'm like this close to like calling the custodian company and that and the IRS and turning him in. If he like looks at me sideways one day in the next few weeks, I'm freaking calling. But anyway, that's illegal and he would have a major audit problem. So Matt, just hire a third party. It's cool. You're still going to get a great freaking return. You're going to outperform Wall street every freaking day of the week. I would expect you to see a 20 to 30% ROI at the end of this investment per year. I watch my other videos on the four benefits of rental real estate, people. The numbers are nuts. So Matt, you're on the right track, but you can't hire yourself to manage it. Okay, Alicia, what are the cons of

self Direct IRA llc? Are they annual fees each year?

Okay, so Alicia says, mark, if I set up this LLC like Matt did, what are the fees? How much does this cost? Great question. Okay, Your self directed IRA at our office at directed ira.com is boy your annual fees are around 3 to 400 a year. So you're going to have an annual fee here. And some IRA companies charge a percentage of how much your IRA is worth. You want to get a flat fee. We have a flat fee schedule. So I plan on around 3 to 400 bucks here to manage the IRA, which is okay. Stockbrokers make a lot more than that when they take a percentage of your ira. Next, the llc, you're going to have to set it up. We set it up. And if it's 100% owned by your IRA, our fee is $800 plus filing fee in any state in the country. If it's a multi member ira, like if you remember, Brady was going to do it with his wife. One of our earlier questions, that's a two member LLC. We charge $1,500. They're more complicated, there's more rules to follow and more consultation. So you're looking to set it up around 800 to $1,500. Plus the filing fee in most states is around 200 bucks annually. You're going to love this annually. The only other fee is to the state to keep your company in good standing. We have a company maintenance program around 150 bucks and then your filing fee per state is around $50 on average. California, 800 bucks. Other states can be a little more expensive too. So Alicia, I want to, I can answer a more accurately when you tell me what state the LLC is going to be formed, you're going to have to do a tax return. If it's more than a two member IRA and you're looking at probably 1000 bucks a year for the tax return. So what that says is unless you're making some good money with this little self directing strategy, you're going to realize that you're going to have about 1500 bucks out the gate to set it up and probably if it's a multi member llc, about a thousand a year to maintain it at least. Now if it's a single member llc, no tax return required unless you have ubit, which is a whole other story. But very rarely are you going to have a tax return. So Alicia, this could be very affordable. And here's what I say, get a consultation with us for maybe 300 bucks for an hour with one of our attorneys. If you set up the LLC, the 300 goes towards the cost of setting it up. If you don't set up the llc, at least you got some great advice. And so start out with an hour. You can talk to Devin, Jerem, Christy Lee Chen. We have four different attorneys that you could talk to and they'll. Oh, and Kevin, I almost forgot. Kevin. Oh my gosh, I hope he's not watching. Kevin's over here. This is Kevin. He's very important. We have five different attorneys that you can talk to and they can guide you through it. And any fee you pay them during the consultation will be applied towards the setup of the llc. Now guys, here's how you can get a free copy of my book, what I'm doing. This is my new book, the Tax and Legal Playbook. It comes out on Amazon July 23rd. I only have advanced copies from the printer in my office. You can't even get it on Amazon. I can't even get it on Amazon. Anyway, I have five workshops in the fall around the country. 150 bucks early bird special right now on all five locations. Philadelphia, Chicago, Orange County, Seattle and Honolulu. Those five locations, if you buy a ticket, 150 bucks includes lunch. I'm doing Philly steak sandwiches in Philadelphia and a luau in Hawaii. Boom. I better do Mexican food in Orange County. I love the Mexican food down there. Anyway, you get a free copy of my book autographed, no shipping. So if you get to my website, website right now and let me write it down just so you've got a couple resources here, I want to throw this down markj kohler.com and you buy the ticket to my workshop right now. I'll send you a free book autographed to you probably on Monday. I got to go to LA tomorrow, but Rosalie will prepare these. So as soon as you buy a ticket, you'll get a free book. We'll make sure that's indicated on my website. If you need a lawyer consultation, you're like, guys, I just want to learn more about this and I need some help on my plan. Any of those questions would you could use a consult. Go to kkoslawyers.com and you can get a hold of any of the schedulers there that can get you an appointment with one of the attorneys. And finally, if you want to self direct, go to Directed Iraq directed ira.com to open up your account right now and start moving money over there. All of my family, my kids, my health savings account is@directed ira.com I love it. It works a great. It does great. So get out there. The dates there's Seattle is in September on 9 21. Chicago is October 12th. Philadelphia is November 2nd. Hawaii is the Saturday before Thanksgiving. So November 23rd make it a tax write off. Come on over for an education seminar. 150 bucks. You can't even go to Vegas for some stupid Internet conference for less than 500. And you get me for six hours with lunch. Continuing education for any of you CPAs, attorneys, doctors, dentists, brokers, continuing education certificate. And then Orange county on December 7th. And here's the bonus. December 7th is a virtual broadcast. 99 bucks and you get my book for free. All of you, no matter where you attend, you get a recording of the workshop on December 7th. So lots of fun. I was going to do December 7th in Honolulu, but it's kind of busy in Hawaii on December 7th. You might remember why. Anyway, subscribe to my weekly newsletter. It's down below and it's a free newsletter every week. Last night I was up until one in the morning typing it up. I do it every week. And we're going to Hawaii on August 10th for an entire day on self directing. Go to sdirasummit.com Let me write that down. SDIRA self directed. IRA summit.com and is summit with two M's. It is, right? Two M's, two T's. One T. See, I'm so bad. One T, two M's. All right. Well, thanks for watching everybody. I'll be here every week. This is a time for you to ask questions. I appreciate your business. Get out to the workshop. Please follow me on social media and hit the notification bell. So every time I shoot a new video, you get a copy and share the video and you'll win a book. Maybe. So thanks everybody. Have a great weekend.