LIKE
Friday March 29, 2024


Click the logos
for news and info
about these companies

Non-Profits & Special Events








Products & Services










Banking & Finance




Construction &
Real Estate






Travel & Tourism








Public Affairs











Top Headlines

For Immediate Release
March 30, 2011

Contact:
Laurie Bachelder, Principal, NUA Advisors, LLC
207.879.1127
E-mail: laurie@nuaadvisors.com

Beryl Wolfe, Wolfe PR
520.207.9581

Web Site: http://www.nuadvisors.com

Self Directed Retirement Accounts on the Rise as Investors Saving for Retirement Seek Creativity and Diversification

Laurie Bachelder of NUA Advisors, LLC outlines how non-traditional investments work in self-directed IRAs

PORTLAND, Maine (March 22, 2011) – Self Directed Retirement Accounts (SDRAs) allow investors to legally invest in something they know or understand – be it real estate, the restaurant business, golf courses, RV parks, even show horses – all within a qualified retirement account.

But many investors shy away, said Laurie Bachelder of NUA Advisors, thinking SDRAs are too complicated.

“All individual retirement accounts, whether they are traditional IRAs, Roth IRAs, Health Savings Accounts or Coverdell Education Savings Accounts, allow for investors to invest in traditional and/or non-traditional investments on a tax advantaged basis,” she said. “It’s a matter of finding the right advisor to help you do it.”

Bachelder said SDRAs, also known as self-directed IRAs, are becoming more appealing since they allow for a variety of investments – beyond the traditional securities markets of stocks, bonds, and mutual funds – giving investors greater portfolio diversification within their SDRA. Non-traditional investment opportunities are virtually endless, she said, with a few exceptions per the Internal Revenue Code (IRC).

Available to the public since 1974
Since the creation of the IRA in 1974, Americans have been able to utilize their tax-deferred retirement assets for the purchase of a wide range of non-traditional assets, all spelled out by the IRS in Publication 590.

“But somewhere along the way, one of the most important concepts of owning an IRA - the concept of self-directing your assets – was lost,” Bachelder said. “As a result, many investors erroneously believe their retirement accounts have to be invested in stocks, bonds and mutual funds. In fact, IRAs were actually intended for individuals to be able to invest in assets that make sense for the individual investor. Only a fraction of Americans are aware of this important intent of the IRA, but that is changing.”
Laurie Bachelder of NUA Advisors, LLC, bridging the gap between traditional and non traditional investments in self directed retirement accounts, SDRAs, and self directed IRAs. Bachelder’s firm, NUA Advisors (www.nuaadvisors.com), is based in Portland, Maine, and has offices and clients throughout the U.S. Usually the first step in pursuing a SDRA is an initial meeting to look at the non-traditional asset the client wants to invest in, then doing the risk analyis and due diligence on the investment.

“We then work with client to structure it properly to be held in the SDRA,” she said. “While the alternative investment is in the SDRA we continue to monitor the investment as well as all income and expenses associated with it, as well as work on an exit strategy.”

NUA also manages traditional investment portfolios for clients, but she said portfolio diversification is changing. “Our platform is not intended to replace traditional investments but to supplement them,” Bachelder added. “We introduce investors to strategies designed to provide true diversification that does not correlate with the traditional equity and bond markets.”

Real Estate a popular choice
Real estate is a popular choice for many SDRAs because people are familiar with how real estate works. A real estate investment in an IRA, however, is for investment purposes only. If it is real estate, you and/or any disqualified persons may not use it – the account owner, spouse, children, children’s spouse, parents and their spouse are all disqualified parties. And if, for example, it is a boat dock you invest in, you cannot park your own boat there, you can only rent out the slips for income, she said.

Bachelder said to think of it as a mutual fund or stock. “We cannot benefit from the asset or the income of the asset, while held in the SDRA, as is true for any investment held in a tax-deferred retirement account.”

Second homes or international real estate also is permitted, but cannot be used personally while it is in the SDRA. If a client wanted to purchase their retirement home in their SDRA, they can do that, but they would need to rent it out until they retire and then distribute the property out of the SDRA to be able to use it. Still, it’s a viable option for people thinking ahead.

How does it work?
The only difference between a ‘traditional IRA’ of stocks, bonds and mutual funds and a SDRA with non-traditional assets is the custodian. The retirement vehicle must be housed by a special asset custodian that allows for non-traditional assets. Technically there is no difference among the accounts themselves. Most custodians only allow for traditional assets to be held in the retirement account. NUA works with numerous custodians that are ‘non traditional asset’ friendly. They provide the assessment to qualify not only the appropriate custodian, but the custodian that is most advantageous to the client in regard to services and fees.

And as with any asset, be it real estate with rental income or horses with proceeds from sales, most will have income and expenses. All of that income must flow back into the SDRA and all expenses must be paid for money from a SDRA.

There are risks, as with any investment, Bachelder added. SDRAs are typically suitable for all investors, but you do have to do the risk analysis and exit strategy before investing.

“If someone needed cash flow right away then buying a building and waiting for appreciation may not be the best asset to put in an SDRA – unless it is a depressed property that can be fixed up, appreciate in value and sold quickly at a profit. As the advisor we look at all of the factors involved. Even if someone brings us an investment they want in their SDRA, if we don’t feel it is a good fit and the risk factors are present, we will advise the client against it. It is our fiduciary responsibility to do what’s in the best interest of the client.”

NUA Advisors also helps identify non-traditional investment opportunities for clients that may not have time or a core competency for a particular asset. “If a client is looking for diversity or to have their money work harder than in the stock market for example, we can suggest non-traditional assets for a portion of their portfolio, whether it is for income or appreciation,” she added.

Founded in 2008, Bachelder said the word Nua comes from the Gaelic word for new, i.e., Nuadh. [Gaelic: nuadh; English: new] Hence ‘The New Age of Investing’. A fee-only advisory firm, NUA is independent of the investments they recommend, eliminating the conflicts of interest that commission-based brokers or advisors often face. NUA offers clients unbiased and objective solutions for their specific needs. The firm is under no pressure to distribute certain broker-dealer-based investments or generate commissions which might otherwise distort the ability to be completely objective.

“The majority of IRAs are still made up of traditional stocks, bonds and mutual funds, so most Americans are not wise to non-traditional investing,” Bachelder said. “We hope to change that by getting the word out there. We look at what we do almost as a public service. We’re helping people grow – and protect – their nest eggs.”

Advisors at NUA donate their time to educate investors, fellow financial professionals, CPAs, and attorney on the benefits and options available in non-traditional investments. They hold free workshops and seminars regularly and welcome anyone with a desire to learn more to contact NUA directly for the time needed to be educated at no charge.

About NUA
NUA Advisors, LLC is an independent investment advisory firm that is bridging the gap between traditional and non-traditional investing. The firm, which was named a 2010 Five Star Wealth Manager by Crescendo Business Services, an independent research firm, is unique in that its team of experienced and knowledgeable professionals specializes in alternative investments within a Self Directed Retirement Account (SDRA). NUA advises clients on traditional securities investments such as stocks, bonds and mutual funds, as well as non-traditional investments. NUA serves clients in New England and throughout the nation. For more information contact NUA at info@nuaadvisors.com or visit NUA online at www.nuaadvisors.com.

# # #

NUA Advisors Disclosures: There is risk associated with all investments, both traditional and alternative investments. Not all investments are for all investors, and appropriate portfolio planning, whether traditional or alternative is required prior to making any investments. Classification of risk for an investment is based on many factors, some of which is inherent in the investment and some of it is based on the portfolio and plan of the investor. Please seek professional advice prior to planning any investment whether traditional or alternative. Nothing in this article implies, either explicitly or implicitly, that NUA or the authors of this article is soliciting investors for any type of investment, nor is NUA or the authors providing any form of investment advice through this article. Not all information contained within this article may be applicable to all readers, and NUA shall not be held responsible or liable for any use of the information with or without seeking knowledgeable professional advice.

Here is more information about NUA Advisors




NOTE: Wolfe News Wire is an online source for news and information about noteworthy companies and organizations. We invite you to share this content and/or leave a comment. Background info and past news items from a specific organization can be found by clicking the side logos. For more info, please email info@wolfenews.com. Thank you!



Terms of Use and Privacy Policy




©2015 Wolfe Public Relations. All Rights Reserved.