Susan F. in CA Talks About a SD IRA

by John Park on July 10, 2011

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John Park provided excellent service.  Not only did he help to set up my Self-Directed IRA and my LLC, he was very thorough in his explanation of the entire  process and walked me through every step of what I needed to do on my end.  He answered all my questions and responded to all my emails and phone calls immediately. 

In my case, I did have a bit of a hiccup, but it was easily rectified.  I needed to open up a checking account for the LLC which was to be funded by the IRA.  However, to open up the checking out at my chosen bank, I needed to make a small deposit into the account.  But the funding must come from the IRA and not my personal funds.  In order to fund the account with the IRA funds, however, I needed to provide the company with the checking account number which I couldn’t get until I opened the account.  So I was in a bit of a catch 22.  John helped me to find another bank that would allow me to create the account without having to immediately fund it and actually gave me a couple of days of leeway in order to do so.  That allowed me to open the account, provide the account information to the IRA company, which was able to then transfer the funds the next day. 
Susan F.

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IRS and ROBS Plans

by John Park on July 8, 2011

The IRS and ROBS (By John Park, john@pgiselfdirected.com)

This recently came to light when the IRS addressed concerns they had with ROBS (Rollovers as Business Start-Ups) plans. The IRS penned an article titled “IRS compliance project scrutinizes potentially abusive ROBS retirement plan arrangements” as part of their Retirement News for Employers (Fall 2010). ROBS are designed to allow individuals to convert their existing retirement accounts into seed money for funding new businesses without first paying taxes on the distributions. Quite simply, the IRS stated “While conceding that ROBS are not considered abusive tax avoidance transactions, IRS has branded such arrangements as “questionable.”

Folks, why is this a BIG statement?

Well, there are companies that are actively promoting these plans. While these companies are ensuring their clients that the plans are established in compliance with IRS regulations (and they very well may be), let’s take a closer look at what and how ROBS works and if you should consider them for your self-directed retirement investments.

The IRS went a step further and explained their concern in writing by stating: “Promoters have been aggressively marketing ROBS arrangements to business owners. A ROBS plan is an arrangement in which business owners use their retirement funds to pay for new business start-up costs. ROBS plans, while not considered abusive tax avoidance transactions, are questionable because they may solely benefit one individual — the individual who rolls over his existing retirement funds to the ROBS plan in a tax-free transaction. The ROBS plan then uses the rollover assets to purchase the stock of the new business.”

In IRS parlance, the transactions related to benefitting only one individual is self-dealing…a concept I have done much blogging about.

A ROBS plan

So, let’s take an example of a typical ROBS plan (as explained by the IRS): “A new business owner first creates a shell C corporation, with created — but not issued — stock. After incorporation, the newly created shell corporation adopts a retirement plan (typically a pre-approved specimen plan), with a provision allowing 100% of the plan assets attributable to rollovers to be invested in employer stock. Next, the business owner either rolls over or executes a direct transfer of the proceeds from an existing tax-deferred account, such as a 401(k) plan account with a former employer, to the newly created ROBS plan. Once the rollover or direct transfer is complete, the business owner directs the shell corporation to issue all of its capital stock, and then transfer the stock to the ROBS plan in exchange for the proceeds held in the rollover account. After the transfer, the shell corporation has adequate capital to pursue business opportunities and the ROBS plan has capital stock in the corporation equal in value to the amount of the funds transferred. And, because all of the shell corporation’s stock has been allocated to the business owner’s ROBS plan account, any future employees or beneficiaries will not be able to invest in employer stock, barring a recapitalization (see Federal Taxes Weekly Alert 11/20/2008).”

Ah, I get what you are now saying — REALLY interesting stuff, John! But, it is important to keep reading if you have or are considering a ROBS plan. The IRS continues by stating in their newsletter:
“Thus, the business owner has used rollover proceeds to indirectly start up or acquire a business while avoiding taxes (income and penalties, if any) on the transaction.”

Now, in establishing these plans, individuals are going to companies who specialize in establishing  them. In many circumstances the individuals will ask for, or be provided, a favorable IRS determination letter to assure the clients that the IRS approves the ROBS arrangement.

However, as the IRS continues in their newsletter:

“Even a favorable determination letter—based on the plan’s terms meeting Code requirements—does not give plan sponsors protection from incorrectly applying the plan’s terms or from operating the plan in a discriminatory manner. When a plan sponsor administers a plan in a way that results in prohibited discrimination or engages in prohibited transactions, it can result in plan disqualification and adverse tax consequences to the plan’s sponsor and its participants.”

The IRS continues by addressing how some of the promoters of these plans may have not provided the best information to their clients by stating:

“Many ROBS sponsors do not understand that a qualified plan is a separate entity with its own set of requirements. Some promoters incorrectly advised sponsors that they don’t have to file an annual return because of an exception in the Form 5500-EZ instructions. IRS notes that the exception applies where plan assets are less than a specified dollar amount and the plan covers only an individual, or an individual and his spouse, who wholly own a trade or business, whether incorporated or unincorporated. However, in a ROBS arrangement the plan, through its company stock investments, rather than the individual, owns the trade or business. Accordingly, this filing exception doesn’t apply to a ROBS plan and the annual Form 5500 or 5500-EZ (5500-SF for filing electronically) is still required.”

This is a BIG point as, if nothing else, does an individual really want to specifically ASK the IRS to come calling on their door by not filing the 5500-EZ?!

The IRS then proceeds to address more specific problems that may arise with ROBS arrangements:

1) Amending the Plan — The IRS notes that after the ROBS plan sponsor purchases the new company’s employer stock with the rollover funds, the plan sponsor amends the plan to prevent other participants from purchasing stock.

IRS’s Position – “ROBS plans are designed to benefit only the person involved in setting up the business, and so may violate the “current availability” or “effective availability” requirements of Reg. 1.401(a)(4)-4(b) and Reg. 1.401(a)(4)-4(c).

2) Exclusion — The IRS states that, “If the sponsor amends the plan to prevent other employees from participating after the determination letter is issued, this may violate the Code qualification requirements. These types of amendments tend to result in problems with coverage, discrimination and potentially result in violations of benefits, rights and features requirements.

3) Promoter Fees –- The IRS believes that where fees have been paid to a promoter of such ROBS plans with transferred assets, a prohibited transaction may arise.

4) Valuation of assets -– The IRS takes the position that, “Setting the value of the corporation’s stock at the value of the transferred plan assets may be a prohibited transaction, especially where the stock value was set without an adequately supported appraisal of the stock’s value.”

Finally, the IRS addresses the failure to issue a Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., when the assets are rolled over into the ROBS plan (and this is big for individuals who have or are considering a ROBS plan:

The IRS noted: “Last year, IRS’s Employee Plans initiated a ROBS project to: (1) define traits of compliant versus noncompliant ROBS plans; (2) identify ROBS plans that are noncompliant and take action to correct them; and (3) use results to design compliance strategies focusing on identified issues and trends. The IRS initially focused on companies that sponsored a plan and received a determination letter but didn’t file a Form 5500, Annual Return/Report of Employee Benefit Plan, or Form 5500-EZ, Annual Return of One-Participant (Owners and Their Spouses) Retirement Plan, and/or Form 1120, U.S. Corporation Income Tax Return.”

So, what did the IRS find in their review of these plans? Well, the IRS made the following conclusions:

The IRS noted that the “preliminary results from the ROBS Project indicate that most, though not all, ROBS businesses either failed or were on the road to failure with high rates of bankruptcy (business and personal), liens (business and personal), and corporate dissolutions by individual Secretaries of State. Some of the individuals who started ROBS plans lost not only the retirement assets they accumulated over many years, but also their dream of owning a business.”

YIKES!! The IRS continued by stating that:

“Practitioners should counsel clients that ROBS plans pose tax hazards and warn them of the grave risk that retirement funds may be completely lost if the business venture funded through the ROBS plan fails.”

Now, this post is not, in any way, to say that ROBS plans are illegal or do not potentially follow IRS regulations. However, as what can be seen here, the majority of these plans (in the opinion of the IRS) have not been established correctly and have potential, serious flaws in both design and execution. But, this post is simply educating people on the concept of ROBS plans as only a few companies/individuals will establish these plans. As the ‘ole saying goes, “buyer beware.”

Now, saying that, this won’t affect many of you, especially, those individuals who are self-employed with no employees (other than a spouse). Further, it will not affect most of you on this valued educational site (go Jeff Brown) who are certainly interested in investing in non-traditional assets such as real estate. BUT, the reason I wanted to visit this point of interest is that these types of plans have been heavily marketed and may have disastrous impacts on individuals who employ this method.

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What Does the IRS Think of Investing in Real Estate?!

by John Park on November 3, 2010

Has anyone ever asked their financial professional (e.g., banker, accountant, broker, drinking buddy….just kidding on the last one) what  types of assets their IRAs and 401Ks can invest in OTHER than stocks, bonds and mutual funds?  Ever?  I know you must care or are you one of the millions that believes that you can only invest in Wall Street products?

The simple truth is that most all of us have been brainwashed into believing that our only option is to invest in the world of stocks, bonds and mutual funds (i.e., traditional investments).  Our brokers have convinced us that “diversification” is within traditional assets, not outside of it.  I mean seriously….is this true diversification?!  Others believe that only the very rich can set up plans to invest this way.

But, as many individuals are upset about their portfolio balances and exploring options for investing their funds, their “professional”  typically continues to steer them in the market.  And, sometimes, they make a pretty good “pitch” for the reasons why one should keep their funds in the market.  But, let’s use common sense….is it potentially better to diversify in up to as many as 23 asset classes or 3?

Now, this post is not to criticize financial professionals…..many who are ignorant to the fact that retirement funds can be invested in sooo much more.  Their financial stewardship “sermon” hinges more on how THEY were trained, educated AND paid.  And, how are they paid?  You’re right….based on what you buy from them!  Think of it this way….how many people do you know who would actively encourage you to invest in something that they were not paid for?!  (cheat sheet here…..in 2005 93% of ALL financial transactions on Wall Street were to BUY, not sell!)

So, for those of you that HAVE asked your financial professional if you can invest your retirement funds in assets such as real estate (and a plethora of other assets), you will typically hear some of the following:

Actual Financial Professional Statement – “You can’t do that (invest in real estate).  There is no way the IRS will let you do that?

Well, what does the IRS say?  This is a statement from their website:

“…..because of administrative burdens, many IRA trustees do not allow IRA owners to invest IRA funds in real estate. IRA law does not prohibit investing in real estate but trustees are not required to offer real estate as an option.”

By the way folks, while the quote references IRAs, the same standards as to permissibility apply to 401K and other retirement plans as well.

Actual Financial Professional Statement – “I heard somewhere that you can MAYBE do that (invest in real estate), but it is REALLY complicated. I also heard that you have to create a Trust with an attorney and, of course, that will be really expensive.”

Well, what does the IRS say?  This is from the IRS website which defines what an IRA actually is:

“An individual retirement account is a trust or custodial account set up in the United States for the exclusive benefit of you or your beneficiaries. The account is created by a written document. The document must show that the account meets all of the following requirements.

  • The trustee or custodian must be a bank, a federally insured credit union, a savings and loan association, or an entity approved by the IRS to act as trustee or custodian.
  • The trustee or custodian generally cannot accept contributions of more than the deductible amount for the year. However, rollover contributions and employer contributions to a simplified employee pension (SEP) can be more than this amount.
  • Contributions, except for rollover contributions, must be in cash. See Rollovers , later.
  • You must have a nonforfeitable right to the amount at all times.
  • Money in your account cannot be used to buy a life insurance policy.
  • Assets in your account cannot be combined with other property, except in a common trust fund or common investment fund.
  • You must start receiving distributions by April 1 of the year following the year in which you reach age 70½.”

Folks, where does it state that you cannot invest in real estate?  You’re right, it doesn’t.

So, as I tell my clients, my job is to educate.  An IRA or 401K can invest in a plethora of other assets other than stocks, bonds and mutual funds.  Are we experiencing unprecedented times where investing in real estate may be ideal.  Of course. Should you invest in real estate?  Maybe yes, maybe no. The fact is that it is YOUR decision, not your broker’s.  Would we all agree that having more options and choices with our investment funds is advantageous to us….ABSOLUTELY!

Take control of your finances.  Don’t put your head in the sand and HOPE!  Just like putting in some good sweat equity to achieve good physical health, you must put in some good educational equity to achieve good financial health.  Don’t be afraid….cuz as is oft said but is so true…..

DOES ANYONE CARE AS MUCH ABOUT YOUR MONEY AS YOU DO?!

Need more information?  Visit my site.

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Retirement Investment Options — A Different Version of Goldilocks and the Three Bears

by John Park on November 3, 2010

Unfortunately, many people are unaware that they can invest their retirement funds in assets other than “traditional” assets such as stocks, bonds and mutual funds. Unfortunately, this prohibits them from investing in “non-traditional” assets (e.g., real estate) when they may want to make these investments.
But, since brokerage firms and banks will only permit you to invest in their financial products, how is one able to invest in other assets and how does this have any correlation to Goldilocks and the Three Bears? You remember the story….”this porridge is too hot, this porridge is too cold, this porridge is just right.” Well , let’s first introduce the stars of our show……

Papa Bear – Papa Bear is your bank or brokerage firm/broker whose plans only allow you to invest in stocks, bonds and mutual funds.

Mama Bear – Mama Bear is the self-directed Custodian or Administrator that will permit you to invest in non-traditional assets such as real estate. While allowing, they don’t give you checkbook control of your own funds and charge you annual fees that end up being costly.

Baby Bear – Baby Bear is a self-directed company that sets up your retirement plan (e.g., IRA, 401K) whereby you serve as your own fiduciary/trustee. Now, you control your retirement checkbook and can invest as you see fit. No more annual fees as you will pay a one-time fee for your plan.

“This Porridge is Too Hot!”

Just like Goldilocks, many of us scrunch our noses at the idea of investing solely in Papa Bear’s world of stocks, bonds and mutual funds. And, we are right in scrunching up our noses as many people have soured on placing total faith in the market as the sole receiver of their retirement funds.  Acknowledge the fact that stocks, bonds and mutual funds fill a diversification hole…but it shouldn’t be the only filler for that hole. But, it won’t surprise anyone that over 80% of all assets in all retirement accounts are in these “traditional” offerings….does this really sound like true diversification to you?

“This Porridge is TOO Cold”

Now, Goldilocks moves to the Mama Bear’s bowl of porridge and while being enticed by the proclamations of investing in all assets (i.e., traditional and non-traditional), she discovers that this bowl is not to her liking and she blurts out, “this is TOO cold.”  You see, while Goldilocks enjoyed all their claims, she wearied quickly when learning that she wouldn’t control her IRA/401K checkbook and paying high, ongoing annual fees. In addition, when she learned that she may have to wait (and wait) for the check and not have protection against possible IRS Prohibited Transactions….well, this bowl got down right freezing.

“This Porridge is JUST Right”

Finally, Goldilocks finds the Baby Bear’s (TRUE self-direction) bowl of porridge and found that it was JUST RIGHT. What made this bowl the most enticing and delectable? Well, Goldilocks found that she could have checkbook control of her funds and pay a one-time fee in establishing her account. No more asking permission, no more waiting. This account gave her true control and true freedom.  While eating from this bowl, Goldilocks also enjoyed the fact that she could purchase both “traditional” and “non-traditional” assets all from one account. No asking permission, no additional fees in being able to do this….she had ultimate control of HER account.

Now, at this point in the story, you remember the Three Bears came home only to find that someone had eaten from their retirement-account bowl.

Papa Bear said, “Who’s been eating from my bowl…..I hope they know they can only purchase stocks, bonds and mutual funds!”

Mama Bear said, “Who’s been eating from my bowl….I hope they know that I am going to control the checkbook, charge annual fees and not necessarily be user-friendly!”

Baby Bear said, “Whoever ate from my bowl will have a self-directed plan that is just right! They will have a one-time fee, they will control their own checkbook and it is user-friendly. They can purchase and invest in both “traditional” and “non-traditional” assets without hassle or extra fees!”
You see, it really is amazing what life lessons we can learn from children’s nursery stories. Your decision….do you want Papa Bear’s bowl, Mama Bear’s bowl or Baby Bear’s bowl? The choice is yours!  Do your homework and do your due diligence. Make a decision that best suits and reflects your investment philosophy…not just following the rules established by Papa or Mama Bear.

John Park is President of PGI SelfDirected

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Chuck C. Likes Controlling His Own Retirement Funds!

by John Park on July 16, 2010

It is difficult for me to summarize in a few sentences how pleased I am with the services of John Park and his PGI Agency.  I shopped around a bit, did some research on the various types of self directed accounts and considered a few other agencies to handle my account.  In the end, it was John Park’s immediate response to my queries, professional understanding of the intricacies of these “uncommon” accounts and the company’s experience that made me decide on PGI Agency. 

Additionally, understanding the fact that a federally monitored and highly visible financial institution would be the holder of my account and providing me checkbook control of my retirement funds at the same time in a seamless system utilized by PGI Agency, gave me comfort in the legal aspects of these types of accounts and sealed the deal with PGI. 

John and I spent numerous hours on the phone setting up my 401k.  He even helped me navigate the setup details over a holiday weekend.  We had the difficult task of transferring money from multiple Federal Thrift Savings Plan accounts and conventional accounts from T. Rowe Price into my new self-directed 401K  with very little time.  To give you an idea of John Park’s personal involvement, he contacted my attorney during a real estate closing to address hmy attorney’s misunderstandings and help him recognize the legality of 401ks owning real estate.  Finally, the nationally-recognized custodian that PGI works with in establishing these plans was unbelievably helpful.  From wiring money to and from my accounts, to responding to phone calls and emails, this custodian was there every step of the way, EVEN though I wasn’t buying any of their financial products.  It is rare than in today’s financial services industry that one sees this kind of service.

Do your homework, know what to look for, and then contact John at PGI.  You will come to understand that PGI is a quality, professional company with a proven track record that offers solid service for very a competitive price. 

Chuck in Chesapeake VA

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Self-Directed IRAs and 401Ks — Don’t Trip Over the Crack!!

by John Park on July 12, 2010

We’ve all done it…..that crack in the sidewalk that most people would have to intentionally attempt to trip over and still maybe not fall….but, we are the ones who do that trip and are always embarassed over it. When we trip on the crack, we look at the crack as if it jumped up and knocked us over when no one was looking.

The same can happen with our self-directed IRA and 401K plans. While the IRS rules related to what qualified retirement accounts cannot do are not difficult concepts to understand, almost like that crack in the sidewalk, they seem to creep up on some people and trip them up. And just like falling over that crack, some of us almost fall and then realize to our own embarassment that we almost entered into an IRS prohibited transaction without even intending to do so.

So, what are some common scenarios that can “pop” up and trip us all. Let’s look at a few that have been addressed with this author over the last few months.

1) Qualifying for a 401K – Many people are enamored with the benefits associated with a 401K vs. its lesser counterpart, the IRA. In layman’s words, an individual who is establishing a self-directed 401K must qualify for the 401K. They are not allowed to establish the 401K unless they qualify for the plan. So, how does one qualify for a 401K? Well, an individual who is self-employed or a W-2 with a side business may qualify for the 401K. However, an individual who is strictly a W-2 and will never be anything but a W-2, simply does not qualify for the 401K.

Typically, a person will get confused with this simple concept and believe that as they may be utilizing their retirement funds to invest in assets such as real estate, that this endeavor makes them an entrepreneur and, therefore, self-employed. This is not the case. When serving as the fiduciary of your retirement plan you are making investments on behalf of the plan…..not being self-employed as a real estate entrepreneur.

2) Commissions, Commissions and More Commissions – Many a real estate agent who also holds a self-directed IRA or 401K believes that they can earn a commission for buying into or selling a property from their self-directed IRA or 401K. Such is not the case and it is clearly a prohibited transaction per IRS regulations.

Another example of where earning commissions is a prohibited transaction deals with serving as a fiduciary of other family members’ retirement funds. This may be a situation where several family members establish an LLC to pool their funds and elect one of the family members to serve as the manager of the LLC and be compensated for their time and investment advice on particular investments. The problem that can easily arise is that the individuals are disqualfied indivdiuals to each other and, therefore, the receipt of any commissions in this example would constitute a prohibited transaction.

3) Buying That Property? Don’t Fix It? – Unlike what the heading suggests, no one is telling the self-directed IRA or 401K participant that they cannot fix the property they purchase for their plan. However, all expenses and work on the investment property must be born and paid by the retirement plan (assuming non-recourse funding is not being utilized).

This is an easy trap to enter into when purchasing real estate with a retirement account. Many people know that all expenses for the property must be paid by the retirement account as it is the plan, not the individual, who owns the property. However, just as many individuals inadvertently enter into a prohibited transaction by performing some of the work on the property as compared to having other, non-disqualified individuals execute these activities. And, in most cases, their intentions are very innocent and well intentioned. For example, a person who is a handyman at heart or practice may think that he/she is “helping” their retirement plan if they can execute some of the work on the property in that it keeps more funds in the plan. While well intentioned or innocent in its focus, this type of transaction is clearly a prohibited transaction.

An easy concept to remember….an individual cannot enter into any activity that benefits the “plan” and the plan cannot enter into any activity that benefits the individual.

4) Loans to Another Individual With the Intent….. – We know that in almost all circumstances that engaging in “self-dealing” arrangements with your self-directed IRA will be a prohibited transaction (there is a great exception to this with a 401K). So, as a result, some entrepreneurial spirits will decide to have reciprocal loans with another individual who is not a disqualified individual. The logic is that IF they are unrelated parties to each other and IRS regulations would otherwise permit such a loan, then it is permissible. However, the very fact that they are “arranging” the loan would trigger the IRS’ “indirect” benefit. Obviously, without the “intent” to get around the regulations by entering into their agreement, the parties would not have otherwise made the loans.

So…..don’t do it!

5) Personal Guarantees to the SD IRA or 401K – While addressed briefly in another point, this one bears greater emphasis as it is probably the most violated prohibited transaction…whether with intent or not. And, it typically happens with the purchase of real estate.

Typical scenario — An individual is purchasing property for their IRA or 401K and need a loan to complete the investment transaction. While at their local bank securing a loan, the loan officer will advise the SD participant that they can secure lending by providing a personal guarantee on the loan based on their credit, or collaterol. This is clearly a prohibited transaction. Remember, you cannot benefit from the plan and the plan cannot benefit from you…a simple but oh so true statement.

Remember, this information is provided for educational and informational purposes and should not and is not intended to be relied upon as any form of tax, legal or financial planning advice. Always consult with your respective legal and tax advisors for specific advice related to your financial planning goals.

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Hollywood, CA Sings a Tune for PGI SelfDirected

by John Park on July 10, 2010

Time is money, and the time John Park and PGI saved me to move my retirement funds to selfdirected status was worth every penny! John walked me through each step and was very patient when I needed clarification. I am happy I invested in John’s expertise as it was and is, very valuable to me and my future financial goals.

I might add that I am so confident in the fact that PGI’s work was integral and properly executed to what I was trying to accomplish, that I do not worry about future problems with my plan’s compliance with IRS regulations.

Thanks again!

Deborah, Beverly Hills, CA

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R.J. from Quincy, IL Gives a Toot

by John Park on May 3, 2010

R.J. from Quincy states:

I would like to take the time to provide my endorsement of John and PGI SelfDirected. In spending many hours researching self-directed 401K and IRAs, I found two companies prior to speaking with John. My experience was similar with each company which provided lots of vague information, but not the specific answers and professional help. Be sure to read the fine print with these companies. I did and decided to pass on these companies and then found PGI SelfDirected.

John answered all of my many questions and took the time to explain the concepts and processes in detail. This enabled me to finally have checkbook control over my retirement funds. His dedication to his clients is a welcomed service which we do not often find every day in any part of our life, let alone the financial aspects of it. You can be assured the process will be professional and complete with John as your self-directed professional.

R.J.

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Bryan L. from Corona, California Chips in a Thank You to PGI

by John Park on April 21, 2010

I would like to personally thank you for all the valuable advice and information you have given me. Because of your knowledge regarding the self-directed 401K/IRAs, I was able to use my funds to purchase a rental property in Palm Springs. As you well know, the recession has made stock/mutual fund investing a little challenging these past few years. With all the inexpensive real estate deals around, I thought that would be a great place to put my retirement funds. I could not be happier!

You answered my questions, clearly explained your fiduciary responsibilities and set up the account according to my needs. You did not try to promote any investment ideas outside of the ones I asked about. For this I am grateful. Thank you, John.

Bryan L.
Corona, CA

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Randall G. from Greensboro, NC Gives a Shout

by John Park on April 16, 2010

I am writing this as a testimonial for John Park and PGI SelfDirected. When researching self-directed options I came across John on YouTube and, then subsequently, www.selfdirected401kblog.com. However, it wasn’t until visiting with John on a few occasions that the lightbulb went on.

Besides the ability to set up a self-directed plan where I had control of the checkbook….literally….John showed me how I could set up my account without having to form an LLC. For anyone reading this who has visited with other companies can attest, the other companies always tell you that you HAVE to set up the LLC. PGI SelfDirected showed that, if structured correctly, that was not required AND I still had checkbook control of my retirement account. Not only was it a cool application, but it saved some $$ for me as well.

John was diligent, imaginative and always had my best interest at heart. He told me that he would fully advise me on how PGI assists their clients and educate me on self-direction and PGI….whether I took my business to PGI or not. He did not disappoint me with this promise.

In my case, I did a lot of research to make what I thought was the best decision in choosing a company that would help me with my goals of self-direction. My last call was to John and PGI and I am thankful that I did.

Thank you John.

Randall G.
Greensboro, NC

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