One major investment company TD Waterhouse recently send out this recommendation: “Our recommended asset allocation remains 45% U.S. stocks, 20% foreign stocks, 20% bonds, and 15% cash.” This is recommendation is supposed to offer the best investment results. Curiously, TD Waterhouse's major product is selling stocks.

On August 3, 2005 www.seniorjournal.com posted the following statement – “Late Boomers, have nearly 40 percent of their assets in blue chip stocks, which are most often favored by conservative investors.” For full results of the Baby Boomer report visit www.clarkconsulting.com/execreport.

Why is this information important? Because, late Boomers (those born 1946-1951), are about to reach 60 and be eligible for early IRA distributions without penalty.

Since, baby Boomers are now on the cusp of retirement many new changes will be taking place in our economy. Their numbers are staggering; about 79 million American Boomers were born from 1946 through 1964, the oldest of whom are now in their late 50s.

Lets do the numbers, in 2008--just two years from now--the leading edge of the Baby-Boom generation will reach 62, and the IRS has stipulated that IRA owners have to start taking distributions at age 70 ½. But remember that early distribution of IRA funds is allowed at 59 ½. Here comes the glut of stocks into the market (various retirement plans hold investment in stocks not just IRAs but we are only addressing IRAs). What does that mean to the rest of us? Well, if the market experiences a glut in stocks then that translates to lower prices for the stocks. If your retirement monies are based on 45% or more in stocks investments you will be hit hard for several years. The general rule for retirement investing is to diversify. Many custodians and financial advisors translate this to diversifying into various different stocks. However, investment strategies are not limited to the buying of stocks. Investors should look into other areas such as: commercial paper, bonds, real estate, annuities, trust deeds/mortgages, tax lien certificates, promissory notes, timberland investment, currency exchange, hard money lending, secured loans, ext. Unfortunately, it is very hard to find a custodian that offers this much diversification. Here comes the ultimate tool; Integrating an LLC with a self directed IRA (also you can roll other retirement plans into an IRA).

And IRA funded LLC gives you the freedom to invest in what you desire. You manage your IRA funds and direct your retirement future. This is called having “checkbook control” of your retirement funds. As an added plus the LLC fully shields the IRA account from outside liabilities. In addition, there are numerous other advantages. Some of these advantages include:

• The LLC may have multiple investors besides the IRA account.
• Multiple IRA accounts may be investor/members of the LLC.
• Non-IRA investors/members of the LLC may guarantee loans for the LLC.
• The LLC is not limited to real estate ownership, virtually any other investment type
can be made under this business structure.
• LLC income and capital gains pass thru to IRA account member’s tax deferred,
under the same rules as other IRA income.
• Lower fees from the IRA account custodian since there is only one asset to manage the LLC.

To implement this technique, the self directed IRA purchases membership units (shares) of a privately held LLC. This is a straightforward procedure. If you are interested in how to create and implement such a powerful tool then do not wait and build your own IRA owned LLC today.





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