PENSCO Trust Self-Directed IRA

The Don’ts:

1. Don’t create a prohibited transaction by having your IRA transact with yourself personally, your spouse, descendents, or ascendants (e.g. avoid self-dealing); Click here for information on prohibited transactions.

2. Don’t engage in a transaction with your IRA and a third party’s IRA on a “quid pro quo” or reciprocal basis in attempt to circumvent an otherwise prohibited transaction;

3. Don’t deal with an entity that you or the some of your related disqualified persons own 50% or more of;

4. Don’t personally guarantee a loan that your IRA obtains;

5. Don’t make personal (including disqualified persons) use of any asset your IRA owns;

6. Don’t provide more than ministerial services (e.g., decision-making) to your IRA or IRA owned entity (e.g., no “sweat equity”);

7. Don’t take any personal compensation for any services provided to your IRA or as a result of a transaction that your IRA participates in;

8. Don’t engage in any transaction that results in any personal gain for you or your disqualified persons (other than the benefit that the IRA receives (e.g., a guarantee of employment);

9. Don’t co-invest personally with your IRA in any asset that you use as a loan collateral;

10. Don’t take constructive receipt of any income from assets owned by your IRA and do not pay (personally) the expenses of assets held by your IRA.

The Dos:

1. Do consider including alternative assets in your retirement portfolio for diversification and risk protection;

2. Do consult with a knowledgeable advisor. Click here to find a PENSCO Trust Preferred Professional in your area.

3. Do educate yourself. Read all the free educational material we have available on this website and “IRA Wealth” by Patrick Rice;

4. Do find out how you can accelerate earnings on real estate through leverage.

5. Do consider using an IRA when you, a relative or friend starts a new business. Click here for information on private placements.

6. Do consider your Roth IRA for those investments with the greatest upside potential;

7. Do maximize your contributions to 401(k)s that are matched by your employer and contribute to Roth IRAs each year, if eligible;

8. Do, if you are a professional, sign up to become a PENSCO Trust “Preferred Professional” as a means to stay at the forefront of the knowledge curve;

9. Do tell your friends about the possibilities of self-directed IRAs - they’ll thank you;

10. Do consider the ways you can expand your business practice by being the “go to” self-directed IRA expert in your area.