PGI Self Directed

Well, with PGI Agency and PGI SelfDirected, our clients have a TRUE self-directed IRA or 401K in that our clients have ultimate control of their retirement assets…..they have checkbook control of their funds and do not need to seek another custodian’s approval.  There is nothing that prevents you from serving as the fiduciary of your own plan.

But, as you may know, many custodial companies are using the term “Self-Directed” to describe the IRA and 401(k) products that they market.   Typically, this “self-direction” only allows you to puruse a larger array of mutual funds, stocks and bonds (only).  Wow, how much fun is that, huh!?  So, let’s get through the kakah (junk) and explain the basic business models available for you to use when investing through your IRA or 401K.  You may just find that option #3 can be a very attractive option for you.

1) Traditional/Roth IRA’s and 401Ks - Typically, these plans offer only limited investment options (stocks, bonds, and mutual funds) for you. Your ability to ”Self-Direct” your account means ONLY that you may have a larger menu of stocks and mutual funds from which to choose and ONLY those menu of stocks and mutual funds that the brokerage or custodian offers.

In fact, many of you have seen the TV commercials emphasizing the ability to self-direct.  However, when you go to the broker’s office or bank, that is when you find out that your excitement was for naught…..just more stocks and mutual funds to choose from.

With this type of structure, you NEVER have the ability to invest in any asset class that YOU want….only what they want to see you.  Try asking this company about the real estate you want to purchase from your IRA and 401K plan and see how silent the phone line becomes.

2) Traditional/Roth ”Self-Directed” IRAs and 401Ks - These plans do expand your investment options from stock and mutual funds to also include real estate, tax liens and a host of other potentially higher-yielding investments. Although this is a step in the right direction, it is not probably the best step for an account owner who TRULY wishes to control their own retirement assets.  Owners of these Traditional/Roth “Self-Directed” IRAs and 401Ks soon learn that there are some significant drawbacks to this type of “Self-Directed” plan:

• Who’s The Boss? – Well, not really you AND you definitely don’t control the checkbook.  You see, Custodial “Approval” is required before you are allowed to make an investment….and, oh by the way, they typically charge you for giving their approval.  Think of it this way…if you can legally serve as the fiduciary of the account and make the investment choices for your plan, why does another entity have to approve the transation OR control the checkbook.
• Delays – Ready to invest? GREAT! Now fill out the paperwork and WAIT up to a week or longer! Any experienced real estate investor always acknowledges that, sometimes, being able to execute a deal expediently is vital.  As the French might say, “Au Revoir” to those time-sensitive investment opportunities!
• Interest on Uninvested Funds – Uninvested funds are held in an account at the custodian that pays you little or no interest.   Sound fair, of course not.  Does it happen….unfortunately, every day.(Shouldn’t you be the one making the interest on YOUR uninvested money?)
• Fees – Typical fees include a yearly “Maintenance” fee (usually based on a percentage of the market value of the assets in the plan), fees for buying AND selling assests, and fees for every little service from document safe-keeping to cashier’s checks and faxes.  If you think this will get old…you are right.

If you have an “Administrator” or “Custodian” account, you have this type of “Self-Directed” retirement account, and be prepared for lots of account fees.  Typically, these fees, depending on how long the account is active, can amass to thousands and thousands of dollars.

3)  PGI’s TRUE IRA and TRUE 401k are the next level in Self-Directed Retirement plans.

Each of our plans gives investors the ability to purchase time-sensitive investments that are nearly impossible using a “traditional” Self-Directed IRA custodian and impossible if the client is using their bank or brokerage firm. PGI’s flexible IRA and 401K plans have the following features:

• Investment Options – With PGI, you can invest your IRA or 401K funds into real estate, tax liens, loans, local businesses, stocks, mutual funds and a host of other options. You are only limited by your imagination! PGI’s TRUE Self-Directed IRA or 401K offers you greater opportunity by allowing you to choose the investments that are best suited to help you meet your retirement goals.
• Checkbook Control – PGI structures your IRA or 401K so that you have checkbook control over your retirement plan assets. No more begging a broker to allow you to invest your own money. You are in total control. Participate in time sensitive investments, including foreclosures and tax liens, without the time restrictions of the custodial paperwork process.
• Limited Custodial Fees – Unlike many companies, PGI’s fees are not based on the size of your account or on the number of assets it holds. Regardless of the account size, our clients experience a low and ROI-friendly fee structure….all with having checkbook control of your retirement account. In addition, PGI’s structure eliminates transactional, asset-based and holding fees. This can save you hundreds or thousands of dollars per year. 
• Support to Succeed – With PGI you have access to the support you need to invest confidently. PGI and its affiliates have set up hundreds of people with their own Self-Directed retirement plan. Our tax experts are available to review any transactions you are considering for adherence to tax law guidelines…..this ensures that you don’t do anything that would endanger your retirement.
• Asset Protection – In many states, IRA assets are subject to the claims of predatory creditors. If properly structured, your IRA can build a financial fortress around your hard earned wealth.
• True Diversification – Your retirement holdings can now be truly diversified in a number of different assets. No longer are you limited to only the investments your custodian or brokerage firm offers you.

PGI’s TRUE IRA and TRUE 401k combine the best of both worlds. The flexibility to invest when, where and how you choose along with 100% CHECKBOOK CONTROL.  No more waiting. No more paperwork.  And, as some of you can attest, no more whining about your broker.  Investing is as simple as writing a check.

All these benefits, and the fact that the TRUE Self-Directed IRA and TRUE 401k is less costly to maintain.  Freedom, flexibility and less fees!

Start by Downloading our Forms or Contact Us today.