It’s time: you’re ready to buy property in Panama. Maybe you’ve got a 401K or an IRA and the money is just sitting there, waiting and desperately wanting to move you to the beach. It’s YOUR money, so how can you take control of it?
A self-directed IRA (“checkbook IRA”) allows you to personally direct the investments within your retirement fund.
In a general sense, this is how it works. (We’re not bankers nor financial advisers, nor do we have our own money bin like Uncle Scrooge McDuck, but we’ve had clients use this process to buy property in Panama, and it’s oh, so good.)
- First, open an IRA account with a “self-directed” custodian, which allows you to personally direct your investments. The custodian must also allow investment in a single-member LLC owned 100% by the IRA. (Don’t worry, you can get a list of these custodians).
- Roll over the assets from your existing account into your new self-directed IRA. (This is not a taxable transaction).
- Then, hire a company (ask us and we can offer some suggestions) to represent and manage your LLC outside of the US.
- This company will open an off-shore bank account owned by that LLC. You manage it. YOU have signature authority and control of this account.
- You then instruct your IRA custodian to purchase 100% interest of the off-shore LLC.
Bingo! You are back in control of your money and you can buy property in Panama.
If you think you’d like to start this process, let us know and we can introduce you to the right people. Taking this route will give you the broadest range of investment choices allowed by law in the United States and the most control over your hard-earned assets. Shoot us an email if you’re interested!