IRA Retirement Options with Joe Hamel
We have a number of guests with us today. We have several of our top finishers from the Virtual Meetup and Marketplace in August, but we also have a very special guest, Joe Hamel. Joe Hamel is the president and founder of Hamel Advisory Services.
Many people have heard of self-directed IRAs but they don’t have them in place. It doesn’t matter if you have a lot of money to start. Just put in $50 and get it going. Once you start making money you need a place for the new money to go. There needs to be a place to put it away so you don’t spend it right after you make it.
In this episode, Joe shares the kind of qualified plans you can open. He talks about the differences between a traditional and Roth IRA. Then we finish the episode with Erin and Deborah sharing their success and top takeaways from the Virtual Meetup and Marketplace.
- [01:54] It doesn’t matter if you have a lot of money to put in a self-directed IRA. Start with $50 to get it going and so you have a place for the new money to go.
- [03:19] A lot of people are waiting for some magical moment and that isn’t going to happen because you keep spending your Monday.
- [04:04] If you keep telling yourself you don’t have enough to save them you will never have enough to start saving for retirement.
- [04:17] An IRA is your own individual retirement account.
- [05:00] Joe suggests having an IRA that is completely removed and not connected to your checking account. It is important to start even if it is small amounts.
- [07:54] When you set up a self-directed IRA you can inject capital through the form of contributions or the form of a rollover from a former or existing IRA.
- [08:21] Depending on your age, the contribution limits do change. Right now $6,000 is the maximum contribution each year, but there are no minimums.
- [08:55] The biggest difference between the Roth and traditional IRA is the taxation on those accounts.
- [09:13] The traditional IRA is an account that has not been taxed on the front end.
- [10:50] You can always remove money, but there is an early distribution penalty prior to 59 ½ years.
- [11:33] If you have not taken any distributions at the age of 70 ½ the IRS will require you to start taking at least the minimum distributions. Once you are 70 ½ you can no longer make contributions to a traditional IRA either.
- [13:42] On the Roth IRA you are going to pay taxes on the initial contributions during the first five years.
- [14:54] The early distribution penalty applies to both traditional and Roth prior to age 59 ½.
- [15:55] With the Roth IRA you are paying taxes upfront on the initial amount. With the traditional IRA, you pay taxes at the end.
- [16:44] With the Roth IRA there is no 70 ½ requirement.
- [17:44] The biggest difference between the Roth and the traditional IRA is the amount of taxes.
- [20:02] If you are no longer employed that money can be moved out of a qualified 401K account into a qualified self-directed vehicle of your choosing.
- [22:01] The first step is just to take action and open the IRA account that is right for you.
- [23:27] Roth IRA is a great vehicle because there are not taxes as long as you make your contributions and adhere to the IRS rules.
- [24:44] You want to make sure you keep your retirement money in a retirement account and don’t use it for quick fixes.
- [26:34] Solo K is a great self-employed plan. It is created for a small business owner. It functions just like a 401K would work for a major employer.
- [28:15] The Solo K allows you to make contributions to both the traditional and the Roth. It also has the ability to take out a loan.
- [30:39] Instead of paying your children allowances you can make contributions into their Roth IRA. It is a great way to give your kids a jumpstart.
- [31:51] A flip account is a great way to save cash instead of a savings account.
- [34:38] Joe’s company holds everything in house as a custodian.
- [36:11] They are one of the only custodians out there that are willing and able to accept some of the new and emerging asset classes.
- [38:47] We have to complete the tasks on our checklist to actually see results.
- [40:27] We are going back to our Virtual Meetup and Marketplace for the rest of the episode. New options to join the Virtual Meetup and Marketplace or the Graduate Marketplace this month and in the coming months.
- [43:01] Megan won the last Virtual Meetup and Marketplace. She made over $8600. We will be featuring Megan at another time.
- [43:41] Erin was in second place and Deborah was right behind her in third place by only $20.
- [44:03] Erin sold $941 of her summit and her life coaching. Erin learned about marketing, the pitch, tax structures, investments, and how to grow her business.
- [45:59] Prior to the Virtual Meetup and Marketplace, Erin was doing everything incorrectly and now her mindset has completely changed.
- [46:17] Deborah sold name drawings and logos and made over $800 and really built her momentum.
- [47:57] Erin learned to start selling now and not wait.
- [48:30] Deborah learned that she had a lot of avenues already at her fingertips.
- [49:23] The obvious is right in front of you. You just haven’t decided to monetize it.
- [50:58] Erin’s motto is “first the courage, then the confidence.” Have the courage to put yourself out there so you build up that confidence.
- [51:49] Put yourself out there and stay the course.
- [54:35] The two calls of action are to get a call with Joe and then get signed up for the Virtual Meetup and Marketplace or the Graduate Marketplace.
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