Article by Glen Mather:

I originally had no intention of listening to the State of the Union address. After all, the content is never a surprise, with bits and pieces being leaked weeks in advance. But when the address began, I was on a long drive, so I tuned in. Even though I reached home before the President’s speech finished, I idled in the driveway through its end.

While most of the speech carried few new ideas, imagine my interest as an IRA administrator when the concept of “myRA” was announced. Here are a few more details gleaned from senior administration officials: Enrollment in myRA would be voluntary, although there are rumors that it may require an opt-out for employees working at companies without a current retirement plan. The account can start with a $25 contribution, with automatic payroll deducted contributions of as little as $5 per month. Tax-free withdrawals could be made at any time (so I would assume that the contributions are not tax-free). Once the myRA account reached the $15,000 cutoff, it would be automatically rolled over to a Roth IRA. The true wrinkle of the myRA concept is the investment choice. It will be made for you. Not mutual funds, high growth stock or indexed funds. No, the only option is government bonds, chosen by your investment advisor – the government.

So is this a good idea? Well, if it gets more people to start saving, absolutely. The habit of putting some money aside on a routine basis is unassailable, no matter what your economic situation may be. After all, you can’t invest what you don’t have.

But if it produces a generation of savers who have no choice of their investments, it can breed dependence and indifference.

A self-directed IRA, whether a Traditional, Roth, SEP or Simple, is one where the client is in full and absolute control of their investment choices. Most ironically, what the President is proposing with this new savings plan seems to be exactly the same as a Roth IRA, but with much less choice.

Perhaps what is needed most is a publicity campaign focused on the myriads of retirement plan choices that we already have. There is little doubt that 401(k)s, 403(b)s, and 457 plans, along with the various types of IRAs, are great vehicles to prepare for retirement. Employer-matching and the tax benefits further incent the obvious need to augment Social Security with something more substantial and certain. These plans have attracted contributions and have grown to hold more than $9 trillion in retirement savings. Not exactly failure.

So let’s spread the word about the value of saving, especially tax-free, and let’s remember the benefit of taking reasonable risks – they offer a potential greater reward. Government incentives such as the Retirement Savings Contribution Credit produce amazing incentives to modest-income savers, yet few take advantage. MyRA may make a difference, or it may just further confuse an already confused taxpayer. The idea is laudatory, but the result is yet to be determined.

Feeling good about your investments? For many, that question goes far beyond assessing risk, returns, or strictly financial measurements. For them, it’s not just what their money is doing for them, but also what is it doing for others, how it is giving back to the community at large. The growth of socially conscious investing has created hundreds of specialty mutual funds – from those that avoid purveyors of tobacco and alcohol to others that promote sustainable environmental solutions. According to Forbes, $1 of every $9 invested is directed into these types of funds, and these funds have grown by 22% just in the last two years.

At NuView IRA, many of our clients share a similar concern about the use of their funds. They use their IRAs and rollover 401Ks to restore neighborhoods, start businesses in their communities, lend money to entrepreneurs, and otherwise redistribute Wall Street funds by giving back into their home town. Whether the local benefits are by design, or are accidental, the effects are equally impressive.

The great thing about a self-directed IRA is you don’t necessarily have to sacrifice your returns when your IRA is doing good for others. A close friend called me last week about putting an IRA to work in an unusual way. Through a loan, and its process, his IRA has fundamentally changed the life of the borrower. Though I’ll change the names a bit, the facts are completely true:

Jose is a 57-year-old experienced tractor trailer driver who recently lost his job in the San Francisco Bay area. His wife is dealing with the difficulties of living with Polio and is unable to work. Needless to say, it didn’t take long for Jose to get behind on his mortgage, and he was facing eminent foreclosure action.

After scanning the wanted ads, he was able to find an opportunity for a short-haul driving contract nearby, but during the interview he learned that the cold storage warehouse required him to own or lease a truck. Because Jose was a few months behind in his mortgage, and despite the promise of new work, the banks would not finance his purchase.

Fortunately, the owner of the warehouse company was aware that an IRA could lend funds to an individual, secured by a lien on the vehicle. It only took one phone call to his friend that had an IRA to draw up a note listing the terms of the agreement, and the collateral was secured. Within a few days, NuView IRA was directed by the client to wire his IRA funds to complete the purchase of the truck for Jose.

Jose and the IRA lender decided on the terms: a 9% interest rate amortized over 48 months. Also, all of the insurance and maintenance reports on the vehicle were to be maintained in order for the loan to be in good standing. Furthermore, the note called for the payments to be made directly from the warehouse, before Jose was paid for his contracted work.

What has this meant to Jose? Everything. He is undergoing a loan modification to keep his home, and his wife is now able to receive the medical care that she needs. They can both enjoy the security of not just his job, but also the increasing equity in the equipment that can ensure his continued employment.

What did this mean to the IRA holder? A 9% return secured by a tangible asset – and the sense that he made a difference, not just in his own future, but in someone else’s as well.

This holiday season, there are many ways we can give back. What is your self-directed IRA doing?

Guest article by Jerry Ross:

In Steven Covey’s book “The 7 Habits of Highly Effective People,” chapter two is entitled, “Begin with the End in Mind.” Since reading the book, I’ve tried to apply that principle in my business and investment decisions, but also in many simple ways too. I might picture a successful trip to the grocery store or the hardware store envisioning what I need to return home carrying. I may even begin a home repair endeavor by first imagining the beautiful result that will emerge from the project at hand. Unfortunately, many times these simple tasks don’t turn out how I envisioned them, even when I began with the end in mind! Most times, I encounter obstacles, challenges, or distractions that I didn’t see when I began. There are distractions along the way to the grocery store, like a super garage sale, or maybe it is wallpaper that just will not come un-stuck from the wall that I am trying to paint. It seems there is always something unexpected even in the simplest of tasks. You envision how you would like things to turn out, but you can’t predict what you will encounter that directly affects how you end up… especially at the beginning. It seems so simple, but things are not always as simple as they seem.

Running a business and investing are much more complex than running simple errands or taking on a home repair project. The consequences of an unanticipated obstacle can be devastating to a business or an investment portfolio. While it is good practice to always “begin with the end in mind,” every business decision (or investment decision) will require monitoring and adjustments along the way. Identifying your destination prior to setting sail is a critical first step, however it is essential that you constantly adjust your sails to accommodate changes in the wind along the way, rather than trying to predict or overpower the wind.

Monitoring progress and making adjustments in pursuit of your goal is good common sense, but it is a critical business and investment practice. Those who can anticipate potential challenges in advance and include flexibility in their plans can quickly adjust to opportunities along the way, and don’t become overwhelmed by unforeseen obstacles. When I project a realistic time frame, allow adequate time for decision making, and seek knowledgeable input along the way, my “end result” is usually closer to my original vision of success…which brings me back to chapter two of Mr. Covey’s book…the action part of achieving your goals.

Visualizing your result and setting a goal is just the initial part of the equation. Action is required to achieve any goal you set. True success in investing, managing a business or even going to the hardware store won’t happen unless you take action, and adjust your course as needed along the way. Being successful in any endeavor will require an investment of your time and attention. Goals and plans without taking action are merely wishes, yet action without planning is just activity, which will very seldom lead you to the success you desire. So, as we approach the end of 2013, now is a great time to re-assess your goals, make adjustments as needed, develop your plans, and then take action to make 2014 a great year…but remember to begin with the end in mind!

Jerry is a life-long entrepreneur and currently holds the position of Executive Director at the National Entrepreneur Center located in Central Florida. He is also on the advisory board of NuView IRA, helping to guide best practices for the self-directed IRA administrator as well as enhance its customer experience. You can follow Jerry on Twitter at @JerryRossOnline.

At some point or another your mind will wander and dream about the future. Where will I live? Where will I vacation? What will my career look like in 5, 10, 15 years? Eventually, you will reach the end – retirement – and you will consider the lifestyle you want to live once there. But how will you get there?

“Ideally, you’d start saving in your 20s, when you first leave school and begin earning paychecks,” says CNN Money’s Ultimate Guide to Retirement.

Thinking about saving for your retirement is one thing, actually socking the money away each week, month, etc., is another. Even if you make it into the savings finals, where you’re able to put aside a regular enough amount of money, you still have to figure out how to make it grow. Like most of the population, you will consider the most popular options: stocks, bonds, and mutual funds. But there is an entirely different approach that allows you to take that savings and invest it in something you can actually learn about or are already an expert in. You can self-direct your retirement account into any investment not prohibited by IRS code (which is, in fact, a very short list that basically just says “Collectibles”).

A self-directed IRA allows you to manage your retirement account and invest where you see fit instead of having someone, or just your employer, do it for you. Are you a self-proclaimed real estate mogul? A thoroughbred racehorse breeder? An agriculture enthusiast? All of those investments are options within a self-directed IRA. Self-direction allows you the peace of mind to know where your money is going and how it is growing at all times. Don’t trust the stock market? Don’t worry, just trust yourself.

With a self-directed IRA through NuView, your investment options are virtually limitless: You will have the freedom to get creative with your investment choices. A self-directed IRA opens up a whole range of alternative assets that can be purchased inside an IRA. Call 407-367-3472 today to learn more! And, check out our upcoming educational seminars and webinars to expand your knowledge.