Self Directed Investing Leads to a Brighter Retirement and Growing
Wealth for Couple Using Self Directed IRAs and a Solo 401k
on: November 25, 2008, 9:17 am
Release Author: 401k
Release Summary: While most Americans watched as their retirement
nest eggs got scrambled with the plunge of the stock market, some
investors felt no negative effects at all. For Janice and Jack
Stoddard of Searcy, Arkansas, turning $100,000 into $950,000 in
just 18 months by stepping outside of the traditional IRA box
and sef-directing their investments in real estate and mineral
rights has changed their future and their lives. Denver financial
expert Jeff Nabers assisted the Stoddards with setting up their
self-directed investment portfolio.
Release Body: Denver, CO November 25, 2008 -- The stock market
implosion of 2008 has millions of Americans feeling financially
helpless. Yet individuals who are investing their 401k & IRA
money in ventures outside the stock market are singing a different
such cheerful investor is Janice Stoddard, who along with her
husband, Jack, owns a real estate business in Arkansas. In 2004,
Janice learned about "self-directed investing" from
a seminar that taught how to invest IRA money into real estate.
She returned home excited about the prospect of setting up her
own self directed IRA.
Stoddards established two IRAs, rolling over investments from
their traditional IRAs to fund them. They used the IRAs to make
small real estate transactions, purchasing and reselling property
at a profit with all proceeds staying in the IRA.
2006, an opportunity to buy and then immediately re-sell 60 acres
of undeveloped land at a profit came up. Concerns over structuring
the deal and keeping everything above board led her and her husband
to consult with Jeff Nabers, well known as one of the nation's
top experts on self directed investing.
helped us establish a Solo 401k that could be used to handle the
60 acre transaction. The Solo 401k was a key component to our
funding because we were able to contribute 10 times more to it
than we could to an IRA. Meanwhile, our son, who works in oil
and gas, alerted us to keeping our eyes open for property with
mineral rights for future transactions," Janice says.
the proceeds from the 60 acre sale, the Stoddards began looking
for their next investment. They found a 57 acre property with
54 acres of undeveloped land and a house that was sitting on three
acres. The property, valued at $435,000, was more than the couple
had in cash in their Solo 401k, so they began looking at options.
contacted friends in Dallas and asked if they'd be interested
in joining them in the investment. Their goal was to buy it and
sub-divide it for resale in five and ten acre parcels. Their friends,
both physicians, agreed.
Group helped the couples form a Limited Liability Company for
purposes of purchasing the land. The LLC is owned jointly by the
Stoddard's Solo 401k and their friend's IRA.
owner had originally listed the property for $5,250 an acre with
only 50% of the mineral rights. At the time no drilling was taking
place on the property and no natural gas had been pulled from
the ground. The Stoddards negotiated for full mineral rights and
bought them with the property for $5,875 per acre.
the next few months, natural gas producer Chesapeake Energy put
a well on the property, and soon the LLC was receiving large monthly
royalty checks for the natural gas on the property. Over 18 months,
those checks totaled more than $100,000. When the Stoddards were
approached by a buyer who wanted to purchase the mineral rights
and not the land for $8700 an acre, they sold the rights, netting
another $465,000 while retaining the land, now valued at an estimated
knows real estate and knew how to identify an under-valued property
that was a good investment. With her son's knowledge of oil and
gas, her strategy became as much about the mineral rights as the
real estate. Mineral rights prices had been skyrocketing and lease
values had been increasing in her area, and Janice knew she could
resell the land and improvements alone and at least break even
while keeping what she was really after - the mineral rights,"
six real estate transactions, the LLC's asset value had gone from
$350,000 to more than $950,000 in under two years. The Stoddards
have more than quadrupled their initial investment, and they aren't
stopping there. Other property and mineral rights deals are already
on the table for purchase with their Solo 401k funds.
whose firm regularly structures self directed IRA & Solo 401k
investment plans, says the growth in the Stoddards' investments
is exceptional, but not unique for someone who is as diligent
in their investing as they are.
will admit to being a researcher," Janice Stoddard says.
"When I found out that as a self-employed individual I could
set up a retirement plan that would allow me to invest in real
estate, which is something I know very well, I was excited about
that. The hard part was finding a financial expert who would embrace
the concept of self directed investing. Everyone I talked to told
me I should buy stocks instead. The Nabers Group has a wealth
of experience in this area and Jeff has been very instrumental
in giving us a thorough understanding of our options and the opportunities,"
Stoddard advises other real estate professionals to do the same
thing, and she's joined the IRA Association of America to ensure
that she is aware of regulations and new opportunities available
to individual investors.
talk to my friends, and they are absolutely despondent over what
is happening to money they thought they had for retirement or
college. A lot of people have lost a lot of money in recent months.
When I tell them I didn't lose a dime and that I've quadrupled
the value of my Solo 401k over the last eighteen months, they
want to know how," Stoddard says.
to Nabers, "My business is growing because there are plenty
of people who are not willing to 'wait and see what happens' with
the stock market. They want control over their finances, and they
want to replace their restrictive IRA or 401k with one that offers
says she never hesitates to tell people to take charge of their
own retirement money.
we had not established our self directed investment accounts we
would not have the cash available for investing that we now have.
That's what allows us the ability to act fast with real estate
and mineral rights opportunities. It's a lot different than helplessly
watching the market, and it has absolutely changed our future,"
more information on self-directed investing, visit the IRA Association
of America or Jeff Nabers' blog.
Jeff Nabers is an expert on self directed investing, Solo 401ks,
the future of social security, alternative IRA investment options,
and other topics that are of interest to individuals at all income
levels. His firm, Nabers Group, is located in Denver, Colorado.
Mr. Nabers can be reached at 866-253-7746. You may also contact
his publicist, Connie Holubar, at 903 880 8217 to arrange for
an interview or to request photos or other background materials.
and Jack Stoddard are real people. Their names have been changed
to protect their identity. Reporters interested in this story
who would like to speak to the "real" Janice and Jack,
can contact Connie.
The Nabers Group
600 17th street
Suite 2800 South
Denver, Co 80202