thanks for the responses but my question, is 5,000 enough? I’m thinking that the answer is “absolutely it is”. Just need to make sure after all it’s not my money and before I risk someone elses, I want to have a good idea about what will happen. Thanks again and I meant to write self directed not self dealing which of course is a big no, no, appreciate the attention to detail.
does anyone know if it’s possible to self direct an IRA with a cash value of about $5,000.00. I have been informed that self directed IRA’S should have a value of about $20,000.00 to direct or the fee’s associated with self dealing are to high and will eat up the value of the IRA.
Your title was self dealing but the question was self directed. Selfdealing is a NO NO. If you profit personally then you get penalized. If the profits go back to the IRA no foul. Yes, there are the hybrids like David alludes to but the cost to set it up would not be worth while. Even at 5K you have trouble doing many types of deals. A L/O, or subject to could be done with little or no money. The annual fees due many custodians make only high return investments economical. The typical mutual fund or fixed return investment have just to much overhead.
by a house, a Mh, a note, have you IRA set up and LLC and partner on a deal of some sort… etc, etc.
Cost is relative to the investment gain. If your only making 7-8% then it aint worth it, but if your getting returns of 25% North… way north… then you be the judge.
Why would an LLC be necessary?
How about having your IRA buy an option and then selling the option to someone else or to yourself?
In the case of selling said option to yourself, I can see how that would be self-dealing, but can it be done?