On this episode of Passive Income Pilots, Tait and Ryan interview Derreck Long.

Derreck Long is a Senior IRA Specialist at Quest Trust Company. Quest manages IRAs for “alternative” investments like real estate, notes, oil and gas, and private placements, among many others. Derreck became a Self-Directed IRA and Solo 401K Expert in 2017. He received a CISP from the American Banking Association, spoke at hundreds of events around the United States, and even participated in lobbying efforts with Congress.

Derreck provided valuable insights into the workings of self-directed IRAs, including ways to get money into retirement accounts. He touches on the contribution limits for different types of retirement accounts and the process of rolling over a Thrift Savings Plan (TSP) account. He discussed the complex terminology of self-directed IRAs, like Unrelated Debt-Financed Income (UDFI) and Unrelated Business Income Tax (UBIT). Understanding these terms is vital as they can impact the taxation of IRA investments. Derreck also highlighted the potential impact of new tax laws on custodian investments.

Enjoy the show!

Show notes:
[0:00] Intro
[1:01] Self-directed IRAs and custodians
[3:09] Active employer funds vs. external funds
[4:23] What you can put in an IRA
[6:32] Getting money into a retirement account
[10:16] Setting up a self-directed IRA
[11:48] Informing the old plan provider
[14:22] Choosing the right custodian for self-directed investments
[17:28] Specialized custodians for different types of investments
[20:08] Contribution limits and consolidation of retirement accounts
[20:55] Rolling over TSP to an IRA
[22:40] Importance of due diligence and working with experts
[24:58] Personalized customer service and assistance with IRAs
[28:54] Syndicators avoiding IRAs due to plan asset regulations
[33:23] IRAs and depreciation
[34:51] History of UDFI
[37:04] UDFI, UBIT and taxes
[40:48] Introduction to retirement accounts
[43:16] Choosing between Roth and traditional IRA
[44:44] Custodian fees
[48:33] How to reach out to Derreck
[50:20] Outro

Links mentioned:
#10 – Reduce Your Taxes & Maximize Returns Using PROVEN Investment Strategies with Toby Mathis –
#14 – Depreciation Demystified: Cost Segregation and Tax Savings in Real Estate with Toby Mathis –

*Connect with Derreck:*
Email: derreck.long@questtrust.com
Wesbite:
LinkedIn:

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Reach out to the hosts:
Tait Duryea
CEO Turbine Capital

Ryan Gibson
CIO Spartan Investment Group
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Decoding the Untapped Potential and Complex World of Self-Directed IRAs with Derreck Long

In the world of retirement savings, there’s a lesser-known but potentially powerful tool called a Self-Directed Individual retirement account (IRA). This type of IRA allows investors to take control of their retirement funds and invest them in a wide range of assets, including real estate, private equity, precious metals, and even cryptocurrencies. To shed some light on this complex yet exciting topic, we turn to Derreck Long, a leading expert in Self-Directed IRAs.

With over 10 years of experience in the financial industry, Derreck Long has become a trusted resource for individuals looking to maximize their retirement savings. As the founder of Quest Trust Company, one of the largest self-directed IRA custodians in the nation, Long has witnessed firsthand the untapped potential that Self-Directed IRAs offer.

So, what exactly is a Self-Directed IRA, and why should investors consider it?

A Self-Directed IRA is an individual retirement account that grants investors full control over their investment choices. Unlike traditional IRAs offered by banks, brokerage firms, or mutual fund companies, self-directed IRAs allow investors to venture beyond traditional stocks, bonds, and mutual funds.

These types of IRAs offer a vast array of investment options that can help diversify a retirement portfolio and potentially yield higher returns. Some popular alternatives include real estate, private businesses, tax liens, promissory notes, precious metals, and even startup companies.

The flexibility and potential for higher returns make Self-Directed IRAs an attractive option for investors who have a familiarity or special interest in a particular asset class. However, it’s important to note that self-directed IRAs also come with a set of rules and regulations that must be followed to maintain their tax advantages.

This is where Derreck Long and his expertise in self-directed IRAs come into play. Through Quest Trust Company, Long has made it his mission to educate and guide clients through the complexities of self-directing their retirement funds.

One of the primary challenges that Long helps clients navigate is understanding the IRS rules surrounding self-directed IRA investments. These rules are in place to ensure that investments are made for the sole purpose of providing retirement income and not for the immediate personal benefit of the account holder.

Long emphasizes that proper due diligence is crucial when investing through self-directed IRAs. Not all investments are allowed within these accounts, and prohibited transactions can result in severe penalties. As such, Long encourages investors to consult with professionals who specialize in self-directed IRAs to ensure they remain in compliance with IRS guidelines.

Despite the potential for higher returns, self-directed IRAs may not be suitable for everyone. Investors must be willing to put in the time and effort required to research and monitor their investments actively. Moreover, self-directed IRAs require a certain degree of financial literacy and understanding of risk management.

However, with the guidance of experts like Derreck Long, individuals can unlock the untapped potential of self-directed IRAs and diversify their retirement portfolios beyond traditional investment options. As retirement planning evolves, the concept of self-directed investing continues to gain traction, and investors looking to take a more active role in their retirement savings should consider exploring this fascinating field.

In conclusion, Derreck Long is at the forefront of demystifying the complex world of self-directed IRAs. Through his expertise and Quest Trust Company, individuals can tap into the untapped potential of these investment vehicles and navigate the regulatory landscape to make informed decisions. As more investors look to gain greater control over their retirement funds, self-directed IRAs become an increasingly relevant and exciting option to consider.