Welcome Friends and Family!

by Will on October 8, 2009

Friends and Family,
I’m so glad that you found TheTaxFreeInvestor.com and then decided to see what it’s all about.    This blog is dedicated to Investing for Retirement using Roth a Self Directed IRA or 401K.  The reason that I’m limiting the scope of my blog to the ROTH IRA is that I believe using a ROTH IRA is the best choice for 1 reason.   Distributions at retirement are TAX FREE.


I’m planning on having my first Tele-seminar about Self Directed IRA investing very soon.

I’m also having a Flow Chart Hand Drawn just for you.  Look at the picture at the upper right and see why?  I’ll be honest.   I’m not and artist, however I have made some very good investments in my Self Directed Roth IRA.  The flowchart drawing will be ready in the next few weeks.  It depicts the complete process of buying a Note, Making a Hard Money Loan, or buying a piece of Real Estate all in your Self Directed Roth IRA.

Check on this page in the next few days, I will have a video here that will explain more.  More about what I plan on doing with this blog for you.  I have a whole bunch of ideas on how I can help you realize your retirement dreams using a Self Directed Roth IRA or 401K.

Only my newsletter subscribers will get the details of the Teleseminar and the Flowchart. So sign up today.  Look to the upper right.

See you soon,


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{ 7 comments… read them below or add one }

1 Mark Roeker October 10, 2009 at 1:56 pm


Great start! I love how technically savy you are!


2 Kershaw October 18, 2009 at 10:10 pm

I can’t believe how somebody could give out advise when you can’t explain what you know without looking into a written sheet (something somebody wrote for you). There are plenty of professional help in the web. Why should you get into it without knowing the whole thing?

3 Will October 19, 2009 at 11:16 am

Kershaw, thanks for coming and checking out my video. I also appreciated your feedback. My blog is just beginning, you have to start somewhere. I think your misunderstanding something about me using notes to make that video. What it was is only the outline to what I wanted to say. There is nothing in that video or my blog that has been written for me, it is all entirely my own experience and opinion. There is much more I am going to be adding in the coming months. I expect you will see much value if you take the time to check it out.


4 John Horn November 13, 2009 at 7:24 pm

Will, I like your site. I have a couple of comments and one questions that you may be able to answer:

comment 1) I will be re-characterizing my tradional IRAs to Roth IRAs in Jan 2010. Please let people know you will have until Oct 15, 2011 to change your mind. This is important if you have volatile investments in the IRA. As an example, if the IRA loses 50% of its value after you’ve converted to a Roth, you have until Oct 15, 2011 to convert back to a tradtional IRA and avoid the taxes.
comment 2) The marginal tax rate for many people will increase by 3% or more in 2011. So if you have the money to pay the tax and you’re confident that your traditional IRA will not lose money after 2010, then consider paying the tax in 2010 rather than sprreading it over 2011 and 2012.

Now for my question: I report appox $55k in after tax contributions to one of my IRAs. The total of all IRAs is approx $550k (or ten times the amount of after tax contributions). If I only convert half of all my traditional IRAs to Roth IRAs, can I still use the entire $55k in 2010 to offset some of the taxes due because of the conversion, or will there be a limit of how much of the $55k I can use to offset the tax?

Thank you

John Horn

5 Will November 16, 2009 at 8:51 pm

Hi John,
Welcome and thanks for the nice comments. You’ve pointed out 2 really good things to remember about the Roth characterizations in 2010 that I didn’t know. I sincerely hope that a 50% loss isn’t expected after converting though. I’ll be sure to keep that in mind for future posts, etc.

For your question: First, I think you should consult your tax adviser before you do anything. Second, I’m not sure if there is enough info in your question to really answer it. Third, I’m assuming that you’re IRA’s are all self directed (that has no bearing on if you can convert or not. It’s just that’s the subject IRA vehicle of my blog). I’m a little confused by the after tax contributions of 55K, is that income produced by the IRA? is it EBITA due to leveraged income RE in the IRA? I’m interested to know how you’re contributing the 55k after tax into a Trad IRA or series of them since there are caps to contributions? To me that really sounds like a business contributing to a 401k or some other qualified plan.

To answer your question more directly. From what I know, have read, and talked to people about this, there are no limits to where the monies come from to pay the taxes when converting a Trad IRA to a Roth in 2010. However, if at all possible you will be much better off with your new Roth IRA if you can pay the taxes with outside money. I say that mainly for 1 reason, to keep from reducing the size of your new IRA to allow more cash for investments. You worked hard enough to get it in there. Another reason would be for the larger tax bill you’ll have that extra time to create it if you were to spread it over 2011 and 12. I see your comment about tax rates going up 3% in 2011. Everyone needs to weigh the likely hood of being able to make the extra amount needed to cover their tax bill if the elect to defer their taxes to a later year.

Hope that helps and thanks for your interesting comments and question. What types of assets do you invest in with your IRA’s?


6 Michael E December 1, 2009 at 6:02 pm

I just received (12/1/09) the flowchart (Thanks!) and it looks like a great overview of the process of securing a note for investment via a self-directed IRA.

As the first in a series of flowcharts, it’s a wonderful beginning. The next one perhaps could be a more generic overview of the process of setting up the self-directed IRA and placing inside it any kind of qualified investment.

Another could be showing the “DOs & DON’Ts” of holding real estate in a self-directed arrangement.

Yet another could be the rollover process from a “pre-tax” arrangement, such as a traditional IRA or a 401(k), with information about the risks and how to protect against them.

Thank you again for the flowchart. I am a big fan of both flowcharts and mind maps to help portray information and especially the decision-making process in pictures.


7 Will December 3, 2009 at 8:14 pm

Hi Michael,

Thanks for your feedback. I’m glad you’ve found the flowchart to be helpful. When i thought about having it drawn I was thinking that when someone viewed for the first time i would be there to help explain things. Would that be helpful?

As for your other suggestions I like them all and I think they are all doable. The more generic chart will be the next I have done. Can’t say an ETA yet, but I’ll try to rough it out ASAP and go from there.

I’m a real visual learner so the more drawings can use make it easier for me to see the whole picture and usually faster. I have some ideas for some mind maps as well so stay tuned.

Do you already invest with a Self Directed IRA?


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