Where Are The Wealthy Keeping Their Cash in 2010?

Services for Real Estate Pros with Mexico Real Estate


Do you really think that the uber-wealthy are riding out the dramatic, roller-coaster gyrations of the stock market alongside every other American stock holder?


If not, then you might want to listen up.  What I am about to tell you could dramatically affect your economic future.  


How would you like to know where the wealthy are keeping their cash these days?  Would  it interest you to know what the number one investment secret of the rich and famous is?  


It is a perennial secret that the wealthy have used for decades to make millions, year after year.  Yet it’s something anyone can easily do, if only they knew.


What is this hidden knowledge that the affluent have used to accumulate fortunes?  It’s something called a Self Directed Individual Retirement Account (SDIRA).  Yes, you heard right.  Since the 70’s it had been perfectly legal to move your IRA or retirement funds out of the banks and brokerage houses and assume complete control over how you invest it.  The problem is, most people don’t know about it or how to do it.  Wonder why?


The reason most brokerage companies haven’t told you about SDIRA’s is because, they believe, if they did tell you, you would probably leave them. And it’s true, once people discover how easily they take control of their own IRA investments, they typically choose to leave the banks, brokers and the volatile stock market, behind.


Savvy, wealthy investors are avoiding volatile and paltry stock market returns by investing their SDIRA’s in real assets that they can see, touch, feel and control, such as real estate holdings.  They have known for years that certain sectors of the real estate market generally out-perform the market by 10% to 20% or more, especially during times of volatility and uncertainty.  


In 2010, the wealthy are aiming their SDIRAs (401ks, Keoughs, Roth IRAs) at income-producing properties such as rental houses, condos and vacation homes as well as land banking opportunities:  buying cheap land now, building their dream homes later or better yet, subdivide now and sell at much higher prices later, when demand spikes upward.


How do SDIRAs work?  


  1. You can generally invest in anything including Gold, Promissory Notes, Stamps,  

     Businesses, Real Estate and virtually any other investment you desire.


  1.   All profit proceeds (capital gains, cash flow, business income) flow back to the IRA.


  1. Taxes are deferred except a in few cases regarding business income.




How do I set up an SDIRA?


  1. Acquire an IRA custodian.  This is the company that holds your IRA assets and invests 

     on your behalf under your 100% supervision.  We can help you find the right one for

     you.  Some SDIRAs have slightly higher fees but it’s worth it because you gain much

     more by having control of your retirement account.


  1. Select your investment.  It takes about 7-10 days to set up a SDIRA but you don’t have

     to wait until it’s set up to start your due diligence.


  1. Notify your SDIRA custodian of your intent to invest and complete “Buy Direction

     Letter.”  Funds can be transferred by check or via wire. 



Now you know what the rich have known for years, and perhaps what Wall St. didn’t want you to find out.  Although, it’s a little late to avoid the volatile stock market of the last two years, there remains a simple, powerful lesson to be learned here.  It’s time to take cue from the wealthy and not put all your eggs in one basket.  Self directed IRA investment strategies employed by the affluent, offer you an entirely new investment basket altogether—one that holds the golden eggs for a bright, rewarding and prosperous future.


by Michael Zenn




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Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

I actually knew and worked for very wealthy people who hid enormous amounts of money in cash in case they ever needed it. Yes, I always wanted to know where it was and figured it all out 20 years later. It was in plain sight and easily reachable, but undetected. Your post brought back these memories for me...thank you

Aug 07, 2010 06:41 AM #1
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