Ask Experts Questions for FREE Help !
Ask
    mkporto's Avatar
    mkporto Posts: 3, Reputation: 1
    New Member
     
    #1

    Nov 6, 2008, 11:21 AM
    Self-Directed 401k
    What happens when you have used your 401K to Self-Directed 401k to start a business and the business is failing? What do we need to do?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
     
    #2

    Nov 6, 2008, 11:53 AM

    Not sure what you're asking here. If the business is failing, then the value of your self-dircted IRA investement has declined - perhaps to zero. Just as if you had invested in a failing stock. Are you wondering what options you have for whatever may be left in your self-directed IRA account? I suggest you talk to your plan custodian.
    mkporto's Avatar
    mkporto Posts: 3, Reputation: 1
    New Member
     
    #3

    Nov 7, 2008, 08:15 AM

    Thank you for your response. We bought a franchise last year, it has not done well and our money from the 401K we used to fund the business is almost gone. What should we do?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
     
    #4

    Nov 7, 2008, 08:29 AM

    Not knowing any details about your situation - if you don't think there's much hope for a recovery by ths franchise, you might want to just take whatever you can out of the investment and cut your losses - if that's possible. Then you should work to build your retirement fund back up. Investing in a franchise is obviously a very risky thing to do with your retirement money - I would counsel a more traditional approach built primarily around bond investements, at least until the market signals a turn around.
    mkporto's Avatar
    mkporto Posts: 3, Reputation: 1
    New Member
     
    #5

    Nov 7, 2008, 08:44 AM

    Thank you, can I ask what type of bond investments?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
     
    #6

    Nov 7, 2008, 02:01 PM

    For most people a bond fund makes sense. Buying individual bonds is not recomneded unless you have enough to adequately diversify across multiple issuers.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Can I rollover funds from my active 401a to a self directed IRA? [ 1 Answers ]

I want to take funds out of my current 401a plan to manage on my own in a traditional IRA. Can I do that by using the 60 day rollover allowance? I would still be contributing to the 401a, but I want to move funds out of it to manage on my own. Also, I am over 59 1/2 if that matters. Thanks for any...

Clarification required on Self Directed IRA [ 2 Answers ]

Hi, I hold certain funds in my IRA account. I am told that I can invest those funds in the areas I wish to using the Self Directed IRA. Can you tell me whether I can purchase a property valued more than the amount of IRA contributions I have in my account? Many thanks for your help in...

A Directed Donation is Re-assigned [ 1 Answers ]

A registered charity has an existing operation, with staff and a manager, and a prospective new operation, championed by a member of the board. An engineer has done some preparatory work on the new project and has been owed $10,000 for more than three months. The charity is cash tight. When the...

Book from late 80's early 90's directed towards teens [ 2 Answers ]

Hello... Any help would be appreciated, When I was probably 12, 13 somewhere in there so early 90's I read a book that I am sure came from the library at the time. I can not remember the name of this book, but I can remember it is a book I am dying to get a hold of so my child can read it...

Internet search directed to wrong site [ 2 Answers ]

Hi Friends, When I click the results of Live search or Google search, it is directed to wrong site:( , what is the reason and how can I correct it , please can any one help me out in this matter.


View more questions Search