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Self Directed Investor Radio

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Trump vs Clinton (Part 2 of 3):  The AWFUL CONNECTION For Self-Directed Investors

Here's A Full Transcript Of This Episode

In our last exciting exciting episode, you discovered how the specter of Mitt Romney’s 2012 disclosure of his $100 Million IRA still looms large over politics in 2016 with the announcement of the RISE Act Proposal, a legislative objective designed to totally cut off self-directed IRA’s at the knees.  Today, you learn exactly what the RISE Act is and why it’s the worst news for self-directed IRA investors… maybe ever.  And… oh yeah… you’ll learn about the CLEAR CONNECTION to the Trump vs Clinton presidential battle. Buckle your seatbelts, folks.  This one is going to be ugly.  This is episode #230.


Hello SDI Nation, welcome to the podcast of record where we help you to declare independence from Wall Street and build a financial legacy for future generations.  Today’s show notes page is at… write that down, because you’ll need it to reference some of the things I’ll tell you about today, that will simply leave you aghast.

But first, folks, I owe it to you to make sure you know about my friends over at Fund & Grow.  These guys are absolute magicians when it comes to helping their clients acquire zero-interest lines of credit… lines of credit that are essentially just signature loans, not even secured by real estate or anything else.  Think about that, folks… what if you could finance that real estate deal using a zero percent interest loan?  It’s a game changer, and that’s exactly what my friends Ari and Mike over at Fund & Grow do.  I say they’re magicians, but in truth, they just follow a great, great process that’s very reliable.  For people with decent credit or better, it’s totally achievable to reach $250,000 in zero-interest credit… and my friends, they’ve actually generated over $2.9 million worth of that type of credit for your fellow listeners just this year alone.  So my recommendation?  Check them out, and do it now… at  Again, that’s  You’ll be glad you did.

So, yesterday in Episode 229, I gave you my presumption about exactly how it is that Mitt Romney was able to build an IRA worth $100 million, totally legally.  You also learned how Romney’s success and the class envy-based reasoning of Senator Ron Wyden, Democrat from Oregon, resulted in the recent proposal of the deceptively named RISE Act – Retirement Income and Savings Enhancement Act of 2016.

So what is it?  And what’s the connection to the Trum p vs Clinton battle?  Let’s dig in now.

The RISE Act Proposal is the work of Ron Wyden, democrat Senator from Oregon.  It offers two mildly positive features:

  • A very slight increase in the age where you must begin to take required minimum distributions, and
  • Removal of the maximum age for Traditional IRA contributions

Those are good things, but they’re incredibly minor in the grand scheme of things.  But there are 3 features of this proposal – “features” is the wrong word, they’re more like ASSAULTS – and they’re truly horrible… a direct attack against you as an IRA user… these assaults are designed to make sure that the IRA is less valuable in the future than it is now… and one of those assaults is designed specifically to cut the legs out from under savvy users of self-directed IRA’s who invest in real estate, private businesses or any other non-exchange-listed assets.  Let’s take a look:

Assault #1 targets owners of Traditional IRAs whether self-directed or otherwise.  If Senator Wyden’s proposal becomes law, you’ll no longer have the option of converting your Traditional to a Roth.  The Roth account is in the cross hairs of the government because the Roth actually ELIMINATES tax liability rather than deferring it like the traditional IRA.  As such, Wyden proposes to eliminate your right to reduce your tax liability by converting from a al to a Roth.

Assault #2 targets owners of Roth IRA’s, whether self-directed or otherwise.  If that’s you, you’ll now be subject to required minimum distributions – the dreaded RMD.  If you’re not familiar, RMD is a formula for determining how much money MUST be withdrawn from your IRA, even if you don’t want to withdraw it.  Previously, only Traditional IRA’s were subject to this, but not Roths.  Why is Senator Wyden expanding it to Roth IRA’s?  Well, here again, Wyden and his ilk HATE the Roth IRA because it ELIMINATES taxes rather than just deferring them.  Furthermore, the Roth IRA may be the single greatest estate planning tool ever created, because if you leave a Roth IRA to a beneficiary, that beneficiary can take that money out totally tax free at any time… but they can also continue to build that account using the funds you left to them, and the profits from THEIR transactions are also entirely tax free, and also entirely available for withdrawal at any time they want.  In effect, the owner of a well-managed inherited Roth IRA could live their life ENTIRELY income-tax free.  The inherited Roth IRA is astoundingly powerful, and Wyden is doing what he can to make sure that not only do YOU get less benefit from your Roth IRA, but he’s also trying to make sure your Roth IRA is distributed during your lifetime so that your beneficiaries can’t continue benefiting from its income tax elimination features.

Which leads us to Assault #3… and this is the one that really cuts the legs out from under self-directed IRA owners specifically, whether using a Traditional or Roth account.  This one is actually two assaults in one.  First, the assets of self-directed IRA’s will now be required to be formally valued via a “qualified appraisal”.  The meaning of “qualified appraisal” is not defined, meaning that it’s left to the IRS to decide.  At the very least, I suspect this will translate into a requirement for formal independent appraisals.  That, in itself, is a huge, huge issue for some investors.  The cost of appraising certain types of commercial real estate or privately held businesses or other non-exchange-traded assets can EASILY become prohibitive, running to the 10’s of thousands of dollars per asset, creating an astounding burden on the self-directed IRA owner.

But that’s just the tip of the iceberg.  The REAL REASON that valuations are required under Senator Wyden’s proposal is that the RISE act explicitly prohibits you from buying any asset for less than its market value.  Yes, you heard that correctly.  If Senator Wyden gets his way, you’ll no longer even have the option of buying real estate at a discount.  You’ll no longer be able to buy discounted notes or mortgages or any other asset at favorable prices.  You’ll no longer have the ability to do the one thing that real estate investors always aim to do:  To profit on the front end by BUYING RIGHT.  That will, literally, be illegal.

And that’s not the whole story.  There are even MORE assaults against you as an IRA investor.  It’s simply stunning how thoroughly anti-capitalist the RISE proposal really is.  Folks, the tiny, tiny, infinitesimally small benefits offered by the RISE Act proposal are absolutely worthless compared with the tremendous, tremendous damage this act will do to you as a self-directed IRA user, whether Roth or Traditional.

In short, this is PROFOUNDLY opposed to your interests, and it’s opposed to the interests of your beneficiaries, if building a financial legacy matters to you.  There’s just no doubt about it.

So what’s the connection to the Presidential election that rages on right now?  My friends, I’m sorry… I’ve run out of time again for this episode.  But in the interest of making sure you get the information in time, you can hear part 3 – the FINAL part of this URGENT topic right now by going over to

My friends, invest wisely today, and live well forever!


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