Betterment Review

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difference between brokerage ira and self directed ira welcome to tuesday at two. you know, we were thinking about we’re coming up with a new marketing plan, here at sunwest trust, and i wanted to, it’s gonna be my first opportunity to use some props to kind of explain something, and to explain the shirt that i’m wearing, but what we’re equating our business to, is another tool that you can use to reach your financial goals,

your goals for your retirement. and so, i wanted to talk to you about: i was raised in a construction family, my dad was in construction all my life, and i worked for him during the summers, and i was what’s known as a "framer". so, i was the guy that got out in that hot sun, and framed houses, and worked hard; and then, there’s another group of carpenters in the building business, called "finish carpenters", and those are the guys, you know, i would refer to them as kind of, the "white-collar construction workers". but they would work inside.

so, i wanted to show you this: this is what’s called a "framing axe", and this is what the real men in the construction business used. it’s got big teeth here, on the front, that will grip a nail, and it’s heavy, and i think this is two pounds. so you swing this thing, and you can really drive a nail quickly; but it doesn’t; it’s not pretty, so, i can always tell people, "i’m really good at building things that are gonna get covered up", because you would use this rigging axe to frame a house, to drive 16-penny nails,

so you could get it done really fast, and you could drive a nail really fast, but it would mark up the wood quite a bit. then you have this little delicate hammer, called a "finish hammer", and this is what the finish carpenters would use, and you can see the head of it is smooth there, so, it didn’t mark up the wood when you drive in a little finish nail into molding and stuff. so, i equate this kind of to, you know, if you want to invest in real estate, in your current ira at your brokerage house,

you can buy what’s called a reit, where you just invest in stock, and in a big real estate conglomerate, you know, a big building somewhere, or something. so, you never really get your hands dirty, never really get to work hard on it, and so it’s more of a kind of finish hammer, kinda thing. or you can use a self-directed ira, where you go out and find the real estate that you want to buy, and you negotiate to buy it, and you might even have to hire someone to fix the plumbing,

or you might have to, you know, hire somebody to come in and and paint, and do some work, so you really have to get out there and work hard on it. so, i kind of relate that to the rigging axe, but the main point being, is that although you could maybe frame, do some framing with this, it’s gonna be very difficult, it’s gonna take a long time. this doesn’t weigh very much, i think this particular hammer is maybe ten ounces,

so, it’s gonna take a long time, it’s not gonna really work as well. ’cause if you’re framing, then you want to use this thing, ’cause you can really drive nails quickly and do something, so, that’s the difference at sunwest trust, you can stay with a traditional brokerage house, where you can invest in real estate, through reits, or through some kind of stock, or something, or you could go with a self-directed custodian like sunwest trust, and really get your hands dirty, and get in there,

and really own real estate in your ira. so, it just depends on what you want to do: and it’s just the kind of tool that you need to do what you want to do with your ira. are you just going to invest in stocks, bonds, kind of a hands-off thing? that’s perfectly fine, and a lot of people want to do that, or do you want to get in there, and get your hands dirty, and really control your investing, and have some real say in what’s invested in the house that you’re gonna buy,

the real estate you’re gonna buy, what you’re gonna do with it. so, this, for the month of may, we’re going to be talking about the fact that sunwest trust is just another tool that you can use in your arsenal of retirement investing, and how that tool works, and the fact that not every tool; although you might be able to do the same thing, two different things with one tool, it just doesn’t work as well,

and you can’t do as good a job. and in some cases, you can’t even do the job, so, just keep that in mind, when you’re thinking about, you know, what is actually a self-directed custodian for, and what do they do, how do they do it, and it’s just another tool. it can do the same work as a regular custodian, but a little different twist on it, so, you have to get that specialized tool, to do exactly what you want to do there. so, stay tuned for the next tuesday at two during the month of may,

and, we’re going to talk a lot more about sunwest, and self-directed custodians being the right tool, and the right tool for what purpose you have in mind. so, i look forward to seeing you next week again, at tuesday at two.

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