Tuesday, June 24, 2025, 4 ET
Answers to IAR CE assessments are based on the 10 learning objectives identified below.
SDIRAs are an almost ideal way to diversify client portfolios beyond securities, into alternative investments. SDIRAs could become a mainstay investment -- a game-changing vehicle in modern financial planning -- because of their ability to diversify client portfolios broadly.
This class helps fiduciaries guide clients toward what's in their best interest while considering utilizing federally tax-advantaged self-directed IRAs (SDIRAs) to buy and hold alternative investments and private deals.
SDIRAs are a highly technical aspect of financial and tax planning with a history of attracting fraudsters.
While self-directed IRAs offer flexibility to invest in alternative assets (like real estate or private placements), their regulatory treatment makes them a favored vehicle for frauds preying on retirees and unsophisticated investors.
Yet SDIRAs are a legitimate tax-saving tool when used ethically. Indeed, SDIRAs are an area where an advisor's knowledge can add enormous value to the advice provided to clients.
This class provides a comprehensive overview of how the tax treatment of SDIRAs make them almost ideal for buy-and-hold, illiquid investments in private equity, real estate, private lending, and startups.
The class empowers IARs, CFPs, CPAs, and CIMAs to ethically guide clients in using retirement accounts for alternative investments.
This class comprehensively reviews how SDIRAs can be used to invest in alternative assets. The class explores the growing role of SDIRAs in retirement planning, emphasizing the benefits of SDIRAs for holding illiquid investments such as private equity, real estate, private lending, and startups.
The investment characteristics of alternative investments make them well-suited to be held in an SDIRAs because of how they are treated under federal tax law. However, critical SDIRA rules, including prohibited transactions, disqualified persons, and the Unrelated Business Income Tax (UBIT) are explained in this class.
Key strategies for structuring investments, including IRA-owned LLCs and C corporation "blockers" are discussed along with compliance considerations in choosing a qualified custodian.
Completing this class can teach you to:
1. Understand the size and potential of retirement account assets. $44 trillion in U.S. retirement accounts drives investment interest.
2. Recognize why IRAs suit long-term private asset investments. IRAs match private investments’ illiquidity and long-term horizon.
3. Identify growing trends in alternative asset classes. Private funds, real estate, startups, and lending are surging.
4. Better help clients with private investments. Most clients invest privately without wealth manager assistance.
5. Understand rules on what IRAs can’t own. Collectibles, S-corps, and life insurance are generally prohibited.
6. Avoid prohibited transactions with disqualified persons. IRAs can't transact with family or self-owned entities.
7. Evaluate popular private asset strategies for IRAs. Common strategies include rentals, funds, lending, and startups.
8. Use IRA-owned LLCs for asset control and efficiency. LLCs enable faster, flexible IRA transactions with checkbook control.
9. Apply UBIT and UDFI rules to avoid surprise taxes. UBIT applies to active business income and leveraged deals.
10. Choose a qualified custodian to ensure compliance and safety. Use regulated trust companies, not third-party administrators.
Mat Sorensen, J.D, began advising on self-directed IRAs in 2006. He is the founder and CEO of Directed Trust Company, a custodian of IRAs, Roth IRAs, HSAs, Coverdell ESA, solo Ks, and other federally qualified accounts that invest in real estate, crypto, private companies, and other alternative asset classes.
Who Should Attend:
IA Reps, CFPs, CPA financial planners, CPA/PFSs, CIMAs, CLUs, ChFCs, CFAs, and other professionals who seek a deeper understanding of diversified portfolio strategies using self directed IRAs.
Cost:
Free to Advisors4Advisors members ($60/Qtr).
CPE Credit:
1 hour, Ethics field of study
Prerequisites: None
Advanced Preparation: None
Course Level: Update
Course Delivery Method: Live webinar
Approved CE/CPE Provider:
Advisors4Advisors is approved as a provider of IAR CE by the North American Securities Administrators Association.
Advisors4Advisors is approved by the National Association of State Boards of Accountancy (NASBA) as a Quality Assurance Service (QAS) Self-Study Provider, enabling CPA financial planners to earn CPE credit on-demand via webinars on A4A, as well as on live webinars.
State boards of accountancy retain final authority on course acceptance. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors at www.nasbaregistry.org.
Advisors4Advisors is approved as a CE sponsor by CFP Board, and by Investments & Wealth Institute, enabling credit for CFP®, CIMA®, and CPWA® professionals.
For information regarding administrative policies, such as refunds, cancellations and complaints, mail [email protected].
This class is being submitted for credit by CFP Board, IWI, and NASBA. It was accepted for review by NASAA on June 6, 2025; credit for completion will not be displayed in your FinPro account for four- to six-weeks.