Are you one of the many who say that they want to retire in Hawaii?
- Hawaii is a popular dream retirement destination
- Pineapples can be profitable if you invest wisely
- A Self-Directed IRA can help you invest in your dreams
If the only pineapples you know come from under the sea and are part of Nickelodeon’s Spongebob Squarepants franchise, it might be time for you to learn more about them and what they may be able to have to do with your retirement.
Farm Credit unions, like Farm Credit, often make loans for an agricultural business, and can be a help for gaining capital. The cost of a pineapple plantation or farm will vary a great deal, especially depending upon seller and location.
Retirement And Pineapples
What does retiring or wanting to retire in Hawaii have to do with pineapples? If you know the history of the island state, it makes a bit more sense. Long before the Doyle family began a fruit stand on Oahu, the pineapple was a symbol of Hawaii and it’s pleasures. Today, pineapple grilled with caramel, pineapple vodka, pineapple Dole Whip, all are culinary expressions of the islands’ most famous fruit.
More than one person has come through Hawaii, whether during “the war” (or one of them) and decided that to retire their is the ultimate goal. Does that make owning a pineapple plantation attractive? Or just the idea of retiring on one of the luxurious beaches?
Owning Your Land
There are actually a number of ways that you can purchase land to grow pineapples on. One, of course, is to purchase an existing plantation or part of one. And if you use your Self-Directed IRA to make buy the land, you would be one of a growing number of retirement planners who are guiding their own golden years. Pineapple golden, perhaps.
If working the pineapple plantation yourself is something that tickles your fancy, and you want to be involved in the day to day operations of your business, you will need to undertake the ROBS solution, or Rollover Business Startup. This would allow an owner to also operate and draw a salary from their farm or business. And agriculture tends to have the best return on investment due to the practical nature of what you reap.
Retire In Hawaii With A Self-Directed IRA
A Self-Directed IRA LLC (SDIRA) is a type of individual retirement account that allows retirement investors to use their IRA funds to make alternative asset investments. Self-Directed IRAs are similar to traditional IRAs, but they provide more investment options to IRA holders. By using this retirement structure, you can diversify your investment opportunities and invest outside of stocks, bonds, mutual funds, and other traditional assets. You can still make traditional asset investments, but if you’re more comfortable investing in assets like real estate and precious metals, the Self-Directed IRA LLC allows you to do so. Ultimately, this diversifies the assets inside of your retirement account and may better protect you against market volatility.
This self-directed plan gives you more control over your retirement funds. However, it’s important to note that not all Self-Directed IRAs are the same. As a result, you will not find this term anywhere in the Internal Revenue Code.
With a Self-Directed IRA LLC, there are two investments you cannot make: life insurance and collectibles. Furthermore, you cannot make transactions under Internal Revenue Code (IRC) Section 4975(c). These are prohibited transactions that are broken down into categories: direct prohibited transactions and indirect prohibited transactions. Other than these three restrictions, you can make any type of investment with the Self-Directed IRA LLC.
The Solo 401(k) Retirement Plan
A Solo 401(k) plan is a 401(k) qualified retirement plan that was designed for self-employed individuals and small business owners with no full-time employees, excluding a business partner and spouse. Much like the traditional 401(k), this unique plan encourages individuals to save for retirement in a tax-advantaged environment. When participants contribute funds into the Solo 401(k), taxes on the funds will be deferred until the participant takes a qualified distribution.
The Solo 401(k) is an IRS-approved plan that has the same rules and requirements as a traditional employer-sponsored 401(k). However, the Solo 401(k) allows participants to make annual contributions to the plan as both an employee and employer, which ultimately increases the yearly maximum contribution limit.
Also known as a self-employed 401(k) or individual 401(k), individuals can benefit even if they generate a portion of their total income through self-employment activities, such as a freelance gig.
More popular than ever, pineapple salsa plants just the right amount of sweetness and spice. It’s an excellent metaphor for life, since that takes sweetness and spice as well. Planning your retirement can be an exciting adventure, regardless of whether it actually takes you to the Hawaiian Islands or not.