BEWARE - Avoid these Common Mistakes when Self-Directing

In this episode of the Directed IRA Podcast, Mat Sorensen and Mark J. Kohler dive into the Top 10 Mistakes in Self-Directing Your IRA—and how to avoid them. Whether you're just getting started or already managing self-directed investments, this episode outlines the most common pitfalls that can derail your retirement strategy, including prohibited transactions, improper deal structuring, and UBIT traps. Mat and Mark not only break down each mistake but also provide practical guidance on how to structure deals the right way to stay compliant and protect your tax-advantaged account. They also highlight a critical bonus topic on Required Minimum Distributions (RMDs) for illiquid assets that every older investor must understand.If you’re looking to confidently navigate self-directed retirement investing, this episode is for you.00:00:08 – 00:01:50 – Intro, Past Events, & Empowering You to Self-Direct Your IRA00:01:50 – 00:04:15 – Breaking Out of the Brokerage Box (Disney Analogy): Investment Freedom Explained00:04:15 – 00:04:18 – Top 10 Mistakes in Self-Directing Your IRA00:04:18 – 00:06:30 – Mistake 1: Early Commitment to Deals00:06:30 – 00:07:54 – Mistake 2: Buying Assets You Already Own00:07:54 – 00:08:36 – Mistake 3: Transacting with Disqualified Persons00:08:36 – 00:11:30 – Mistake 4: Violating the 50% Rule in Business Ownership00:11:30 – 00:13:12 – Mistake 5: Providing Services to IRA-Owned Assets00:13:40 – 00:16:50 – Mistake 6: Personally Profiting from IRA Transactions00:16:50 – 00:21:30 – Mistake 7: Using IRA-Owned Assets Personally00:21:30 – 00:23:04 – Mistake 8: Improper Flow of Funds with IRA LLCs00:22:55 – 00:24:20 – Mistake 9: Underfunding Investments and the Need for Capital Planning00:24:20 – 00:31:04 – Mistake 10: Ignoring UBIT and UDFI Tax Traps00:31:04 – 00:32:30 – Bonus: RMD Pitfalls with Illiquid IRA Assets00:32:30 – 00:34:15 – Conclusion: Knowledge is Power—Avoiding Pitfalls with ConfidenceFor questions or to learn more about this episode's topic, book a call with an IRA specialist here: https://directedira.com/appointment/Other:Mat Sorensen: https://matsorensen.comMark J. Kohler: https://markjkohler.com/ KKOS: https://kkoslawyers.comMain Street Business https://mainstreetbusiness.com