Next Generation Trust Shares Insights Into Investing in Equipment Leasing Through a Self-Directed IRA

Published on August 22, 2024

CEO Jaime Raskulinecz Explains How to Include Equipment Leases as an Alternative Asset in a Self-Directed Retirement Plan

ROSELAND, NJ, August 22, 2024 /24-7PressRelease/ — Investing in equipment leases is among the many alternative assets allowed in a self-directed IRA, as explained in a recent article by Jaime Raskulinecz, CEO of Next Generation.

The article explains different ways to make these investments, which are growing in popularity as banks and large financial institutions leave the equipment leasing sector—creating space for these assets to be held within a self-directed retirement plan.

The equipment leasing realm services clients in the manufacturing, trucking and logistics, construction, and professional businesses.

“Owners of self-directed IRAs can use funds in their accounts to invest in equipment leasing funds or purchase the physical equipment and lease it directly to businesses. In the latter scenario, the plan effectively becomes the equipment broker,” said Raskulinecz, whose firm specializes in full account administration and asset custody for self-directed plans.

The mechanics of self-directed equipment leasing investments

Unlike equipment financing, a form of debt financing, equipment leasing programs use operating lease structures that define the arrangement between parties. This agreement is essentially a contract that permits the lessee to use the asset without conveying ownership rights.

• If the self-directed IRA has invested in the physical asset, the plan owns it. Therefore, like any self-directed transaction (and leasing business), the account owner is responsible for vetting potential lessees and creating the lease terms.
• If the IRA invests in shares of an equipment leasing fund, it takes an equity position in the entity. The fund purchases specific equipment and then leases it to a business that needs it. The business pays a monthly lease payment on the equipment just as it would to a direct investor (the self-directed IRA).

“As with many alternative assets, equipment leasing provides consistent passive income through fixed lease payments, with reliable, tax-advantaged cash flow throughout the lease’s operating period,” said Raskulinecz. “Plus, including this asset creates retirement portfolio diversification as the taxpayer also builds a hedge against stock market volatility.”

Like any self-directed investment, Raskulinecz and her team strongly recommend that investors conduct thorough due diligence before sending investment instructions and that they are comfortable making their own investment decisions. More details about equipment lease investments are in the full article at https://shorturl.at/5jZ7x.

More information about self-direction as a retirement wealth-building strategy and about Next Generation is at www.NextGenerationTrust.com.

About Next Generation

Founded on the philosophy that every person should have control over their retirement plans, Next Generation educates consumers and professionals about self-directed retirement plans and nontraditional investments, a strategy at one time reserved only for the very wealthy. Next Generation Services provides comprehensive account administration and transaction support, and its sister company, Next Generation Trust Company, acts as custodian for all accounts. The neutral third-party professionals at Next Generation expertly guide clients and their trusted advisors as part of their white glove, personalized service for a seamless transaction experience from start to finish. For more information, visit www.NextGenerationTrust.com, or contact Next Generation at 888.857.8058 or NewAccounts@NextGenerationTrust.com.

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