Just chiming in my thoughts.
The IRA route doesn’t make sense to me. You are adding layers of complexity and risk to a situation that already has enough uncertainty. IRAs are not exactly meant for this purpose. That doesn’t mean you couldn’t find a way to do it, but I don’t see that as a solid approach.
Just chiming in my thoughts.
In terms of custodians, it’s the sort of thing Goldstar Trust might do. I have not done this specific thing with them, but I have done offshore IRAs through them and I don’t know that I see this being significantly different, really. I expect they will want to talk to your Portuguese lawyer and request all the appropriate documentation, but that’s just paperwork. You should not need the onshore LLC - you are customer of record with Goldstar as the custodian, Goldstar purchases the offshore LLC on your behalf. Or that’s how it should work. That said, they will also charge you for all the time and effort you’re asking them to go through to set this whole thing up.
At least one fund will, I’ve been told, work with you on the “what if it doesn’t go through” problem, e.g. they’ll let you back out - maybe not right away, you’d have to wait for the next new investor to transfer the shares to, but they’re willing to do so assuming the reasons are decent. I imagine that’s not the default stance, but again, it seems possible.
As to Michael’s point - I imagine the reason most people want to do this is “that’s where I have the necessary cash that doesn’t have anything else to do for 5 years anyway”. So maybe it’s the only way some people can do it. But you’re adding layers of complexity and fuss. Trade-offs as always.
Is anyone else applying with a family? I’m planning to apply with both my parents because they are over 65 and therefore are automatically considered my dependents. That means we can all go under a single application. We’re planning to all contribute part of the funds, and only I will need to set up the SDIRA. I wonder if that will cause problems.
Are people still meeting to discuss this or did I miss the boat already?
Has anyone on this thread conclusively determined if it’s compliant on both US and PT end to use IRA funds for the investment funds? And if so, what the path is (i.e. IRA LLC to PT LLC to fund OR other)? I’m not interested in the discussion of self-dealing here, unless someone has actually discovered and can site an official ruling – i’m more interested in if PT considers the fund source from a single beneficiary LLC to be compliant on there end, etc.
I am also interested if the SDIRA self-dealing rule has been tracked down. Thanks.
Just curious if anyone has successfully used a self directed 401k option. I hear a lot about starting a llc, moving 401k funds into it and then investments (real estate, etc.)
Anyone find out anything definitive or actually gone this route yet?
Any definitive conclusions to this thread? I have a SoloK with check book and have made PEG investments in the US with it. If there are interested parties that want to Zoom, I would love to be a part of it. And posting our findings here. Full disclosure, I am a tax accountant, but I have no idea how to go about this from the PT side.