--- title: When to Consider Opening a Self-Directed IRA description: Replacement property must be of equal or greater value than the relinquished property, but things can get complicated when there's a mortgage involved. image: https://blog.fgg1031.com/hubfs/IRA.png --- [info@firstguardiangroup.com](mailto:) [(866)398-1031](tel:(866)398-1031) [![fgg](https://blog.fgg1031.com/hubfs/FirstGuardianGroup_2022/fgg.png)](https://brokercheck.finra.org/individual/summary/6470002) [![fgg-871923](https://blog.fgg1031.com/hubfs/FirstGuardianGroup_2023/fgg-871923.png)](https://www.bbb.org/us/ca/san-jose/profile/commercial-real-estate/first-guardian-group-1216-887513) [![logo](https://blog.fgg1031.com/hs-fs/hubfs/FirstGuardianGroup_2022/logo.png?width=175&height=56&name=logo.png "logo")](http://fgg1031.com) - [Home](https://fgg1031.com/) - [About Us](https://fgg1031.com/about-us/) - [Current Offerings](https://fgg1031.com/property-listings-directory/) - [Resource Center](https://fgg1031.com/resource-center/) - [Glossary](https://fgg1031.com/glossary/) - [Accommodators](https://fgg1031.com/accommodators/) - [FAQ](https://fgg1031.com/faqs/) - [Tax eBook](https://pages.fgg1031.com/resources/real-estate-tax-deferral-strategies-ebook) - [Real Estate eBook](https://pages.fgg1031.com/real-estate-investing-in-the-new-era2) - [QI eBook](https://pages.fgg1031.com/resources/qualifiedintermediary/ebook) - [Tax Calculator](https://fgg1031.com/tax-calculator/) - [Newsroom](https://fgg1031.com/newsroom/) - [Blog](https://blog.fgg1031.com/blog) - [Events](https://fgg1031.com/events/) - [Contact Us](https://fgg1031.com/contact/) ![search-interface-symbol](https://blog.fgg1031.com/hubfs/FirstGuardianGroup_2022/search-interface-symbol.png) ![loader](https://f.hubspotusercontent-eu1.net/hubfs/24949188/Business%20and%20Finance/global/22.gif) ![close](https://blog.fgg1031.com/hubfs/FirstGuardianGroup_2022/close.png) From Pages From Blog Pages Load More Load More **Sorry, we couldn't find a match for  "".** Check your spelling or try a related search term. [![Register](https://no-cache.hubspot.com/cta/default/5468919/d02a3ee4-7db2-4d64-b925-a6ebbfe26664.png)](https://cta-redirect.hubspot.com/cta/redirect/5468919/d02a3ee4-7db2-4d64-b925-a6ebbfe26664) ![blog-template-banner](https://blog.fgg1031.com/hs-fs/hubfs/Blog%20Banner/blog-template-banner.png?width=1920&name=blog-template-banner.png "blog-template-banner") # Blog ### Subscribe to Our Blog ### Subscribe to Email Updates ## Featured Post   [Paul Getty](https://blog.fgg1031.com/blog/author/paul-getty) ## [721 UPREIT Options in DST Programs (Part 3)](https://blog.fgg1031.com/blog/721-upreit-options-in-dst-programs) We have previously written two blog posts on 721 UPREIT options which discuss basic concepts which I encourage readers to review prior to reading this b\[...\] [Real Estate Investors](https://blog.fgg1031.com/blog/topic/real-estate-investors) [DST](https://blog.fgg1031.com/blog/topic/dst) [721 Exchange](https://blog.fgg1031.com/blog/topic/721-exchange) [UPREIT](https://blog.fgg1031.com/blog/topic/upreit) [Read More](https://blog.fgg1031.com/blog/721-upreit-options-in-dst-programs) ## Recent Posts [Retirement Planning](https://blog.fgg1031.com/blog/topic/retirement-planning) [Investor](https://blog.fgg1031.com/blog/topic/investor) # When to Consider Opening a Self-Directed IRA By [Paul Getty](https://blog.fgg1031.com/blog/author/paul-getty) At the beginning of every new year,  we encourage all our clients to review their current retirement plans to determine if they still meet their objectives. A common complaint that we hear is that yields on invested funds are often not sufficient to meet planned retirement goals. If you reach a similar conclusion after reviewing your accounts, you may consider modifying fund allocations to better performing assets and opening a self-directed IRA to provide additional flexibility to make investments that are generally not offered in traditional retirement accounts. Before discussing the pros and cons of self-directed IRAs, let’s first look at several common retirement plans. #### **401(k)** The 401(k) plan is the most popular retirement plan for employees. It provides employees an opportunity to divert a portion of their pre-tax income into select investments that grow tax-free until those funds are withdrawn. If the funds are withdrawn before the age of 59½, a tax penalty will be assessed. Funds withdrawn after age 59½ are subject to ordinary income tax rates. Withdrawals currently must begin at age 73. Many employers will match at least a portion of funds that the employee chooses to put into this plan – essentially providing “free” money - thereby making this plan especially attractive when matching contributions are offered. The employee contribution cap for 401(k) plans in 2024 is $23,000, while the combined employer and employee contribution cap is $69,000. If you are 50 years of age or older, you can increase your employee contribution limit to $30,500 by receiving an extra $7,500 in catch-up contributions.[\[1\]](https://blog.fgg1031.com/blog/when-to-consider-opening-a-self-directed-ira#_ftn1) In addition to contribution and withdrawal limitations, the types of investments available are generally limited to specified stocks, bonds, and cash offered in the employer’s plan. #### **Traditional Individual Retirement Arrangement (IRA)** The modern IRA was first introduced in 1974 as an alternative retirement savings option for individuals who did not have pensions. Traditional IRAs are tax-favored savings accounts that are primarily started and maintained by individuals. If you don't have access to an employer's 401(k), a standard IRA may be an attractive option because almost anybody with taxable income can contribute to one. #### **IRA vs 401(k)** There are many similarities between an IRA and a 401(k). The primary distinction between the two types of accounts is that an individual can open an IRA with a brokerage firm, while a 401(k) is an employer-sponsored plan. Instead of selecting from a limited menu of investment options that the employer selected for its 401(k) plans, holders of IRA accounts can choose from a wider range of investments that the broker offers. The maximum contributions to an IRA are significantly less than to a 401(k). You can only make contributions to an IRA in 2024 of up to $7,000, or $8,000 if you're 50 years of age or older. However, you can fund a 401(k) with up to $23,000 in contributions, or $30,500 if you're over 50 – and up to $69,000 if your employer matches contributions. The rules for withdrawals are similar for traditional IRAs and 401(k)s. Unless specific limitations apply, you will be penalized financially in both scenarios if you make distributions before the age of 59½. Additionally, investors must begin taking Required Minimum Distributions (RMDs) by the age of 73 for both accounts. #### **Converting your 401(k) to an IRA** Conversion of a 401(k) to an IRA can provide individuals with a wider range of investing alternatives. You have the option to open an IRA with any broker that provides the accounts, rather than being restricted to the 401(k) administrator that your company selected. Not only can you select any investments available through your broker, but you can also select those that are not on your employer's menu of alternatives. You will still be subject to age-related restrictions, such as having to start drawing required minimum distributions (RMDs) at age 73 and paying a penalty for withdrawals made before age 59½, even if you move your investments from your 401(k) to a regular IRA. Plus, having all of your retirement assets in one location rather than dispersed among multiple 401(k) plans may make it simpler to manage them if you've changed jobs. #### **Transfer of Funds from a 401(k) to an IRA** You can transfer money from your 401(k) into an IRA in one of two ways. The first and simplest way is to roll over your 401(k) savings directly. Your 401(k) funds are sent directly between the custodians of the 401(k) and the IRA. You might also directly obtain a check payable to your new account (not you) from the 401(k) administrator. When properly executed, no taxes or penalties are withheld. The second kind of rollover is indirect; in this scenario, your 401(k) provider directly sends you a check. Following that, you will have 60 days to deposit the check with the custodian of your IRA. However, there are certain disadvantages to this route. - ***Funds remaining in the 401(k) may be subject to taxes — and possibly subject to penalties*** - ***The 401(k) employer is required to withhold 20% for taxes when an indirect rollover is carried out*** The good news is that if you deposit the full amount into your IRA within 60 days, you will get that 20% back when you receive your tax return. #### **Roth IRA** An IRA that you fund with after-tax money is called a Roth IRA. Your contributions and gains grow tax-free, and you can take money from the account tax-free and penalty-free after five years after opening it and reaching the age of 59½. However, there are no tax benefits for the current year in which you deposit funds.  The main distinction between a Roth IRA and a standard IRA is when you receive the tax benefits. When you make contributions to a typical IRA, there is no income tax due; nevertheless, taxes are due when funds are withdrawn. The situation is completely reversed with a Roth IRA: contributions are taxed, but withdrawals are tax-free when you reach retirement, meaning that every dollar you put into the account puts money in your pocket. Is a regular or Roth IRA the better option?[\[2\]](https://blog.fgg1031.com/blog/when-to-consider-opening-a-self-directed-ira#_ftn2) Experts state that one important consideration is whether you anticipate paying more or less in taxes when you retire. Because their income is smaller in retirement, many people anticipate paying less in taxes. If so, a traditional IRA may be a better option for you; if not, a Roth IRA may result in lower overall income tax payments. Roth IRAs have more limited contribution limits than traditional IRAs: ![Screen Shot 2024-02-15 at 10.34.37 AM](https://blog.fgg1031.com/hs-fs/hubfs/Screen%20Shot%202024-02-15%20at%2010.34.37%20AM.png?width=1534&height=796&name=Screen%20Shot%202024-02-15%20at%2010.34.37%20AM.png) #### **The Self-Directed IRA** One type of individual retirement account that allows you greater control and flexibility over the investments in the account is a Self-Directed IRA. You can invest in a wider variety of assets with a self-directed IRA than just the standard alternatives like stocks, bonds, and mutual funds. The self-directed Roth IRA is like the Roth IRA described above – but provides a wider range of investment options using after tax dollars that can potentially grow and be withdrawn tax free. Self-directed IRAs are subject to the same tax laws and regulations as traditional IRAs. The contribution caps for 2023 remain the same at $6,500, or $7,500 for individuals 50 years of age or above. These caps are set at $7,000 for 2024 and $8,000 for those 50 years of age and over. Like with a standard IRA, contributions to a Roth IRA are made after taxes; nevertheless, they are still tax deductible. Profits increase tax-deferred, or in a Roth account, tax-free. An increased selection of investment options is what distinguishes self-directed IRAs. Alternative assets include real estate, privates REITs, precious metals, private companies, private loan contracts, and cryptocurrency investments, among others. #### **Opening a Self-Directed IRA** All IRAs must be held in trust by brokerage firms. The majority of well-known brokerage firms however do not provide self-directed IRA options. Individuals seeking to open a self-directed IRA will need to seek out financial organizations that specialize in them, such as some banks and trust companies who serve as custodians for these accounts. You'll need to compare them based on costs, convenience and the types of assets that they agree to manage. because they may not all agree to manage the same kinds of assets. Many of our clients will first seek out desired investments that can be made with self-directed funds - and then obtain referrals from our firm or from the investment sponsors to open a self-directed IRA account that has approved the specific investment. Individuals can establish more than one self-directed IRA account as needed. #### **Risks of Self-Directed IRAs** Self-directed IRAs allow individuals the greatest amount of flexibility in selecting investment options – including those that may have greater risks than investments offered by well-known brokerage firms. Investors are cautioned to perform adequate due diligence before making investments and be especially skeptical when presented with “too good to be true” investment options. ####  **Conclusion** All retirement plans offer tax breaks to encourage people to save money for their future. There are differences between the different kinds of retirement plans in terms of when income tax is due, contribution caps, and withdrawal guidelines. A self-directed IRA may appeal to individuals who wish to explore a wider range of investment options including real estate. However, due to numerous variables in each plan, it's crucial to speak with a qualified tax or retirement plan expert to determine which plans best fit your situation. For more information on retirement plans including real estate investment options, please contact us at 408 392-8822 via email at [info@fgg1031.com](mailto:info@fgg1031.com). [![](https://no-cache.hubspot.com/cta/default/5468919/interactive-183026367846.png)](https://blog.fgg1031.com/hs/cta/wi/redirect?encryptedPayload=AVxigLIaBPiO3JUSHoKPRH%2Bmw2GOWvz00MGZcAYhnBfWoY%2FiW1Cb3hQsbYZdDenChSntDmh21jNG7ve%2FBGikRofz1K%2BVoskt3lOi31qGCIyxXyeXnfVJEoooi8DnvKUD3QXMkw2d4vud7BsUXdYSdPyHpUtB0okESZZphqTLgG6jxeYtvGguPxja%2BhSj1fmj9n5nmf16%2BV85xAgJ4974XzCn34r%2FajA6mJO3owc1fLmFkp0n&webInteractiveContentId=183026367846&portalId=5468919)   [\[1\]](https://blog.fgg1031.com/blog/when-to-consider-opening-a-self-directed-ira#_ftnref1) [https://www.irs.gov/newsroom](https://www.irs.gov/newsroom) - see 401(k) increases for 2024 [\[2\]](https://blog.fgg1031.com/blog/when-to-consider-opening-a-self-directed-ira#_ftnref2) [https://www.schwab.com/ira/roth-vs-traditional-ira#:~:text=With%20a%20Roth%20IRA%2C%20you,current%20income%20after%20age%2059%C2%BD](https://www.schwab.com/ira/roth-vs-traditional-ira#:~:text=With%20a%20Roth%20IRA%2C%20you,current%20income%20after%20age%2059%C2%BD). --- ### [Paul Getty](https://blog.fgg1031.com/blog/author/paul-getty) Paul M. Getty is one of the most experienced 1031 exchange specialists in the United States, with a career in real estate that spans over 35 years and more than $5 billion in commercial transactions across every major asset class. His work covers single-family rentals, apartments, retail, office, multifamily, and student and senior housing, giving him a practical understanding of how different property types perform across market cycles and how investors can move between them using tax-deferred exchange strategies. As President and CEO of FGG1031 | First Guardian Group, Paul advises investors through the full 1031 exchange process, from identifying qualifying replacement properties to structuring acquisitions through Delaware Statutory Trusts (DSTs) and wholly owned real estate. His guidance covers both the compliance requirements of a valid exchange and the investment decisions that determine long-term portfolio outcomes – a combination that is difficult to find in a single advisor. Paul holds a California and Texas real estate broker license and carries Series 22, 62, 63, and 82 securities licenses as a registered representative with Emerson Equity LLC, member FINRA /SIPC. He has represented buyers and sellers across complex commercial transactions, sourced and structured debt and equity, and worked alongside nationally recognized firms including Marcus Millichap, CBRE, JP Morgan, and Morgan Stanley. Before founding FGG1031, he co-founded Venture Navigation, a boutique investment banking firm whose M&A and IPO activity generated over $700 million in investor returns. Paul holds an MBA in Finance from the University of Michigan and a bachelor’s degree in chemistry from Wayne State University. He has also completed coursework in artificial intelligence at Stanford University. He is the author of four books on real estate investing and tax deferral strategy, including Tax Deferral Strategies Utilizing the Delaware Statutory Trust (DST) and Real Estate Investing in the New Era, both available on Amazon. A frequent speaker on 1031 exchanges, DST investing, and real estate tax strategy, Paul Getty is a recognized voice for investors and advisors seeking guidance on capital preservation through tax-deferred real estate investment. ## Your Comments : This is a search field with an auto-suggest feature attached. - There are no suggestions because the search field is empty. - Latest Posts - Popular Posts [Partial 1031 Exchange: How It Works, What Gets Taxed, and When It May Make Sense](https://blog.fgg1031.com/blog/partial-1031-exchange-how-it-works) [ 1031 Exchange](https://blog.fgg1031.com/blog/topic/1031-exchange) [721 UPREIT Options in DST Programs (Part 3)](https://blog.fgg1031.com/blog/721-upreit-options-in-dst-programs) [ Real Estate Investors](https://blog.fgg1031.com/blog/topic/real-estate-investors) [ DST](https://blog.fgg1031.com/blog/topic/dst) [ 721 Exchange](https://blog.fgg1031.com/blog/topic/721-exchange) [ UPREIT](https://blog.fgg1031.com/blog/topic/upreit) [ New featured](https://blog.fgg1031.com/blog/topic/new-featured) [Can a 9% Taxable Return Beat a 4.5% Tax Advantaged DST?](https://blog.fgg1031.com/blog/can-a-9-taxable-return-beat-a-4.5-tax-advantaged-dst) [ Real Estate Investors](https://blog.fgg1031.com/blog/topic/real-estate-investors) [ DST](https://blog.fgg1031.com/blog/topic/dst) [ New featured](https://blog.fgg1031.com/blog/topic/new-featured) ### Categories - [1031 Exchange (143)](https://blog.fgg1031.com/blog/tag/1031-exchange) - [DST (59)](https://blog.fgg1031.com/blog/tag/dst) - [Real Estate Investors (43)](https://blog.fgg1031.com/blog/tag/real-estate-investors) - [Blog (41)](https://blog.fgg1031.com/blog/tag/blog) - [New featured (36)](https://blog.fgg1031.com/blog/tag/new-featured) - [Taxes (18)](https://blog.fgg1031.com/blog/tag/taxes) - [Estate Planning (10)](https://blog.fgg1031.com/blog/tag/estate-planning) - [Investor (8)](https://blog.fgg1031.com/blog/tag/investor) - [REIT (7)](https://blog.fgg1031.com/blog/tag/reit) - [Capital Gains (6)](https://blog.fgg1031.com/blog/tag/capital-gains) - [Qualified Intermediary (6)](https://blog.fgg1031.com/blog/tag/qualified-intermediary) - [721 Exchange (4)](https://blog.fgg1031.com/blog/tag/721-exchange) - [Featured (4)](https://blog.fgg1031.com/blog/tag/featured) - [Opportunity Zones (4)](https://blog.fgg1031.com/blog/tag/opportunity-zones) - [1031 Exchange Funds (3)](https://blog.fgg1031.com/blog/tag/1031-exchange-funds) - [Inflation (3)](https://blog.fgg1031.com/blog/tag/inflation) - [Retirement Planning (3)](https://blog.fgg1031.com/blog/tag/retirement-planning) - [Reverse 1031 Exchange (3)](https://blog.fgg1031.com/blog/tag/reverse-1031-exchange) - [TIC (3)](https://blog.fgg1031.com/blog/tag/tic) - [Apartment Market (2)](https://blog.fgg1031.com/blog/tag/apartment-market) - [Boot (2)](https://blog.fgg1031.com/blog/tag/boot) - [CA Landlords (2)](https://blog.fgg1031.com/blog/tag/ca-landlords) - [Covid-19 (2)](https://blog.fgg1031.com/blog/tag/covid-19) - [Depreciation (2)](https://blog.fgg1031.com/blog/tag/depreciation) - [Depreciation Recapture (2)](https://blog.fgg1031.com/blog/tag/depreciation-recapture) - [IRS (2)](https://blog.fgg1031.com/blog/tag/irs) - [NNN (2)](https://blog.fgg1031.com/blog/tag/nnn) - [UPREIT (2)](https://blog.fgg1031.com/blog/tag/upreit) - [1033 Exchange (1)](https://blog.fgg1031.com/blog/tag/1033-exchange) - [1099A (1)](https://blog.fgg1031.com/blog/tag/1099a) - [AB1771 (1)](https://blog.fgg1031.com/blog/tag/ab1771) - [CPA (1)](https://blog.fgg1031.com/blog/tag/cpa) - [Cost Segregation (1)](https://blog.fgg1031.com/blog/tag/cost-segregation) - [Mortgage (1)](https://blog.fgg1031.com/blog/tag/mortgage) - [PPM (1)](https://blog.fgg1031.com/blog/tag/ppm) - [Rent Relief (1)](https://blog.fgg1031.com/blog/tag/rent-relief) - [Retail (1)](https://blog.fgg1031.com/blog/tag/retail) - [The Tax Cuts and Jobs Act (1)](https://blog.fgg1031.com/blog/tag/the-tax-cuts-and-jobs-act) see all ### Read more of what you like. ## [The Role of Investment Real Estate in Today’s Retirement Portfolio](https://blog.fgg1031.com/blog/the-role-of-investment-real-estate-in-todays-retirement-portfolio) ## [1031 Exchanges for Retirement Planning](https://blog.fgg1031.com/blog/1031-exchanges-for-retirement-planning) [![FGG_Footer_White](https://blog.fgg1031.com/hs-fs/hubfs/FirstGuardianGroup_2022/FGG_Footer_White.png?width=300&height=95&name=FGG_Footer_White.png "FGG_Footer_White")](http://fgg1031.com) 97 East Brokaw Road, Suite 350, San Jose, CA 95112 [(866) 398 1031](tel:(866)%20398%201031) [info@firstguardiangroup.com](mailto:info@firstguardiangroup.com) ## Recent Blogs - [Investing in Senior Housing October 20, 2022](https://blog.fgg1031.com/blog/investing-in-senior-housing) - [A Closer Look at the 7 Deadly Sins October 20, 2022](https://blog.fgg1031.com/blog/a-closer-look-at-the-seven-deadly-sins) - [What is a Springing LLC? October 20, 2022](https://blog.fgg1031.com/blog/what-is-a-springing-llc) ## Useful Links - Home - About Us - Blogs - Testimonials from Past Customers - Resource Center - Current Offerings Disclaimer: There is no guarantee that any strategy will be successful or achieve investment objectives. All real estate investments have the potential to lose value during the life of the investments. This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please be aware that this material cannot and does not replace the Memorandum and is qualified in its entirety by the Memorandum. This material is not intended as tax or legal advice so please do speak with your attorney and CPA prior to considering an investment. This material contains information that has been obtained from sources believed to be reliable. However, FGG1031, First Guardian Group, LightPath Capital, Inc., and their representatives do not guarantee the accuracy and validity of the information herein. Investors should perform their own investigations before considering any investment. There are material risks associated with investing in real estate, Delaware Statutory Trust (DST) and 1031 Exchange properties. These include, but are not limited to, tenant vacancies, declining market values, potential loss of entire investment principal. Past performance is not a guarantee of future results: potential cash flow, potential returns, and potential appreciation are not guaranteed in any way and adverse tax consequences can take effect.  The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities. All financed real estate investments have a potential for foreclosure. Delaware Statutory Trust (DST) investments are commonly offered through private placement offerings and are illiquid securities. There is no secondary market for these investments. Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions. Costs associated with the transaction may impact investors’ returns and may outweigh the tax benefits. IRC Section 1031, IRC Section 1033, and IRC Section 721 are complex tax codes; therefore, you should consult your tax and legal professional for details regarding your situation. DST 1031 properties are only available to accredited investors (generally described as having a net worth of over one million dollars exclusive of primary residence) and accredited entities only (generally described as an entity owned entirely by accredited individuals and/or an entity with gross assets of greater than five million dollars). If you are unsure if you are an accredited investor and/or an accredited entity, please verify with your CPA and Attorney prior to considering an investment. Securities offered through registered representatives of [LightPath Capital, Inc.](http://www.lightpathcapital.com/) Member [FINRA](http://www.finra.org/) / [SIPC](https://www.sipc.org/). FGG1031, First Guardian Group, and LightPath Capital, Inc. are separate entities. Copyright 2022, All Rights Reserved, FGG1031 [![FGG_Footer_White](https://blog.fgg1031.com/hs-fs/hubfs/FirstGuardianGroup_2022/FGG_Footer_White.png?width=300&height=95&name=FGG_Footer_White.png "FGG_Footer_White")](http://fgg1031.com) 97 East Brokaw Road, Suite 350, San Jose, CA 95112 [(866) 398 1031](tel:(866)%20398%201031) [info@firstguardiangroup.com](mailto:) [![Bitmap](https://blog.fgg1031.com/hubfs/FirstGuardianGroup_2023/Bitmap.png)](https://brokercheck.finra.org/individual/summary/6470002) ## Recent Blogs - [Understanding the Difference Between Inheritance and Estate Tax August 3, 2023](https://blog.fgg1031.com/blog/understanding-the-difference-between-inheritance-and-estate-tax) - [Public or Private Real Estate? Your Investment Portfolio May Need Both July 27, 2023](https://blog.fgg1031.com/blog/public-or-private-real-estate-your-investment-portfolio-may-need-both) - [How to Use 1031 Exchange Funds to Improve Your Replacement Property July 20, 2023](https://blog.fgg1031.com/blog/how-to-use-1031-exchange-finds-to-improve-your-replacement-property) ## Useful Links - [Home](http://fgg1031.com/) - [About Us](https://fgg1031.com/about-us/) - [Blogs](https://blog.fgg1031.com/blog) - Testimonials from Past Customers - [Resource Center](https://fgg1031.com/resource-center/) - [Current Offerings](https://fgg1031.com/property-listings-directory/) FGG1031 | First Guardian Group and Emerson Equity LLC do not provide legal or tax advice. Securities offered through [Emerson Equity LLC](http://www.emersonequity.com/) Member [FINRA/SIPC](http://finra.org/) and MSRB registered. Emerson Equity LLC is unaffiliated with any entity herein. 1031 Risk Disclosure: - There is no guarantee that any strategy will be successful or achieve investment objectives; - Potential for property value loss – All real estate investments have the potential to lose value during the life of the investments; - Change of tax status – The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities; - Potential for foreclosure – All financed real estate investments have potential for foreclosure; ·Illiquidity – Because 1031 exchanges are commonly offered through private placement offerings and are illiquid securities. There is no secondary market for these investments; - Reduction or Elimination of Monthly Cash Flow Distributions – Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions; - Impact of fees/expenses – Costs associated with the transaction may impact investors’ returns and may outweigh the tax benefits No offer to buy or sell securities is being made. Such offers may only be made to qualified accredited investors via private placement memorandum. Risks detailed in a private placement memorandum should be carefully reviewed, understood and considered before making such an investment. Prospective strategies and products used in any tax advantaged investment planning should be reviewed independently with your tax and legal advisors. Changes to the tax code and other regulatory revisions could have a negative impact upon strategies developed and recommendations made. Past performance and/or forward looking statements are never an assurance of future results. Many of the investments offered will be only available to those investors meeting the definition of an Accredited Investor under SEC Rule 501(A) and offered as Regulation D private placement securities via a Private Placement Memorandum (“PPM”). Prospective investors must receive, read and understand all of the risks associated with buying private placement securities. Investments are not guaranteed or [FDIC](http://fdic.org/) insured and risks may include but are not limited to illiquidity, no guarantee of income or guarantee that all tax advantages or objectives will be met and complete loss of principal investment could occur. **Risk Disclosure:** Alternative investment products, including real estate investments, notes & debentures, hedge funds and private equity, involve a high degree of risk, often engage in leveraging and other speculative investment practices that may increase the risk of investment loss, can be highly illiquid, are not required to provide periodic pricing or valuation information to investors, may involve complex tax structures and delays in distributing important tax information, are not subject to the same regulatory requirements as mutual funds, often charge high fees which may offset any trading profits, and in many cases the underlying investments are not transparent and are known only to the investment manager. Alternative investment performance can be volatile. An investor could lose all or a substantial amount of his or her investment. Often, alternative investment fund and account managers have total trading authority over their funds or accounts; the use of a single advisor applying generally similar trading programs could mean lack of diversification and, consequently, higher risk. There is often no secondary market for an investor's interest in alternative investments, and none is expected to develop. There may be restrictions on transferring interests in any alternative investment. Alternative investment products often execute a substantial portion of their trades on non-U.S. exchanges. Investing in foreign markets may entail risks that differ from those associated with investments in U.S. markets. Additionally, alternative investments often entail commodity trading, which involves substantial risk of loss. NO OFFER OR SOLICITATION: The contents of this website: (i) do not constitute an offer of securities or a solicitation of an offer to buy of securities, and (ii) may not be relied upon in making an investment decision related to any investment offering by FGG1031 | First Guardian Group, Emerson Equity LLC, or any affiliate, or partner thereof. FGG1031 | First Guardian Group does not warrant the accuracy or completeness of the information contained herein. Copyright 2026, All Rights Reserved, FGG1031