Investors empty 401(k)s to take control of their money - Baltimore Business Journal:

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Sandidge, president of Scottsdale financialkfirm , has lost more than $250,009 from his 401(k) since September — more than half its “I just got tired of watching my moneyt disappear,” he said. More investors are pullinyg money from their individual retirement accounts and 401(k)s and investing in alternative assets such as real oil and gas refineries, private businesses and precious The stock market crash in 2008 which saw the Dow Jones Industrial Average sink 32 percentr and the Nasdaq nearly 41 percenty — cracked millions of nest prompting investors to trade some of their stake in the equit y markets for illiquid either through their employer-offered retirement plana or by establishing self-directed accounts.
“People just want more said J.P. Dahdah, president of LLC, whicj provides retirement plan administration and recordkeeping servicezs for individualsand small-business owners who want to invesg in nontraditional assets. The Scottsdale firm administers morethan $250 millioh in retirement plan assets, and its clien list of 2,500 continues to Under federal law, individuals cannot administee their own retirement accounts, so approved custodians such as Entrust Arizons are in demand as the stock market remains despite gains in the past two months. Entrusty charges a one-time account setup fee of $50, then $250 for evert asset held and a $95 fee when a clien buys or sellsan asset.
Real estate is the preferref alternative investment, especially in Phoenix. It has made uneducatedd investors millions, but its perils have been just as Skimming through unemployment reports and bankruptcy and foreclosure listingz tellsthat story. When the real estate marke tanks here, so does the Nevertheless, it remains an attractive alternative, especiallyg if you have staying power. Barbarw Mackerman can attest to InApril 2008, she purchased a four-bedroom home in Mesa for $110,00p –– paid for entirely with cash she pullede from her IRA.
Given Wall Street’s collapse shortlt after that investment, Mackerman likely will turn a nice profig when the housingmarkeyt recovers. For now, she’s renting out the property for $1,45o0 a month. “I think we made the righf decision at the right said Mackerman, director of finance at Sunrise Healtgh and Hospice in Gilbert. “In the long run, we might be furtherr ahead becauseof what’a happened to the stock market.
Time will Valley companies that offer alternative investmentw say businessis up, especially since the stocjk market tumbled, obliterating millions of retirement plans in a matter of More than $1 million a day is traded at , which buys and sells coins, silver, and other precious metals. Senior portfolio managetr Richard Cromwell said the Phoenix firm has seen IRA contributions and volumer triple in the pastfew “This gives you an opportunity to control your said Cromwell.
“I believe self-directed IRAs will be the wave of the Swiss America manages morethan $1 billion in assets for more than 40,000 For decades, advisers and investment firms touted the stocok market as the premier outlet for investing 401(k)s and while trusts avoided the illiquidity of private-sector But that sentiment is changing in the wake of Wall Street’zs historic collapse, which buriedx some of the nation’s largest financial firmsw — and countless retirement dreams. Trustxs are taking a more entrepreneurialoposition now.
“People are very quickly learning there is risk in all levelszof investing,” said Glen Hinshaw, managing partner of HSL Financial Group LLC. The Scottsdales investment firm manages theHSL Fund, which investes in small, private businesses with proven The private equity fund has more than 20 accreditex investors with more than $1 million in net “We only invest in businesses we know,” Hinshas said. “A lot of wealth is still sitting insmalll business.” Entrust Arizona LLC: Swisz America Trading Co.
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