These are two terms I didn't know when I started my self directed retirement account journey. It's honestly something I avoided too. I always try to keep things simple, but hope that this helps understand what triggers these taxable events. UDFI (Unrelated Debt-Financed Income) If you buy rental property with debt financing in your IRA, you will be subject to the UDFI tax. If you earn 100 in net income and you financed 80% of the purchase price through a traditional bank, 80 dollars of that 100 is subject to UDFI. Ways to avoid UDFI - Purchase property without any debt financing. - Open solo 401k instead of self directed IRA. UBIT (Unrelated Business Income Tax) If you participate actively in a business that you own through your self directed IRA, the net income is subject to UBIT. If your portion of the net income of a company you own in your SDIRA is 100K, that entire amount is subject to UBIT. Ways to avoid UBIT - Be a passive investor in the business

One of my biggest changes in mindset came after reading this one. I was miserable in my current position and was working really hard to get out by using real estate investments as the vehicle. I kept chasing this end goal of being financially free, but was also pretty annoyed that I wasn't there immediately. The book Chop Wood Carry Water helped me take a step back. It helped me, at least rationally, understand that it's about the journey and not so much the outcome. I'm still working on appreciating the journey.

What happens when you stop chasing money and start chasing meaning? In this week’s episode of Life After W2, I talk with Mark Astor, founder of the nation’s only law firm focused on mental health and addiction. We cover: - How he went from broke and working out of a library to running a 12-person firm nationwide - The lesson that changed everything. Financial growth must follow personal growth - Why he believes “money is just freedom to make choices” - How he learned to take full responsibility for his failures, and what happened next - What to do if you’re stuck in your 9-to-5 but want to start something that matters 🎧 Watch on YouTube. https://www.youtube.com/watch?v=aTCWUiFhOdE 💬 Community Prompt.What’s one mindset shift you’ve had since leaving (or preparing to leave) your W2 life?

What’s the biggest question or point of confusion you still have about self-directed retirement accounts?

Hello, everyone! My name is Ruben Hudson and I am a recovering SDIRA investor! I heard Jon say, "Hello, Ruben!!!" All kidding aside, I have been around SDIRA Concepts and Strategies for since 1993. I cannot say I know everything, but, I am a resolution specialist. I have been funding projects for just under 35 years. I've facilitated fix and flips, buy and holds, SFR, MFR, Commercial, Retail, Industrial and Land Developments. I have extensive and comprehensive experience in the financing of projects and have worked with SDIRA Beneficiaries to generate up to 14% fixed returns secured by real estate passively and consistently gross returns as much as 35% per project. I look forward to connecting with each of you to learn your vision and potentially to help you bring it to reality. I pray you are balanced in your faith, family, friendships and in business so that you reach your milestones to achieving the retirement that allows for the standard and quality of life you deserve!