Self-Directed IRA Strategies: Grow Wealth Tax-Free with Mark J. Kohler

Build Wealth Your Way: Self-Directed IRA Strategies Every Entrepreneur Should Know

Tired of the same financial advice to “invest in the S&P 500 and wait 40 years”? What if you could use your retirement funds to invest in the things you already know and trust—like real estate, a friend’s startup, or even your own business?

In this episode of the Main Street Business Podcast, tax attorney Mark J. Kohler and self-directed IRA expert Mat Sorensen break down how everyday entrepreneurs can take control of their retirement accounts and build wealth—tax-free.

Most Americans think retirement investing means handing over money to Wall Street. But what if you could take control, reduce taxes, and build real wealth through the kinds of investments you know best—like real estate, small business, or even crypto?

What You’ll Learn:

• What a self-directed IRA is (and how it works)
• How to invest retirement money in real estate, crypto, or small business
• Why Roth IRAs are a tax-free powerhouse
• How to use leverage inside retirement accounts (the safe way)
• Common mistakes to avoid with self-directed investing

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Why Self-Directed IRAs Matter for Main Street

Over $44 trillion is locked up in retirement accounts in the U.S. but most people think their only options are mutual funds or ETFs. Not true.

Mark and Mat explain how self-directed IRAs (SDIRAs) give you the freedom to invest in what you actually understand and believe in without giving half your gains to the IRS.

You don’t need to move everything. Just peel off $10K, $50K, or $200K to test new opportunities.

Real Examples from the Podcast:

• Mat shares how he lends to real estate investors from his Roth IRA at 16% interest, completely tax-free.
• Mark bought a Section 8 rental using his Health Savings Account (HSA) and used the rent to pay for his kid’s braces—also tax-free.
• They explain how to invest through an LLC to gain checkbook control and fast access to deals.

Why You Haven’t Heard This from Your Financial Advisor

Wall Street firms don’t want you to know this. Most financial advisors aren’t incentivized to recommend self-directed options because they only make money managing assets under their umbrella. With a self-directed IRA, you’re in control. You decide what to invest in. You keep the profits. And you control the risk.

How to Get Started in 3 Simple Steps:

1. Open a self-directed IRA with a trusted provider like Directed IRA.
2. Transfer or roll over funds from an existing IRA, 401(k), or SEP.
3. Choose your investment—real estate, private lending, crypto, or small business equity.

Bonus Tip: Use your Roth IRA for long-term tax-free growth. Anything you contribute can be withdrawn tax-free and penalty-free at any time—and your gains grow without ever hitting your 1040.

Key Takeaways & Insights

You’re Not Limited to Wall Street

Most retirement accounts are restricted to mutual funds and ETFs. But with a self-directed IRA, you can invest in what you know like real estate, private loans, start-ups, or even crypto.

Your Roth IRA Can Grow Tax-Free

Every dollar your Roth IRA earns whether through rental income, interest, or capital gains is 100% tax-free if the rules are followed. That means more compound growth and less money to the IRS.

You Can Use Leverage

Self-Directed retirement accounts can use non-recourse loans to buy real estate, giving you the power of leverage without impacting your personal credit.

You Don’t Need to Move Everything

You can start small. Transfer just $10K, $50K, or a portion of your old 401(k) to explore new opportunities.

Asset Protection Benefits

Retirement accounts are some of the most protected assets under federal and state law. In most states, they’re shielded from lawsuits and creditors—even in bankruptcy. 

If you’re a business owner, real estate investor, or entrepreneur looking to build long-term wealth on your terms, this episode is your invitation to think differently. Mark and Mat have helped thousands of clients shift out of the Wall Street mindset and take back control of their retirement.