Self Directed IRA - A Truly Creative
Investment Opportunity

Self directed IRA

If you have a typical IRA with investments in traditional mutual funds, bonds and stocks, you are probably scratching your head over the average returns you’re seeing.Don’t fret.

With a self directed IRA, you can get creative with your investments and give your returns a boost.

But first, let’s clear up the difference between a self directed IRA and a self directed Roth IRA. An IRA, or Individual Retirement Account, is basically a personal savings plan into which you stow away and contribute money tax-free until you withdraw it.

With a Roth IRA, you don’t contribute funds tax free, but the funds you withdraw are tax-exempt (however, some restrictions do apply). So with a traditional IRA, you pay a tax penalty on your withdrawn profits. With a Roth IRA, you don’t. With that in mind, should you convert your IRA into a Roth IRA? That depends.

You can easily set up a self directed IRA or self-directed Roth IRA through a broker, bank or financial institution.

They maintain the books for you, manage the disbursement of funds and credit profits to the IRA.

All you need to do is make sure that your account has enough money to handle the associated fees and costs.

Of course, you’ll need to do your homework on where to invest or hire an expert to do it for you.

A lot of people distribute a portion of the money in their existing IRA into their self directed IRA for better investment profits—or in other words, to not put all their eggs in one basket.

But Is A Self-Directed IRA Account Worth It? Still not sure if this is right for you? Here are a few compelling reasons to consider:

  • Easy to create
  • Minimal tax consequences when you set it up
  • A great method for diversifying your investments
  • Unlimited options including real estate, mortgage, notes, private companies, tax liens, debt-free funding for a business, etc.

Not surprisingly, if you have been working for some years now, chances are that a substantial portion of your savings is locked up in your retirement account. So instead of just waiting for minimum returns, you could move your IRA funds to self directed IRA and make some lucrative investments that will bring you high returns.

It is no secret that private companies offer better returns than public stocks. If you identify a promising business and invest in it, you stand to reap huge profits. Think about self-directed IRA real estate … if real estate appeals to you, go ahead and invest your IRA funds in real estate.

You can also put your money into a franchise business or invest in gold and silver—or just about anything that looks profitable to you. Basically, it all boils down to this: if you have a substantial amount of money in your IRA and are interested in seeing some real profits beyond the traditional and conventional investments, a self-directed IRA is for you.But…

It is always good to look at both sides of the story—and even self-directed IRAs have a couple of “cautionary” factors. There are limitations if you intend to be actively involved in the business or real estate to which you’ve invested. There are tax rules you need to familiarize yourself with. The best thing to do is sit down and talk to your advisor before you make your decision to invest so that you know all the implications—but I’m sure you already knew that.

So should you go for a self directed IRA?

If you would like a bright future and are prepared to take a calculated risk, definitely yes!

The critical thing is to hire a good custodian who can maintain your investments, allowing you to still invest in that farm you love and enjoy its fruits as profits.

The IRS approves.


Learn More About...

Self Directed IRA Custodian? What on Earth is That?
Understanding what a self-directed IRA custodian is was the last thing I needed to do right then. I was in the midst of being laid off and was surrounded by forms and worried about the future. I quickly realized I needed to know more about my IRA than I did. After all, it plays a big role in our future.

Self Directed IRA Real Estate Investments Help To Retire With More Money
Self Directed IRA real estate investments are a great way to broaden your retirement savings portfolio. You no longer have to restrict yourself to stocks and bonds when you choose a self directed IRA. Real estate investments are the most popular investments for these IRAs.

Self Directed Roth IRA - Keep A Tight Check On Your Money
A self directed Roth IRA is just the right retirement plan for you if you feel that you could do a much better job of maintaining your retirement account. Choose from a wide range of investments while getting the benefits of a Roth IRA with this versatile retirement option.



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