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Benefits of a Self-Directed IRA
As corporate pension plans and Social Security payments become less reliable in the future, many people are and will be depending heavily on their own retirement accounts to fund their retirements. Retirees can no longer park money in a retirement account and expect to get by in their twilight years. They will have to start actively managing these accounts themselves if they expect to have enough retirement funds in the future.
There is an emerging and growing trend among smart and savvy individual retirement account (IRA) and 401k owners to invest their retirement funds into a Self-Directed IRA. Self-Directed IRAs allow individuals to purchase non-traditional IRA investments such as, private partnerships, limited liability companies (LLC's), business opportunities, foreign exchange and real estate. While traditional IRAs prohibit the purchase of such investments, Section 408 of the Internal Revenue Code permits individuals to use a Self-Directed IRA to purchase these non-traditional IRA investments with funds held in many common forms of IRAs, including 401k’s, a traditional IRA, a Roth IRA, and a Simplified Employee Pension Plan, or SEP-IRA.
Many investors and retirees are enjoying the flexibility a Self-Directed IRA provides. The Self-Directed IRA gives investors and retirees more control over their retirement funds and the types of investments they want to purchase. The Self-Directed IRA allows the account owner to act like a custodian, thereby limiting third party custodial participation and reducing custodial fees. By diversifying across various groups of investments and markets, Self-Directed IRA holders can ensure that their retirement funds are more insulated from market volatility. Any cash flow or rental income that the Self-Directed IRA generates is tax-deferred which allows retirees to have consistent cash flow from these alternative investments. These are benefits of the Self-Directed IRA that you do not find in the traditional IRA.
Our investment offerings are excellent investments for Self-Directed IRAs. If using retirement funds to purchase our company’s investment offerings sounds appealing, please contact us and we will provide a list of Self-Directed IRA custodians to you. |
