If you have made the decision of going for a self-directed IRA rather than any of the traditional retirement plans, you can rest assured that you are in safe hands and you can retire with a lot more money than many of the other folks out there. The advantages of a self-directed IRA may not be readily apparent, but as you start researching about it, you find yourself wondering what the need for any of the other retirement accounts is. Listed below are the top 3 benefits that owners of self-directed IRAs are entitled to.
1. You get “checkbook control”
Owners of the traditional retirement accounts have to contact their custodian before making investments and can push through with the transactions only after the firm approves of it. So making investments on public holidays is not an option as the custodian will under most circumstances not be working on those days. With a self-directed IRA, you can choose to take possession of your own checkbook and conduct transactions whenever and wherever you feel like. In the event that you think your custodian can make better investment decisions on your behalf, you can let them keep possession of your funds. This option may incur transaction fees, though.
2. You can invest in anything that seems profitable
Forget about the boring old stocks, bonds and mutual funds. If you want to invest in a small business that appears it’s about to hit it big time, you can buy its shares and the profits will go straight to your retirement account that you can use once you are retired. You can also withdraw the cash before the age of retirement by paying a small penalty. If you think you can predict the prices of real estate in a certain area go ahead and buy it. There are a few restrictions, however, that have been put in place by the IRS. For example, you can’t invest in the same residence that you are living in. And you can’t invest in collectibles and alcohol, among other items.
3. All your investments will be tax-free
If you have been in the real estate investment business for a few years, you would know that it is impossible to legally invest in a piece of land without paying annual taxes for it. After paying those absurd amounts of taxes and selling the piece of land, you would be lucky to break even. Those days are long gone, with the advent of the self-directed IRA. You can enjoy tax-free profits in not just real estate, but practically any business, as mentioned in the previous point.
At the end of the day, the self-directed IRA is one retirement plan that will give you the chance to retire rich. You don’t need to worry about your post-retirement days as you will have enough money by the time you retire to keep not only yourself but your whole family happy in your golden years.
To know about; How to Lend Money with Your Self-Directed IRA, Click Here
Top 3 Advantages of Self-Directed IRA's
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