How much risk are you taking with your current retirement plan?

401(k) is one of the most preferred retirement plans in the country. Does that mean it is also the safest one? You can decide that for yourself after reading the next few lines.

401(k) plans were never designed with employees’ best interests in mind, but only to provide retirees with supplementary income. So don’t be surprised if you hear your employer tell you that they were not meant to carry your weight for you in your future. Also, it is quite a difficult job to determine just how much cash you will end up needing after retirement, and the last thing companies have on their agenda is to spend valuable time and resources in figuring it out for you.

Also you might be wondering what happens to a 401(k) plan if the business goes bankrupt. The answer is that the plan will end but you will have the chance to keep the money by rolling it over to another retirement account. You will have to let go of employer contributions but you get to keep all of your own contribution. Granted a 401(k) can be an effective retirement plan, the risks that many people don’t know about can land them in a deep hole.

These are just a few of the risks you take when you opt for a 401(k). You are better off with a self-directed IRA with complete freedom of where you want to invest. And what more would you want with a tax-deferred account? Most people with 401(k)s have no choice but to stick to the traditional forms of investment in stocks, bonds and mutual funds. With a self-directed IRA account, you not only have the choice to invest almost wherever you want including real estate, gold bullion and small businesses, but you also have checkbook control of your account, which proves valuable for conducting on-the-spot and time-sensitive transactions.

To learn more about, Does a Self-directed IRA have Extra Advantages over the Traditional IRA? Click Here

How much risk are you taking with your current retirement plan?

How your Savings Can be protected from a Fluctuating Market

It can be quite a difficult job to make investment decisions, even when the economic conditions are healthy. But with the fluctuations going on in the market these days, people wonder whether or not it is really worth it to invest using a self-directed IRA. Keeping in mind how the market has been behaving over the past few years, there can’t be any guarantees no matter what investment strategy you go for. The best we can do for ourselves is to make an informed decision using the information we have at hand.

A self-directed IRA is possibly the most preferred option for those confident folks who want to decide their own financial future and take full control of their investment strategies. Many people do not know this, but according to the rules laid out by the IRS, self-directed IRA account-holders can choose to invest in businesses that go far beyond the stocks, bonds and mutual funds, that are offered by big brokerage companies. Whether you want to invest in precious metals, structured settlements or real estate, you can be your own boss because instead of making a list of allowed investments, the IRS has listed a few prohibited asset types.

It is considered a good idea to make diversified purchases using self-directed IRA. This means that you should invest in not just one but a few asset types, keeping in mind the fluctuations in prices. For example, if you have invested in real estate, an LLC and gold bullion using your self-directed IRA, you have a better chance of weather the fluctuation that hits one of those assets. Even if you lose some money on the LLC, you can make up that same amount or even more from the real estate that you invested in.

Remember to study up on your investments before making them, because you wouldn’t want to turn up for an exam you have not studied for. Gain enough knowledge about the market rates of what you are investing in, so that you can maximize your returns.

To more about: Which is better: 401k or a self-directed IRA? Click Here

How your Savings Can be protected from a Fluctuating Market

How to Make Efficient Investments without Spending a Fortune on Custodian Fees

According to the Internal Revenue Service regulations, for conventional IRA account holders, a custodian such as a financial institution or a trust should hold the assets on behalf of the account owner. This part of the contract adds quite a few costs that can accumulate quickly and eat into your profits if you are not careful. In today’s financial environment, where interest rates are largely on the lower side, it is important to save every bit of cash wherever necessary. One thing that the typical investor today can certainly do without is the custodian fees.

With a self-directed IRA, you can not only invest in assets other than the traditional stocks, bonds and mutual funds, but you also do not need a custodian to conduct transactions on your behalf. Instead of paying your custodian, say $25, for every time you want to pay the lawnmower or the plumber for servicing your real estate, you pay a flat annual fee and make as many transactions as you want and keep as much money as you want in your self-directed IRA. It is important to remember, however, that if you want to withdraw money from your self-directed IRA before reaching the retirement age of 59.5, you will have to pay a 10% penalty.

You can maximize your chances of earning big profits by diversifying your investment portfolio using a self-directed IRA. As mentioned above, you can use your self-directed IRA to invest in assets beyond stocks, bonds and mutual funds. The more asset types you invest in, the higher will be your chances of earning big returns, while at the same time cushioning you from if you are hit by market fluctuations. In other words, it is a win-win situation for everyone: you, your financial institution and the IRS.

To learn more about, Why a Self-directed IRA is a Top Retirement Option, Click Here

How to Make Efficient Investments without Spending a Fortune on Custodian Fees

How a self-directed IRA can make you money from real estate investments

A self-directed IRA is a retirement plan that lets its owner invest in assets other than stocks, bonds and mutual funds, unlike the more traditional retirement accounts like the 401(k) and the simple IRA. Assets which are most preferred by self-directed IRA investors include real estate and gold bullion.

The types of real estate investments in a self-directed IRA include unimproved land, multiple-occupant dwellings, foreclosed properties, mortgages, rental houses and office buildings. As is the case for most investments, it helps to have some experience with the market that you are planning to invest in. When you use your self-directed IRA for the purpose of investment in real estate, you are essentially lending money to yourself to pay for the real estate, and the income generated from the property go back to your account so the loan can be repaid.

Rates of loans when lending from a self-directed IRA can be a lot higher from the more conventional lending sources like banks and mortgage companies. Don’t be surprised if you see rates in the 12% to 18% region when borrowing from an IRA.

Just follow these simple steps to start investing in real estate using a self-directed IRA:

1. Start up a self-directed IRA account.

2. Transfer funds to your self-directed IRA account either by cash or from another IRA.

3. Make the investment, if you have not hired a custodian, to conduct transactions for you, in which case you will have to direct them to take this step.

After the opening of your self-directed IRA account, you can then transfer the agreed upon amount of money for the investment. The next step is merely a formality in which the two parties sign an agreement. Your IRA now holds the real estate.

It is important that you study up on IRS rules related to self-directed IRA because the last thing you want is fall in a hole as a result of some careless investments you yourself made.

Get more information on, 3 Reasons to Invest in Real Estate Using your Self-directed IRA, Click Here

How a self-directed IRA can make you money from real estate investments

Why a self-directed IRA is better than a 401(k)

Self-directed IRA is a retirement plan that has been gaining quite some popularity over the past few years. This plan has existed for more than 30 years but makes up only 1% of the six-trillion-dollar retirement market. However, over the past few years, the growth rate has exploded at 25% annually. The reason for the small share of the self-directed IRA funds in the retirement market is a not so well known IRS code, 4975, which acts as the basis which has motivated self-directed IRA account holders to go this way.

There are many reasons why the self-directed IRA is preferred over the traditional 401(k) by investors. Listed below are a few of those reasons.

1. You have the option of having direct access to your funds in your self-directed IRA. This means that you do not have to hire a custodian to conduct transactions on your behalf. This is particularly useful for one-the-spot and time-sensitive investment opportunities.

2. You can invest in whatever you like, from gold bullion to real estate to businesses that you can control. Unlike most of the other retirement plans, you can look beyond investment in stocks, bonds and mutual funds.

3. You can use commodities to keep your wealth protected from the frequent market fluctuations that we see today.

4. If you already have a retirement plan like a Roth IRA, or a 401(k), you can transfer those funds to a self-directed IRA and you will not be charged a single cent for this rollover. Also, you will not need to sell any of the assets that you currently have control of.

If you are a self-directed IRA account holder, you can invest in any area that you have some knowledge about. For example, if you know a thing or two about the real estate market, you can put that knowledge to good use and increase your returns.

To learn more about, Top 5 reasons why you should start a self-directed IRA: Click Here

Why a self-directed IRA is better than a 401(k)

"Checkbook Control": Make your own Investment Decisions without a Custodian

Most of the conventional retirement plans require you to hire a custodian, which could be a financial institution or a trust, to conduct transactions on your behalf.

There are both advantages and disadvantages of this regulation but the question you need to ask yourself is that “is it really worth it to pay someone who has custody

of your hard-earned money?” Yes, if you do not know too much about the current market situation and need someone to make the difficult decisions for you, you are

probably better off with a custodian.

However, if you are confident enough to keep the money in your own pocket and invest where you see fit, then a self-directed IRA is what you are looking for. With a

self-directed IRA, you can invest in practically anything you want, whether it is real estate, precious metal or an LLC, and you can make your transactions whenever

you want to without the need to call anybody for verification.

The importance of such an advantage can be illustrated using an example. Suppose you are about to close a potentially lucrative investment deal but you only have a few

minutes to make your decision before someone else jumps in and grabs it. You are calling your custodian for their nod but he appears to be busy and is not taking your

call. You have no choice but to let go of the deal. Now imagine the same scenario except that you are the owner of a self-directed IRA. With a self-directed IRA, you

are the custodian of your own money and you alone have the power to make the decision. You simply whip out your checkbook, sign the check and the deal is done.

One of the other advantages you get over traditional retirement plans is that with a self-directed IRA, there are no asset-based-holding charges or transaction

charges. Instead, a self-directed IRA charges a fixed annual amount regardless of how many transactions you make or how much money you have in your account.

To learn more information on: 5 Secrets you don’t know about self-directed IRAs, Click Here

"Checkbook Control": Make your own Investment Decisions without a Custodian

How You Can Protect your Savings from Economic Fluctuations

Market fluctuations are one of the deciding factors that investors take into account before staking their money in any business. Over the past few years, we have seen the values of stocks go down in value. Just take a look at Bear Stearns and Lehman Brothers. All sorts of things have been happening that are contributing to negatively affecting the markets. In a situation like this, one can’t blame the investors if they are extra cautious with their investment strategies.

If you are a 401(k) investor, then you have probably seen the value of your assets go down quite fast over the last 12 months. This is because the assets in a 401(k) account are almost always invested in the stock market. This means that the value of the assets in the account will go down with the declining values of the stocks. A great alternative for you would be a self-directed IRA. If you choose a self-directed IRA as your retirement plan, you can take a lot more control on your wealth, compared to the other plans.

The wealth in your self-directed IRA account will be unaffected by how the stock market is doing. You will have the ability to invest in whatever business that you choose. You do not even need a custodian to conduct transactions from your self-directed IRA. You might need the help of a counselor for the transfer of your assets from a 401(k) to a self-directed IRA, but that would be pretty much all. From that point onwards, you will have complete control of your wealth and write and receive checks under your own name.

So whether it is real estate, rental properties or deeds of trust that you want to invest in, it doesn’t matter because the choice is yours if you have a self-directed IRA.

To know more about: How To Save For Retirement by Investing in a Business: Click Here

How You Can Protect your Savings from Economic Fluctuations