3 Reasons to Invest in Real Estate Using your Self-directed IRA

The recent difficult economic times have prompted people to adopt non-conventional methods of investment and saving up for retirement. The self-directed IRA option has been taken by many people for the purchasing of non-traded assets like real estate. Unlike other retirement plans, in which money is invested in return only for paper securities, the self-directed IRA, which is offered by some big-time firms like Equity Trust and The Entrust Group, allows you to invest directly in tangible assets like real estate and gold bullion or any other business of your liking.

The real estate is considered one of the safest markets to invest in because of its stability and almost guaranteed profits. Listed below are three reasons why you should invest in real estate using your self-directed IRA.

1. With a self-directed IRA, you are the custodian of your own account, you will have a free hand to make as many transactions as you want with no need to worry about losing money on transaction and custodian fees.

2. It is called a self-directed IRA for a reason. You are the director of your account and you have all the decision making power. You don’t have to take permission from any trust, financial institution or custodian every time you want to conduct a transaction.

3. The money in your self-directed IRA is well-protected from creditors and litigators because your account is set up by a limited liability company (LLC). Without the LLC tag, your retirement assets are left vulnerable to frivolous lawsuits.

With a self-directed IRA, you have a wide range of options in which you want to invest. Of course, you can always invest in the good old-fashioned stocks and mutual funds, but in addition to this, there is real estate, gold or pretty much any business that does not breach the rules laid out by the IRS (which is almost all of them).

It goes without saying that common sense should be used whenever dealing with matters involving money, especially large amounts of them. The laws regarding the self-directed IRA are complex and a little carelessness can lead the IRS to ask you some tough questions. Remember that you cannot take advantage of your self-directed IRA funds until you retire. If you are found living in a house you bought using those funds, your IRA account status could be invalidated.

Get more information on, The Top 4 Facts You Need to Know About Choosing a Custodian: Click Here

3 Reasons to Invest in Real Estate Using your Self-directed IRA