Are you thinking about starting up a self-directed IRA account? This is not the time to think, because every second you are wasting, you are letting go of cold hard cash that would be available to you after the age of retirement. A retirement account is designed in a way that ensures the owner lives a luxurious post-retirement life without being dependent on anyone else. You probably know of most of the benefits that you stand to gain after signing up for a self-directed IRA, but here is a list of a few reasons anyway.
1. You want control of your own money
In a self-directed IRA, you can choose to take possession of the checkbook that is linked to your account. This means that you will have full control of your money and you can just sign a check and conduct the transaction the moment you see a potentially lucrative opportunity of an investment. An additional advantage of this feature is that you wouldn’t have to pay a transaction fee to your custodian every time you conduct a transfer for your brand new purchase.
2. You want to be able to borrow money from your retirement account
Contrary to popular belief, it is possible to borrow money from your self-directed IRA. You will have to pay a small penalty because the purpose of a retirement account is to save money for the age of 60. If you want to withdraw some money from it before reaching that age, it stands to reason that you would have to pay a fee for it. Besides, the many advantages that come bundled with a self-directed IRA easily outweigh the few disadvantages.
3. You want to spend your golden years in a good amount of comfort
Once again, the reason one opens a retirement account is the hope to spend the golden years of one’s life in a good amount of comfort without being dependent on anyone. With other retirement accounts, you will retire with enough money to feed yourself and maybe one other person for a couple of decades. If you go with a self-directed IRA and hit the right notes when presented with investment opportunities, you can live your remaining years quite luxuriously.
4. You want to invest in whatever you want
With the other more traditional retirement plans, you can only invest in stocks, bonds, mutual funds, treasuries. With a self-directed IRA, the sky is the limit for you to make investments. If you think you can earn money from it, you can use your self-directed IRA to buy it. Technically, you can even invest in something that wouldn’t return you any profits, but you wouldn’t want to do that, would you now? There are a few restrictions that the IRS has put in place, however, so you would want to watch out for them.
5. You want to make tax-free investments
The advantages just don’t seem to stop, do they? This can’t be said any simpler: you don’t pay a single cent in taxes when you use your self-directed IRA to make investments.
To know more about, How to Transfer Funds from a 401k to a Self-Directed IRA, Click Here
Top 5 reasons why you should start a self-directed IRA
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