Retirement planning can feel daunting for many of us. We all have this idea of sipping Pina Coladas on the beach somewhere as we enjoy life without having to work. Unfortunately, that reality, especially in America, is not going to be the case for a vast majority of Americans. Americans are behind on retirement savings, straddled in debt, and lacking options. This doesn’t have to be you. Many different retirement vehicles can prepare you for a better tomorrow while giving you tax ride-offs today, whether that be through a 401k, Traditional or Roth IRA, pension plan, or a few others. These are great options for retirement but don’t give you complete control over how and what you are doing with your retirement money. Now, this isn’t a big deal for some of you, but if you want more control over how you invest, you do have another option available to you. Today we will talk about this little-known secret giving you more control over how you allocate your retirement fund, and it’s called a self-directed IRA. <\/p>\n\n\n\n
Self-directed investing in an IRA has been allowed since the government first established IRAs in 1974. Before we go any further, we need to go over a vital component of any IRA which is the function of a custodian. Custodians are required in any IRA to maintain tax-deferred or tax-free status and essentially make sure you follow the government’s regulations. <\/p>\n\n\n\n
The main reason it hasn’t received as much attention as its counterparts is most custodians who offer retirement accounts focus on traditional investment options like stocks, bonds, and mutual funds. The large firms that act as custodians usually don’t provide investment options in alternative because they are limited by the types of investments they offer at that particular firm. These firms make more money by providing investments in traditional assets that are easier to manage than non-traditional assets. Because of this fact, if you ask some of the larger custodians if you can invest in non-traditional assets, the answer you will most often get will be “no” or “I’ve never heard of that before.” <\/p>\n\n\n\n
You might be thinking to yourself, what all does a self-directed IRA allow me to invest in? The answer is quite a bit longer than you might think. Self-directed IRAs give you greater access to how, what, and why you invest your money to meet your retirement goals. The IRS provides a list of prohibited investments in IRS publication 590. and All other investment types are allowed as long as the IRS rules are followed. <\/p>\n\n\n\n
Residential Real Estate<\/td> | LLC and C-Corps<\/td> | Private Placements (debt and equity)<\/td><\/tr> | |||||||||
Commercial Real Estate<\/td> | Tax Lien Certificates<\/td> | Structured Settlements<\/td><\/tr> | |||||||||
Undeveloped or Raw Land<\/td> | Equipment Leasing<\/td> | Precious Metals<\/td><\/tr> | |||||||||
Real Estate Notes<\/td> | Livestock<\/td> | Factoring<\/td><\/tr> | |||||||||
Promissory Notes<\/td> | Foreign Currencies<\/td> | Accounts Receivable <\/td><\/tr> | |||||||||
Limited Partnerships<\/td> | Stocks, Bonds, And Mutual Funds<\/td> | Oil and Gas<\/td><\/tr><\/tbody><\/table>Non-Permitted Investments In An IRA:<\/h5>\n\n\n\n
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