WHAT DO YOU KNOW ABOUT IRAs?
What is a Self-Directed IRA?
A Self-Directed IRA is technically not any different than other IRAs (or 401ks). The government created the IRA to allow investments to grow tax-free or tax-deferred compounded over time to maximize growth. The IRA can also qualify for yearly tax-deductions (depending on the account type), provide asset protection, and assets may be passed to future generations for qualifying accounts.
A Self-Directed IRA is unique due to the available investment options and because it puts the IRA owner in control. Most IRA custodians only allow approved stocks, bonds, mutual funds and CDs. A true Self-Directed IRA custodian will allow this type of investing in addition to real estate, notes, private placements, tax lien certificates and much more.
The Power of Self-Directed IRAs
If you have knowledge, expertise, and success with investments outside the market (or you are looking to truly diversify and take control of your financial future) Self-Directed IRAs could be the key to your financial dreams.
FOUR SELF-DIRECTED IRA ADVANTAGES TO CREATING FINANCIAL FREEDOM
With a Self-Directed IRA you can diversify beyond the market into assets such as real property, tax liens, mortgage notes, precious metals, foreign currency, plus much more. If you have expertise with a certain asset type, you can invest in what you know best to create and secure your financial future.
PROVIDE WEALTH FOR YOUR FUTURE GENERATIONS
Certain Self-Directed IRAs allow the passing of assets to beneficiaries after death with little or no tax implications, allowing you to stretch wealth over generations.
TAX ADVANTAGES = LASTING WEALTH
Investing over time in a tax-advantage account like a Self-Directed IRA (tax-deferred/tax-free profits, plus the possibility of large tax deductions) can have a tremendous effect on future wealth. Combine those benefits with the ability to truly diversify and invest in a full range of assets could be a winning combination.
SECURE HARD-EARNED ASSETS
Self-Directed IRAs are afforded protection under federal bankruptcy laws to ensure assets are secure.
IRA ACCOUNT SETUP FORMS
SELF DIRECTED TRADITIONAL IRA
A Traditional IRA is one of the most common retirement savings accounts; it allows you to take a tax deduction for the contributions you make into the account each year (as long as they meet the government guidelines). The investment income gained on a Traditional IRA account as it grows is also excluded from your taxable income. No taxes are paid on the funds in the account until they are withdrawn from the account.
SELF DIRECTED SEP IRA
If you’re looking for a very simple and inexpensive retirement plan to administer that will allow large tax deductible contributions, the SEP IRA (or Simplified Employee Pension) is a great option for a self-employed individual or a small business. The rules governing a SEP plan are not as complicated as a 401(k), yet, contributions to a SEP are tax deductible, and earnings within the account are tax free until withdrawal, just like a 401(k).
SELF DIRECTED ROTH IRA
A Roth IRA differs from a Traditional IRA in that you fund a Roth retirement account with after-tax dollars, meaning you’ve already paid taxes on the money you put into it. In return for no up-front tax break, your money grows and grows tax free, and when you withdraw at retirement, you pay no taxes.