Four Things You Need To Know About Self-Directed IRAs
By Jordan Sheppherd
There is quite a bit of information being dispersed across the internet concerning various investment plans that is inconsistent. Misinformed individuals are passing information along that is simply incorrect. Obviously, this can be quite confusing for people wishing to explore their investment options, especially when looking at alternatives to the stock market. Here are four things you should know about self directed IRAs that should make them a more appealing option for a lucrative investment.
1. A self-directed IRA allows you to purchase real estate and have more investment choices
If you simply withdraw money from your IRA, you will certainly be penalized. However, if you employ a rollover into a self-directed IRA, you won’t be taxed or penalized. In fact, you’ll have more freedom of choice in your investment strategy than ever before.
2. A standard IRA does not offer as much freedom of choice as a self directed IRA
It is true that a standard IRA offers plenty of options within the asset class of stocks and bonds. However, if you wish to invest in other things like gold, real estate, or tax liens, then you might find a standard IRA to be unsatisfactory. If you wish to have more freedom in your investment and widen your portfolio, a self-directed IRA would be more appealing to you.
3. Self directed IRAs are more common than you think
With the recent changes in the economic climate, more people than ever before are looking to diversify their retirement strategies, and therefore are looking at alternatives to traditional IRAs that generally emphasize stocks and bonds. Self-directed IRAs are becoming more and more popular by the day as people move away from traditional Wall Street investments.
4. Setting up a self-directed IRA is easier than you think
A lot of people are turned off from self-directed IRAs because they believe it will be too difficult or confusing to set up. While it might be a bit tedious to set up a self-directed IRA on your own, setting up a self-directed IRA with a professional financial consultant is extremely easy, and you’ll find the process a lot more simple than you may have originally believed.