With average life expectancy continuing to increase in the United States and in many countries around the globe, more and more people are starting to think about how they’ll be able to provide themselves with an adequate standard of living in their retirement years. If you want to count on keeping up your current standard of living once you retire, you’ll also need to be able to count on an income equal to 75% of the amount you’re currently earning. It’s important to begin planning for your retirement early, by implementing Self Directed IRA strategies that will help you accomplish that goal.
IRAs can offer significant advantages over other types of retirement accounts-however, according to a 2005 study carried out by the Investment Company Institute, only 40% of US households have their own IRA. Of those 40%, the number of people who own self directed IRAs is even smaller. There is an estimated three trillion dollars invested in IRAs in the US, and most of that money is managed by banks and other investment institutions. Most of the people who actually own that money aren’t aware that it could be made to work much more efficiently if they took control of their IRA. Many of those who are aware believe it’s just too complicated – not true!
In fact, there are some simple solutions for creating, owning and managing a self directed IRA LLC or self directed 401k, and for implementing strategic investment solutions that allow you to not only take control of your retirement funds. Creating a Self directed IRA will also allow you to grow those funds tax-deferred or even tax-free so that the income generated by your investments remains in your IRA and generates interest over the life of the account.
There are two keys to making your IRA funds work harder. The first is getting the help you need to create a Self directed IRA or 401k, and the second is creating an investment portfolio with a diverse range of holdings. Most traditional investment IRA custodians allow you only a limited range of investment options-choose a bank as your custodian, and you’ll typically only be offered Certificates of Deposit, for example. This limits your income potential dramatically.
With a Self directed IRA, however, your investment options are almost limitless-you can invest your IRA resources in almost anything you choose. That means you have the opportunity to create a diversified portfolio, which is the most important part of creating wealth for your retirement.
A diversified portfolio with holdings in real estate and other non-traditional investments as well as more conventional investments such as stocks is truly the best way to maximize your potential income and give you the security you need to be able to ride out any market slumps.
Investing with an IRA offers substantial advantages, and creating a Self directed IRA allows you to maximize the benefit of those advantages. The tax benefits of IRAs are a much more effective way of creating wealth when you combine them with the increased income-generating potential of a Self directed retirement account.
Traditional IRA and 401k’s have not performed well in the recent past; many people lost a substantial portion of their retirement fund. There are many examples of poor performing invests, and the media is full of news about people who have lost all their savings.
Click here to see what the SEC says about investing in Mutual Funds and why you may be going around in circles not reaching your goal.
Investing in Real Estate related assets are method to rebuild your retirement fund. If you are looking for an alternative to the options used by most people, especially now when your current options have failed to produce adequate growth within your IRA or 401k, and you want to retain more of your retirement dollars by reducing investment fees; our self directed plans will help you do this: see investment example below.
Checkbook control means that you can actually write checks against the funds in your self directed IRA, and draw against IRA real estate assets. Having checkbook control allows you flexibility in spending the funds, as long as you follow the rules the IRS has laid out. This allows you greater control over your own assets, and more control over your own destiny. The beautiful thing about Self directed IRA’s is that you can have as much or as little control over the account as you wish.
We recommend you read IRS publication 590 to understand investment rules and how to avoid breaking them. You won’t be left on our own – AES provides assistance in the management of your IRA real estate holdings and the Self directed IRA itself.
At Asset Exchange Strategies, LLC we have had conversations with potential self-directed IRA clients many thousands of times and the myths continue to live on after 20 years in the business. Some things like Sasquatch or area 51 seem to perpetuate in people’s minds without any substantial evidence the concept is correct or myth. Let’s […]
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