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Why You Need a Self-Directed IRA. Don’t Take Our Word For it

You need a self directed ira

I was making my usual rounds of retirement and investing news and I stumbled upon a great article by The Motley Fool, “Why You Need a Self-Directed IRA“. I liked it enough that I thought I would summarize it if you don’t want to read the whole article. The following are some of the reasons why a self-directed IRA are a great option according to the article and hopefully most of them you already know. If not, hopefully you can gain some knowledge that will help you move to a better more diverse retirement nest egg.

Motley Fool’s reasons to invest with a self-directed IRA

  • You get to ramp up your retirement savings an extra notch because a whole new universe of potential investments are offered to you.
  • A self-directed IRA opens up the IRA and allows you to invest in all the things that are legally allowed inside of an IRA. Popular belief that an IRA can invest in just stocks and bonds is misguided.
  • While stocks can be a great investment they are by far not the only types of investments out there. There are other things that you can invest in that have a much greater profit potential than a typical stock or fund.

Motley Fool’s Challenges of Self-Directed IRAs

  • Tax rules surrounding self-directed IRAs are complex. A single misstep can have huge consequences.
  • Self dealing is a big issue. You can’t do it and need to be aware of it. For instance, You cannot your IRA assets in a business in which you act as a corporate officer or hold a controlling interest. Also, you cannot own a vacation home that you use for personal use in an IRA.
  • You cannot combine personal assets with your IRA assets in order to purchase an IRA investment.
  • While these are not all the rules you need to know the ones that matter or you face the possibility that you jeopardize the entire tax-exempt status of your IRA. This could potentially make every penny of your retirement account taxable and subject to penalties.
While Motley Fool isn’t exactly an expert in self-directed IRA investing they have has shinned a little light as to why a self-directed IRA is a great option for those out there looking to get more from their current IRA. There are plenty of other reasons why a self-directed IRA is a great option for you but ultimately you will need to find out for yourself a self-directed IRA is for you.
We want to help you take your retirement investing up a notch. A self-directed IRA is that vehicle to help get the full benefits of an IRA. While there are rules to investing inside your IRA with a self-directed IRA it doesn’t have to be that hard. We as experts will help guide you through the process to make investing with your self directed IRA much more enjoyable. 
If you have any questions about self-directed IRAs or the rules to investing in a self-directed IRA then contact us.