A self directed IRA, a self directed IRA LLC and self directed IRA real estate and self directed Roth IRA are investment options that use retirement funds as way to accumulate wealth. For individuals new to this form of investing or for the newly retired, it may be shocking to learn that they can increase the amount of money in their retirement accounts by using the existing funds to invest in real estate, private notes and tax lien certificates, to name a few of the options.
Basically this is a way to use the funds from any type of retirement account such as a 401K, Roth or IRA to reap tax free profits while protecting valuable assets. The bottom line of a self directed IRA is to use the funds in the account to make more money. There is no account custodian who does the investing through silent transactions. Instead, the owner of a self directed account is free to purchase real estate, precious metals and other investments without permission from a custodian.
Using retirement funds is a unique investment strategy that offers flexibility. Owners can act on their own behalf to use the money in their retirement account to build a diverse investment portfolio. There are other strategies that are investor-specific such as the self directed IRA LLC that is used for tax objectives.
The investment options for the self directed IRA, the self directed IRA LLC and self directed IRA real estate and self directed Roth IRA are endless, but they all have one thing in common, they provide tax free asset protection, while enjoying the benefits from tax free investments. One of the main benefits from tax free investing is earning dividends. Dividends earn compound interest which increases the amount of available funds in the retirement account.
Retirement planning using strategies such as self directed IRA real estate isn’t a new concept. Savvy investors have been using this type of investing for over 30 years. However, it should be noted in connection with self directed IRAs that there are risks involved as investments are not guaranteed to generate a profit.