There are several ways to save effectively for the long term: a Self Directed IRA, a self directed IRA LLC, a Self Directed Roth IRA, a Self Directed IRA real estate. Notice that all these options are self directed which means that the account holder is the one who makes the decisions about where his or her funds are allocated, for how long, and in what amount. After all, it is to the benefit of the account holder to see that the money grows and that he or she prospers.
For over thirty-five years the Self Directed form of the IRA has been an accepted form of saving for retirement. The primary advantage of any type of Self Directed account is that the person who is directly affected by anything that happens with the account is the person who makes the decisions. The sorts of funds an IRA invests in depends on the planning of the account holder and whether he or she decides to go into risky high yield funds or more conservative ones it is his or her own judgment that matters.
A Self Directed IRA LLC account is just an account wherein the account holder sets him- or herself up as a limited liability corporation. This puts a layer between the person and any possible liabilities that may accrue. The account is still self directed of course, but the corporation is the one doing the investing. The corporation is in fact owned by the IRA.
The advantage to a Self Directed IRA whether it is a Roth, Self Directed real estate or IRA LLC is that the person who owns the account is the person who holds the purse strings. When the IRA is administered by a third party any investment that the account holder wishes to make has to be approved by that custodian. The approval process may take considerable time and a good opportunity may pass by during the interim. Having control of his or her own destiny is a goal for any forward thinking individual.
Being in charge of one’s own monies and having control of financial decisions made for the use of one’s money is almost the definition of adulthood. It only makes sense for a thinking adult to have Self Directed IRAs because only the individual knows what he or she is willing to risk and on what. Self Directed IRA: the only way to go for a thoughtful person.