What is the importance of an IRA? It is about preparing for retirement and taking advantage of tax savings, while you are working. Why learn about starting a self directed IRA and understand how it takes care of you during retirement?
Most of us participate in our first retirement account through an employer’s 401 program, but there are other reasons for contributing to a self directed Roth IRA or a self directed IRA. There are also other options for retirement savings using a solo 401K or self directed IRA real estate selection. If you have already started saving for retirement, terrific, it proves that you are planning to reach your goal.
What are your projected income sources for retirement? We all know what’s happening with social security, many have personal savings accounts and some may have a retirement pension. Have you added the monthly distribution totals, is there enough to be comfortable in retirement? Contributing to a self directed IRA now will ensure that retirement actually becomes a reality for you.
Selecting a traditional IRA gives immediate tax breaks for the funds contributed. Annual contribution as of 2011 is $5000 per person, plus another $1000 if you are 50 years of age or older. This is a perfect opportunity to take advantage of tax deductions, to reduce your tax liabilities for 2012. A self directed Roth IRA offers advantages as you enter retirement, the contribution is already taxed, so your withdrawals are tax free.
A financial planner can assist you in using a self directed IRA real estate or a solo 401K, offer some benefits and yield higher monthly distributions. Compare the yield between banks and traditional savings account, using an IRA option produces higher amounts and you are allowed to actively participant in the selections of investments.
Setting up a self direct IRA LLC gives you the ability to buy and sell individual stocks without having to pay capital gains on the taxes. This is where a financial planner comes in handy, especially when you are unsure about an investment. With today’s technology, the investment options can include stocks, mutual funds, real estate, index funds, bonds and international investments.
What about the value of tax-deferred investments? Imagine having your investments working for you. You have worked and planned well for retirement, now it is time for your money to work for you, while you enjoy retirement.