Anyone who has watched the news or is in the workforce can attest to the challenging times we are all facing. Long gone are the jobs offering a lifetime of work security and a nice pension at the end of your career. Sadly for most of us, retirement rests solely on our shoulders and whether or not we can put enough money away for that glorious day.
Luckily the government is looking out for individuals by offering venues via the Tax Code to defer taxes until retirement. This comes in the form of a Self Directed Roth IRA. Many people are familiar with the term; however, they are not fully aware of how it will benefit their particular circumstances.
Any IRA, whether it is a Self Directed IRA LLC, Self Directed IRA or Self Directed IRA real estate, provides a person the ability to legally invest money for retirement without having to pay taxes right away. When speaking to wealthy people, one of the major challenges to building and preserving wealth is limiting the tax liability on their earnings.
There are many legal avenues to use in order to postpone the payment of taxes; however, each person has unique circumstances.
In order to figure out what your investment goals are you will first need to determine how much you will need for retirement. This is by far the biggest question most investment professionals answer. The answer depends on what you want to do during your retirement. Do you plan on traveling a lot? Do you plan on beginning new hobbies? What are your current liabilities and what is your plan to disburse them?
The second most pressing question is: how can I save for retirement when right now I can barely get by? Most people feel like they are in this category. With the burden of keeping up with daily life, there is little-to-nothing left over for savings. Take heart, there is hope, and the sooner a person starts, the more in control of their destiny they feel.
There are areas of a budget that can be trimmed and these funds can be ear-marked for investments towards your retirement. By letting the powers of time compound your investments, you are giving your future a much sunnier outlook. Taking decisive action now ensures a good life, not just now but during your golden years as well. It’s your money, so make the most of it!