Millennials Investing with Self-Directed IRA Services
Preparing for your future should be a high priority! Unfortunately, setting money aside can be difficult when battling low wages, crippling debt, and a struggling economy. Millennials are having difficulty saving for retirement, but it doesn’t have to be that way.
Self-directed IRA services may be the option you need to get started. SDIRAs can give you the power to take control of your future by giving you more options, more flexibility, and ultimate control of your finances. If you are interested in taking the reins of your investments, following are seven ways millennials can change their future with SDIRA services.
1. An IRA that Suits your Needs
The advantage of self-directed investing is that it could be tailored to your personal needs. When selecting an account, you can set up tax-advantaged growth depending on your financial circumstances. If you want your fund to grow tax-deferred, consider opening a traditional IRA. Your contributions will grow, tax-deferred, until you reach retirement age. From there, only your withdrawals will be subject to a tax.
If you want to avoid taxation in your later years, another option is a Roth IRA. Roth IRAs benefit from tax-free withdrawals; all taxation is taken care of up-front. Additionally, there is no minimum requirement for contributions to this type of IRA. Low contributions are not an issue. Look at your financial standings and make a choice that will suit your needs.
2. Plenty to Choose from
Rather than being stuck with the traditional investment options of stocks, bonds, and mutual funds, self-directed investing allows account holders to explore different assets. SDIRA owners can invest in many alternative investments: real estate, precious metals, tax liens, private lending, cryptocurrency, and many others. While there is risk in some alternative assets, with due diligence and guided financial advice, you can make selections that will help you build your retirement fund.
3. Set up your Portfolio
Self-directed IRAs allow their account holders ultimate flexibility. The key to building a successful retirement account is portfolio diversity. As the account holder, you can choose where to allocate your funds. With a diverse portfolio, you can select a few different investment options for optimal account growth. Having a diverse selection can also save you from a poor investment. It is important to keep your assets balanced to stay in the green as your account grows.
4. Asset Protection
An added benefit in putting your money in a self-directed account is asset protection. If you are suffering from financial hardship or even facing bankruptcy, your SDIRA will not suffer. A SDIRA is viewed as a separate account and is protected. Your money will continue to grow, tax advantaged, regardless of your financial situation.
5. IRA Rollover
Career opportunities today are not as they used to be. We need to follow the money and that could mean departing from companies, switching jobs, and leaving 401Ks behind. Fortunately, you don’t have to lose track of those 401K accounts. If you have your money in a company 401K or in another IRA account, you can roll them over into your self-directed IRA. You don’t have to worry about having your money stuck in many different accounts; all your funds can be in one place. Organize your accounts and retirement savings how you see fit.
6. An Investment Beyond Your Person Future
As your SDIRA account grows, you can have peace of mind knowing that after you have passed it can benefit future generations. Should anything happen to you, your self-directed account will pass to a beneficiary. Whether you want to pass your account to your spouse, children, or grandchildren, your self-directed account will continue to grow.
7. Flexibility and Control
The ultimate benefit account holders get from an SDIRA account is the control. You decide how your money will grow. You have the power to select your IRA custodian, your assets, and how you want your account to build. Self-directed IRAs put you in charge of your financial future. If you put in your due diligence, your SDIRA will gain traction for long-term retirement savings. The best feature is the power to decide how you want to save for your future.
Performing Due Diligence
Saving for retirement can make your golden years more carefree. Putting in the time now can take the pressure off for the future. As always, remember to perform your due diligence and research your options before making any financial decisions. If needed, consult the help of a financial advisor. Get on the path headed toward a comfortable retirement with self-directed investing. Start checking out your options by contacting Horizon Trust expert investors today!