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Top 5 Reasons to Invest with a Self-Directed IRA

Top 5 Reasons to Invest with a Self-Directed IRA

Invest with a Self-Directed IRA

Preparing for the future is a constant worry, especially when it comes to securing money for retirement. While there are many options available, it’s important to select the investment that is right for you.

Though the more traditional forms of a retirement involve a 401K or IRAs, there is another potential opportunity to have control over your investments and secure your funds for down the road.

Self-directed IRAs provide a new and versatile way to invest in your future. Though SDIRAs are similar to IRAs, they also provide account holders with a variety of investment options, increased savings, and control over their assets.

When considering investing in a self-directed IRA, it’s important to remember the following benefits.

Top 5 Reasons to Invest with a Self-Directed IRA1. Diverse Growth Opportunities

The main difference between a traditional IRA and a self-directed IRA is the options available to investors. With traditional IRAs and Roth IRAs, investments are limited to stocks, bonds, and treasuries.

Self-directed IRAs allow alternative investments for additional retirement savings, including real estate, franchise options, private company stock and much more. With the assistance of a SDIRA custodian, account holders can choose from the approved options in order to maximize their contributions without the limitation of traditional investments. With such a diverse pool of asset options, account holders can reap the benefits and prep for the future.

2. Control Over Investments

With more options. SDIRA investors have more control over their future wealth. By researching the different options, account holders can take advantage of the opportunities open to them in order to get maximum growth for their nest egg. Since each account holder is unique, the traditional investment options may not be a fit. Self-directed IRAs allow investors to take the reins when preparing for their retirement. This investment option allows the account holder to decide which assets would provide them with the most long-term growth for a comfortable, and secure retirement.

3. Multiple Tax Benefits

Self-directed IRAS don’t only offer a vast pool of investments. Account holders can choose between two different options in order to expand their wealth: a traditional IRA, or a Roth IRA. The traditional IRA is a tax-deferred savings account that grows quickly without being hindered by taxes. Investors only pay taxes on withdrawals.

The Roth IRA is a tax-free savings account that allows money growth without the need to pay later. While one provides an immediate tax break and faster growth, the second grows without worrying about taxes. With the addition of multiple investment options, account holders can choose how to accumulate wealth for a comfortable retirement.

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4. Increased Savings

With so many ways to utilize investments, account holders can take advantage of the opportunities open to them. While traditional and Roth IRAs can provide savings, with such limited choices, the return is limited. With self-directed IRAs, the alternative assets can provide more exponential long-term growth.

Investors can take advantage of shares, real estate properties, and other markets that can provide more profit potential than the traditional stock and bond markets. Depending on investments, account holders can accumulate a sizable nest egg with the variety of asset options.

5. Securing Wealth for Future Generations

The main goal of a self-directed IRA is to secure finances for your retirement. With the unpredictable stock market and unreliable government assistant programs, SDIRAs provide a shielded nest egg not only for your retirement, but for your children.

However, with such an ever-changing world, it’s important to have added security. Should any incidents occur, assets held in a SDIRA are protected from creditors by state and federal laws, including any real estate or other retirement investment claims.

Any investments outside a retirement account are subject to claim. It’s imperative to protect your assets, not only to ensure a comfortable retirement, but for the next generation as well. SDIRAs also allow account holders to pass on their investments to future generations.

Invest with a Self-Directed IRA Equals an Investment in the Future

With proper asset options, close monitoring, and added security, you can take charge of your retirement. With careful research and a variety of options, it’s important to make sure your financial future is secure. Investing in a self-directed IRA is the first step in taking ownership of your assets allowing you endless opportunities through investment.

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