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Real Estate Retirement Options

What You Don't Know Can Hurt You

What You Don't Know Can Hurt You

Most individuals aren't even aware of the fact that they can use their IRA to invest in assets. By using your own self-directed IRA, you can invest in stocks, bonds, and even real estate. This can include secured loans such as a mortgage, private business -- what ever you'd like. One thing to keep in mind is that there are strict rules and regulations and if not followed, it could end up costing you money by being penalized for early withdrawal.

Ready to Make a Move, But Not Sure Where to Turn The first step is to open a self-directed IRA. You will need to find someone to take custody of your IRA and allow you to invest it as you see fit. You should call the company that handles your IRA account and inform them you want to transfer your existing IRA into a self-directed IRA. This will allow you to take control of your money. This type of arrangement can be profitable and offers great returns on investments, often with fewer fees.

It is highly recommended that you seek the advice of someone specializing in IRAs. This can get tricky and if you lack the experience, you shouldn't try to do it alone. There are a number of tax rules that limit the types of investments you can invest in, so make sure you seek the advice of a professional.

Benefits of Investing from Self Directed IRAs

Unlike traditional 401 (k) plans, self-directed IRAs gives more freedom to invest in other ways. Although you still have to comply with the same federal tax laws, self-directed plans have far less restrictions when it comes to what you can invest your money in. Another benefit of self-directed IRA investing is that there are fewer fees attached to the program.

On the flipside, some consider self-directed IRA investing a higher risk than traditional IRAs. Make certain that you are aware of the potential risks involved before investing your money.

If you want to better prepare yourself for your golden years, perhaps diversifying your IRA assets might be worth considering. Be sure to review and fully understand all of your options before making any changes to your IRA. Self-directed IRA investing is an option that is often overlooked, but with a good financial counselor, and proper execution, you could create quite a nice nest egg for your future.

by: Tasha Gill
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Real Estate Retirement Options