Not many people know about self directed IRA investing, which explains why less than 4% of all IRA holders choose to self direct their account.
Why is this?This article will discuss the secrets behind self directed IRA investing and what it can mean for your future retirement.
First of all- what is a self directed IRA?A self directed IRA is a retirement vehicle that allows YOU (the account holder) to control all transactions and activity within the account.
Not only can you choose what you want to invest in, but you also have a much wider range of investments to choose from besides your ordinary stocks, bonds, mutual funds, and other common securities.
And in many ways, self directed IRA investing can be a lot less risky than investing in these kinds of securities.
So, why is self directed IRA investing such a secret?Well for starters, most people hold retirement accounts with their employers, banks, or other third-party financial institutions.
In any of these situations, people with retirement accounts are rarely even told about the possibilities of self directed their account.
Why is this?Well, if you chose to self direct your retirement account, then how would banks, employers, and financial institutions make any money off of your contributions? That's an easy answer- they wouldn't make any money at all!They would rather convince you that retirement investing is difficult and that you need the "knowledge" of a experienced investing adviser to properly manage your account.
This way, they can choose what your money is investing in- which ultimately ends up being their company stock or whatever assets make them the most money!But there's one problem with this kind of situation- they are taking half of your earnings! Self directed IRA investing can prevent this from happening.
And no, it's not as difficult as you may think to manage your own retirement account.
You will have to educate yourself in the beginning about how self directed IRA investing works and what you can invest in.
I suggest that you should look into investing in real estate using a self directed IRA It's the one asset that tends to increase in value over time (in exception to the recent housing bubble burst) and there are no major fluctuations in price like there is with stocks and other securities.
And don't think for a second that you have to go at self directed IRA investing all on your own.
There are plenty of companies that can help you invest with your self directed IRA.
In fact, with IRA real estate investing, I know of a company that takes clients by the hand and walks them through the whole process.
Without any outside help, an investor would have to find a proper custodian that can help them with real estate investing, search for great deals, hire someone make all the necessary renovations and repairs and make sure the property is in livable condition, and even hire a realtor to find qualified buyers or tenants to rent out the property.
But, with the company I speak of above, all the investor has to do is put money into their self directed IRA explain what it is you want done with your account, and collect return checks at the end of the process.
They will find you a custodian, find the best deals to take advantage of, make all the repairs and renovations, and even find you qualified buyers for the property! If you're thinking about taking advantage of self directed IRA investing, then I definitely suggest you take advantage of the opportunities that real estate provides.
Take control of your retirement planning and take part in self directed IRA investing while the gettin' is good!