What is Self directed IRA
Everyone will retire one day and when that day comes for them, they will hopefully have something they are able to live off of comfortably. Hopefully, over the years they worked, they built some type of retirement savings for themselves. Of course, they will be eligible for Social Security by retirement age but this will not be nearly enough to live the way they want to live for the remaining years of their lives. Social Security will only give them so much every month so it is best for everyone to have some type of retirement savings that build up over the years while they work.
There are a few different options people can go with for their golden years. With anything, researching the options they do have will be a good idea to know what they can build over time. After all, learning is a part of life for everyone so learning about every option they have for life after employment is one of the best things they can learn about.
Self Directed IRA’s
Self Directed IRA’s are one option they can choose to go with. This option might be one of the best retirement options they can choose because it is actually a great way to maximize their investments. Doing this with the self directed IRA is a chance to have many different investment options actually. A self directed IRA is a retirement plan that can buy from different assets. Some of these investment options include:
- Precious metals
- Real estate
- Mortgage and/or trust deeds
- Promissory notes
- Private LP’s and LLC’s
- Much more
Another good thing about self directed IRA’s is that it doesn’t matter what type of IRA you have right now because you can transfer it to a self directed one anytime you need to. It doesn’t matter if it is a traditional, SEP, simple, or roth IRA either because any of these can still be transferred to a self directed one as long as the custodian will be able to hold it.
Benefits of a Self Directed IRA
There are many benefits to having a self directed IRA. By having one, you, the holder will have the option to choose between many different investments. However, how you diversify them will be totally up to you and you will have the flexibility to make the decision to vary your investments. Here are the many benefits of having a self directed IRA.
- Being able to diversify your portfolio will provide you with the protection from inflation rates as well as market unpredictability
- Although many people hire a professional to help them, with a self directed IRA, they are able to invest in what they already know about and understand instead of having to hire someone to manage their investments for them
- With a self directed IRA, investors can have access to different investment options that their bank or brokerage firm may not have access to such as gold, real estate, etc.
- Investors will also have the ability to partner with different people such as friends, family, and even co-workers which will give them more access to other opportunities
- Investors also have the option to use commodities which will provide them with the protection they need against the fluctuation of the economy
- The ability to keep an eye on your investments, watching them grow tax-free
How to Diversify your Investments and Protect your Portfolio
With the way the economy is today and since no one knows what the future holds, now is the best time to invest in certain guaranteed assets that will never depreciate in its value or will actually never lose its value over time, like others do. The best asset you can actually invest in is precious metals. The experts actually recommend to invest at least 10% of yourself directed IRA funds to precious metals. This is because this type of investment opportunity will not only allow you to get ahead of the inflation but will also protect your other assets when the time comes for prices to increase. The best type of precious metals to invest in include gold, silver, platinum, and palladium because they have already been proven to help with many other people’s savings for retirement when or if the time comes for financial risks as well as difficult situations.