What your financial planner isn't telling you!

Can your IRA investments be about more than just stocks, bonds and mutual funds? Absolutely!!! With a self directed IRA you can invest in many types of real estate, businesses, or promissory notes in addition to stocks etc. Isn’t it time to expand your retirement portfolio and invest in other areas where you can grow your IRA funds?

Why haven’t you heard about this from your financial planner? Some will advise opening a self directed IRA as part of your portfolio, however, they normally use banks or other financial institutions and those naturally tend to limit clients to their own products. Banks and financial institutions don’t usually have experience with real estate investing or owning businesses, their primary business is lending money. If you have experience in investing or just an entrepreneurial flare for making your own decisions you realize how limiting these traditional investments can be.

A self directed IRA allows you to make rapid investment decisions when you determine you have a good opportunity. You have control over the checkbook account where your IRA funds reside. When you find the multi-family property, apartment complex, restaurant or other investment opportunity that you want to purchase you do not have to obtain permission from a custodian or anyone else, you make the purchase decision. There are a few limitations; you cannot own property where you or an immediate family member resides or takes vacations, you cannot participate in a time share arrangement, you cannot use your own labor to improve property in which you invest and you cannot invest in collectibles. Other than that you are free to invest in what you determine best fits your needs.

All profits made on your investments must go back into the IRA and are then available for additional investments. As with all traditional IRA funds these profits are tax free until you begin taking distribution.

You can convert both traditional and ROTH IRA funds into a self directed IRA. Or you can convert your traditional IRA funds into a ROTH self directed IRA. With a ROTH IRA the profits are tax free when withdrawn and there is no age requirement for withdrawal. There are some limitations on how much can be converted to a ROTH self directed IRA. The processing house we work with that coordinates the actual conversion of funds can provide consultation services to help you determine what is right for your specific situation.