The term "Self-Directed
Retirement Investing" is what it implies:
A method for you to direct investing in assets that better fit your retirement goals.
Basically, my inventing in
non-traditional assets such as buying a business, franchise, real
estate, notes and mortgages, funding an existing business, etc. with
your IRA you will obtain greater control over
your investment options while earning tax favorable income.
Did You Know Most Businesses and Assets Can Be Funded With Retirement Funds?
Your IRA / An Investment Business
In past years, an IRA was considered to be a hedge against uncertainty and it was expected only to grow through the incremental accumulation of modest returns. An IRA was a nest egg that was to be protected from all risk. Some of this still applies. You do not want to treat your IRA's tax-advantaged assets like venture capital and throw them into high-risk investments hoping for incredible returns.
The attitudes concerning IRA investments have shifted over the past several years, however, as investors have started looking for ways to build real wealth within their IRAs. It is still a good idea to keep your IRA's tax-advantaged assets from high-risk ventures, but restricting your IRA's investment activities to mutual funds is no longer considered to be the best strategy. Avoiding all risk leads to minimal returns.
The new paradigm, where IRAs are treated as investment businesses rather than as hedges against risk, is partially a product of the self-directed IRA. Rather than housing their IRAs with traditional custodians and accepting their restrictions, investors are able to make their own investment decisions and realize far greater returns. With the use of the Limited Liability Company, IRA holders gain absolute control over their IRAs.
With Great Power Comes Great Responsibility
The danger in having complete investment control is that you are free to lose your shirt as well as free to reap huge returns. Before taking the reins of your IRA, you should have some investment experience and some understanding of the applicable laws. Making bad investments and breaking the law can decimate your IRA and destroy its tax-advantaged status.
Make sure, when you do open a Self-Directed IRA, that you also obtain a good IRA Advisor.
