WHAT
IS A SELF-DIRECTED IRA?
What
is a self-directed IRA?
A self-directed IRA is technically no different than
any other IRA, it simply means that your custodian allows
you more flexibility. A truly self-directed IRA is unique
because of the available investment options. Most IRA
custodians only allow approved stocks, bonds, mutual
funds and CDs. A truly self directed IRA custodian (which
we can recommend a list of) allows those types of investments
in addition to real estate, notes, private placements,
private mortgages, trust deeds, tax lien certificates
and much, much more.
What
are the benefits of a self-directed IRA?
In addition to the tremendous IRA benefits (tax-free
profits, tax deductions, asset protection and estate
planning), you are able to invest tax-free in investments
that you know and understand, which through the power
of compounding interest, will create true wealth for
you and your family.
What
about a self-directed Roth IRA? Does the IRS allow it?
YES!!!!!!!!!!!... and I thank God for it everyday! Seriously!
The self-directed Roth IRA is one of the most powerful
tax-free wealth building vehicles known to man.
Why
haven’t I heard of a self-directed IRA before?
While the concept of investing in real estate
and other assets in retirement plans has been around
for more than 30 years, the concept hasn’t received
large attention because most custodians who offer IRAs
(banks and brokerage firms) focus on mutual funds and
CDs because they have vested financial interests in
you selecting those investments from them.
Because
the majority custodians focus on stocks and CDs there
is a misperception that that is your only investment
option for retirement plans, which is not the case.
My
CPA, attorney, or financial advisor hasn’t ever
heard of a self-directed IRA, what should I do?
A trusted advisor who has not heard of self
directed IRAs is not an entirely uncommon experience,
given their relatively unknown nature.
We
have worked with several of professional advisors across
the country to educate them regarding IRA and self directed
IRA rules so they can best customize advice to meet
your personal needs. If your advisor hasn’t heard
of self-directed IRA's before, he/she can contact us
for exact details.
Can
I be assured that self directed IRAs are allowed under
IRA rules?
As long as you follow relevant rules the answer is yes.
There are specific rules regarding IRAs, and in particular,
self directed IRAs that you should be familiar with
to ensure compliance. There are certain types of transactions
that you can not perform through an IRA. Most importantly,
the IRS prohibits “self dealing,” which
are investments in which you or your family members
of lineal descent have prior ownership.
Are
my self-directed IRA investments guaranteed?
No investment (aside from FDIC-insured deposits) is
guaranteed and self-directed investing is not for everyone.
However, most successful investors feel that the investment
risk in assets they know and understand is much less
than that associated with investing solely in conventional
IRAs.
Are
self directed IRAs for everyone?
Self directed IRAs are not for everyone, they
are for those who want to create wealth using their
knowledge of investments outside of stocks, bonds, and
CDs such as investing in real estate, private mortgages,
and trust deed investments.
How
do I get started?
Click here to contact us
or call our offices at 1-877-752-5601.
DISCLAIMER:
WN Funding or its affiliates hold
no licenses for financial planning and WN Funding is
not a registered security with the Securities &
Exchange Commission.
None of the information on this website should be
viewed as tax or legal advice. Please be sure to consult
your attorney, accountant, and/or other licensed professional
needed before considering any investment or conversion.
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