There’s a way to protect yourself from the stock market shocks we’ve seen the last few years that have added risk to individual’s retirement savings. With the uncertainty of the market, many individuals have seen 50%, 60% and even more of their investments disappear , with no hope of rebounding . That fact makes it vital that you take control of your investment portfolio, and start earning returns that will not be subject to taxation until you remove the money for retirement. The obvious choice is a self-directed IRA. Within that IRA, either a traditional IRA or a Roth IRA, you have a variety of allowable non-traditional investment options from gold to real estate. Self-directed IRAs have been part of the tax and investment code since 1972, yet many individuals are unaware of them. There are a number of reputable custodians that specialize in self-directed IRAs, among them Equity Trust Company and Entrust IRA. Service charges for these custodians vary , so be sure to have a solid idea of the amount of transactions you expect to be making before choosing your custodian company. You can choose non-traditional investments without taking unnecessary risks, and continue to see excellent returns. You can also join in with other individuals , invest in a fund and spread out both the risk and returns. You can set up an LLC and have it make investments on behalf of your individual retirement account.
If history has taught us anything, it is that there is a cycle to industries that wise investors recognize and take advantage of. Currently real estate markets are not performing in many parts of the country, making this a buyer’s market, and positioning real estate as an opportunistic buy for a self-directed IRA investment . Find a real estate investment secured by a note or deed with a fixed rate of return within your IRA, or a real estate fund that minimizes risk by spreading the investment over a number of properties with good LTV (loan-to-value) ratios. Work with a custodial company that allows these alternative investments.
Taking charge of your IRA investments means greater opportunities to secure your individual retirement account. Many companies offering self-directed IRAs, including Equity Trust Company, provide a variety of educational services for their investors through webinars and training. As you explore the process of choosing your custodian, look in to the options and familiarize yourself with the company’s website to be comfortable about the services and support available to you. Finding the right custodian will be an critical part of managing your individual retirement account to maximize growth and meet your retirement goals.
