Do you want to retire worry-free with comfort, security and a sustainable income to enjoy? Who doesn’t! When it comes to retirement planning and real estate IRAs, there’s no better financial tool out there than a self-directed IRA.
Investing in real estate is a proven way to build your wealth – and with a self-directed IRA – you can strategically plan your path to a profitable retirement. Thousands have secured their financial future using a real estate IRA. And we’re here to help you do the same.
On this episode of Investing in Real Estate, you’ll learn about the freedom you’ll gain by investing in a self-directed IRA. Listen to the podcast to discover how to buy real estate investments with your retirement account, all while securing a sustainable retirement. Want to talk to us right away? Book your FREE consultation with our team now.
So, why have self-directed IRA’s popularity been growing so rapidly? Because retirement savers want flexibility that goes beyond rigid CDs, ETFs, and mutual funds. And in this episode, you’re going to discover why self-directed IRAs are a powerful game-changer that give investors the flexibility they want while building a profitable retirement.
On this episode you’ll learn:
- The types of investments you can utilize with a self-directed IRA.
- What a custodian is, and their role in your investing.
- Why you should establish an LLC when investing in an IRA.
- The value of a self-directed IRA.
- How to take advantage of diversification in your IRA.
- And more!
What is a self-directed IRA?
A self-directed IRA (also known as an SDIRA) lets investors diversify in more varied kinds of investments. Similar to a traditional or Roth IRA (in which your custodian, the institution that keeps records and reports to the IRS etc.) – a self-directed IRA lets you invest in a wide range of investment options in your retirement account.
How to get started with a self-directed IRA
- Find a reputable IRA custodian that has experience in the areas you wish to invest in.
- Set up a limited liability company (LLC) to hold your assets and protect you against lawsuits.
- Get to grips with the rules and regulations of your LLC to abide by them so that you avoid financial penalties.
That’s all you need to get started with a self-directed IRA.
Do you want help finding a reputable IRA custodian and setting up a limited liability company? Contact us and we can get you fully set up with a self-directed IRA in as little as 10 minutes!
What are the types of investments you can utilize with a self-directed IRA?
Self-directed IRAs give you the option to invest in an array of options: precious metals, undeveloped land, real estate, investing in a business – you have total freedom to invest in your financial stability as you enjoy the end of your career. This is why self-directed IRAs have become so popular. People want more freedom to invest.
What is an IRA custodian, and their role in your investing?
A custodian is a specialized financial institution that exists to hold and protect customers’ securities and assets from loss or theft. Choosing a reputable self-directed IRA custodian is an important step.
Once you’ve set up a self-directed IRA, you’ll need to measure the value of your investments at the end of each year so that you can report the numbers to your custodian. Your custodian will also provide advice. BUT… we want you to feel in total control of your financial future. Our team can get you fully set up and confident to navigate your investment journey. So you won’t need to rely solely on your custodian for guidance.
Why you should establish an LLC when investing in an IRA
Establishing a limited liability company is an essential step as it protects you from the many different types of lawsuits that can occur on your property (slips, trips, falls, etc.). These things happen, so a limited liability company protects you against potential legal action.
Once you have a custodian and you have an LLC company setup – you’re ready to buy, sell, and flip properties. Just remember: you need to pay back all of that income you’ve made into your self-generated IRA. Ignoring the rules and regulations will likely result in financial penalties.
The rules and regulations for self-directed IRAs are easy to follow, so make sure you’ve read and fully understood them before you start. Try not to let fear get the better of you. Trust us, the benefits of self-directed IRAs far outweigh the risks!
What is the value of a self-directed IRA?
In addition to flexibility, retirement savers find self-directed IRAs are a great tool as they’re a safe option for those entering real estate investment for the first time. Why? Because the money that you spent on properties isn’t money you live on. Instead, you simply draw it from your retirement account. You’ll depend on these funds but view them as a solid foundation to build upon as you explore your options while enjoying the tax benefits.
This is where self-directed IRAs get really exciting. Like any other investment in your IRA, your income is tax-deferred until you withdraw. That’s true unless your holdings are in a Roth self-directed IRA; in this case – you won’t need to worry about taxes! You’ll just wait until you withdraw funds to avoid the early withdrawal penalties. The self-directed IRA rules are fairly simple to follow; the amazing benefits are within your reach.
Plus, self-directed IRAs get even better: if you have a tenant in that property, the cash flow becomes tax-free when you retire at 59 and a half years young.
How to take advantage of diversification in your IRA
Another reason why self-directed IRAs are so powerful and popular is because they offer greater portfolio diversification options that the alternatives don’t. So if you’ve felt restricted when exploring your investment options in the past, a self-directed IRA could give you the freedom you want.
What’s the difference between a small traditional broker’s self-directed account and one that lets you invest in real estate? Most IRA custodians and banks will only approve conventional investments. So if you were to ask them if you can invest in real estate or a self-directed IRA – they might say yes but only for real investment stocks or REITs.
You could approach Fidelity with a well-thought-out plan saying that you’d like to invest in a few properties that’ll create a strong cash flow of “X” a month, and you’re ready to get started ASAP. But… they will turn you down. That’s the difference.
So if you want to join the retirement savers enjoying greater control of their financial future, find a trusted institution that provides self-directed IRAs. And research to find an institution that has proven experience in your chosen fields of investments.
Ready to start your self-directed IRA?
Our team can help you with every step of your real estate IRA investing journey. From finding a reputable custodian, setting up a limited liability company and everything else – we can do all of this in as little as 10 minutes. Book your FREE consultation with our team today. We’ll talk about your retirement goals to help you build wealth for you and your family’s future.
- Subscribe to Investing in Real Estate on Apple Podcasts
- <Find Your Financial Freedom Number
- Subscribe to the Morris Invest YouTube channel
- Like Morris Invest on Facebook
Ready To Build Passive Income Through Rental Real Estate?
Ready to talk about your goals? We're here to show you the tools and teach you the process to begin earning legacy wealth for you and your family.