Five Reasons To Consider A Self-Directed IRA

A self-directed IRA can be used to build wealth and retirement assets like any other IRA. Because they allow for greater flexibility and freedom than traditional investment options like stocks, bonds, and mutual funds, self-directed IRAs stand out. Five potential benefits of a self directed ira are explained below.

1. You Can Control Your Financial Future With A Self-Directed IRA

It's your retirement. You are the best person to determine how you want to achieve your goals. Equity Trust offers a self-directed IRA that you can direct. You are in complete control of your account, and you have the freedom to invest in what interests you most.

A self-directed IRA works just like any other IRA. It is not tied to any employer. There are limited investment options, such as Thrift Savings Plans and pensions. It's your retirement account.

You may also be able to transfer a 401(k) plan from your previous employer to a self-directed IRA. This will allow you to continue investing in retirement, no matter where you may be.

2. You Can Invest In Areas Other Than The Stock Market Using Self-Directed Iras.

Equity Trust's self-directed retirement accounts differ from IRAs or other qualified retirement accounts at other financial institutions. The main difference is that Equity Trust offers more freedom and flexibility to choose between traditional and alternative asset classes.

Many investors are unaware that they don't have to only invest in stocks, bonds, and mutual funds. It's also possible for their IRAs to invest in real property, notes, private equity, and precious metals, as well as a variety of other "alternative" investments.

3. Self-Directed IRAs Can Provide Tax Advantages

A self-directed IRA, or qualified retirement account, can offer tax benefits if the IRS rules are adhered to. There are 2 types of IRA: a Traditional IRA and a Roth IRA. Each type has its own set of tax advantages and characteristics.

Whether you have Traditional IRA, Roth IRA, or a combination of both, funds and investments are tax-advantaged until they are distributed from the account at age 59 1/2.

Investments in self-directed accounts are exempted from tax, and all income, profit, and appreciation go directly to the IRA.

A self-directed IRA can provide tax benefits that are even greater when they are compounded over many decades. The funds that return to the IRA directly are not subject to tax. Tax savings can be reinvested in another opportunity or compounded in the tax-advantaged tax environment.