- Diversify into other asset classes with a Self-Directed IRA. With conventional retirement accounts, it is very difficult to escape from the three asset classes most investment companies limit themselves to: stocks, bonds and cash. By choosing to self-direct part of your retirement assets, you unlock a world of investment opportunities and potential avenues of diversification that would be all but closed to you if you stuck with the investment products your bank or Wall Street advisor is limited to.
- Tax advantaged real estate cash flows. Income in a Self-Directed IRA can be reinvested tax-deferred, and Roth IRA income grows tax-free (provided you keep the assets it in a Roth account for at least five years). If you held that same direct real estate investment (or REIT, for that matter) within a taxable account, outside of an IRA or other tax-advantaged savings vehicle, you’d have to pay taxes on every dime of rent you receive over and above your deductions. You can then only reinvest what’s left.
- To pass on real estate or business assets. A Self-Directed IRA is a great vehicle for passing on real estate or other closely-held assets to heirs. Depending on the situation, your heirs may be able to spread out distributions over a lifetime, which allows the bulk of the assets in the IRA to continue compounding, tax-deferred or tax-free.
- Access to private equity, venture capital and private debt placements. Many of the sweetest investments from an ROI perspective never make it to the IPO stage. The process of getting a bond rated, or getting approved to float shares over a public stock exchange – is both hugely time consuming and extremely expensive. Plus, investment banks typically take up to 7 percent of all the capital they raise as commissions. Many companies would much rather skip that process and find other forms of financing. These smaller companies may have tremendous growth prospects but they are not well served by the investment banking community, nor traditional lenders. This gap creates amazing opportunities for risk-tolerant, patient Self-Directed IRA owners, as these companies looking to raise capital are often willing to offer very attractive discounts to attract money.
- Asset protection. Assets held within IRAs receive substantial protection from creditors. If you own investment or real estate assets outside a retirement account, those assets are generally subject to the claims of creditors. However, if you own those very same assets within a Self-Directed IRA, both federal and state laws prohibit creditors from seizing those assets except in very limited circumstances. Inherited IRAs may receive less protection than asset.
American IRA, LLC helps investors take personal control of their retirement assets while preserving the many tax and asset protection benefits of the IRA or 401(k) structure. Many people we speak with initially are surprised to learn how easy it is to set up an IRA account to handle direct ownership of real estate, partnerships, LLCs, precious metal assets, tax liens and certificates, farms and ranches, race horses and other non-conventional retirement assets.
To get started in taking more direct ownership of retirement assets, call American IRA, LLC today at 866-7500(IRA), or visit us online at www.americanira.com.