Georgia Self Directed IRAGeorgia Self-Directed IRA

Georgia. It’s a state that inspired ballads by the likes of Ray Charles. It was the setting of the epic Gone With the Wind. And today, when it comes to states to consider for retirement, many people still have Georgia on their mind. But is a Georgia Self-Directed IRA really right for you, and is the state favorable to people considering retirement?

In order to answer that question, we’re going to break down the state of Georgia into a few different categories and look at it piece by piece. In this brief guide, you’ll find all you need to know about Georgia demographics, retirement friendliness, and life in general—which will help guide the decision you make as to whether a Georgia Self-Directed IRA might be right for you:

Know Your State: Why a Georgia Self-Directed IRA Might be Right For You

First, the basics. Georgia is one of the most populous states in its region thanks to a healthy metropolitan area near Atlanta…but it’s also a state with a lot of diversity, extending down to its “Golden Isles” on the coast of the Atlantic ocean. Georgia borders states as diverse as Florida, Alabama, Tennessee, and South Carolina—and thanks to Hartsfield Airport in Atlanta, it’s one of the major international hubs for flights going every which way. That’s perfect for retirees looking to travel.

With a population of 9,600,000, Georgia is twice as populous as its neighbor South Carolina—which is in part thanks to the aforementioned Atlanta area. It’s also seeing a lot of population growth as people flock to the state in droves. The largest cities in Georgia outside of Atlanta include Augusta, Columbus, Savannah, and Athens, which is home of the University of Georgia.  

Know Your Self-Directed IRA Options in Georgia

If you’re considering a retirement in Georgia, then it pays to know all of the options you have at your disposal. There are a lot of different ways you could choose to plant your flag in Georgia if you’re open to different kinds of IRAs, including:

  • Traditional IRAs
  • Roth IRAs
  • 401(k)s
  • SEP IRAs
  • Health Savings Account

These are national account options, which means their advantages extend to Georgia just as they would any other state. And if you self-direct your own IRA, you’ll be free to use it to take advantage of everything Georgia has to offer people looking to relocate and retirees.

Tax and Financial Considerations in Georgia

If you’re thinking about retirement, you have a lot on your plate to consider. You have to consider what it would be like to live in a specific place. You have to consider demographics, entertainment, cost of living, and much, much more.

Of course, one of the first questions people ask about retiring in a new state is: what are the taxes like? Here’s a simple breakdown of Georgia taxes via BankRate.com:

  • Generally, you’ll look at a 6% income tax if you live in the state of Georgia. There are several tax brackets, but 6% applies to everyone with taxable income of $7,000 or more.
  • One advantage is that taxpayers may be able to have a “retirement” exclusion of a portion of their income if they’re after a certain age. This helps anyone who’s considering retiring in Georgia.
  • A tax credit is available for anyone who may pay income tax to other states, which allows you to own multiple homes with a little more ease.
  • The Georgia state sales tax is 4%.

The moderate taxes in Georgia make it an interesting target for retirees, as do some of the breaks available for specific situations—but obviously your own mileage may vary depending on your age and your situation.

Benefits of Retiring in Georgia

Georgia has a rich culture, plenty of access to air travel, and a warm climate. With plenty of coast along the Atlantic Ocean, there’s no shortage of things to do. Some of the world’s top events—including the Masters golf tournament—take place in Georgia. If you’re an avid fan of an active lifestyle, there is plenty of hiking, walking, cycling, and more available all across the fine state of Georgia.

If you’re interested in seeking retirement in Georgia, or if you simply want to think about it as a long-term option, you might consider a Self-Directed IRA. A Georgia Self-Directed IRA will allow you to handle plenty of different investments under your own control—all while enjoying the tax protections of retirement accounts.

Are you interested in retiring in Georgia? Want to learn more about how to take advantage of all of the retirement capabilities you have? Then it’s time to think about a Self-Directed IRA. Continue browsing this website to learn more about a Georgia Self-Directed IRA, or contact us at 828-257-4949 to learn more about how you can secure a retirement for yourself.

Georgia Self-Directed IRA

You might have heard of this phrase before, liked the idea, but never really took the time to look into it. But now part of you knows that it’s definitely the time. A Georgia Self-Directed IRA is truly one of the most important ways in which you can take control of your financial future, deciding where your retirement investments go and how your portfolio will look.

But what exactly does “Self-Direction” really mean, and what are your options should you choose to direct your own retirement account? In this section, we’ll take a closer look at what this phrase means, the various tools you have at your disposal, and break down these IRAs into their individual categories. Along the way, you’ll find that the same protections you have for traditional retirement financial protections are available even if you self-direct.

If you believe in taking control over your portfolio, now’s the time to start learning about what kind of retirement you can have:

Why a Georgia Self-Directed IRA?

Stocks. Mutual funds. CDs. Bonds.

For years, you’ve heard that these are the types of investment vehicles through which to secure your retirement. The stock market tends to appreciate over the long haul, after all, and bonds are conservative and low on risk. Mutual funds have popped up in recent decades as one of the most popular investment vehicles as well, closely monitoring certain aspects of the stock market.

What most people do not know is that these are not the only investment types available for retirement.

In fact, if you choose self-direction, you’ll find that the IRS allows for all sorts of different types of investments in a retirement account. You can invest in gold and precious metals, real estate, private companies, and more. There are a few select limits on the sorts of investments you can make, but the good news is: you often have more legal options than you have limits.

For many people, a Self Directed IRA means freedom, opportunity, and self-determination. It means not being satisfied that the “market” is the only market that exists. It doesn’t mean you have to switch away all of your old investments. But if you want to invest in real estate or gold to help ensure a secure retirement, those options are indeed open…

And, like other IRA types, Self Directed IRAs come with all sorts of investment protections.

Understand Your Georgia Self-Directed IRA Plan Options

Let’s take a moment to consider the various retirement account types:

  • Traditional IRA: A retirement account in which you can invest pre-tax or after-tax dollars, and in which your investments grow tax-deferred, meaning you will pay taxes on them once you begin withdrawing them. When you start making retirement withdrawals–defined as withdrawals after you turn 59.5 years old–the money is treated as income.
  • Roth IRA: Similar to a traditional IRA, except you make after-tax dollar contributions so you’re paying taxes on the front end. This allows your investments to grow tax-free. After the account has been established for 5 years and after you turn 59.5, your withdrawals are tax and penalty-free.
  • Traditional 401(k): A qualified plan that allows employees to make pre-tax elective deferrals. Business owners who want to self-direct can use these as well and allow employees to self-direct their accounts.
  • SEP-IRA: Simplified Employee Pension that allows employers to make contributions to the retirement of their employees. An employer can also contribute to their own retirement with a SEP-IRA.
  • SIMPLE: Savings Incentive Match Plan for Employees. A “tax-favored” plan that small businesses and individuals can set up for their employees.
  • Solo 401(k): A 401(k) plan that a self-employed individual can use for retirement that offers high contribution limits.

As noted throughout, these same accounts offer a high degree of self-direction if you want to direct your own accounts.

A Variety of Investments

One of the chief benefits of directing your own retirement account is that you get to choose your investments from a wide range of options:

  • Real estate: Apartment buildings, commercial property, retail space, raw land, etc. If you want to earn an immediate income for your retirement account with your investments, rent can be one of the most powerful ways to ensure that. You can also use leverage in a Real Estate IRA when using non-recourse loans.
  • Private IRA Lending: You can negotiate the terms, interest rate, and length of the loan, as well as other variables like the monthly payment amounts and whether the loan is secured or unsecured.
  • Private companies: Public stocks are what most people think of as “investments,” but there are also private stocks to consider. There is a lot of opportunity for growth in private company stock, but also plenty of risk to consider.
  • Tax liens: With a high rate of return, these investment types are ideal for self-directing investors with smaller accounts.
  • Precious metals: Gold, silver, platinum, palladium. These metals are famous as a “hedge” against economic downturn, which is why many people turn to them as a way to avoid putting all of their eggs in the stock market basket.
  • Single Member LLC: An investor can create an LLC to be owned by their IRA, managing it themselves. This gives a significant degree of protection, however you’ll likely want to consult with a professional to learn how to do this properly.

What You Can’t Do with a Georgia Self-Directed IRA

As fun as it is to talk about the various options you can have with a Self Directed retirement account, it should be noted that there are certain limits, as well. You cannot self-direct a retirement account to invest in life insurance, collectibles like art, gems/jewelry, coins, alcoholic beverages, and tangible personal property. As enticing as it might be to put that wine cellar under an IRA protection, it’s simply prohibited–so look for your protected retirement investments elsewhere.

Getting Started with American IRA

Although we’ve thrown a lot of abbreviations and words at you, you should know that self-directing your retirement isn’t as complicated as it might sound. The steps are very simple:

  • Open a Georgia Self-Directed IRA with American IRA. Make sure to put thought into the type of account you’d like to open; review the options available to you and select the one that makes the most sense for your individual situation.
  • Fund your account. This is where the options can throw people off. Let’s take a look at them quickly:
    • Contribution: Simply putting money into the account throughout the year. This is what a lot of the funding will look like once the account is already opened.
    • Conversion: Withdrawing part or all of the cash/assets from a traditional IRA and putting them into a Roth IRA is called a conversion. Once the cash/assets are distributed, you have 60 days to put them in the Roth IRA account.
    • Rollover: A tax-free distribution of cash/assets from one account to be put in another retirement account. You are permitted one rollover per year.
    • Transfer: Transferring cash/assets directly from one retirement account to another retirement account. Because you do not take direct possession of the cash/assets, you are allowed unlimited transfers and there is no tax.
  • Select an investment. Where will you invest your retirement account? Do a lot of research to ensure that you’re comfortable knowing all of the tax rules and implications of choosing a new investment type.
  • Review instructions. Check out How it Works.
  • Provide payment authorization. Submit the proper forms for expenses pertaining to the asset owned through your IRA.
  • Submit deposit coupons. Deposit the income generated by your IRA asset by submitting these forms along with the funds.

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