What can a Self Directed IRA do for you?

It’s an important question, but you’d be surprised at how many people actually know the answer. It’s fewer than you think. For most people, the idea of investing is as simple as buying stocks. But there are more options available to you out there if you want to learn them—and there are more advantages you can use when you realize all of the different account types, as well. In order to expand your concept of retirement investing, we put together a brief list that we believe most beginning investors need to consider:

#1. A Self Directed IRA can add financial security.

If you’re already familiar with the concepts of a Roth IRA, traditional IRAs, and more, then you know all about the protections that come with the usual retirement accounts. Self Directed IRA accounts are no different. In fact, you’ll find that they come with some benefits as soon as you start utilizing their flexibility for maximum impact.

One of the most important areas in which you can do this is through non-recourse loans when investing in real estate. Non-recourse loans are loans in which a lender can’t come after your other assets should you default on a loan…they can only come after the value of the loan itself. That means that if you invest in real estate with a non-recourse loan through a Self Directed IRA, many of your assets remain protected. And you still get to use leverage in order to build equity over time!

#2: The flexibility to choose from an exhaustive list of options.

When most people think about retirement—and let’s be honest here—they think about their work 401(k). This is especially true the younger you are. The younger you are, the further off retirement seems, which makes it seem less valuable to start investing in your future. And people get stuck in this bubble, never really looking at all of their options until it’s too late.

Don’t wait until it’s too late. Take a look at all of the Self Directed IRA investment options available to you today. All you have to do is review a few of them to expand your concept of what it means to invest in real estate. Simply browsing through these allows you to see all of the different avenues you have available to you. There are more retirement accounts than a 401(k), and there are more assets than just stocks.

#3: Achieving diversification of asset classes.

Most people take “diversification” to mean choosing a variety of stocks. But if you really want to diversify, you’ll have to learn this concept asset classes, which really refers to the different types of investments you make. When you learn the asset classes—real estate, private company shares, etc.—you see a greater degree of what’s available to you.

Diversification means looking at alternative options like precious metals, for example, and making a decision to make your investments not only larger, but more broad. Casting a wider net generally means you’ll stand a greater chance of catching more fish—and in the case of hardship, you’ll have different asset classes to “fall back on” as well.

If you’re interested in learning more about how a Self Directed IRA works, be sure to continue reading our articles here at AmericanIRA.com. We cover a range of topics in our menu options above, acting as a “guide” to the world of Self Directed IRAs. And if after all that, you’re still stuck, you can contact us directly by calling 828-257-4949 and letting us know what you need to know.