Self Directed IRA – The Secrets of Diversified Holder
Want to do more with your money than the traditional 9-to-5 office worker does? Then you’re going to need to expand your definition of financial security to include the term Self Directed IRA.
Specifically, you’re going to have to learn how to diversify your assets so you don’t feel like you’re holding on to any one industry. And if you’re smart and do your research, you’ll find a lot of advantages to Self Directed IRAs along the way. Here are some of the not-so-secret “secrets” out there:
Secret #1: A Self Directed IRA Protects Your Assets.
If you’re ever curious about how “risky” a Self Directed IRA really is, consider that these are still retirement accounts. Retirement accounts are among the most protected financial accounts you can have, which is why so many experts recommend them for building long-term wealth.
One example: the Real Estate Self Directed IRA. In investing in real estate through a Self Directed IRA, you’re able to use non-recourse loans in order to use leverage. A non-recourse loan is a loan in which the lender can’t come after you or your assets if you default on the loan; instead, they can only come for the capital invested in itself. This means that your net worth is protected against total disaster, which lowers the overall risk associated with investing in real estate. This is the kind of protection that people who really know how to diversify will utilize to its full extent in order to maximize their financial security.
Secret #2: Options. Lots of options.
Maybe it’s not such a “secret,” but if you asked anyone about the concept of an IRA they probably wouldn’t even know what “Self-Directed” means, let alone that it was possible. The truth is, you get access to a lot of options when utilizing this kind of IRA. There are so many options in fact that the regulations tend to point out which investments you cannot make with these accounts.
After all, take a look at all of the options at our investment options page and you’ll start to get an idea of just how flexible an IRA can really be. Everything from real estate to private companies and joint ventures are possibilities when you direct your own IRA. That’s the kind of flexibility most people just don’t know about, which is what makes it a “secret” of someone who holds a diversified account.
Secret #3: Private loans.
Okay, now we’re really stretching the definition of the term “secret,” because this is a legitimate way to grow capital under a Self Directed IRA. In fact, it’s how banks get their money: loans. If you know how to sniff out a winner, a private loan can provide some of the best passive income there is. This means that your retirement savings can grow even after you’ve already made the decision to invest in a private loan, giving you plenty of options for focusing your attention and your energy elsewhere. True, there is inherent risk with loans—just as there is with any sort of investment.
If these kinds of “secrets” (which really aren’t so secret) appeal to you, then you’ll want to continue reading up on the concept of the Self Directed IRA and learn what it can do for you in order to achieve more diversification in your portfolio. Keep reading our blog posts here at AmericanIRA.com, explore our guides and downloads, and remember that you can always call us at 828-257-4949 if you want to learn more about what it takes to Self-Direct a retirement account for greater financial security and peace of mind.