Self-Directed IRA Retirement Tips You Need to Hear

Self-Directed IRA Retirement Tips You Need to Hear

When you think about retirement, what are the conventional tips you receive? Diversify. Think about the long-term. But when it comes to a Self-Directed IRA, you’d be surprised at how many important tips even so-called experts might leave out. In order to get a better handle on how you can build wealth for the long term, let’s look at some retirement tips that apply to holding a Self-Directed IRA:

Tip #1: True diversification is about asset classes.

You’ve heard it a thousand times: diversification is the key way to avoid excess risk. You don’t want to put all of your eggs in one basket. So why is it such common advice to do exactly that by putting all of your money in the stock market in one form or another?

Here’s something you might already know: if all you own are mutual funds, there’s a good chance you’re not as well-diversified as you think. Diversification is about asset classes, not just different assets within each class. And while it’s great to own a mutual fund rather than an individual stock, smart investors will think beyond even that in order to achieve true diversification—and more financial security.

Tip #2: Utilize your specific expertise with a Self-Directed IRA.

Know a lot about real estate? Then why, when it comes to your retirement plans, does real estate fall by the wayside? With a Self-Directed IRA you can invest in real estate. Sure, the rules are different—but so are the protections. That means you can have plenty of wealth stored away in an IRA that’s better-protected than any ordinary real estate investment. If you know a lot about real estate and know how to spot a good investment when you see one, holding real estate in an IRA is a great way to build wealth for your nest egg.

Tip #3: Taxes matter—a lot.

When it comes to retirement, you’re talking about compounding interest. That’s a powerful tool in building wealth, because it means you can expand your holdings simply by being patient. But compounding interest works both ways too. The more you lose to taxes now, the more devastating it is for your ultimate retirement nest egg.

Everyone should work hard to comply with all tax rules and laws. But that also means that you should take advantage of the tax protections the government affords you. This includes keeping some holdings in an IRA—and not necessarily just stock funds, either.

If you want your money to grow as efficiently as possible, you have to take taxes into account. IRAs are some of the best ways to reduce your tax burden while your money grows.

Tip #4: Massive growth is possible with the right investments.

The typical idea of holding money in the long-term is that compounding will be responsible for the massive growth. But using a Self-Directed IRA for something like a private company is a different way to get access to massive growth opportunities. Holding private equity in a company before an IPO, for example, can be a tremendous way to yield plenty of value in an IRA.

This isn’t to say that any private investment is a guarantee of massive growth. All investments carry some degree of risk. But holding a Self-Directed IRA can give you the IRA protection you need for investments that really pay off in the long run.

Want to know more about Self-Directed IRAs? Then it’s time to explore. Continue reading our materials here at or call us at 866-7500-IRA to learn more about how the Self-Directed IRA works.

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